Term Insurance 144 views July 15, 2021

Exide Life Term with Return of Premium Plan

Exide Life Term with Return of Premium Plan is a non-linked, non-participating individual life insurance that provides financial protection to your family in case of an unfortunate event of death. So, to fulfill the immediate financial requirements of your family in case of your absence buy Exide Life Term with Return of Premium Plan. Unlike most term plans where no benefits exist in case the policyholder survives till maturity, this plan hands you the paid premiums. Read this page further to know more about the Exide Life Term with Return of Premium Plan benefits.

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Exide Life Term with Return of Premium Plan Death Benefit

In case of death of the life assured during the policy term, the insurer shall pay Sum Assured on Death to the nominee. The Sum Assured on Death is higher of the following:

  1. Absolute amount assured to be paid on death
  2. 105% of total paid premiums
  3. 10X the annualized premium (if the life assured’s age is up to 44 years) or 7X the annualized premium (if the life assured’s age is 45 years and above)
  4. Sum Assured on Maturity

Exide Life Term with Return of Premium Plan Maturity Benefit

Upon survival till the date of maturity, the insurer shall pay the Sum Assured on Maturity to the life assured. The Sum Assured on Maturity is equal to 100% of the total paid premiums.

Exide Life Term with Return of Premium Plan Eligibility Criteria

You can purchase this policy if you meet the following age criteria:

  1. Minimum age at entry – 18 years
  2. Maximum age at entry – 50 years

Exide Life Term with Return of Premium Plan Policy Term & Sum Insured Options

Exide Life Term with Return of Premium Plan policy term is as follows:

For Limited Premium Payment Term – 10 to 30 years

For Regular Premium Payment Term – 12 to 30 years

The maximum policy term is 30 years, subject to a maximum maturity age of 65 years.

The minimum sum assured for Exide Life Term with Return of Premium Plan is as follows:

For Limited Premium Payment Term – INR 10 Lakhs

For Regular Premium Payment Term – INR 5 Lakhs

The maximum sum assured is INR 25 Lakhs for all premium payment terms.

Large Sum Assured Discounts on Exide Life Term with Return of Premium Plan

You’ll receive the benefit of a lower premium rate if you opt for a regular premium payment option. There are separate premium rates for Basic Sum Assured below INR 10 Lakhs and above INR 10 Lakhs. The premium rates for Basic Sum Assured of INR 10 Lakhs and above are lower than that of Basic Sum Assured below INR 10 Lakhs.

Note: There is no large sum assured discount for the limited premium payment option.

What if You Don’t Pay Exide Life Term with Return of Premium Plan Premium?

If the premiums are due within the grace period and the policy has not acquired a surrender value, your policy shall lapse and no benefits will be payable to you. This policy can be revived during the policy term but within five years from the date of the first unpaid premium if you submit the proof of continued insurability and pay all due premiums together with late fees. The late payment charge is calculated at a bank rate fixed by the RBI as on 1st April every year + 2.5%, rounded up to the multiple of 50 basis points. If needed, the company may ask you to undergo a medical examination.

If at least two full years’ premium has been paid and after that premium is not paid, the policy will convert into a reduced paid-up status on the date of expiry of the grace period. Once the policy attains the status of reduced paid-up, you will be eligible for a non-forfeiture benefit, as shown below:

Reduced Paid-up Death Benefit: (number of paid premiums)/(total number of premiums payable) x Sum Assured on Death.

Reduced Paid-up Maturity Benefit: Total paid premiums

Waiting Period

The waiting period of 90 days starts from the date of acceptance of risk. And in case of death of the life assured other than due to accident during the waiting period, the insurer shall pay the total paid premiums to the nominee. The waiting period shall not apply to accidental death, so the nominee will receive the death benefit as mentioned above.

Suicide Clause

In case of death of the life assured due to suicide within 12 months from the date of commencement of risk or the date of revival of the policy, the insurer will pay a higher of –

  1. 80% of Total Paid Premiums as on the date of death
  2. Surrender value as available on the date of death

to the nominee, provided the policy is in force.

Free Look Period

You will have a free look period of 15 days from the date of receipt of the policy document to review the terms and conditions. And if you disagree with the policy terms and conditions, you can return the policy stating the reasons for cancellation. Upon such cancellation, the insurer shall refund the paid premium after a deduction of a proportionate risk premium for the period of insurance cover and medical examination fees (if any) and stamp duty charges. All benefits and rights under this policy shall immediately stand terminated on the cancellation of the policy.

Note: Free look period is 30 days if the policy is sourced through distance marketing mode.

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