Death Benefit

• 1) Employer-Employee Scheme:

  On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

• 2) Employee deposit linked Insurance Scheme (EDLI) Scheme:

  On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

• 3) Non Employer-Employee Scheme:

  On unfortunate demise of the Insured Member during the Policy Term, the Sum Assured shall be payable to the beneficiary.

In case of Parents of School/College going children who are given coverage under this scheme, Company will offer two options of availing the death benefit either in lump sum or as staggered payments by the beneficiary.

Staggered payments - The beneficiary will receive payouts in the form of monthly/annual installments over a period of 2 years to 15 years in either monthly or yearly mode at an interest rate of 5% per annum. The first staggered benefit installment will be payable immediately on the date of death. The staggered benefit installment will be calculated using the following factors depending upon the staggered benefit payment period multiplied with death benefit amount and divided by 1,000.

During the staggered benefit payment period, if a beneficiary wants to take all future balance monthly/yearly payments as a lump sum, the lumpsum benefit payable will be equal to the discounted value of the all future balance staggered benefit payments at an interest rate of 5% per annum

Note - The term 'beneficiary' mentioned above means nominee/legal heir of the member.

However, in case the Master Policy is issued under Lender-Borrower category, the Insured Member shall have an option to issue an authorization in favor of the Company to the effect that in the unfortunate event of Insured Member’s death during the Coverage Term, the claim amount, if any payable under the Master Policy shall first be utilized for payment to Master Policyholder for the outstanding loan amount as specified in Master Policyholder’s Credit Account Statement and the balance amount, if any, payable under the Master Policy shall be paid to Nominee. This option shall however be applicable only for certain categories of Master Policyholders.

The eligible categories of Master Policyholders are Reserve Bank of India (RBI) regulated Scheduled Commercial Banks, NBFC’s having certificate of registration from RBI and National Housing Bank (NHB) regulated Housing Finance Companies in accordance with IRDA guidelines as amended from time to time.

However, in case of Master Policyholder who does not fall under the specified categories, then on the unfortunate event of Insured Member’s death during the Coverage Term, the claim amount shall be payable to Insured Member’s Nominee.

Maturity Benefit

There is no maturity benefit under any of the schemes.

Tax Benefits:

The following tax benefits will be applicable as per the prevailing tax laws for Employer-Employee Schemes:

• Premium paid by the Policy Holder, in case of an employer paying on behalf of the employees, is considered as part of the business expenses under Section 37 of Income Tax Act, 1961 and is tax deductible
• Premium paid by the employer is not treated as a perquisite in the hands of the employee.
• All claim payments are considered as non-taxable receipts.
• Service Tax and education cess as applicable will be charged over and above the quoted premium.

Under Non Employer-Employee Schemes, the members can avail tax benefit in respect of the premium paid as per the prevailing tax laws.

Tax laws are subject to change. Please refer to your tax consultant for details.