In case of unfortunate demise of the life insured during the policy term, Death Benefit will be paid to the nominee. Death Benefit is the Sum Assured on death less any previously paid Terminal Illness Benefit. The policy shall be terminated once the Death Benefit is paid.
The minimum guaranteed sum assured on maturity is nil under this plan.
Absolute amount assured to be paid on death is the sum assured at inception of the policy and shall include any change in Sum Assured arising from the exercise of the Enhanced Life Stage Protection option.
In a scenario where Terminal Illness Benefit has already been paid in lumpsum, then the staggered death benefit will be calculated after deducting the Terminal illness benefit already paid.
In case the nominee would like to get a lump sum instead of the staggered payout post exercising this option, a discounted value of the outstanding annual income shall be paid as lump sum subject to a minimum of the Death Benefit payable less annual income already paid. The discounted value currently shall be calculated using an interest rate of 6.60% per annum. This interest rate is subject to change in future with prior IRDAI approval.
Refer to product brochure for detailed description regarding this benefit