The opening up of the insurance sector in 2000 by the Government of India has been a boon to life insurance customers. With the emergence of several private insurers, customers were given a lot of choices in the range of innovative insurance products with different benefits and features.
Pramerica Life Insurance started operating a DHFL Pramerica Life Insurance in 2008 but became a Joint Venture in 2013 with Headquarters in Gurugram. The stakeholders DHFL investment and Prudential International Insurance Holdings bring their expertise to the fore and deliver insurance solutions for both individual and group space. With a pan India presence through 144 branch offices, Pramerica Life Insurance caters to over 14 million customers.
They offer three protection plans, also referred to as term plans. The plans are laced with truly redeeming features to satisfy the tastes of discerning policyholders. Pure protection or term plans have been one of the mainstays of financial planning. It provides a robust mechanism to safeguard the financial future of the dependent family in the absence of the breadwinner. The hefty sum assured and an affordable premium make Pramerica Life Term Insurance Plan an attractive financial planning tool to knowledgeable customers.
Pramerica Life Term Insurance Plans are simple insurance policies designed for the protection of the family in the absence of the breadwinner. It is a straightforward arrangement between the policyholder and Pramerica Life Insurance promising to pay an agreed-upon sum assured to the beneficiary in the event of the death of the policyholder during the policy term. To fulfil the promise, a premium is paid to the company in predetermined sum and frequencies for a period known as the policy term. The simplicity of the arrangement is borne out by the fact that there is no maturity benefit if the policyholder outlives the policy term, and the policy expires.
The term policy comes into play only if there is a financial loss due to the death of the policyholder when the benefits equivalent to the sum assured are paid and the policy is terminated. The absence of any other financial consideration is the primary reason for Pramerica Life Term Insurance Plans to deliver high life risk cover at an affordable premium. It is beside the point that the sum assured can be substantially augmented by a range of riders to suit individual preferences.
The portfolio of Pramerica Life Insurance comprises of diverse insurance solutions in Term, Savings, Child and Wealth Creation, customized to the specific needs of varied customer segments. It has achieved a Claim Settlement Ratio of about 96% and offers a robust portal for customer convenience. With a friendly Claim Settlement mechanism in place, Pramerica Life Insurance has emerged as a reliable insurer delivering customer satisfaction.
Among the many insurance solutions offered by the company, their term plans occupy a pride of place, with one of them offered for online purchase. Also, all the term plans come with a host of features, making them extremely affordable and attractive. They offer three unique term plans. They are:
Pramerica Life U-Protect
Pramerica Life Flexi e-Term
Though the insurer offers three-term plans, the range of benefits is distributed across all three, suiting the individual tastes of the policyholders. Some of the key features are:
The term plan primarily safeguards the financial stability of the family through the high sum assured disbursed as a benefit on the demise of the policyholder. The high sum assured coverage serves multiple purposes of sustaining the existing lifestyle of the survivors and supporting the family to fulfil their needs.
Family assets are procured out of advances. Similarly, the education of children is also financed by suitable loans. A term policy benefit suffices in liquidating existing debts and supports children’s uninterrupted education.
There is a range of optional riders that help the policyholder to augment sum assured, suiting specific family needs. Popular among the riders are Accidental Death and Critical illness riders.
Apart from the offline mode of purchase, Pramerica Life Insurance offers direct purchase from its portal at competitive prices, apart from the facility to compare term plans.
The normal mode of payout is lump-sum. However, the payout can be staggered over a stipulated period. One can choose one that is most suited to the family.
It is a new feature where there is maturity benefit in the form of Return of Premium. It is offered in all the payment options of single, limited, and regular pay.
There are several exemptions in Income-tax under the Income Tax Act, 1961. Premium paid in a financial year under Section 80C, Critical illness Premium under Section 80D and Benefited Payout under Section 10(10D).
A term plan designed to deliver financial protection cover to the family in the absence of the policyholder. Key highlights of the term plan are:
The cover comes with Additional Shield upon the demise of the policyholder
Option to choose from Level and Reducing Cover
Paid Premium is refunded on the survival of the policy term
There are three options to choose from
For Level Benefit:
For Reducing Benefit:
It is a term plan providing family cover for a comfortable life at a very nominal cost. Key highlights of the plan are:
This term plan offers a comprehensive cover for family along with a host of additional covers comprising of accidental death, terminal and critical illness. Key highlights of the plan are:
Multiple Benefit Options: There is a range to choose from:
Life Stage Addition Cover: It allows the policyholder to augment coverage at different life stage events suitably. The details are:
Payout Benefits: There are three options to choose from:
There are some of the very important documents that are needed to apply for any life insurance plan, and Pramerica Life Insurance is no exception. Though the standard list is uniform across insurers, there may be variations with specific plans. That apart, while hard copies are the usual mode in the offline application, it is the digital format that is acceptable for online application. The standard list is:
Identity Proof: Any of the valid photo identity cards applicable for complying with KYC norms
Age Proof: It is vital to fix the premium rate, which is age-related. Any of the valid photo ID proof stating the date of birth and others like school leaving and Birth Certificate is accepted
Residence Proof: The same set of valid ID proof cards with address in it is acceptable. Additionally, one may also submit current utility bills as valid address proof
Income Proof: Acceptable documents depend on the status of the applicant. For a salaried applicant, the proof can be Salary Slips, Form 16, and ITR for specified periods. In the case of Self-Employed individuals P&L Statement, Balance Sheet, in addition to ITR and Bank Statements may be called for
It is one of the crucial aspects of any term policy. Claim settlement being the culmination of benefits in a term plan, exclusion clauses until properly comprehended by the policyholder, may affect the claim settlement experience as well as impact the quantum of benefit. Thus, it is imperative for the policyholder to thoroughly scan the fine print in the policy document to obviate unforeseen hitches.
The first thing a policyholder needs to do on receipt of the policy document is to review its contents. It not only ensures that all the purchase features and options are correctly incorporated but also find omissions, if any, for immediate rectification. The correctness of the inclusions is important for the final phase of the policy life cycle related to claims and benefits. Any undetected deficiency can mar the outcome and lead to future complications.
Exclusions of Pramerica Life Term Insurance include:
Pramerica Life Insurance has a robust claim settlement process to help the claimant overcome the trauma of death and smoothen the hardship faced as its outcome. The first step of intimation is contacting PaisaWiki and informing them about the demise. You may do it via dropping an email or calling the insurer on the details provided on the policy document.
Having served the process of intimation, it is also important to know the chronological steps for the successful claim settlement.
Step 1: Visit PaisaWiki website and click on the ‘Claim’ tab. You would require the following details to fill in the Claim form:
Step 2: Fill in the appropriate claim form depending on the type of claim along with other requisite documents.
Step 3: The claim processing begins once the documents are submitted in full
The claimant would require the following set of documents while registering for Pramerica Life Term Insurance Claim:
Original Policy Document
Hospital treatment records
Treating physician’s statement
KYC Documents of the claimant including relationship proof
Cancelled Cheque for NEFT
Bank records to show a payment to the insurer
Additional documents for Accidental Death
Police investigation/Panchanama and inquest report
One of the digital tools available with customers to check if a particular chosen term plan fits the bill is the Premium Calculator at the insurer as well as the aggregator portal. However, it is only an indicator and comes in handy for online purchases. On the other hand, a thorough knowledge of the eligibility norms of different plans helps in arriving at an informed choice.
|Plan Name||Entry Age||Maturity Age||Policy Term|
|Pramerica Life E Term||18 years||65 years||75 years||10 years||75 years|
|Pramerica Life TruShield||18 years||45 to 55 years||65 years||7, 10, 12, 15 and 20 years|
|Pramerica Life U Protect||18 years||55 years||65 years||10 years||30 years|
Renewal of premium is automatic on payment of the premium, on or before the due date. To better understand the renewal process, one needs to know the various modes of premium payment. Single pay policies are excluded from the hassle of periodic renewal. It is only the Limited and Regular pay policies that need to be renewed within due time. Pramerica Term Plans can be renewed both as the offline and online modes. For offline, the policy can be renewed through a Cheque pick up facility extended by the insurer. However, online premium payment is convenient to the policyholder for its ease as well as prevents the levy of penalties for late payment.
The online premium payment option is available at the PaisaWiki. The following steps comprise the entire process.
Step 1: Visit the PaisaWiki website and click on the ‘Renewal’ button.
Step 2: Choose ‘Pramerica Life Term Insurance’ from the given options.
Step 3: Input the policyholder’s date of birth, policy number, and hit the ‘Get Premium’ tab.
Step 4: A new tab opens with the premium amount displayed. Confirm the amount and choose the payment method from the options available.
Step 5: Authorize a payment and save the acknowledgement slip.
While choosing the right plan to purchase is challenging, the options available are both offline and online. The offline purchase can be made at the office of the insurer or with any of the agents, who facilitates the process.
Offline purchase requires the filling of the proposal form, attaching requisite documents, and a Cheque or DD for the first premium payment.
The online mode, on the other hand, offers a range of advantages and convenience. The first is the facility to compare term plans and choose the right one. Secondly, it is easy to complete the formalities and pay premium digitally through a safe gateway. One of the vital benefits of the online purchase of Pramerica Life Term Insurance Policy is the cost, where the overhead savings made by the insurer due to the absence of intermediaries are passed onto the customer in the form of a lower premium. The entire process of online purchase involves the following defined steps.
Step 1: First, choose the sum assured from the benefits options with additional inbuilt covers.
Step 2: Next, select the appropriate payout options.
Step 3: The next step is to choose the policy term and also the policy payment duration for the cover.
Step 4: Receive the quote considering the selected features, which also factors in gender and non-smokers with a premium discount.
Step 5: Pay the premium using any of the online payment options available.
Step 6: The attested documents can either be couriered or uploaded digitally, to complete the process.
Step 7: On completion of the process described above, the application is processed, and the policy document is sent to the registered Email address of the applicant.