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Pramerica Life Term Insurance Plans

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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.

What is Pramerica Life Term Insurance Plan?

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.

Why Choose Pramerica Life Term Insurance Plans?

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.

Types of Pramerica Life Term Insurance Plans

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 TruShield
  • Pramerica Life U-Protect

  • Pramerica Life Flexi e-Term

Features and Benefits of Pramerica Life Term Insurance Plans

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:

  • Family Protection

    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.

  • Safeguarding Assets

    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.

  • Additional Cover

    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.

  • Convenient Buying Options

    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.

  • Choice of Multiple Payout Options

    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.

  • Return of Premium

    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.

  • Tax Benefits

    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).

Pramerica Life Term Insurance Plans Explained

  • Pramerica Life TruShield

    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:

    Comprehensive Cover: 

    The cover comes with Additional Shield upon the demise of the policyholder

    Flexible Death Benefits: 

    Option to choose from Level and Reducing Cover

    Maturity Benefit: 

    Paid Premium is refunded on the survival of the policy term

    Multiple Premium Payment Options: 

    There are three options to choose from

    • Single Pay
    • Limited Pay
    • Regular Pay

    Benefits:

    • Additional Shield: It is paid in addition to Death Benefit after the Premium Payment Term is over
    • Discounted Premium: In the first policy year
    • Sum Assured: Minimum Rs 5 Lakh and Maximum Rs 50 Crore
    • Minimum Premium:  The annual premium to be paid is as follows

    For Level Benefit:

    • Limited Pay: Rs 6460
    • Regular Pay: Rs 14425
    • Single Pay: Rs 29570

    For Reducing Benefit:

    • Limited Pay: Rs 6010
    • Regular Pay: Rs 12705
    • Single Pay: Rs 26915
  • Pramerica Life U-Protect

    It is a term plan providing family cover for a comfortable life at a very nominal cost. Key highlights of the plan are:

    • Attractive premium rates
    • Lower premium for lifestyle habits and non-smokers
    • Benefits
    • The death benefit on the demise of the policyholder
    • No maturity benefits are paid under this plan
    • Sum Assured: Minimum Rs 25 Lakh and Maximum without limit
    • Premium Payment Frequency: Annual and Half-year in regular terms
    • Minimum Annual Premium: Rs 4000
  • Pramerica Life Flexi E-Term

    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 + Terminal Illness Cover
    • Life + Terminal Illness + Accidental Death Cover
    • Life + Terminal Illness + Critical illness Cover
    • Life + Terminal Illness + Critical illness Cover + Accidental Death Cover

    Life Stage Addition Cover: It allows the policyholder to augment coverage at different life stage events suitably. The details are:

    • Marriage: 25% of Base Sum Assured limited to Rs 25 Lakh
    • 1st child: 25% of Base Sum Assured limited to Rs 25 Lakh
    • 2nd Child: 25% of Base Sum Assured limited to Rs 25 Lakh
    • House: 25% of Base Sum Assured limited to Rs 25 Lakh

    Payout Benefits: There are three options to choose from:

    • Lump-Sum: Immediately on the death
    • Level Monthly Income: Base Sum assured is paid in equal monthly instalments spread over 5 to 15 years
    • Increasing Monthly Income: Monthly income increases at 10% of the Base Sum Assured every policy anniversary

    Sum Assured

    • Base Sum Assured: Minimum: Rs 25 Lakh, Maximum: No limit
    • ADB Sum Assured: Minimum: Rs 25 Lakh, Maximum: Rs 1 Crore
    • TI Sum Assured: Minimum: Rs 25 Lakh, Maximum: Rs 1 Crore
    • CI Sum Assured: Minimum: Rs 1 Lakh, Maximum: Rs 50 Lakh
    • Minimum Annual Premium: Rs 3000
    • Facility for Online purchase

Documents Required to Apply for Pramerica Life Term Insurance Plans

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:

  • Recent Passport size photograph
  • 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 

Inclusions and Exclusions in Pramerica Life Term Insurance Plans

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.

  • Inclusions

    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

    Exclusions of Pramerica Life Term Insurance include:

    • Suicide: On death caused due to suicide within 12 months of commencement of risk at purchase or revival, 80% of the total premium paid shall be paid as a death benefit
    • No benefit whatsoever will be payable in the event of death or diagnosis in any of the following clauses:
    • Any pre-existing disease or medical condition
    • Suffering from HIV / AIDS or STD
    • Participating in any of the adventurous, hazardous, or extreme sports like racing, trekking, bungee jumping, paragliding, etc.
    • Participating in any illegal or criminal activities
    • Due to war, conflicts, hostilities, terrorism, or any military operations
    • Self-inflicted injury or harm
    • Driving under the influence of alcohol, drugs, narcotics or other intoxicants and their abuse
    • Nuclear peril, radioactive, biological and chemical contamination

Claim Settlement Process at Pramerica Life Insurance

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:

    • Policy Number
    • Name of the Policyholder
    • Name of the Nominee
    • Date of Death / Diagnosis of Terminal / Critical illness
    • Address and contact number of the claimant
  • 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

    • Any additional requirement will be communicated for compliance
    • The decision will be communicated to the claimant within 30 days
    • The benefit amount will be remitted to the claimant’s Bank account electronically through NEFT

List of Claim Documents

The claimant would require the following set of documents while registering for Pramerica Life Term Insurance Claim:

  • Duly completed death claim form
  • Original Policy Document

  • Death Certificate

  • 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

  • FIR

  • Post-mortem Report

  • Police investigation/Panchanama and inquest report

  • Newspaper clipping, if any

Eligibility Criteria for Pramerica Life Term Insurance Plans

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
Min Max   Min Max
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 Process of Pramerica Life Term Insurance Plans

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.

How to Buy Pramerica Life Term Insurance Plans?

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.

Faqs

Written By: Paisawiki - Updated: 22 September 2020