The Sadabahar Plan is an anticipated endowment type with-profit life insurance policy offered by State Life Insurance Corporation (assuming this information is from State Life Insurance Corporation). It is designed to provide a lump sum benefit at certain stages during the premium-paying term or in the event of the policyholder's earlier death. Here are some key features and details of the Sadabahar Plan:
Available to all members of the general public aged from 20 to 60 years nearest birthday.
Both males and females can purchase this plan.
Terms offered under this plan are 12, 15, 18, 21, 24, 27, and 30 years. Policyholders can choose the term that suits their needs.
On completion of one-third of the policy term (for example, if the policy term is 30 years, this would be after 10 years), the policyholder can receive 20% of the basic sum assured.
Another 20% of the sum assured can be taken on completion of two-thirds of the policy term (for example, after 20 years).
The remaining 60% of the basic sum assured plus any accrued bonuses (if any) will be payable at the end of the policy term if the assured survives.
If the option to withdraw an installment of 20% sum assured is not exercised on the due date or within 6 months after the due date, a special bonus will be automatically added to the policy. This special bonus has implications for both death benefits and maturity benefits:
On the death of the assured while the policy is in force, the special bonus will be payable in addition to the basic sum assured, other reversionary bonuses accrued on the policy, and the amount of any installment left with State Life.
As long as the policy remains in force, the policyholder may surrender the unclaimed installment of the sum assured together with the related special bonus. The aggregate cash surrender value of the two shall not be less than the amount of the said unclaimed installment.
In the event of the insured's death while the policy is in force, the full basic sum insured plus accrued bonuses are payable. Additionally, if death occurs as a result of an accident, an additional amount equal to one basic sum assured (subject to a maximum limit) will be paid. The maximum limit on the Accidental Death Benefit (ADB) is typically specified in the policy, and premium calculations are adjusted accordingly.
The policy participates in State Life's surplus, and the rates of bonus applicable are 25% higher than those on the anticipated endowment plan. Bonuses are typically declared each year on the basic sum assured, but the unclaimed installments of the sum assured and related special bonus do not participate in State Life's Actuarial Surplus.
In summary, the Sadabahar Plan offers a combination of savings and protection with the added benefit of an Accidental Death Benefit rider. It provides policyholders with options to receive partial payouts during the policy term and additional benefits in the event of death due to an accident. The policy also participates in State Life's surplus, which can result in higher bonus rates compared to some other plans.
