Generali Central Life Insurance Assured Income Plan

What is Generali Central Life Insurance Assured Income Plan?

The Generali Central Life Insurance Assured Income Plan is an investment plan aimed at helping policyholders systematically save money to build a reliable income stream alongside life cover. Under this plan, you select a policy term of either 11 or 15 years and pay the required premiums for that specific duration.

Once your policy term concludes, the plan operates by providing you with a guaranteed income every year or month for the subsequent 11 or 15 years, corresponding to your initial term. Additionally, your savings culminate in an additional lump-sum benefit paid alongside your final income installment. Ultimately, the plan acts as a dual-purpose financial tool, offering both a reliable payout structure for your future needs and a robust death cover to protect your loved ones in case of unfortunate uncertainties.

Features of Generali Central Life Insurance Assured Income Plan

• Guaranteed Income: Policyholders pay premiums for a term of 11 or 15 years and receive guaranteed payout installments for the following 11 or 15 years.
• Additional Benefit: A lump-sum benefit ranging from 1 to 4.5 times the annualized premium is paid out along with the final installment at the end of the payout term.
• Death Benefit Cover: Based on the life assured’s entry age and chosen policy term, the total death cover ranges from 17.5 to 34.5 times the annualized premium, which is inclusive of the additional benefit.
• Flexible Payout Options: Maturity and death benefits can be disbursed as annual installments, monthly installments (with a 2.5% markup on the base value), or as a discounted lump-sum payment.
• Tax Benefits: You may be eligible to claim tax deductions on the premiums paid and the benefit proceeds received under Section 80C and Section 10(10D) of the Income Tax Act, subject to current tax laws.

Eligibility Criteria for Generali Central Life Insurance Assured Income Plan

Benefits of Generali Central Life Insurance Assured Income Plan

• Maturity Benefit: If all due premiums have been paid, the policyholder receives an annual payout at the end of the policy term. For an 11-year term, the plan pays 11 annual installments of 1.5 times the annualized premium from the end of the 12th year to the 22nd year. For a 15-year term, it pays 15 annual installments of 2 times the annualized premium from the end of the 16th to the 30th year. Furthermore, an additional benefit based on entry age is paid at the end of the payout period. You also have the flexibility to take monthly installments or a single discounted lump-sum payment at maturity (discounted at 5.5% p.a. compounded yearly).
• Death Benefit: In the unfortunate event of the life assured's demise during the policy term, the nominee is entitled to a Death Sum Assured. This base amount is the highest of 10 times the annualized premium, 105% of total premiums paid as of the date of death, or the Maturity Sum Assured. The payout is distributed as annual installments (1.5 times the premium for an 11-year term or 2 times the premium for a 15-year term), followed by the additional lump-sum benefit alongside the final installment. The nominee can also choose to receive the death benefit as a discounted lump sum immediately upon claim settlement.
• Tax Benefits: Premiums and policy benefits may qualify for tax benefits under the respective provisions of Sections 80C and 10(10D) of current income tax laws.

Additional Details of Generali Central Life Insurance Assured Income Plan

• Premium Payment Options: Premiums can be paid annually or monthly. Policyholders can change their payment frequency, effective from the next Policy Anniversary.
• Grace Period: A grace period of 30 days is available for annual premium payment frequency, and 15 days for monthly payments. The policy cover remains fully active during this period.
• Free-Look Period: Policyholders who disagree with the terms can cancel and return the policy within 15 days of receipt (30 days if purchased via distance marketing modes or electronic accounts). The premium will be refunded after deducting the proportionate risk premium, stamp duty, and any medical examination costs.
• Auto Cover: If you stop paying premiums after completing at least 3 full years of payments, the plan provides an automatic life cover (Auto Cover) for one year. The standard death benefit remains payable during this period, subject to the deduction of the unpaid due premium.
• Paid-Up Value: If premiums remain unpaid after the Auto Cover period expires (provided 3 years of premiums were paid), the policy automatically converts into a Paid-Up Policy. In this state, both the Death Benefit and Maturity Benefit are reduced proportionately based on the ratio of premiums paid to the total premiums payable.
• Surrender Rules: The policy acquires a Surrender Value after 3 full years of due premiums are paid. Surrendering terminates all benefits immediately. The payout is the higher of the Guaranteed Surrender Value (which scales from 30% to 90% of paid premiums depending on the year of surrender) and the Special Surrender Value.
• Revival Provisions: A lapsed or Paid-Up policy can be revived within 2 years from the date of the first unpaid premium. This requires the payment of all premium arrears along with interest. A Paid-Up policy cannot be revived after the policy term has concluded.
• Policy Loans: Once the policy acquires a surrender value, you can avail of a loan against it up to a maximum of 85% of the Surrender Value.
• Nomination and Assignment: Nominations are fully permitted under Section 39 of the Insurance Act, 1938, and assignments are permitted under Section 38 of the same Act. However, policies purchased under the MWP (Married Women’s Property) Act cannot be assigned.

Exclusions Under Generali Central Life Insurance Assured Income Plan

• Suicide Exclusion: If the life assured commits suicide within one year from the policy's commencement date, the nominee or legal heirs will receive 80% of the premium paid, provided the policy is active. If a suicide occurs within one year from a policy's revival date, the payout will be the higher of 80% of the premiums paid or the accumulated Surrender Value.