Example

Let us say that you would like Rs 50,000 at the end of each year for 10 years as Minimum Annual Payout and you would like to pay premiums also for 10 years. You should then choose Rs 5,00,000 as your Sum Insured. If you would like the same Rs 50,000 at the end of each year for 5 years, then you should choose Rs 2,50,000 as Sum Insured.

Remember, however, that this is only the minimum amount and you will also receive additional payouts each year.

Additional Annual Payout

Additional Annual Payout amount gets added to the Minimum Annual Payout amount each time you pay premium. Thus, the future income that you will receive during the Payout Period will keep increasing. The Additional Annual Payout also becomes due to you at the end of each year during the Payout Period, along with the Minimum Annual payout.

Incomesurance™ offers complete transparency in declaration of your payouts.

The Additional Annual Payout is expressed as a percentage of the Minimum Annual Payout. The percentage of Additional Annual Payout depends upon the interest rates prevailing at the time you pay the premium. Higher the interest rate, higher will be the Additional Annual Payout. The Additional Annual Payout will be determined and guaranteed immediately after you pay each premium. It will not change later even if the interest rates would have changed.

Latest interest rates on the Government of India Securities (G-SEC)

Example

Let us say that you have chosen Rs 50,000 at the end of each year for 10 years as the Minimum Annual Payout and you have committed to pay annual premiums also for 10 years. When you pay your first premium, suppose that the interest rate on 10-year Government Securities is 7%. Your Additional Annual Payout will be 5.6% of your Minimum Annual Payout. Thus the additional payout will be Rs 50,000 x 5.6%, which is equal to Rs 2,800. After you pay your first premium, the Guaranteed Annual Payout you will receive for 10 years will be Rs 52,800 at the end of each year.

The same process applies every time you pay premium. Suppose that when you pay your second annual premium, the interest rate on 10-year Government Securities has increased to 10%. Your Additional Annual Payout from the second premium will be 10.5% of Minimum Annual Payout i.e. Rs 50,000 x 10.5%, which is equal to Rs 5,250. Your Guaranteed Annual Payout each year will now become Rs 52,800 + Rs 5,250 which is equal to Rs 58,050.

In the same way, the payout will increase when you pay each of the next eight premiums. The payout as determined in the manner specified here is fully guaranteed.

Incomesurance™ is completely flexible. You can choose how you want to get payouts.

Choose your Payout Plan to match your needs

While Incomesurance™ gives you Guaranteed Annual Payout during the Payout Period, it also gives you the choice in how you can withdraw the payouts. You have two options: (a) Annual Payout Option, and (b) Flexible Payout Option. You have to indicate the option at the time you take the Plan. However, you can change between the options at any time later for your future Guaranteed Annual Payouts.

Annual Payout Option

If you choose Annual Payout Option, we will pay you the Guaranteed Annual Payout at the end of each year during the Payout Period. This option is ideal when you want future income at regular intervals and you want to plan for regular recurring expenses. Your plan will mature and terminate at the end of the Payout Period. Under the Annual Payout Option, the last annual guaranteed payout will be due and paid at maturity.

Flexible Payout Option

If you choose Flexible Payout Option, we will not automatically pay you the Guaranteed Annual Payout at the end of each year. Instead, the payout after it becomes due remains with us and accumulates in your account. The amount in your account will also earn interest, so it continues to grow. The interest rate will be 90% of the rate on 1-year Government Securities, as declared by FIMMDA, determined on a monthly basis. You can withdraw any number of times but not more than once in each calendar month. The withdrawal amount at any one time should be not less than Rs 5,000.