Sarmaya Gold Insurance Plan

Sarmaya Gold Insurance Plan

Sarmaya Gold is a Single Premium Universal Life product of choice when lump sum cash from a regular savings, business profits, an inheritance, an insurance payout, a gift or even a lottery windfall is to be invested together with life insurance coverage.

Sarmaya Gold life insurance is specifically designed to offer highest cash-value growth potential together with life insurance. In this policy, there is no on-going premium commitment required i.e. only one premium is enough for your policy to sustain and produce high cash values (more investment potential) for the full term of the policy.

If the policy matures, or if you withdraw 100% of your cash value at an earlier age, you will have to choose one of the following options to receive your accumulated amount.

  • Single Lump Sum
  • Life Long Pension
  • Combination of Lump Sum Payment and Life Long Pension

The resulting benefits can be used for

  • Marriage
  • Business ventures
  • Grandchildren
  • Retirement
  • and many more useful projects

You can set the amount of premium payment based on your policy’s death benefit and financial objectives subject to a minimum premium depending on your age and choice of sum assured. The amount of single premium cannot be less than Rs 100,000. You can choose a sum assured from 5% to 100% of the amount of single premium.

After two policy years have been completed, you can make withdrawals from your account value to meet your cash needs. The policy will result in much higher cash values if no amount is taken out of the policy as withdrawal. Hence, it is in your best interest not to make withdrawal from your policy unless there is really a genuine need.

Evidence of good health

Normal underwriting procedure will apply depending on your age and choice of sum assured.

Benefit Payable on Maturity

On survival of the life insured up to the maturity date, the Net Cash Value shall be payable. The Net Cash Value will be the Mathematical Reserve of the policy calculated LESS outstanding amounts due to us for loans given (if any).

Benefits Payable on Natural Death of Life Insured

On natural death of the life insured, provided the policy has not terminated, the benefit payable will be sum of (i) and (ii)

  • the sum insured in respect of the policy year in which the death took place
  • the Account Value of the policy year in which the death took place
Benefits Payable on Accidental Death of Life Insured

On accidental death of the life insured before age 60 or expiry of the policy whichever is earlier, provided the policy has not terminated, the benefit payable will be sum of (i) and (ii)

  • three times the sum insured in respect of the policy year in which the death took place
  • the Account Value of the policy year in which the death took place
Lump sum additional premium

At any time during the term of the policy, you can pay additional lump sum premium in your account which will increase the cash value. This additional premium can also be used to increase your sum assured, if you want, after certain medical evidence.

Account Value

The premium paid less any related expenses will be credited to your account in the first year of the policy. Cost of insurance will be deducted each year. Any lump sum additional premium will be credited to your account. The amount in your account will be invested in secured investments. Your account will be credited each year with your share of investment income earned on the invested assets.

It should be noted here that the rate of increase in your account value is subject the investment income earned by the Company on the invested assets, which cannot be predicted in the long range.

Expenses and Mortality Charges

An amount equal to 5% of the lump sum single basic premium will be deducted from the account value of the policyholder as management expenses only in the first year of the policy.

A mortality charge will be deducted each year based on the age of the policyholder and the sum at risk and as determined by the actuary.

Partial Withdrawals

After two policy years have been completed, and provided the policy has not terminated, you can make partial withdrawals, at your written request, against the Net Cash Value of the policy. The amount of the withdrawal can be such that there should be a minimum residual balance in the account to continue the policy. The minimum residual balance criteria are as follows:

  • Policy with initial premium between Rs 100,000 and Rs 299,999, minimum residual balance should be equal to the initial single premium amount
  • Policy with initial premium Rs 300,000 or above, minimum residual balance should be Rs 300,000

The policy will result in much higher cash values if no amount is taken out of the policy withdrawal. Hence, it is in your best interest not to make withdrawal from your policy unless there is really a genuine need.

Cash Surrender Value

After two policy years have been completed you may ask us to pay you 100% of your account value and terminate the Policy.

Pension from an age of your choice

If the policy matures, or if you withdraw 100% at an earlier age, you will have the option to take a pension from an age of your choice in lieu of the lump sum. The rate of pension will be decided at the time of maturity according to the financial and other conditions ruling at that time. At the chosen maturity date, you can elect to take a portion of your net cash surrender value in lump sum and apply the rest towards pension.

Minimum age at entry
18 years

Maximum age at entry
60 years

Minimum Term
5 years

Maximum Term
25 years or upto the age of 70 years, whichever is earlier