ING Smart Shield

• The advantage of credit life insurance to the borrower is that in case of untimely death of the insured the outstanding loan amount is covered by the insurer and thus the estate of the family remains intact.

• As it is a single premium policy there are no regular payment hassles for the borrower and there is no possibility of policy lapsing.

• Premiums paid by the loan borrowers can be used for tax exemption under Section 88 of Income Tax Act.

• Comprehensive life insurance coverage at a lower cost as compared to individual life insurance policies.

• One master policy to cover all existing and new members.

• Easy administration.

• Default of the loan due to death can be hedged by opting for insurance.

• This is an open-ended group single premium non-participating decreasing term assurance plan.

• The product will be sold to banks and financial institutions offering personal, educational, agriculture, auto and other consumer loans. The product is also targeted at deposit products, such as recurring deposits and systematic investment plans of mutual funds, where a sum assured can be of a decreasing nature and a schedule similar to outstanding loan schedule can be drawn.

• A master policy will be issued to the bank/financial institution to cover existing and new customers for the entire tenure of their respective financial products.

• The single premium will be paid by the bank/financial institution.

• The cover at any point of time in respect of a member will be based on the schedule of death benefit drawn at inception.

• There is no survival or maturity benefit.

• There is no surrender value payable in case a debtor prepays the outstanding loan prior to the term of the insurance or in case the group policy holder chooses to cancel the policy contract under specified circumstances (which are explained in the later part of this note).

• The individual participation can be compulsory or voluntary.

This is a Single premium policy. Single premium will be paid in advance which will be expressed as per Rs. 1000/- of initial outstanding loan.

Eligibility limits

Benefits

Benefit payable under death will be paid immediately on death of member, at any time before the expiry of the term and will be based on the loan schedule drawn at the time of issue of the loan. No other benefits are entertained under this product.