What are guaranteed additions?
Guaranteed additions are additional benefits that you will get at the time of policy maturity. The insurance provider will calculate the guaranteed addition payout amount for you based on the policy term, premium payment term, the age at the time of policy purchase, and the annual premium amount.
Please check the below table for more details on this:
| Guaranteed Additions | |||||||
| Age as on last birthday | 7(PPT)/10 (PT) | 7(PPT)/15(PT) | 8(PPT)/15(PT) | 10(PPT)/15(PT) | 5(PPT)/20(PT) | 7(PPT)/20(PT) | 8(PPT)/20(PT) |
| 18 to 24 years | 0.01 | 4.00 | 5.50 | 8.84 | 4.22 | 8.85 | 11.23 |
| 25 to 34 years | 0.01 | 3.54 | 4.99 | 8.11 | 3.50 | 8.04 | 10.34 |
| 35 to 45 years | 0.01 | 3.30 | 4.72 | 7.59 | 3.37 | 7.64 | 9.96 |
| 46 to 55 years | 0.01 | 2.78 | 4.14 | 7.33 | NA | NA | NA |
Let’s take an example:
| Policyholder age | 40 years |
| Sum assured | ₹5,00,000 |
| Policy term | 15 years |
| Premium payment term | 10 years |
| Guaranteed additions | 7.59*₹50,000 = ₹3,79,500 (Guaranteed addition factor * annual premium) |
| Guaranteed addition payout amount (on maturity) | ₹5,00,000 + ₹3,79,500 = ₹8,79,500 |
