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Review of Star Union Dhan Suraksha Platinum Endowment Plan


Endowment insurance plans are those that offer a combination of a life cover and maturity benefits. In the event of death, the nominee would receive a sum assured plus bonus, guaranteed additions and such. In case the insured survives the term of the policy, he receives the sum assured, bonus and guaranteed additions for the entire term of the policy. The latest endowment plan in the offering is Star Union Dai Chi’s Dhan Suraksha Platinum Plan. We review the plan for you to understand its various benefits and if it is value for your money.

Star Union Dai Chi Life Insurance

Star Union Dai Chi Life Insurance Co. Ltd. is a joint venture floated by Bank of India, Union Bank of India and the Dai Chi Mutual Life Insurance company of Japan. Bank of India and Union Bank of India already have a strong nationwide network which shall serve as distribution outlets. With more than 48 million strong banking customer bases, the two banks provide ready scope for cross selling of insurance products.

Dhan Suraksha Platinum- Plan Open till March 31, 2012

The Dhan Suraksha Platinum Plan is a non- participating, limited period traditional endowment plan. It is targeted at high net worth individuals to help them capitalize and benefit on their tax savings. The product offers a combination of a significant life protection cover along with the option of earning returns on the investment.

Benefits on the Plan

  • For a one time premium investment, the plan offers a constant life cover over 10 year tenure.
  • It offers a guaranteed maturity benefit at the end of this policy term. This return depends on the age of the insured and varies from 4% to 9.71%. For a healthy 25 year old male paying a premium of Rs 1 lakh, the maturity proceeds at the end of 10th year will be Rs 1,94,000. (Source: Dhan Suraksha Plan brochure)
  • Death Benefit equals 5 times value of single premium paid.
  • Higher maturity benefit for high premium policies: 2% on a single premium of Rs 5 lakh to Rs 40.90 lakh, 3% for policy premiums of Rs 50 lakh and above.
  • Tax benefits: On the premium invested under Section 80C and a tax break on the plan benefits received under Section 10 (10D).
  • Loans: Personal loan against this policy by assigning the policy document as collateral. The maximum amount of loan that can be availed is 75% of the surrender value at the time of taking the loan.
  • Surrender Benefit: The guaranteed surrender value is equal to 85% of the single premium before the second policy anniversary. On or after the second policy anniversary, the guaranteed surrender value becomes equal to 90% of the single premium paid. If you need to surrender the policy, the higher of guaranteed surrender value and cash surrender value will be paid. Your policy will be terminated and no further benefits will be paid under the policy after we have paid you the surrender value.


  • Minimum entry age        : 8 years
  • Maximum entry age       : 55years
  • Minimum exit age          : 18 years
  • Maximum exit age         : 65 years
  • Minimum premium         : Rs 1 Lakh
  • Maximum premium        : Rs 1 Crore

Reviewing the Plan

The plan with its one time premium payment is definitely a hassle free and simple to invest plan. So you wouldn’t really need to remember premium payment dates regularly. Given the current trend of volatility in the markets, such a traditional plan is ideal for risk averse investors who are looking for guaranteed returns from their investments.

What seems to be a disappointment in the plan is the lack of clarity on the charge structure. Also, the returns may not be very competitive in comparison to other debt investments. What one must remember is that premiums for endowment plans are generally higher in comparison to other term plans as a substantial part of the premium paid for such plans is used by the insurance company to generate the bonus or profit paid to the insured or the nominee. Hence, for those with a self discipline to invest regularly, other saving/investment avenues, such as mutual funds, may serve as a better investment option.




Ramya Ramachandran

Published Mar 27 2012

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