Citizen Savings Growth Plan: A Comprehensive Financial Security and Fund Accumulation for the Future

2nd June 2026, Kathmandu

Citizen Life Insurance Company Limited has introduced the Citizen Savings Growth Plan. This option is structured as a flexible universal life insurance policy.

Citizen Savings Growth Plan

The plan is designed to provide individuals with an avenue for saving and accumulating funds for long-term future needs. It simultaneously offers permanent life insurance coverage for the policyholder.

The double focus ensures that the policyholder can build wealth over time. It also establishes a secure financial safety net for their family members.

As a permanent life insurance plan, this product features a dedicated account value element. The lifetime coverage remains active for the policyholder as long as the regular premium payments are maintained according to the underlying terms.

Core Features of the Growth Plan

The Citizen Savings Growth Plan is structured with specific criteria regarding age, policy duration, and financial commitments. These factors help accommodate various financial planning goals.

The eligibility for entry into this insurance plan begins at a minimum age of 18 years. The maximum allowable entry age is set at 55 years.

Policyholders can select a policy term ranging from a minimum of 10 years up to a maximum of 20 years. The maximum maturity age for the coverage under this plan is fixed at 70 years.

Premium and Sum Assured Structures

The plan offers two main pathways for premium payments. These options directly influence the required minimum financial limits.

For the regular pay structure, the minimum premium amount is set at NRs 12,000. This corresponds to a minimum sum assured of NRs 120,000.

For individuals who prefer a single pay structure, the minimum premium is NRs 30,000. This option establishes a minimum sum assured of NRs 37,500.

The ultimate premium and sum assured values are determined based on the underwriting guidelines of the company. The verified income of the life assured is also taken into consideration.

Policyholders can select from multiple premium payment modes. These choices include single, yearly, half-yearly, and quarterly intervals.

The premium paying term can be settled as a single payment. Alternatively, it can run for the same duration as the chosen policy term.

Benefits and Loyalty Rewards

The plan outlines explicit conditions for payouts. These depend on whether the policy completes its full term or if an untimely event occurs.

If the assured individual remains alive until the final maturity date of the policy term, the full account value accumulated on the maturity date becomes payable.

If the assured passes away before the maturity date, the company pays out the total sum assured or the current account value on the date of death. The company always pays whichever amount is higher.

The company also offers a loyalty reward at the conclusion of the policy term. This is designed to incentivize consistent financial discipline.

A guaranteed 3 percent of the account value will be calculated and added to the average account value of the last 60 months at maturity. This reward is credited directly to the account value at maturity.

It forms part of the final payout, provided that all due premium installments have been paid regularly throughout the term.

The insurer retains the right to deduct any outstanding policy loans, accrued interest, or other forms of indebtedness from the final claim amount before making the final payout.

Designated Beneficiaries

The benefits under the policy are payable directly to the life assured if they are alive at the time of maturity.

In the event of death, the payouts are directed to the designated nominee of the life assured.

If the nominee is no longer alive, the legal heirs of the assured become the beneficiaries under the guidelines of Section 127 of the Insurance Act, 2079.

If another individual or institution establishes a legal title to the policy, they may receive the payment up to their specific receivable amount. This payment cannot exceed the maximum benefit allowed under the policy.

Premium Payment Mechanics and Risk Coverage

The continuous risk coverage under this universal life plan depends directly on the health of the individual account value.

Every month, the cost of insurance is deducted from the account value to maintain the active risk cover.

Because these deductions diminish the total account value, the policy will automatically cease to exist if the account value drops below the required amount to cover the monthly insurance cost.

For regular pay policies, the first premium payment is due on the date of commencement. Subsequent renewal premiums must be paid on their respective due dates.

The final premium payment is due either on the termination date of the premiums or on the premium due date immediately preceding the death of the life assured, whichever happens first.

If a policyholder misses a renewal premium payment during the policy term, they are required to pay all outstanding dues in a single lump sum.

Once paid, the funds will begin attracting investment earnings and interest from the exact date of the payment. Notably, the company does not apply late fees for these delayed payments.

For half-yearly, quarterly, or monthly payment modes, if the insured passes away before completing the full premium for that specific year, the remaining premium balance for that year will not be deducted from the final benefit payout.

Policy Loan Provisions

Policyholders who have built up a valid surrender value can apply for a policy loan at any time. They must supply satisfactory proof of legal ownership.

The maximum loan amount allowed is 90 percent of the current surrender value. The minimum loan amount is fixed at NRs 1,000.

Loans can be repaid by the policyholder at any time without providing prior notice to the company.

The company charges interest on the outstanding loan at a rate determined by its internal management.

If the total loan amount and unpaid interest exceed the current surrender value at any point, the policy will be terminated. The bank will then recover the dues from the asset.

Surrender Value Admissibility

The timing for when a policy acquires a valid surrender value depends on the chosen premium payment method.

For yearly, half-yearly, quarterly, and monthly premium modes, the surrender value becomes admissible after the full payment of premiums for 3 complete years. It also requires the successful completion of 3 policy anniversaries.

For single premium policies, the surrender value becomes available immediately after the completion of the first 3 policy anniversaries.

Accidental Death and Disability Benefits

The Citizen Savings Growth Plan incorporates supplementary benefits for accidental death, permanent total disability, and permanent partial disability occurring within specific timeframes.

Accidental Death Benefit
If an injury results in the loss of life of the insured within 183 days from the date of an accident, the company pays a lump sum. This consists of the accidental death benefit sum assured plus either the basic sum assured or the account value on the date of death, whichever is higher.

Permanent Total Disability
If an accident results in permanent total disability within 365 days of the event, the insurer pays the permanent total disability sum assured along with the account value as of the date of the accident. After this payout, the risk coverage ceases.

In cases where the permanence of the disability is uncertain, the condition must remain total and continuous for a full period of 365 days from the accident date before the claim can be fully established.

The plan covers specific conditions under permanent total disability. These include the total loss of sight in both eyes, the loss of both hands from or above the wrist, and the loss of both feet from or above the ankle.

It also covers combinations of losing one hand, one foot, or the sight in one eye. If multiple losses occur, the total indemnity is calculated by adding the individual amounts up to the maximum limit of the sum assured.

Permanent Partial Disability
If an injury leads to permanent partial disability within 120 days of an accident, the insurer provides a percentage payout based on a set schedule of benefits.

This schedule includes 50 percent for the loss of an arm or hand, 40 percent for the loss of one eye, 30 percent for the complete deafness of one ear, 15 percent for the total loss of a thumb, and 10 percent for the total amputation of a forefinger. Lower percentages apply to other fingers and toes.

Upon the occurrence of a permanent partial disability event, the coverage for accidental death benefits and permanent total disability will cease.

The policyholder must continue to maintain their core policy by paying the regular premiums.

While the cost of insurance for the basic coverage will continue to be deducted from the account value on each monthly due date, the deductions for disability riders will stop.

The maximum total indemnity payable for multiple partial disability losses is capped at 50 percent of the total sum assured.

Policy Limitations and Exclusions

The company limits its liability strictly to the account value on the date of death or incident if the event arises from specific excluded circumstances.

The standard exclusions for life coverage include death resulting from flying in an unlicensed airline or on a non-fixed route.

It also excludes death due to war, terrorism, active duty in armed forces, or direct participation in strikes and riots.

Other exclusions include death resulting from any breach of law by the life assured or suicide occurring within two years from the inception or revival date of the policy. Pre-existing medical conditions are also excluded from standard payouts.

For accidental death and disability benefits, additional exclusions apply. The company will only pay out the account value if the incident is caused by participation in professional or semi-professional sports.

Exclusions also apply to racing of any kind and hazardous activities such as skydiving, paragliding, trekking, bungee jumping, water skiing, or underwater activities requiring breathing apparatus.

Contamination from ionizing radiation, nuclear fuel, or nuclear weapons material is also entirely excluded from the supplementary coverage.

Apart from these specific risk exclusions, the policy remains free from general restrictions regarding foreign travel or regular occupations.

Conclusion

The Citizen Savings Growth Plan by Citizen Life Insurance Company Limited functions as a multi-layered financial tool. It serves individuals seeking a combination of disciplined savings and permanent life insurance protection.

By offering features such as flexible premium modes, account value accumulation, loyalty rewards, and specific disability protections, the plan addresses long-term financial security.

Capitalizing on the universal life structure, it allows policyholders in Nepal to build a reliable cash asset while safeguarding their families against unforeseen future events.

For More: Citizen Savings Growth Plan