“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER”

LIC’s Flexi Plus is a unit linked assurance plan, which not only provides a lump sum benefit on death but also the maturity benefit irrespective of the survival of the Policyholder. This plan is specially designed for you to provide a very good combination of protection and long term savings and also provides you greater flexibility to build a better life and realise your dreams.

Key benefits under this plan are:

• Flexibility to choose the policy term
• Flexibility to choose the premium paying mode as per your convenience
• Flexibility to choose from 2 fund types to suit your investment needs
• Flexibility of partial withdrawals to meet your emergency needs

• Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (ECS) premiums.

• Eligibility Conditions And Other Restrictions:

(a) Minimum Age at entry    -           18 years (last birthday)
(b) Maximum Age at entry    -           50 years (nearest birthday)
(c) Maximum Maturity Age  -           60 years (nearest birthday)
(e) Policy Term                          -        10 to 20 years

(f) Premium Amount              -

 (h) Sum Assured under the Plan -  
(10 * annualized premium) or (105% of the total premiums paid including any premiums which have fallen due but not paid), whichever is higher

• Investment of Funds:

Unit Fund: The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types.  Various types of fund and their investment pattern will be as under:

The Policyholder has the option to choose any ONE of the above 2 funds.

• Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.  There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV).  The NAV will be computed on daily basis and will be based on investment performance and Fund Management Charge of each type of fund and shall be computed as:

Market Value of investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any
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Number of Units existing on Valuation Date (before creation / redemption of Units)

Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, revival after discontinuance, switches and in case of complete withdrawal etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, revival after discontinuance, switches and in case of complete withdrawal etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable.

In case of discontinuance, as specified in Para 8 below,  wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.

In respect of maturity claim, NAV of the date of maturity shall be applicable.

The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDA.

• Charges under the Plan:
• Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

B) Mortality Charge:
This is the cost of life cover, which includes payment of Sum Assured and all future premiums payable under the plan. This charge shall depend upon the Sum at Risk i.e. sum of Sum Assured and total amount of all future premiums payable under the policy as on the date of deduction of mortality charge.

Mortality charge, which is age specific, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund value. This charge will be deducted till the Life Assured is alive.

The rate of mortality charge per annum per Rs. 1000/- Sum at Risk for some of the ages in respect of a healthy life are as under:

C) Other Charges: The following charges shall be deducted during the term of the policy:

• Policy Administration charge – This charge shall be deducted on monthly basis by cancelling appropriate number of units out of the Policyholder’s Fund Value.

The Policy Administration Charge per month shall be as follows:
            Policy Year                            Policy Admin Charge (per month)
              1st Year                                Rs. 50
              2nd Year                              Rs. 41.20
             3rd Year                                Rs. 42.44
             4th Year                                Rs. 43.71
              5th Year                               Rs. 45.02
             6th Year & Thereafter           Rs. 34.78 in 6th year escalating at 3% p.a. thereafter

• Fund Management Charge – This is a charge levied as a percentage of the value of assets at following rates:

         0.50% p.a. of Unit Fund for “Debt” Fund
         0.60% p.a. of Unit Fund for “Mixed” Fund
            Fund Management Charge shall be appropriated while computing NAV.

No Fund Management Charge shall be deducted on Discontinued Policy Fund.

• Switching Charge – This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch. This charge will be recovered by canceling appropriate number of units out of the Policyholder’s Fund Value.

• Bid/Offer Spread – Nil.

• Discontinuance Charge –  The discontinuance charge for regular premium policies is as under:

AP – Annualised Premium
FV – Policyholder’s Fund Value on the date of discontinuance

• Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.

• Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as change in premium mode to higher frequency, and shall be a flat amount of Rs. 50/- which will be deducted by canceling appropriate number of units out of the Policyholder’s Fund and the deduction shall be made on the date of alteration in the policy.

     
D)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit:

• Policy Administration Charge

      The maximum Policy Administration Charge per month shall be as under:
                                   Year                       Policy Admin Charge (per month)
                                1st Year                                Rs. 100
                                2nd Year                              Rs. 82
                                3rd Year                               Rs. 85
                                4th Year                               Rs. 87
                                5th Year                               Rs. 90
                                6th Year & Thereafter          Rs. 70 in 6th year escalating at 3% p.a. thereafter
     

• Fund Management Charge: The Maximum for each Fund will be as follows:

• Debt Fund:           1.00% p.a. of Unit Fund
• Mixed Fund:         1.10% p.a. of Unit Fund

The Maximum Fund Management Charge on Discontinued Policy Fund shall be 0.5% p.a. of Discontinued Policy Fund.

-     Switching Charge shall not exceed Rs. 200/- per switch.
 

• Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value.

• Surrender:  The surrender value, if any, is payable as under:

If the policy is surrendered within 5 years from the date of commencement of the policy:
If you apply for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge, if any, shall be converted into monetary terms as per Para 8 below. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the Discontinued Policy, as per Para 8 below, shall be payable on completion of 5 years from the date of commencement of policy.

In case of death of Life Assured after the date of surrender but before the completion of 5 years from the date of commencement of policy the Proceeds of the Discontinued Policy shall be payable to the nominee/ legal heir immediately.

If the policy is surrendered after 5 years from the date of commencement of the policy:
If you apply for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value, as at the date of surrender, shall be payable. There will be no Discontinuance Charge.

•  Discontinuance of Premiums:

If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

• Revival of the policy, or

• Complete withdrawal  from the policy

Upto the expiry of 30 days of receipt of notice, the policy shall be treated as inforce and the charges for Mortality shall be taken in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund Value. The cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period).
 
If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

The benefits payable under the policy during the notice period shall be same as that under an inforce policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.

The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:

If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and shall be transferred to the Discontinued Policy Fund.

However, you shall have the right to revive such policy within two years from the date of discontinuance but not later than the expiry of 5 years from the date of commencement of policy. On revival of policy, all benefits, as per the terms and conditions of the policy, shall continue from the date of revival.

In case the policy is not revived, then the Proceeds of the Discontinued Policy as specified below shall be paid after completion of 5 years from the date of commencement of policy.

In case of death of the Life Assured before the completion of 5 years from the date of commencement of the policy, the Proceeds of the Discontinued Policy shall be paid to the nominee / legal heir immediately.

If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercises the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value shall be payable.

Method of calculation of Monetary Amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units (after deduction of discontinuance of charge) in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum guarantee of the interest rate, as applicable to saving bank account of State Bank of India from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy or upto the date of revival, if applicable. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

• Other Features:
• Guarantee of interest rate on Discontinued Policy Fund:A guaranteed minimum interest rate, as applicable to saving bank account of State Bank of India shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

• Partial Withdrawals: Youmay encash the units partially after the fifth policy anniversary and provided all due premiums have been paid subject to the following:

• Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
• Partial withdrawal shall be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund.

         
         Partial withdrawal shall not be allowed to nominee/ legal heir after death of life assured.

• Switching: You can switch between the two fund types for the entire Fund Value during the policy term subject to switching charges, if any.

Switching shall not be allowed if due premiums have not been paid.

• Increase / Decrease of risk covers:No increase / decrease of benefits will be allowed under the plan.

• Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. However, in case of discontinuance within 5 years from the date of commencement of policy, if you exercise the option for complete withdrawal or do not exercise any option, you have the right to revive such policy within two years from the date of discontinuance but not later than the expiry of 5 years from the date of commencement of the policy.

 If you exercise the option to revive such policy, then:

• The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest.
• The discontinuance charge deducted from the fund, if any, shall be added back to the Fund along with the Proceeds of the discontinued policy.
• All outstanding applicable policy administration charges, premium allocation charges and service tax charges due since the date of discontinuance shall be deducted from the policy fund.
• Units of the segregated fund chosen by the Policyholder shall be allotted at the NAV as on the date of revival.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to you.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

• Reinstatement:

A policy once surrendered cannot be reinstated.

• Risks borne by the Policyholder:
• LIC’s Flexi Plus is a Unit Linked Life Insurance product, which is different from the traditional insurance products.
• The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
• Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Flexi Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
• Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
• The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
• All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

• Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
            Plus           Unallocated premium
            Plus           PolicyAdministration charge deducted
            Plus           Service tax deducted
Less            Charges @ Rs.0.20per thousand Sum Assured (where Sum Assured is 105% * term* annualized Premium)
            Less            Actual cost of medical examination and special reports, if any.

• Loan:

No loan shall be allowed under this plan.

• Assignment:

  Assignment shall not be allowed under this plan.

• Exclusions:

In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death.