Archive for the ‘Insurance Plans’ Category

New Single Premium Plan – Jeevan Vriddhi

Published by Philip George on March 2nd, 2012 - in Insurance Plans

LIC’s JEEVAN VRIDDHI (UIN: 512N268V01)

LIC’s Jeevan Vriddhi is a single premium plan wherein the risk cover is a multiple of premium chosen by you. On maturity this plan offers a Guaranteed Maturity Sum Assured and Loyalty Addition, if any.

1. Benefits

i) Death benefit:

On death, Basic Sum Assured shall be payable. The Basic Sum Assured shall be 5 times the Single Premium excluding extra premium, if any.

ii) Maturity Benefit: On maturity, the Guaranteed Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.

iii) Loyalty Addition: Depending upon the Corporation�s experience the policy will be eligible for Loyalty Addition on date of maturity at such rate and on such terms as may be declared by the Corporation.

2. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

a)Minimum Entry Age                          : 8 years (completed)

b)Maximum Entry Age                         : 50 years (nearest birthday)

c)Minimum Basic Sum Assured            : Rs.150, 000/-

d)Maximum Basic Sum Assured           : No Limit

e)Minimum Premium                           : Rs. 30,000/-

Premium shall be available in multiples of Rs. 1,000/-.

f)Policy Term                                        : 10 years

g)Premium payment mode                    : Single premium only

h)Guaranteed Maturity Sum Assured : The Guaranteed Maturity Sum Assured
will depend on the single premium payable

and the age at
entry of the life to be assured.

3. GUARANTEED MATURITY SUM ASSURED:

Guaranteed Maturity Sum Assured for each age at entry per Rs.1000/- Single Premium (exclusive of Service Tax) is as under:

Age at entry

Guaranteed Maturity Sum Assured (Rs.)


Age at entry

Guaranteed Maturity Sum Assured (Rs.)


Age at entry

Guaranteed Maturity Sum Assured (Rs.)


8


1984.60



23


1952.65



37


1894.60


9


1982.10



24


1951.85



38


1883.65


10


1979.15



25


1950.95



39


1871.20


11


1975.55



26


1949.90



40


1857.10


12


1972.10



27


1948.55



41


1841.45


13


1968.90



28


1946.85



42


1823.95


14


1966.35



29


1944.55



43


1803.90


15


1964.05



30


1941.60



44


1781.05


16


1961.90



31


1937.70



45


1755.30


17


1960.00



32


1932.80



46


1726.55


18


1958.30



33


1927.00



47


1694.75


19


1956.80



34


1920.40



48


1659.95


20


1955.50



35


1912.85



49


1622.60


21


1954.40



36


1904.30



50


1582.25


22


1953.45







4. INCENTIVE FOR HIGHER PREMIUM:

Incentive for higher single premium by way of increase in the Guaranteed Maturity Sum Assured is as under:

 

Premium (excluding extra premium)

Increase in Guaranteed Maturity Sum Assured


Below Rs.50,000


Nil


Rs.50,000 to Rs. 99,000


1.25%


Rs.1,00,000 and above


3.00%

5. LOAN:

Loan facility will be available under this plan, after completion of one policy year.

6. SURRENDER VALUE:

The policy can be surrendered for cash after the policy has run for at least one year. The minimum Guaranteed Surrender Value allowable is equal to 90% of the Single premium paid excluding extra premium, if any.

Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.

The Special Surrender Value will be the discounted value of the Guaranteed Maturity Sum Assured as on date of surrender.

7. SERVICE TAX:

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on the premium.

9. COOLING-OFF PERIOD:

If you are not satisfied with the �Terms and Conditions� of the policy, you may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the risk premium, expenses incurred on medical examination and stamp duty.

10. EXCLUSIONS:

The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within one year from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of a maximum of (i) 90% of the single premium paid excluding any extra premium paid or (ii) third party�s bonafide beneficial interest acquired in the policy for valuable consideration (but limited to applicable death benefit of this policy) of which notice has been given in writing to the branch where the policy is being presently serviced (where the policy records are kept) at least one calendar month prior to death.

Jeevan Ankur ::: A Must have Children Policy

Published by Philip George on January 23rd, 2012 - in Insurance Plans, LIC Policy, Life Insurance

LIC’s JEEVAN ANKUR (UIN: 512N267V01)

LIC’s Jeevan Ankur is a conventional with profits plan, specially designed to meet the educational and other needs of your child. If you are the parent of a child aged upto 17 years, LIC’s Jeevan Ankur is the most suitable insurance plan for you which ensures that your responsibilities are met whether you survive or not and without depending on anyone else.

The risk cover under this plan will be on your life as a parent and the named child shall be the nominee under the plan. The policy term shall be based on the age at maturity of the child.

1. Benefits

i) Death benefit:

On death of the Life Assured during the policy term: Basic Sum Assured shall be payable to the nominee and an income benefit equal to 10% of Basic Sum Assured shall be payable on each policy anniversary, from the policy anniversary coinciding with or next following the date of death, till the end of the policy term.

On death of child, when Life Assured is alive: On death of the child, the Life Assured will have an option to nominate another child/person and the policy will continue with the same benefit payable to new nominee/legal heirs after the death of the Life Assured during the term of the policy.

On death of child/nominee after Life Assured’s death: The policy shall continue and the benefits shall be payable to the legal heir(s).

ii) Maturity Benefit: At the end of the policy term an assured maturity benefit equal to Basic Sum assured along with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.

iii) Loyalty Addition: Depending upon the Corporation’s experience the policy will be eligible for Loyalty addition on the stipulated date of maturity irrespective of survival of Life Assured.

2. Optional Benefits: You may choose  the following optional riders by payment of additional premium-

i) Accident Benefit Rider:  This benefit is available under regular premium policies only. An additional sum equal to Accident Benefit Rider Sum Assured is payable upon death due to accident. The Accident Benefit Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 70 yrs.

  ii) Critical Illness Rider:  An amount equal to Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illnesses. The Critical Illness Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to a minimum of Rs. 50,000 and a maximum of Rs. 5 lakh (including all policies with LIC of India). This benefit will be available provided the policy matures on or before the Life Assured attains 60years of age.

Critical Illness Rider can be availed with or without Premium Waiver Benefit. If Critical Illness Rider is opted with Premium Waiver Benefit, then in the event of Life Assured diagnosed with any of the Critical Illnesses covered under the policy, the total future premium in respect of the policy will be waived. The Basic Sum Assured under such policies should be equal to the Critical Illness Rider Sum Assured.

3. Eligibility Conditions and Other Restrictions (For Basic Plan):

a) Minimum Sum Assured                               :   Rs. 100,000

b) Maximum Sum Assured                              :   No Limit

(The Sum Assured shall be in multiples of Rs. 5000/-)

c) Minimum Age at entry for Life Assured   : 18 years (completed)

d) Maximum Age at entry for Life Assured  : 50 years (nearest birthday)

e) Maximum Maturity Age for Life Assured : 75 years (nearest birthday)

f) Minimum Age at entry for child                : 0  years (last birthday)

g) Maximum Age at entry for child               : 17 years ( last birthday)

h) Minimum Term                                        : Higher of (18 – age of child, 8) years

i) Maximum Term                                       : (25 – age of child) years

4. Sample premium Rates:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid.

A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

5. Sample premium Rates:

 Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:

Single Premium

Age

Policy term

 

10

15

20

25

         20

615.45

494.95

405.95

348.00

30

618.80

503.35

422.10

375.30

40

638.75

541.60

483.60

463.60

 

 

 

 

 

 

Annual Regular Premium

Age

Policy term

 

10

15

20

25

       20

90.65

56.45

39.70

31.10

       30

91.20

57.50

41.35

33.50

      40

94.70

62.35

47.80

41.75

 

 

 

 

 

6. Mode and High S.A. Rebates:

Mode Rebate:

Yearly mode                            -    2% of Tabular Premium

Half-yearly mode                     –   1% of the Tabular premium

Quarterly & Salary deduction   –     NIL

Sum Assured Rebate:

Single Premium:

Sum Assured                         Rebate (Rs.)

1,00,000 to 1,95,000               Nil

2,00,000 to 4,95,000               4.00 %o S.A.

5,00,000 and above                6.00 %o S.A.

 

Regular Premium:

Sum Assured                         Rebate (Rs.)

1,00,000 to 1,95,000               Nil

2,00,000 to 4,95,000               2.00 %o S.A.

5,00,000 and above                3.00 %o S.A.

7. Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived from the date of first unpaid premium and before the date of maturity by paying all the arrears of premium together with interest within a period of five years, subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the life assured. Riders shall be revived along with the basic plan and not in isolation.

8. Paid-up Value:

Under regular premium policies, if after atleast three full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy for a reduced paid-up sum assured. This Paid-Up Sum Assured shall be payable on the date of maturity or on Life Assured’s prior death.

Further, in case of death during the term of the policy, the paid up value shall be paid immediately on death. But, neither income benefit nor paid up value on maturity shall be payable.

Accident Benefit and Critical Illness riders do not acquire any paid-up value.

9. Surrender Value:

The Guaranteed Surrender Value will be as under:

  1. Single Premium Policies: The Guaranteed Surrender value will be available after completion of atleast one policy year and is equal to 90% of the premium paid excluding premium for optional rider and extras, if any.
  1.    Regular Premium Policies: The Guaranteed surrender value will be available after completion of three policy years and atleast three full years’ premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.

 

Corporation may, however, pay Special Surrender value, as the discounted value of the Paid-up Sum Assured as applicable on date of surrender, provided the same is higher than Guaranteed Surrender value.

10. Policy Loan:

No loan facility will be available under this plan.

11. Service Tax: 

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on premium(s) as and when the premiums are paid.

12. 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 from the date of receipt of the policy bond.

13. Exclusion:

Suicide:- This policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time within one year from the date of commencement of risk and the Corporation will not entertain any other claim by virtue of this policy except to the extent of a maximum of 90% of single premium paid excluding any extra premium (in case of single premium policies).

 

Bima Bachat ::: ഓഹരി വിപണിയിലെ നിക്ഷേപത്തിന് താല്പര്യമ്മില്ലാത്ത നിക്ഷേപകർക്ക് പരിഗണിക്കാവുന്ന പോളിസി

Published by Philip George on October 15th, 2011 - in Insurance Plans, Investments, Life Insurance

What is Bima Bachat?

ഓഹരി വിപണിയിലെ നിക്ഷേപത്തിന് താല്പര്യമ്മില്ലാത്ത നിക്ഷേപകർക്ക് പരിഗണിക്കാവുന്ന പോളിസിയാണ് എൽ ഐ സിയുടെ ബീമാ ബചത്ത്. നിക്ഷേപതുകക്ക് പൂർണ്ണ സുരക്ഷിതത്വം ഉറപ്പാക്കുന്നതോടൊപ്പം മികച്ച റിട്ടേണും ഈ പോളിസിയിൽ നിന്നു ലഭിക്കുന്നു. സ്കീമിൽ ചേരുന്ന സമയത്ത് മാത്രം നിക്ഷേപം നടത്തിയാൽ മതി. 15 വർഷം വരെ ഇൻഷുറൻസ് സംരക്ഷണം ഈ സ്കീമിൽ നിന്നു ലഭിക്കും. കൂടാതെ അടക്കുന്ന പ്രീമിയത്തിനും തിരികെ ലഭിക്കുന്ന തുകക്കും ആദായ നികുതി ഇളവും കിട്ടും. വസ്ത്തു വിൽപ്പന നടത്തി ലഭിച്ച തുക , ചിട്ടി പണം, ലോട്ടറിയിൽ നിന്നു ലഭിച്ച തുക തുടങ്ങി ജീവിതത്തിൽ വല്ലപ്പോഴും ലഭിക്കുന്ന വൻ തുക നിക്ഷേപിക്കുവാൻഅനുയോജ്യമാണ് ഈ സ്കീം. Read more…

Pension Plans

Published by Philip George on August 23rd, 2011 - in Insurance Plans, LIC Policy, Life Insurance

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

Pension Plans

New Jeevan Suraksha-I

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance


Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for regular income after the selected term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum (single premium).

Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

Bonuses:
These are with-profit plans and participate in the profits of the Corporation’s annuity / pension business. Policies get a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period.

New Jeevan Dhara-I

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance


Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for regular income after the selected term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum (single premium).

Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

Bonuses:
These are with-profit plans and participate in the profits of the Corporation’s annuity / pension business. Policies get a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period.

Jeevan Akshay-VI

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance

Introduction:
It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.

Options Available:
The following options are available under the plan

Type of Annuity:

  • Annuity payable for life at a uniform rate.
  • Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
  • Annuity for life with return of purchase price on death of the annuitant.
  • Annuity payable for life increasing at a simple rate of 3% p.a.
  • Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  • Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

You may choose any one. Once chosen, the option cannot be altered.

Mode:

  • Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.

Salient features:

  • Premium is to be paid in a lump sum.
  • Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
    Mode Minimum Annuity
    Monthly Rs. 500 per month
    Quarterly Rs. 1000 per quarter
    Half-yearly Rs. 2000 per half year
    Yearly Rs. 3000 per year
  • No medical examination is required under the plan.
  • No maximum limits for purchase price, annuity etc.
  • Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday.
  • Age proof necessary.

Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:

Age last birthday

Yearly annuity amount under option
  ( i ) ( ii ) (15 years certain) ( iii ) ( iv ) ( v ) ( vi )

40

7510

7440

6930

5610

7310

7120

45

7770

7660

6960

5890

7500

7240

50

8140

7950

7000

6280

7760

7420

55

8650

8330

7050

6810

8130

7670

60

9350

8790

7110

7530

8640

8030

65

10410

9330

7180

8590

9400

8570

70

12080

9830

7260

10220

10560

9370

75

14510

10220

7360

12590

12240

10590

Incentives for high purchase price:
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due to available incentives.

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 from the date of receipt of the Policy Bond. On receipt of the policy we shall cancel the same and the amount of premium deposited by you shall be refunded to you after deducting the charges for stamp duty.

Paid-up value:

The policy does not acquire any paid-up value.

Surrender Value :
No surrender value will be available under the policy.

Loan :
No loan will be available under the policy.

Section 41 of Insurance Act 1938 :

  • No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:   provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
  • Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

Note : For full details please refer to the Policy document or contact our nearest Branch             Office.

Jeevan Nidhi

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance
LIC’s JEEVAN NIDHI is a with profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The plan also provides a risk cover during the deferment period. The USP of the plan being the pension can commence at 40 years.  The premiums paid are exempt under Section 80CCC of Income Tax Act.

Salient Features:

a . Guaranteed Additions:  Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.

b. Participation in profits: The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.

c. Benefit On Vesting:

1. Option to commute up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any.

2 . Annuity as per the option selected: Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.

d. Annuity Options:

On vesting, the annuity instalment, mode of annuity payment and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions.

Currently the following options are available under LIC’s immediate annuities:

1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.

2. Annuity Guaranteed for certain periods: The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.

3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.

4. Increasing annuity: The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.

5. Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.

e. Death Benefit on death before annuity vests: On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee will also have the option to purchase an annuity with this amount.

Pension Plus

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance

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

LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. 

You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or   quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.

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

2 . Eligibility  Conditions  And  Other  Restrictions:
a)  Minimum Entry Age – 18 years (last birthday)
b)  Maximum Entry Age – 75 years (nearest birthday)
c)  Minimum Vesting Age  – 40 years (completed)
d)  Maximum Vesting Age -  85 years (nearest birthday)
e)  Minimum Deferment Term  -  10 years
f)   Sum Assured – NIL
g)  Minimum Premium –
Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m. 
Single premium:  Rs. [30,000] 
h)  Maximum Premium –
Regular premium : Rs. [1,00,000] p.a.
Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.

3. Charges under the Plan:
A) 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:

 For Single premium policies:  3.3%
 For Regular premium policies:

Premium

Allocation Charge

First Year

6.75%

2nd to 5th Year

4.50%

thereafter

2.50%

Allocation charge for Top-up: 1.25%

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

  1. Policy Administration charge:  Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.
  2. Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:

    0.70% p.a. of Unit Fund for “Debt” Fund
    0.80% p.a. of Unit Fund for “Mixed” Fund
    Fund Management Charge shall be appropriated while computing NAV.

  3. Switching Charge –This is the charge levied on switching of monies from one fund to another. Within a given policy year 2 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.
  4. Bid/Offer Spread – Nil.
  5. Discontinuance Charge – The discontinuance charge for regular premium policies is as under:

    Where the policy is discontinued during the policy year

    Discontinuance charges for the policies having annualized premium up to Rs. 25,000/-

    Discontinuance charges for the policies having annualized premium above Rs. 25,000/-

    1

    Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/-

    Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-

    2

    Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/-

    Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-

    3

    Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-

    Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-

    4

    Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/-

    Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-

    5 and onwards

    NIL

    NIL

          
    AP – Annualised Premium
    FV – Policyholder’s Fund Value excluding the fund value in respect of Top-up premiums paid, if any, on the date of discontinuance.

    There shall not be any discontinuance charge under Single Premium
     

  6. 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.
  7. Miscellaneous Charge – This is a charge levied for change in premium mode, if opted for by the policyholder during the deferment term. An alteration may be allowed subject to a charge of Rs. 50/-.

C)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge, with the prior approval of IRDA.
Although the charges are reviewable, they will be subject to the following maximum limit:

– Policy Administration Charge

Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

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

  1. Debt Fund: 1.20% p.a. of Unit Fund
  2. Mixed Fund: 1.30% p.a. of Unit 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 which shall be utilised to provide an annuity.

4. 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:

  1. Revival of the policy, or
  2. Complete withdrawal  from the policy

During the notice period of 30 days, the policy shall be treated as in force 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) and the charges shall be taken, as usual.
 
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.

There shall be no change in payments of benefits during the notice period.

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 Proceeds of the discontinued policy as specified below will compulsorily be utilized to provide an annuity, and shall be payable after completion of 5 years from the date of commencement of the policy.

If the policy is discontinued after 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 and Policyholder’s Fund value will compulsorily be utilized to provide an annuity.

5. 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 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 interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. 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.

6. Other Features:
i ) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums if any, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.

The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.

ii )Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

iii ) Top-up (Additional Premium) : You can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of policy. Top-up shall not be allowed during the last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.

iv) Switching: You can switch between the two fund types during the policy term subject to switching charges, if any.

v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.

vi) 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. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

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.

vii) Conversion to annuity: The benefit amount, payable in case of surrender or on discontinuance of premium or on vesting, shall compulsorily be utilized to provide an annuity subject to the following conditions:

1. You will have an option to commute upto a maximum of one third of the

a) Higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, in the event of vesting, or
b) Proceeds of the discontinued policy, if policy is discontinued or surrendered within 5 years from the date    of commencement of policy, or
c) Policyholder’s Fund Value, if policy is discontinued or surrendered after 5 years from the date of    commencement of policy,
whichever is applicable.

The commutation will be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. 
The balance amount shall compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option.

2. The minimum amount of annuity payable shall be subject to the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. In case the applicable amount as mentioned in (a) to (c) of Para 10.vii) above is insufficient to purchase the minimum amount of annuity, then the said amount shall be refunded as a lump sum to you.

3. You shall have an option to purchase immediate annuity from any other life insurance company “registered with IRDA” subject to Regulatory provisions. In such cases, LIC will transfer your fund amount directly to the chosen Insurer.

If you opt to purchase immediate annuity from any other life insurance Company, you would be required to inform your such intention to the Corporation six months prior to the vesting date.

7. Reinstatement:

A policy once surrendered cannot be reinstated.

8. Risks borne by the Policyholder:

  1. LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
  2. 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.
  3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Pension 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.
  4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
  5. 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.
  6. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

9. 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      
Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy

10. Loan:
No loan will be available under this plan.

11. Assignment:

Assignment shall not be allowed under this plan.

 
© Philip George
Tuesday, 12 December 2017