LIC’s New Jeevan Nidhi Plan is a
Half-Yearly - 1% of tabular premium
Quarterly - Nil
If premiums are
No loan facility will be available under this plan.
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Archive for the ‘Life Insurance’ Category
“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:
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.
(a) Minimum Age at entry - 18 years (last birthday)
(f) Premium Amount -
(h) Sum Assured under the Plan -
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.
Market Value of investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any
Applicability of Net Asset Value (NAV):
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.
B) 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:
The Policy Administration Charge per month shall be as follows:
0.50% p.a. of Unit Fund for “Debt” Fund
No Fund Management Charge shall be deducted on Discontinued Policy Fund.
AP – Annualised Premium
Although the charges are reviewable, they will be subject to the following maximum limit:
The maximum Policy Administration Charge per month shall be as under:
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.
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.
If the policy is surrendered within 5 years from the date of commencement of the 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 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:
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).
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 Proceeds of the Discontinued Policy shall be calculated as under:
Switching shall not be allowed if due premiums have not been paid.
If you exercise the option to revive such policy, then:
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.
A policy once surrendered cannot be reinstated.
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:
No loan shall be allowed under this plan.
Assignment shall not be allowed under this plan.
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.
Live Telecast finished… Thank you…
The Programme was conducted in the premises of “NeST Group”, NeST Tower, Techno Park, Trivandrum-81 on 7th February 2012. I was assisted by my team for this programme. The employees of NeST Group were enlightened on various topics like Financial Planning, Retirement Planning, Tax Planning,and other new products of LIC, In addition they were also provided with proper services.
എൽ.ഐ.സി യുടെ കഴിഞ്ഞ സാമ്പത്തിക വർഷത്തെ ലാഭം 22716 കോടി രുപയായി കണക്കാക്കപ്പെട്ടിരിക്കുന്നു. ഇതിന്റെ 5% ആയ 1136 കോടി രുപ കേന്ദ്രസർക്കാരിനുളളതാണ്. ബാക്കി തുക ബോണസ്സായി പോളിസിയുടമകൾക്ക് മാറ്റി വെയ്ക്കും.
എൽ. ഐ. സി യൂടെ വിവിധ പദ്ധതികൾക്കായി പ്രഖ്യാപിച്ച ബോണസ്സു നിരക്കുകൾ ചുവടെ കൊടുത്തിരികുന്നു.
|1. ജീവൻ തരംഗ്|
|2. ജീവൻ പ്രമുഖ്|
|3. ജീവൻ ആനന്ദ്|
|10 വർഷത്തിൽ കുറവ്||36||34|
|20 വർഷത്തിൽ കൂടുതൽ||47||45|
|4. ചൈൽഡ് ഫുച്ചർ പ്ലാൻ|
|20 വർഷത്തിൽ കൂടുതൽ||44||42|
|20 വർഷത്തിൽ കൂടുതൽ||50||48|
|6. ജീവൻ ഭാരതി|
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.
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.:
6. Mode and High S.A. Rebates:
Yearly mode - 2% of Tabular Premium
Half-yearly mode – 1% of the Tabular premium
Quarterly & Salary deduction – NIL
Sum Assured Rebate:
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.
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.
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:
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.
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).
1) Government guaranteed.
- Target amount or Sum Assured guaranteed by the Government of India. (LIC act 1956 http://www.licindia.in/images/licact.pdf )
2) Life Cover
- No other savings provide insurance cover for their investors.
3) Money in proper hands.
- Investor can choose for nomination, assignment and re-assignment. So maturity amount or claim amount will go to the right people.
4) Form of benefit can be pre-decided.
- Benefit of the insurance can be pre-decided under Marriage Women’s Property act (MWP Act).
5) Business successions.
- Partnership insurance
(i) Firm will be the policy holder or proposer.
(ii) Life assured will be the partners.
6) Default risk covered
- Key man insurance policy. : In Key-man insurance, company will be the policy holder and proposer but Life assured will be Key-man. On the death of the Key-man money will come to the company.
7) Encourage thrift.
- LIC encourages saving habit of the people, because LIC savings are compulsory savings.
8 ) Creation of large estate by investing small amount.
- SIP- Regular savings.
9) Raise money in emergency.
- Loan available
- Surrender available
10) Age group of 1 to 80 can invest.
11) Benefits with variety of options.
- Mode of payment options
- Settlement options.
- Premium can be paid in advance.
12) Easy accessible
- Like payment of premium, claim settlement etc. In LIC numbers of outlets are increasing but in other case, numbers of outlets are decreasing due to cost cutting.
13) Steady returns
14) Tax benefit
- Deduction allowable from income for payment of life insurance premium (sec.80.c)
- Deduction under section 80D. Health insurance premium up to 15000/p.a.
- Deduction under section 80D.D. Jeevan Adhar premium up to 50000/p.a.
- Exemption under section 10 (10) A
- Exemption under section 10 (10) D.
Before taking an insurance policy, or invest in share market, or other financial investment, ask following questions to the Executive who approach you.
- How long you are in this business?
- How many companies (job) have you changed in your career?
- How long is your company in this business?
- How long would you and your company in that business?
- What are the assets of your company?
- What are the liabilities of your company?
- What is the “life fund” or “Asset under management” of your company?
- Can you show the profit & loss account of your company since the year 2000?
- How will I remit the premium?
- How I will get the after-sales service?
- What are the claim procedures of your company?
- What are the terms and conditions of the death claim?
NB: I wrote this because, I have met several frustrated IT Engineers who have invested their hard earned money without proper planning, with inept private insurance agents, hoping to avail the income tax benefits. If they had asked these questions to the executive, then they would have never worried about their investments.
Source : Business Standard ::: Date 17-Oct-2011
By Niladri Bhattacharya & Parnika Sokhi
India Inc is dialling the Life Insurance Corporation of India to bail it out in an uncertain investment climate. The largest domestic institutional investor in the country is flooded with enquires from a number of companies for investing in their debt papers. Sources familiar with the developments say the requirement submitted to LIC is to the tune of Rs 30,000 crore.However, LIC’s hands are tied by regulations, which mandate 75 per cent of its debt investments should be in AAA-rated papers. “There are a lot of good companies which have AA+, AA, AA- and A+ rated issues. With the market appetite for these being low, they are looking up to LIC for bailing them out,” the sources say. Read More