Product Summary :
This is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment. The plan provides financial protection against death throughout the term of the plan. The death benefit is directly related to the premiums paid. The Maturity Sum Assured depends on the age at entry of the life to be assured and is payable on survival to the end of the policy term. It also offers the flexibility of term and a lot of liquidity.
Premiums :
Premiums are payable yearly, half-yearly, quarterly, or monthly through salary deductions as opted by you throughout the term of the policy or till earlier death.
Loyalty Additions :
This is a with-profits plan and participates in the profits of the Corporation's life insurance business. It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit. Loyalty Additions may be payable from the 10th year onwards depending upon the experience of the Corporation.
Benefits
Death Benefit :
250 times the monthly premium together with loyalty additions, if any, and return of premiums excluding first year premiums and extra/rider premium, if any, is payable in lump sum on death of the life assured during the term of the policy.
Maturity Benefit :
The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.
Supplementary / Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender values are available on earlier termination of the contract. The surrender value will be the greater of the guaranteed surrender value and special surrender. The plan also allows for partial surrenders. Guaranteed Surrender Value :
The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.
Special Surrender Value :
80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid. The Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.
Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is usually higher than the Guaranteed Surrender Value. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.
Note : The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.
Benefit Illustration
Statutory warning :
"Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. If your policy offers guaranteed returns then these will be clearly marked "guaranteed" in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance."
Age at entry : 35 years
Policy term : 25 years
Mode of premium payment : Yearly
Amount of annual premium : Rs.4704/-
End Of Policy
Year
Total Premium paid till end of year
Amount payable at the end of year on death during the year (Rs.)
Guaranteed
Variable
Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
1
4704
100000
0
0
100000
100000
2
9408
104800
0
0
104800
104800
3
14112
109600
0
0
109600
109600
4
18816
114400
0
0
114400
114400
5
23520
119200
0
0
119200
119200
6
28224
124000
0
0
124000
124000
7
32928
128800
0
0
128800
128800
8
37632
133600
0
0
133600
133600
9
42336
138400
0
0
138400
138400
10
47040
143200
7000
18000
150200
161200
15
70560
167200
13000
41000
180200
208200
20
94080
191200
30000
100000
221200
291200
25
117600
215200
65000
211000
280200
426200
End Of Policy Year
Total Premium paid till end of year
Amount payable on surrender or maturity at the end of year
Guaranteed
Variable
Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
1
4704
0
0
0
0
0
2
9408
0
0
0
0
0
3
14112
8099
0
0
8099
8099
4
18816
12942
0
0
12942
12942
5
23520
18660
0
0
18660
18660
6
28224
23180
0
0
23180
23180
7
32928
27856
0
0
27856
27856
8
37632
32744
0
0
32744
32744
9
42336
37892
0
0
37892
37892
10
47040
43360
7000
18000
50360
61360
15
70560
75200
13000
41000
88200
116200
20
94080
106124
30000
100000
136124
206124
25
117600
135296
65000
211000
200296
346296
i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed .
iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.
iv) Loyalty additions will depend on future profits and as such is not guaranteed.
v) The Maturity Benefit is the amount shown at the end of the policy term.
