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| Insurance >> Youngsters >> Whole Life Schemes > > Single Premium Plan |
| Table No. 08 |
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| Features |
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| This is the best form of life assurance for family provision since it enables the Life Assured to pay the premium during the ordinarily vigorous and most productive years of life, relieving him from the necessity of making payments later in life when they might become a burden. |
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| With Profits Single Premium policies do not cease to participate in profits after completion of the period for which premium has been paid ,but continue to share in the periodical Bonus Distribution until the death of the Life Assured |
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| Suitable For |
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| Being a limited - payment life assurance policy, this plan is suitable for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. |
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| Benefits |
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Insurance Regulatory
& Development Authority (IRDA) requires
all life insurance companies operating
in India to provide official illustrations
to their customers. The illustrations
are based on the investment rates of return
set by the Life Insurance Council (constituted
under Section 64C(a) of the Insurance
Act 1938) and is not intended to reflect
the actual investment returns achieved
or may be achieved in future by Life Insurance
Corporation of India (LICI). For
the year 2004-05 the two rates of investment
return declared by the Life Insurance
Council are 6% and 10% per annum.
Product summary :
This is a whole of life assurance plan
that provides financial protection against
death through out the lifetime of the
Life Assured.
Premiums:
Under Table Nos 2 & 5 the premiums are
payable yearly, half-yearly, quarterly,
monthly or through Salary deductions,
as opted by you. Under Table No 8 the
premium is payable in one lump sum (Single
Premium).
Under Table No 2 the premiums are payable
for a period of 35 years or up to age
80 years, whichever is later. Under Table
No 5 the premiums are payable up to the
selected premium paying period.
Under Table No 2 the premiums are payable
for a period of 35 years or up to age
80 years, whichever is later. Under Table
No 5 the premiums are payable up to the
selected premium paying period.
The premiums are payable for the periods
as specified above or up to earlier death
Bonuses :
This is a with-profit plan and participates
in the profits of the Corporation’s
life insurance business. It gets 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. A Final (Additional) Bonus
may also be payable provided a policy
has run for certain minimum period.
Death Benefit
:
The Sum Assured plus all bonuses to date
is payable in a lump sum upon the death
of the life assured.
Maturity Benefit :
This is a
whole of life assurance plan and hence
does not have a maturity date. You, however,
have the option to take the Sum Assured
plus all bonuses declared under the policy
anytime after 40 years from the date of
commencement of the policy provided you
have attained, at least, 80 years of age.
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
value is available under the plan on earlier
termination of the plan.
Guaranteed
Surrender Value :
The policy may be surrendered after it
has been in force for 3 years or more.
The guaranteed surrender value is 30%
of the basic premiums paid excluding the
first year’s premium. In case of
a single premium policy the guaranteed
surrender value is 90% of the single premium
paid excluding any extra/additional premium.
Corporation’s
policy on surrenders :
In practice, the Corporation will pay
a Special Surrender Value – which
is either equal to or more than the Guaranteed
Surrender Value. The benefit payable on
surrender reflects the discounted value
of the reduced claim amount that would
be payable on death. 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 premiums paid.
The Corporation reviews the surrender
value payable under its plans from time
to time depending on the economic environment,
experience and other factors.
Survial Benefits
Sum assured plus accrued bonuses and the
terminal bonuses, if any, on the policyholder
attaining age 80 years or on expiry of
term of 40 years from the date of commencement
of the policy whichever is later. |
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| Plan Parameters |
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Minimum |
Maximum |
| Entry Age (years) |
12 (nearer birthday) |
60 |
| Sum Assured (Rs.) |
30000 |
No Limit |
| Term (Years) |
N. A. |
N. A. |
| Mode of Payment |
Maximum Maturity Age |
Policy Loan Available |
| Single premium only |
80 years or 40 years from the date of commencement whichever is later |
Yes |
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