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| Savings >> LIC Mutual Funds >> Market Plus - I |
| Table No. 191 |
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| Market Plus Plan |
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| This is a unit linked pension plan wherein the pension is payable after a specified period. Four types of investment Funds namely Bond, Secured, Balanced and Growth Fund are offered. Though primarily a Pension product, the plan has many attractive features and options which make it an ideal Retirement solution for the future. |
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| Benefits |
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A) On Vesting :
On vesting of the policy, the Fund Value will be utilized to provide a pension based on the then prevailing Annuity rates. An option to commute upto one third of the payable benefit in a lump sum is available.
B) On Death :
In event of the unfortunate death of the policy holder the Fund Value along with the Riders, if any, will be payable in a lump sum or as a pension. |
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| Options |
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| Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical Illness Benefit are available as options or riders. Life option is available within certain limits depending on the age at entry of the life assured. The other options are available to all proposers who have opted for Life Cover. The quantum of the risk covers can also be reduced; subject to the minimum limits, once a year. A policy can be taken without any of the riders also. |
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| Revival |
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| An attractive feature of the plan is that provided the premiums have been paid for a minimum period of three years, all the riders under the policy will continue for a period of two years from the due date of first unpaid premium by deduction of relevant charges from the policy fund. This period of two years is called the “Revival Period”. Further, if premiums have been paid for a minimum period of three years, revival can be effected merely by paying the arrears of premium, within the Revival Period. |
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| Payment of Premiums |
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| Premiums can be paid in a lump sum (single premium) and also by monthly(ECS), quarterly, half-yearly and yearly modes. |
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| Changes in Fund type (Switch) |
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| The plan also allows a policy holder to switch from one type of fund to another upto four times a year, free of charge. |
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| Other Features |
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There will be no spread between the Bid and Offer price. The Net Asset Value (NAV) will be declared on a daily basis. Additional premium in multiples of Rs.1,000 can be paid without any limit at anytime during the term of policy.
The above information is only a gist of the benefits/features of the plan. For further details please refer to the sales brochure available with our agents / offices. |
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N.B.
"Existing Policyholders of Market Plus (Table no. 181) have an option to convert to LIC's Market Plus - I, free of cost, within 90 days from 17.6.08". |
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| Benefit Illustration |
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TABLE I
(Applicable to linked Products)
(This shall form a part of policy document)
Name of the Product : LIC'S MARKET Plus I
Unique Identification No. : UIN-512L249V01
Sum Assured : 0
Policy Term : 20
Premium Paying Term : 20
Mode of Premium Payment : ANNUAL
Amount of Instalment Premium : 10000
Funds opted for : Secured
Combination : Basic Plan without life cover
Age : 35
Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interst as mentioned
(All charges are in Rupees) |
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| Annual charge towards administration and commission |
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| This will be a level annual charge, depending on the amount of Sum Assured |
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| Fund Management Charges |
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| This will be 1% of the Fund per annum, charged on a weekly basis |
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| Lapsation Charge |
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| For a policy with regular premiums, in case the premiums are not paid within the grace period of 30 days from the due date, the policy lapses. An administrative charge of Rs.100/- per annum will be charged on the date of lapsation and thereafter on every policy anniversary, by cancelling units. |
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| Investment of Funds |
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| There will be 3 types of funds, Secured Fund, Balanced Fund and Risk Fund. The investment pattern of the Funds will be as follows |
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| Fund |
Equity |
Debt + equity |
Liquid |
| Secured Fund |
At least 10% |
At least 80% |
Not more than 20% |
| Balanced Fund |
At least 30% |
At least 80% |
Not more than 20% |
| Risk Fund |
At least 50% |
At least 75% |
Not more than 25% |
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| The policyholder is required to indicate in the proposal form as to which of these funds the balance premium is to be invested in. Switching from one fund to another is allowed twice during the policy term, with a gap of at least two years between the two switches. The cost of switching will be 2% of the cash value of the fund at the time of switching. |
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| Net Fund Unit Value |
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| The Net Fund Unit Value (NFUV) is updated at least once every week by dividing the Net Asset Value of the Fund by the total number of units outstanding at the time of updation. |
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| Present NAV and return |
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| Fund |
NAV as on |
Annualised Return since inception |
Annualised Return since 1st April 2003 |
| Secured Fund |
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| Balanced Fund |
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| Risk Fund |
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| Note: Past performance of the funds may not be a guide to future performance which may be different. |
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| Death Benefit |
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| The following are payable. |
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| On death during first 6 months: 30% of Sum Assured plus cash value of units On death during next 6 months: 60% of the Sum Assured plus cash value of units On death after first year: Full Sum Assured plus cash value of units On death during the 10th year: 105% of the Sum Assured plus cash value of units On death due to accident anytime during the policy term, an amount equal to the sum assured, in addition to the death benefit specified above will be paid |
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| Surrender Value |
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| On termination of the policy (for reasons other than death) after completion of at least 1 year but before maturity date, the cash value of units is available, subject to deductions as given below. |
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| Number of years' premiums paid (for regular premium policies) or number of years elapsed (for Single Premium policies) |
Deduction as % of cash value of units allotted |
| Regular Premium |
Single Premium |
| ½ year (not applicable under yearly mode) |
16.0 |
Not applicable |
| 1 year |
10.0 |
4.0 |
| 1 ½ years (not applicable under yearly mode) |
7.0 |
3.5 |
| 2 years |
6.0 |
3.0 |
| 2 ½ years (not applicable under yearly mode) |
5.0 |
2.5 |
| 3 years |
4.5 |
2.0 |
| 3 ½ years (not applicable under yearly mode) |
4.0 |
1.5 |
| 4 years |
3.0 |
1.0 |
| Thereafter |
Nil |
Nil |
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| Partial Surrender: Up to 50% of the units available can be surrendered (without any deductions as given above) at any time after completion of 3 years from the date of commencement. This facility is available only once during the policy term. |
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| Maturity Benefit |
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| 5% of the Sum Assured along with the cash value of units is payable. |
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| 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. |
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| Benefit Illustration |
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| Statutory Warning |
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| 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 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 dependent on a number of factors including future investment performance. |
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| Illustration 1 |
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| Frequency of premium payment: Single Premium Age at entry: 35 years Sum Assured: Rs.1,00,000/- Single Premium: Rs.1,00,000/- Annual mortality charge: Rs.224.92 every year. Annual Accident Benefit charge: Rs.50.00 every year. Annual commission charge: Rs.474.06 every year. Annual administration charge: Rs.205.31 every year. Bid / Offer spread: 5% of the cash value of units |
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| The Non-guaranteed benefits shown below are the amounts based on the cash value of the available units, after deduction of the charges and surrender penalties, wherever applicable. |
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| End of Policy Year |
Total Premium Paid till end of year (Rs) |
Death Benefit |
Total Death Benefit |
| Guaranteed |
Variable |
| Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 |
| 1 |
1,00,000 |
* |
98,747 |
1,02,473 |
* + 98,747 |
* + 1,02,473 |
| 2 |
1,00,000 |
1,00,000 |
1,02,678 |
1,10,611 |
2,02,678 |
2,10,611 |
| 3 |
1,00,000 |
1,00,000 |
1,06,805 |
1,19,474 |
2,06,805 |
2,19,474 |
| 4 |
1,00,000 |
1,00,000 |
1,11,135 |
1,29,126 |
2,11,135 |
2,29,126 |
| 5 |
1,00,000 |
1,00,000 |
1,15,679 |
1,39,638 |
2,15,679 |
2,39,638 |
| 6 |
1,00,000 |
1,00,000 |
1,20,448 |
1,51,086 |
2,20,448 |
2,51,086 |
| 7 |
1,00,000 |
1,00,000 |
1,25,453 |
1,63,554 |
2,25,453 |
2,63,554 |
| 8 |
1,00,000 |
1,00,000 |
1,30,706 |
1,77,132 |
2,30,706 |
2,77,132 |
| 9 |
1,00,000 |
1,00,000 |
1,36,218 |
1,91,918 |
2,36,218 |
2,91,918 |
| 10 |
1,00,000 |
1,05,000 |
1,47,003 |
2,13,022 |
2,520,03 |
3,18,022 |
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| In case of death due to accident the Death benefit will increase by Rs.1,00,000/- |
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| * - Rs.30,000/- if death takes place during the first 6 months or Rs.60,000/- if death takes place during 7th month to 12th month. |
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| End of Policy Year |
Total Premium Paid till end of year (Rs) |
Total Surrender / Maturity Value |
| Scenario 1 |
Scenario 2 |
| 1 |
1,00,000 |
94,797 |
98,374 |
| 2 |
1,00,000 |
99,598 |
1,07,293 |
| 3 |
1,00,000 |
1,04,668 |
1,17,085 |
| 4 |
1,00,000 |
1,10,023 |
1,27,835 |
| 5 |
1,00,000 |
1,15,679 |
1,39,638 |
| 6 |
1,00,000 |
1,20,448 |
1,51,086 |
| 7 |
1,00,000 |
1,25,453 |
1,63,554 |
| 8 |
1,00,000 |
1,30,706 |
1,77,132 |
| 9 |
1,00,000 |
1,36,218 |
1,91,918 |
| 10 |
1,00,000 |
1,47,003 |
2,13,022 |
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| In addition to the above, Rs.5,000/- is payable on maturity |
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| Illustration 2 |
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| Premium paying term : 10 years |
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| Age at entry : 35 years |
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| Sum Assured : Rs.1,00,000/- |
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| Frequency of premium payment : Yearly |
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| Yearly Premium : Rs.10,000/- |
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| Annual mortality charge : Rs.224.92 every year |
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| Annual Accident Benefit charge : Rs.50.00 every year |
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| Annual commission charge : Rs.323.14 every year |
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| Annual administration charge : Rs 247.41 every year |
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| Bid / Offer spread : 5% of the cash value of units |
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| The Variable benefits shown below are the amounts based on the cash value of the available units, after deduction of the charges and surrender penalties, wherever applicable. |
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| End of Policy Year |
Total Premium Paid till end of year (Rs) |
Death Benefit |
Total Death Benefit |
| Guaranteed |
Variable |
| Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 |
| 1 |
10,000 |
* |
9,127 |
9,471 |
* + 9,127 |
* + 9,471 |
| 2 |
20,000 |
1,00,000 |
18,705 |
19,786 |
1,18,705 |
1,19,786 |
| 3 |
30,000 |
1,00,000 |
28,757 |
31,019 |
1,28,757 |
1,31,019 |
| 4 |
40,000 |
1,00,000 |
39,306 |
43,253 |
1,39,306 |
1,43,253 |
| 5 |
50,000 |
1,00,000 |
50,377 |
56,576 |
1,50,377 |
1,56,576 |
| 6 |
60,000 |
1,00,000 |
61,995 |
71,086 |
1,61,995 |
1,71,086 |
| 7 |
70,000 |
1,00,000 |
74,187 |
86,887 |
1,74,187 |
1,86,887 |
| 8 |
80,000 |
1,00,000 |
86,983 |
1,04,096 |
1,86,983 |
2,04,096 |
| 9 |
90,000 |
1,00,000 |
1,00,411 |
1,22,838 |
2,00,411 |
2,22,838 |
| 10 |
1,00,000 |
1,05,000 |
1,19,504 |
1,48,248 |
2,24,504 |
2,53,248 |
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| In case of death due to accident the Guaranteed Death benefit will increase by Rs.1,00,000/-. |
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| * - Rs.30,000/- if death takes place during the first 6 months or Rs.60,000/- if death takes place during 7th month to 12th month. |
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| End of Policy Year |
Total Premium Paid till end of year (Rs) |
Total Surrender / Maturity Value |
| Scenario 1 |
Scenario 2 |
| 1 |
10,000 |
8,214 |
8,524 |
| 2 |
20,000 |
17,583 |
18,599 |
| 3 |
30,000 |
27,463 |
29,623 |
| 4 |
40,000 |
38,127 |
41,955 |
| 5 |
50,000 |
50,377 |
56,576 |
| 6 |
60,000 |
61,995 |
71,086 |
| 7 |
70,000 |
74,187 |
86,887 |
| 8 |
80,000 |
86,983 |
1,04,096 |
| 9 |
90,000 |
1,00,411 |
1,22,838 |
| 10 |
1,00,000 |
1,19,504 |
1,48,248 |
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| In addition to the above, Rs.5,000/- is payable on maturity. |
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| Note : |
- This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life
- The non-guaranteed benefits in the above illustrations 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. (scenario 1) or 10% p.a. (scenario 2), as the case may be. The Projected Investment Rate of Return is not guaranteed
- 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
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