 |
 |
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.
These are Money Back type Assurance
plans that provide financial protection
against death throughout the term of plan
along with the periodic payments on survival
at specified durations during the term.Premiums are payable yearly, half-yearly,
quarterly, monthly or through salary deductions
as opted by you throughout the term of the
policy, or till the earlier death.
This is a with-profit plan and participate
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.
Final (Additional) Bonus may also be payable
provided policy has run for certain minimum
period.
The Sum Assured plus all bonuses
to date is payable in a lump sum upon the
death of the life assured during the policy
term irrespective of the Survival benefit
/benefits paid earlier.
The percentage of Sum Assured as
mentioned below will be paid on survival
to the end of specified durations :
|
5
|
20%
|
15%
|
|
10
|
20%
|
15%
|
|
15
|
20%
|
15%
|
|
20
|
40%
|
15%
|
|
25
|
- |
40%
|
All bonuses declared upto the maturity date
will also be paid alongwith the final survival
benefit.
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.
Buying a life insurance contract is a long-term
commitment. However, surrender values are
available under the plan on earlier termination
of the contract.
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
and all survival benefits paid earlier.
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 is the discounted value of the
reduced claim amount that would be payable
on death or at maturity. 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.
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.
|
At the end of
5 years |
20% |
15% |
|
At the end of
10 years |
20% |
15% |
|
At the end of
15 years |
20% |
15% |
|
At the end of
20 years |
balance 40%
+ bonus |
15% |
|
At the end of
25 years |
NIL |
balance 40%
+ bonus |
“Some benefits are guaranteed and
some benefits are variable with returns
based on the future performance of your
insurer carrying on life insurance business.
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 future investment
returns. These assumed rates of return are
not guaranteed and they are not the 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.”
Age at entry : 35 years
Policy Term : 20 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 6564 /-
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1
|
6564
|
100000
|
2400
|
4800
|
102400
|
104800
|
| 2
|
13128
|
100000
|
4800
|
9600
|
104800
|
109600
|
| 3
|
19692
|
100000
|
7200
|
14400
|
107200
|
114400
|
| 4
|
26256
|
100000
|
9600
|
19200
|
109600
|
119200
|
| 5
|
32820
|
100000
|
12000
|
24000
|
112000
|
124000
|
| 6
|
39384
|
100000
|
14400
|
28800
|
114400
|
128800
|
| 7
|
45948
|
100000
|
16800
|
33600
|
116800
|
133600
|
| 8
|
52512
|
100000
|
19200
|
38400
|
119200
|
138400
|
| 9
|
59076
|
100000
|
21600
|
43200
|
121600
|
143200
|
| 10 |
65640
|
100000
|
24000
|
48000
|
124000
|
148000
|
| 15
|
98460
|
100000
|
36000
|
72000
|
136000
|
172000
|
| 20
|
131280
|
100000
|
48000
|
96000
|
148000
|
196000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1
|
6564
|
0
|
0
|
0
|
0
|
0
|
| 2
|
13128
|
0
|
0
|
0
|
0
|
0
|
| 3
|
19692
|
0
|
0
|
0
|
0
|
0
|
| 4
|
26256
|
0
|
0
|
0
|
0
|
0
|
| 5
|
32820
|
20000
|
0
|
0
|
20000
|
20000
|
| 6
|
39384
|
0
|
0
|
0
|
0
|
0
|
| 7
|
45948
|
0
|
0
|
0
|
0
|
0
|
| 8
|
52512
|
0
|
0
|
0
|
0
|
0
|
| 9
|
59076
|
0
|
0
|
0
|
0
|
0
|
| 10 |
65640
|
20000
|
0
|
0
|
20000
|
20000
|
| 15
|
98460
|
20000
|
0
|
0
|
20000
|
20000
|
| 20
|
131280
|
40000
|
53000
|
106000
|
93000
|
146000
|
| |
|
|
|
|
|
|
Age at entry : 35 years
Policy Term : 25 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual
Premium : Rs. 5507 /-
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1
|
5507
|
100000
|
2700
|
4800
|
102700
|
105800
|
|
2 |
11014
|
100000
|
5400
|
9600
|
105400
|
111600
|
| 3
|
16521
|
100000 |
8100 |
14400 |
108100 |
117400
|
| 4
|
22028
|
100000 |
10800 |
19200 |
110800 |
123200
|
| 5
|
27535
|
100000
|
13500
|
24000
|
113500
|
129000
|
| 6
|
33042
|
100000
|
16200
|
28800
|
116200
|
134800
|
| 7
|
38549
|
100000
|
18900
|
33600
|
118900
|
140600
|
|
8 |
44056
|
100000 |
21600 |
38400 |
121600
|
146400 |
| 9
|
49563
|
100000
|
24300
|
43200
|
124300
|
152200
|
| 10 |
55070
|
100000
|
27000
|
48000
|
127000
|
158000
|
| 15
|
82605
|
100000
|
40500
|
72000
|
140500
|
187000
|
| 20
|
110140
|
100000
|
54000
|
116000
|
154000
|
216000
|
25
|
137675
|
100000
|
67500
|
145000
|
167500
|
245000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1
|
5507
|
0
|
0
|
0
|
0
|
0
|
| 2
|
11014
|
0
|
0
|
0
|
0
|
0
|
| 3
|
16521
|
0
|
0
|
0
|
0
|
0
|
| 4
|
22028
|
0
|
0
|
0
|
0
|
0
|
| 5
|
27535
|
15000
|
0
|
0
|
15000
|
15000
|
| 6
|
33042
|
0
|
0
|
0
|
0
|
0
|
| 7
|
38549
|
0
|
0
|
0
|
0
|
0
|
| 8
|
44056
|
0
|
0
|
0
|
0
|
0
|
| 9
|
49563
|
0
|
0
|
0
|
0
|
0
|
| 10 |
55070
|
15000
|
0
|
0
|
15000
|
15000
|
| 15
|
82605
|
15000
|
0
|
0
|
15000
|
15000
|
| 20
|
110140
|
15000
|
0
|
0 |
15000
|
15000
|
25 |
137675 |
40000 |
74500 |
161000 |
114500 |
201000 |
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) Future bonus will depend on future profits
and as such is not guaranteed. However,
once bonus is declared in any year and added
to the policy, the bonus so added is guaranteed.
|
| |
|
|
 |
