Home - Insurance Plans - The Whole Life Policy- Limited Payment
 
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.


SURVIVAL BENEFIT
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.


DEATH BENEFIT
Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs.

Benefit Illustration

Statutory warning

“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 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.”

Illustration 1:
Table No 2
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 45 years
Mode of premium payment: Yearly
Annual Premium: Rs.2917/-

End of year
Total premiums paid till end of year

Benefit payable on death / maturity at the end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

2917

100000

3900

10800

103900

110800

2

5834

100000

7800

21600

107800

121600

3

8751

100000

11700

32400

111700

132400

4

11668

100000

15600

43200

115600

143200

5

14585

100000

19500

54000

119500

154000

6

17502

100000

23400

64800

123400

164800

7

20419

100000

27300

75600

127300

175600

8

23336

100000

31200

86400

131200

186400

9

26253

100000

35100

97200

135100

197200

10

29170

100000

39000

108000

139000

208000

15

43755

100000

58500

162000

158500

262000

20

58340

100000

104000

288000

204000

388000

25

72925

100000

130000

360000

230000

460000

30

87510

100000

156000

432000

256000

532000

35

102095

100000

182000

504000

282000

604000

40

116680

100000

208000

576000

308000

676000

45

131265

100000

234000

648000

334000

748000



































Illustration 2:
Table No 5
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 15 years
Mode of premium payment: Yearly
Annual Premium: Rs.4,444/-

End of year
Total premiums paid till end of year

Benefit payable on death / maturity at the end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

4444

100000

3900

10800

103900

110800

2

8888

100000

7800

21600

107800

121600

3

13332

100000

11700

32400

111700

132400

4

17776

100000

15600

43200

115600

143200

5

22220

100000

19500

54000

119500

154000

6

26664

100000

23400

64800

123400

164800

7

31108

100000

27300

75600

127300

175600

8

35552

100000

31200

86400

131200

186400

9

39996

100000

35100

97200

135100

197200

10

44440

100000

39000

108000

139000

208000

15

66660

100000

58500

162000

158500

262000

20

66660

100000

104000

288000

204000

388000

25

66660

100000

130000

360000

230000

460000

30

66660

100000

156000

432000

256000

532000

35

66660

100000

182000

504000

282000

604000

40

66660

100000

208000

576000

308000

676000

45

66660

100000

234000

648000

334000

748000

 

































Illustration 3:
Table No 8
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 1 year
Single Premium: Rs.45,565/-

End of year
Total premiums paid till end of year

Benefit payable on death / maturity at the end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

45565

100000

4300

18700

104300

118700

2

45565

100000

8600

37400

108600

137400

3

45565

100000

12900

56100

112900

156100

4

45565

100000

17200

74800

117200

174800

5

45565

100000

21500

93500

121500

193500

6

45565

100000

25800

112200

125800

212200

7

45565

100000

30100

130900

130100

230900

8

45565

100000

34400

149600

134400

249600

9

45565

100000

38700

168300

138700

268300

10

45565

100000

43000

187000

143000

287000

15

45565

100000

64500

280500

164500

380500

20

45565

100000

114500

498500

214500

598500

25

45565

100000

143000

623000

243000

723000

30

45565

100000

172000

748000

272000

848000

35

45565

100000

205000

872500

305000

972500

40

45565

100000

229000

997000

329000

1097000

45

45565

100000

258000

1122000

358000

1222000




 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

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.

v) The Maturity Benefit is the amount shown at the end of 45 years.


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