Unit Linked Insurance Plans
New Jeevan Dhara- I New Jeevan Suraksha- I
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
Market Plus I
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.
BENEFITS
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.
OPTIONS
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.
OTHER
FEATURES
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.
a)
Benefits payable on death before vesting
In case of death of the policyholder within the deferment
term where Life cover is opted for and is in force, the nominee shall
be eligible to get the Sum Assured under the Basic Plan together with
the Policyholder’s Fund value as at the date of booking the liability.
The liability shall be booked after receipt of intimation along with
death certificate. The benefit may be got in a lump sum or in the form
of pension or a combination of lump sum and pension as desired by the
nominee. The pension will be based on the then prevailing immediate
annuity rates under the relevant annuity option. In case the policy is
taken without life cover, then the Policyholder’s Fund value as at the
date of booking the liability, as mentioned above, shall be payable to
the nominee. Again, the nominee can choose either a lump sum or
pension or a combination of lump sum and pension, which will be based
on the then prevailing immediate annuity rates under the
relevant annuity option. If the policy is in lapsed condition, then
only the Value of the units held in the
Policyholder’s Fund shall become payable to the nominee. This benefit
may be chosen either in lump sum or in the form of pension as desired
by the nominee. The pension will be based on the then prevailing
immediate annuity rates under the relevant annuity option.
b)
Benefit on vesting
On the policyholder surviving up to the date of vesting,
the Policyholder’s Fund value will compulsorily be utilised to provide
an annuity based on the then prevailing immediate annuity rates under
the relevant annuity option. The policyholder will have to intimate
his/ her choice of annuity option to the Corporation 6 months prior to
the date of vesting under the policy. There is also an option to
commute up to one-third of the Fund Value of the units held in the
Policyholder’s Fund value at the time of vesting of the annuity, which
shall be paid in lump sum. In case commutation is opted for, the
amount of annuity/pension available will be reduced proportionately.
There will also be an option to purchase pension from any other life
insurance company registered with IRDA subject to Regulatory
provisions. If the policyholder opts to purchase pension from other
insurance company, he/she will have to inform LIC six months prior to
the vesting date.
In such cases, LIC will transfer the Policyholder’s Fund value
directly to the chosen Company. Notwithstanding the above mentioned,
in case the amount at the vesting date is insufficient to purchase the
minimum amount of pension allowed by LIC, then the balance in the
Policyholder’s Fund value at the vesting date shall be refunded to the
Policyholder.
c)
Options:
i.
Life Cover
The policy can be issued either with or without life
insurance cover. If life insurance cover is opted for by the
policyholder, he/ she can choose Sum Assured within the following
limits, subject to a minimum of Rs. 25,000. For Single premium
policies: up to and equal to the Single Premium For Regular premium
policies:
If Critical Illness Benefit Rider is opted for:
10 times of the annualized premium if age at entry is up to 40 years.
5 times of the annualized premium if age at entry is 41 years and
above.
If Critical Illness Benefit Rider is not opted for:
20 times of the annualized premium if age at entry is up to 40 years.
10 times of the annualized premium if age at entry is 41 years and
above.
Where the minimum Sum Assured under the basic plan is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.
ii.
Accident Benefit Rider Option:
Accident Benefit (AB) can be availed of as an optional
Rider benefit by paying an additional premium of Rs.0.50 for every
Rs.1,000/- of the Accident Benefit Sum Assured per policy year by
cancellation of appropriate number of units out of the Policyholder’s
Fund value every month. On Accidental death of the Policyholder during
the term of the policy, a sum equal to the Accident Benefit Sum
Assured will become payable, provided the Accident benefit cover is
opted for and is in force. Further, it will be available up to the
life cover Sum Assured opted for, subject to an overall limit of Rs.50
lakh taking all existing policies of the Life Assured under individual
as well as group schemes including policies with in-built accident
benefit taken from Life Insurance Corporation of India and other
insurance companies and the Accident Benefit Rider Sum Assured under
the new proposal into consideration. The Accident Benefit rider option
will not be available in case life cover sum assured is zero. This
benefit will be available only till the policy anniversary on which
the age nearer birthday of the Policyholder is 70 years. No charges
for this benefit shall be deducted from the Policy anniversary at
which the benefit ceases.
iii. Critical Illness Rider Option :
Critical Illness Rider Benefit can be opted for only if
Life cover has been opted. An amount equal to the Critical Illness
Rider Sum Assured will be payable in case of diagnosis of defined
categories of Critical Illness subject to certain terms and
conditions, provided the Critical Illness Benefit cover is opted for
and is in force. The maximum limit for this rider will be Rs.10 lakh
under all policies of the Life Assured with the Corporation taken
together. The Critical Illness Rider Sum Assured shall be available
only if the sum assured under the life over is equal to or greater
than Rs.50,000. The Critical Illness Sum Assured shall not exceed the
Sum Assured under the Basic Plan. This benefit will be available only
till the policy anniversary on which the age nearer birthday of the
Policyholder is 60 years or for a maximum term of 35 years whichever
is less. No charges for this benefit shall be deducted from the Policy
anniversary at which the benefit ceases. Further, this benefit will be
available only once during the term of the policy (i.e. till a
critical illness claim, as per the conditions defined, arises under
the policy). Once a claim under this Rider has been admitted, no
subsequent charge towards Critical Illness Benefit Rider shall be
deducted. Charges towards Life cover and Accident Benefit cover, if
any, shall however continue to be deducted on a monthly basis, as
usual. Critical Illness Benefit rider can be opted for at the
inception of the policy only and shall not be allowed thereafter.
d)
Annuity Options
The rate at which the claim amount will be converted into
an annuity is not guaranteed and will be at the rate prevalent at that
time. Further a number of annuity options will be available and the
rate for different options may differ.
Profit Plus
It is a unit linked Endowment plan where the premium payment term (PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years. You can choose the level of cover within the limits, which will depend on whether the policy is a Single premium or Limited premium contract, term chosen and on the level of premium you agree to pay.
Four types of investment Funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
Payment
of Premiums:
You may pay premiums regularly at yearly, half-yearly,
quarterly or monthly (ECS) intervals over the premium paying term of
3, 4 or 5 years. The minimum premium will be Rs.10000/-.
Alternatively, a Single premium can be paid subject to a minimum of
Rs.20,000/- .
Other Features:
i) Partial Withdrawals:
You may en cash the units partially after the third policy anniversary
subject to the following:
i) In case of minors, partial withdrawals shall be allowed from the
policy anniversary coinciding with or next following the date on which
the life assured attains majority (i.e. on or after 18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the
form of fixed number of units.
iii) For 2 years’ period from the date of withdrawal, the Sum Assured
under the Basic plan shall be reduced to the extent of the amount of
partial withdrawals made.
iv) Under Limited Premium Paying Term policies where less than 3
years’ premiums have been paid and further premiums are not paid, the
partial withdrawals shall not be allowed.
v) Under Limited Premium Paying Term policies where at least 3 years’
premiums have been paid, partial withdrawal will be allowed subject to
Policyholder’s Fund Value being at least Rs. 10000/-.
vi) Under Single Premium policies, the partial withdrawal will be
allowed subject to a minimum balance of Rs. 5000/- in the
Policyholder’s Fund Value.
ii) Switching: You can switch between any
fund types for the entire Fund Value during the policy term subject to
switching charges, if any.
Benefits
The
benefits payable under the policy in different contingencies during
this period shall be as under:
A. In case of Death: Higher of Sum Assured
under the Basic Plan or the Policyholder’s Fund Value. The Sum Assured
shall be subject to provisions of Partial Withdrawals made,
if any.
B.
In case of Death due to accident: Accident
Benefit Sum Assured in addition to the amount under A above, if
Accident Benefit is opted for.
C.
In case of Critical Illness claim: Critical
Illness Rider Sum Assured, if opted for.
D. On maturity: The Policyholder’s Fund Value.
E. In case of Surrender (including Compulsory Surrender):
The Policyholder’s Fund Value. The
Surrender value, however, shall be paid only after the completion of 3
policy years.
F. In case of Partial Withdrawals:
For 2 years period from the date of withdrawal, the sum assured under
the basic plan shall be reduced to the extent of the amount of partial
withdrawals made.
G.
In case of Death: The Policyholder’s Fund Value.
H.
In case of death due to accident: Only, the amount as under
G above.
I.
In case of Critical Illness claim: Nil.
J.
In case of Surrender (including Compulsory Surrender):
Policyholder’s Fund Value / monetary value as the case may be, shall
be payable after the completion of the third policy anniversary. No
amount shall be payable within 3 years from the date of commencement
of policy.
K.
In case of Partial withdrawal: Partial Withdrawals shall
not be allowed under such a policy even after completion of 3 years
period.
New Jeevan Dhara I
These
are Deferred Annuity plans that allow the policyholder to make
provision for regular income after the selected term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or
through Salary deduction, as opted by you, throughout the term of the
policy or till earlier death. Alternatively, the premium may be paid
in one lump sum (single premium).
Tax
Benefits:
Tax relief under Section 80c is available on premiums paid under New
Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan
Dhara I (Table No.148) qualify for tax relief under Section 88.
Bonuses:
These are with-profit plans and participate in the profits of the
Corporation’s annuity / pension business. Policies get 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) Bonuses may also be payable
provided policy has run for a certain minimum period.
Death
Benefit:
On death of the Life Assured during the term of the policy the basic
premiums paid, excluding any rider premiums or extra premiums, up to
the date of death accumulated with interest at such rates as decided
by the Corporation will be payable to the nominee. Currently, the
interest rate is 3%, 4% or 5 % if the death occurs within the first 10
years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can encash up to a maximum 25% of the
maturity proceeds as a tax-free lump sum. The balance should be
compulsorily converted to an annuity at the rates applicable at the
time of maturity of the policy. The policyholder has the choice of
opting for any one of 5 annuity options. The annuity options available
are
(i)
annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or
20 years
(iii) Joint life and last survivor annuity to the annuitant and his/
her spouse under which annuity payable to the spouse on death of the
purchaser will be 50% of that payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the
annuitant
(v) Life annuity increasing at a simple rate of 3% per annum.
New Jeevan Suraksha I
These
are Deferred Annuity plans that allow the policyholder to make
provision for regular income after the selected term.
Bonuses:
These are with-profit plans and participate in the profits of the
Corporation’s annuity / pension business. Policies get 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) Bonuses may also be payable
provided policy has run for a certain minimum period.
Death
Benefit:
On death of the Life Assured during the term of the policy the basic
premiums paid, excluding any rider premiums or extra premiums, up to
the date of death accumulated with interest at such rates as decided
by the Corporation will be payable to the nominee. Currently, the
interest rate is 3%, 4% or 5 % if the death occurs within the first 10
years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can en cash up to a maximum 25% of the
maturity proceeds as a tax-free lump sum. The balance should be
compulsorily converted to an annuity at the rates applicable at the
time of maturity of the policy. The policyholder has the choice of
opting for any one of 5 annuity options. The annuity options available
are
(i)
annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or
20 years
(iii) Joint life and last survivor annuity to the annuitant and his/
her spouse under which annuity payable to the spouse on death of the
purchaser will be 50% of that payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the
annuitant
(v) Life annuity increasing at a simple rate of 3% per annum
