Insurance denge

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Insurance denge

  1. 1. INTRODUCTIONWhat is Endowment Policy?An endowment policy is a life insurance contract designed to pay a lump sum after a specifiedterm (on its maturity) or on death. Typical maturities are ten, fifteen or twenty years up to acertain age limit. Some policies also pay out in the case of critical illness.What is Traditional with Profit Endowment?There is an amount guaranteed to be paid out called the sum assured and this can be increasedon the basis of investment performance through the addition of periodic (for example annual)bonuses. Regular bonuses (sometimes referred to as reversionary bonuses) are guaranteed atmaturity and a further non-guaranteed bonus may be paid at the end known as a terminal bonus.During adverse investment conditions, the encashment value or surrender value may be reducedby a Market Value Reduction or MVR (It is sometime referred to as a market value adjustmentbut this is a term in decline through pressure from the Financial Services Authority to use clearerterms). The idea of such a measure is to protect the investors who remain in the fund from otherswithdrawing funds with notional values that are, or risk being, in excess of the value ofunderlying assets at a time when stock markets are low. If an MVA applies an early surrenderwould be reduced according to the policies adopted by the funds managers at the time.The Endowment Assurance PolicyFEATURES:- Moderate Premiums High bonus High liquidity Savings oriented.This policy not only makes provisions for the family of the Life Assured in event of his earlydeath but also assures a lump sum at a desired age. The lump sum can be reinvested to providean annuity during the remainder of his life or in any other way considered suitable at that time.Premiums are usually payable for the selected term of years or until death if it occurs during the4|Page
  2. 2. term period.Suitable For:Being an endowment assurance policy, this plan is apt for people of all ages and social groupswho wish to protect their families from a financial setback that may occur owing to their demise.The amount assured if not paid by reason of his death earlier will payable at the end of theendowment term where it can be invested in an annuity provision for the rest of thepolicyholders life or in any other way he may think most suitable at that time.Disability Benefit:In case policy holder becomes totally and permanently disabled due to an accident beforereaching the age of 70 and the policy is in full force, he will not be required to pay furtherpremiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum assured onany one life) and the policy will continue to be in force.Accident Benefit:By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his family areentitled to the following benefits on death or permanent disability caused by accident. Evenstudents above the age of 18 years can avail of this benefit.Premium Stoppage:If payment of premiums ceases after at least THREE years premiums have been paid , a freepaid-up policy for a reduced sum assured will be automatically secured provided the reducedsum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sumassured will become payable on the event as stipulated in the policy.Bonus:Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, butonly if it is a „with profits‟ policy. Every year the Life Insurance Corporation distributes itssurplus among policyholder to „with profits‟ polices in the form of bonuses. Substantial bonuseshave been declared in the past after each valuation of policy liabilities.5|Page
  3. 3. BENEFITS:This is the most popular form of life assurance since it not only makes provision for the family ofthe Life Assured in the event of his early death, but also assures a lump sum at any desired age.The amount assured, if not paid by reason of his earlier death, becomes payable at the end of theendowment term when it may be invested to provide an annuity during the remainder of his lifeor in any other way he may think most suitable at the time.Suitable For:Being an endowment assurance policy, this plan is apt for people of all ages and social groupswho wish to protect their families from a financial setback that may occur owing to their demise.The amount assured if not paid by reason of his death earlier will payable at the end of theendowment term where it can be invested in an annuity provision for the rest of thepolicyholders life or in any other way he may think most suitable at that time.PLAN PARAMETERS Minimum MaximumEntry Age 12 65Sum Assured (Rs.) 50000 NO LIMITTerm (years) 5 55 Mode of Payment Maximum Premium Paying Policy Loan Available Period Monthly, Quarterly, Half 75 Yes Yearly, Yearly, Salary Saving SchemeThe Endowment Assurance Policy-Limited Payment:Limited Payment Endowment Plan Summary:6|Page
  4. 4. This is an Endowment policy provides the flexibility of choosing the Premium Paying Term (PPT).If you want to pay premium only for few years then this is right endowment plan for you. All otherfeatures are quite similar to Endowment Assurance plan.The best part of “Limited Payment Endowment” policy is that, even you are paying premium forlimited term but Bonus is paid for entire term. However premium is marginal higherthen Endowment with Profit but at the end you end up paying less premiums.Key Features: Flexibility of choosing Premium Paying Term. Bonus is paid for the entire term irrespective of PPT. Life Risk covered for entire term, irrespective of PPT. Maturity amount is paid at the end of term and not at the end of PPT. Tax BenefitBenefits:Natural Death:Sum Assured + Bonus for number of years till death + Final Additional Bonus (FAB) if any.Accidental Death:Sum Assured + Additional SA for DAB + Bonus for number of years till death + FAB if any (Ifaccidental benefit is taken)Maturity Benefit:Sum Assured + Bonus for entire term + Final Bonus.Accident And Permanent Disability Benefit:You can avail this benefit by paying Rs.1 extra per 1000 sum assured. Accident benefit ismaximum Rs.50 lakh and available only upto premium paying term.Tax Benefit:7|Page
  5. 5. Tax benefit on your premium u/s 80C and Maturity/Death Claim u/s 10 (10D)Loan:Loan Facility is available on this policy after 3 years, you can also use it as Housing Loancollateral.Premium Payment:You can pay premium Yearly, Half-yearly, Quarterly, Monthly or Single premium.Eligibility Conditions and Restrictions:Minimum age: 12 yearsMaximum age: 60 years (Regular)Maximum age for single Premium: 65 yearsMaximum age at Maturity: 75 years for all.Min. Sum Assured: Rs.50,000/-Max. Sum Assured: No LimitMin SA for Single Premium Rs.30,000/- (Without DAB)Policy Term:For Regular: 15, 20 and 25 yearsFor Single Premium: 5 years ti 50 years (In multiple of 5 years)Premium Paying Term for Regular Premiums:For 15 years term: 5 and 10 yearsFor 20 years term: 5, 10 and 15 yearsFor 25 years term: 5, 10, 15 and 20 yearsFEATURES:Just as in the case of limited payment whole life polices, here, too, the payment of premium can belimited either to a single payment or to a term shorter than the policy. The endowment is, however,payable only at the end of the policy term, or on death of the policy holder if it takes place earlier.If payment of the premiums ceases after at least three years premiums have been paid, a free paid-8|Page
  6. 6. up Policy for an amount bearing the same proportion to the sum assured as the number ofpremiums actually paid bears to the number stipulated for in the policy, will be automaticallysecured provided the reduced sum assured, exclusive of any attached bonus, is not less thanRs.250.Such reduced paid-up Policy will not be entitled to participate in the profits declared thereafter, butsuch Bonus as has already been declared on the Policy will remain attached hereto.BENEFITS:This is the most popular form of life assurance since it not only makes provision for the family ofthe Life Assured in the event of his early death, but also assures a lump sum at any desired age.The amount assured, if not paid by reason of his earlier death, becomes payable at the end of theendowment term when it may be invested to provide an annuity during the remainder of his life orin any other way he may think most suitable at the time.Suitable For:Being an endowment assurance policy, this plan is apt for people of all ages and social groups whowish to protect their families from a financial setback that may occur owing to their demise. Theamount assured if not paid by reason of his death earlier will payable at the end of the endowmentterm where it can be invested in an annuity provision for the rest of the policyholders life or in anyother way he may think most suitable at that time.TREBLE PLAN PARAMETERS Minimum Maximum Entry Age 12 nearer birthday 65 Sum Assured (Rs.) 50000 NO LIMIT (except for single premium) Term (years) 5 55 Mode Of Payment Maximum Premium Paying Policy Loan Available Period Monthly, Quarterly, Half 75 Years No loan under policies issued9|Page
  7. 7. Yearly, Yearly, Salary Saving on minors until vesting SchemeJeevan Anand :FEATURESProduct summary:This plan is a combination of Endowment Assurance and Whole Life plans. It provides financialprotection against death throughout the lifetime of the life assured with the provision of payment ofa lump sum at the end of the selected term in case of his survival.Premium:Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as optedby you throughout the selected term of the policy or till 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 perthousand Sum Assured annually at the end of each financial year. Once declared, they form part ofthe guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, ifit occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run forcertain minimum period.BENEFITS:Benefits in case of death during the selected term:The Sum Assured along with the vested bonuses is payable on death in a lump sum.Benefits in case of survival to the end of selected term:The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end ofthe term. An additional Sum Assured is payable on death thereafter.10 | P a g e
  8. 8. Accident Benefit:An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death dueto accident up to age 70 of life assured. In case of permanent disability of the life assured due toaccident this additional Sum assured is payable in instalments.Supplementary/Extra Benefits:These are the optional benefits that can be added to your basic plan for extra protection/option. Anadditional premium is required to be paid for these benefits.Surrender Value:Buying a life insurance contract is a long-term commitment. However, surrender values areavailable on the plan on earlier termination of the contract.Guaranteed Surrender Value:The policy may be surrendered after it has been in force for 3 years or more. The guaranteedsurrender value is 30% of the basic premiums paid excluding the first year‟s premium. Any extrapremium(s) paid and premium(s) towards Accident Benefit are also excluded.Corporation’s policy on surrenders:In practice, the Corporation will pay a Special Surrender Value – which is either equal to or morethan the Guaranteed Surrender Value. The benefit payable on surrender reflects the discountedvalue of the reduced claim amount that would be payable on death or at maturity. This value willdepend on the duration for which premiums have been paid and the policy duration at the date ofsurrender. In some circumstances, in case of early termination of the policy, the surrender valuepayable may be less than the total premium paid.The Corporation‟s surrender value will be reviewed from time to time and may change dependingon the economic environment, our experience and other factors.Note: The above is the product summary giving the key features of the plan. This is for illustrative11 | P a g e
  9. 9. purpose only. This does not represent a contract and for details please refer to your policydocument. Jeevan Mitra (Double Cover Endowment Plan) Product summary This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term. Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the term of the policy or earlier death. Jeevan Mitra plan is not allowed for non-earning majors including: (i) When occupational extra is chargeable (ii) Pregnant ladies (iii) students. 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: Twice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured. Accident Benefit: 3 times of Sum Assured plus all the Bonus is given on accidental death provided policy was covered for accidental benefit. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. Tax Benefit: Tax Benefit is available on Premiums u/s 80C12 | P a g e
  10. 10. Whereas Maturity/Death Claim u/s 10D Loan Facility: Loan is allowed after 3 years Housing Loan Collateral: Twice Basic sum assured. Conditions and Requirements: Min. age at entry: 18 years Max. age at entry: 50 years Max. Maturity age: 70 years. Min. S.A.: Rs. 50,000/- Max. SA.: Any amount SA in multiples: Rs. 5,000 Accident benefit per 1000 SA: Re. 1 extra. Min Term: 15 years. Max Term: 30 years. Surrender of Policy: Yes Revival: Yes Housing Loan: Available Assignment: Available Survival Benefits: No Permanent Disability Benefit: Available Surrender: Buying Insurance policy is a long term commitment but Jeevan Mitra 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. Example: 1. Mrs. Geeta takes Jeevan Mitra policy for Rs 1 Lakh for 16 years term under Jeevan Mitra13 | P a g e
  11. 11. Double cover table no. 88. She dies of natural death due to heart attack after 3 years. Her nominee gets Rs. 2,13,200/- (Rs. 2,00,000/- SA being Double Cover Policy + Rs 13200 being bonus at an estimated Rs 44 per thousand pa for 3 years). In case, Mrs Geeta dies in an accident, her nominee will receive Rs. 3,00,000/- being 3 times the SA + accumulated Bonus till her death. 2. If Mrs Geeta takes the same policy but with for Rs 1 lakh but for 20 years and she survives till maturity. T Geeta gets Rs. 1,88,000/- (Rs. 100000 SA + Rs. 88,000/- being bonus at an estimated Rs 44 per thousand p.a.). BENEFIT EXAMPLE Benefit Illustration Statutory Warning “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 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 dependant on a number of factors including future investment performance.” Illustration 1: Table No 14 Age at entry: 35 years Policy Term: 25 years Sum Assured: Rs.1,00,000/- Premium paying term: 25 years Mode of premium payment: Yearly Annual Premium : Rs.4,750 /-14 | P a g e
  12. 12. End Total Premiums Benefit Payable On Death/Maturity At The End Of Year Of Paid Till End Of Variable Total Year Year Guaranteed Scenario Scenario Scenario 1 Scenario 2 1 2 1 4,750 200000 2,100 5,700 202100 205700 2 9,500 200000 4,200 11,400 204200 211400 3 14,250 200000 6,300 17,100 206300 217,100 4 19,000 200000 8,400 22800 208400 222800 5 23,750 200000 10,500 28500 210500 228500 6 28,500 200000 12,600 34200 212600 234200 7 33,250 200000 14,700 39900 214700 239900 8 38,000 200000 16,800 45600 216800 245600 9 42,750 200000 18,900 51300 218900 251300 10 47,500 200000 21,000 57000 221000 257000 15 71,250 200000 31,500 85500 231500 285500 20 95,000 200000 56,000 152000 256000 352000 25 118,750 200000 69,500 189500 269500 389500 End Total premiums Benefit payable on death / maturity at the end of year of paid till end of Variable Total year year Guaranteed Scenario Scenario Scenario 1 Scenario 2 1 2 Illu 25 118,750 100,000 69,500 189500 169500 289500 stra tion 2: Table No 133 Age at entry: 35 years15 | P a g e
  13. 13. Policy Term: 25 years Sum Assured: Rs.1,00,000/- Premium Paying term: 25 years Mode of premium payment: Yearly Annual Premium: Rs.5,453 /- End Total Premiums Benefit Payable On Death/Maturity At The End Of Year Of Paid Till End Variable Total Guaranteed Year Of Year Scenario 1 Scenario 2 Scenario 1 Scenario 2 1 5453 300000 2,100 5,700 302100 305700 2 10906 300000 4,200 11,400 304200 311400 3 16359 300000 6,300 17,100 306300 317,100 4 21812 300000 8,400 22800 308400 322800 5 27265 300000 10,500 28500 310500 328500 6 32718 300000 12,600 34200 312600 334200 7 38171 300000 14,700 39900 314700 339900 8 43624 300000 16,800 45600 316800 345600 9 49077 300000 18,900 51300 318900 351300 10 54530 300000 21,000 57000 321000 357000 15 81795 300000 31,500 85500 331500 385500 20 109060 300000 56,000 152000 356000 452000 25 136325 300000 69,500 189500 369500 489500 End Total Premiums Benefit Payable On Death/Maturity At The End Of Year Of Paid Till End Variable Total Guaranteed Year Of Year Scenario 1 Scenario 2 Scenario 1 Scenario 216 | P a g e
  14. 14. 25 136325 100000 69500 189500 169500 289500 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. Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Mitra Summary: Jeevan Mitra – Triple Risk cover plan is a refined version of endowment plan. Jeevan Mitra – Triple Risk cover is ideal for the persons who require high risk cover and at the same time want provision for certain needs. This plan is also good for persons availing housing loans etc. This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term. Premiums: You can pay your insurance Premiums yearly, half-yearly, quarterly, monthly or through Salary deductions.17 | P a g e
  15. 15. Bonuses: Jeevan Mitra – Triple Riskcover is a with-profit insurance plan that participates in the profits of the LIC‟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: 3 times of Sum Assured + Bonus is payable in a lump sum upon the death of the life assured. Accident Benefit: 4 times of SA + Bonus is given on accidental death provided policy was covered for accidental benefit. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. Tax Benefit: Tax Benefit is available on Premiums u/s 80C Whereas Maturity/Death Claim u/s 10D Loan Facility: Loan is allowed after 3 years Housing Loan Collateral: Thrice Basic sum assured. FEATURES Product summary This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.18 | P a g e
  16. 16. Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the term of the policy or 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. BENEFITS Maturity Benefit : The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. 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 will be available under the plan on earlier termination of the contract. 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. Company’s policy on surrenders : In practice, the company 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 or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of19 | P a g e
  17. 17. 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. BENEFIT ILLUSTRATION Benefit Illustration Statutory Warning: “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 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 dependant on a number of factors including future investment performance.” Illustration1: Age at Entry: 35 years Policy Term: 25 Years Sum Assured: Rs. 1,00,000/- Premium Paying Term: 25 Years20 | P a g e
  18. 18. Mode of Premium Payment: Yearly Annual Premium: Rs. 4,750/- End Of Total Premiums Paid Benefit Payable On Death/Maturity At The End Of Year Till End Of Year Year Variable Total Guarantee Scenario Scenario Scenario Scenario d 1 2 1 2 1 4,750 200000 2,100 5,700 202100 205700 2 9,500 200000 4,200 11,400 204200 211400 3 14,250 200000 6,300 17,100 206300 217,100 4 19,000 200000 8,400 22800 208400 222800 5 23,750 200000 10,500 28500 210500 228500 6 28,500 200000 12,600 34200 212600 234200 7 33,250 200000 14,700 39900 214700 239900 8 38,000 200000 16,800 45600 216800 245600 9 42,750 200000 18,900 51300 218900 251300 10 47,500 200000 21,000 57000 221000 257000 15 71,250 200000 31,500 85500 231500 285500 20 95,000 200000 56,000 152000 256000 352000 25 118,750 200000 69,500 189500 269500 389500 End of Total premiums paid till Benefit payable on death / maturity at the end of year end of year year Guarantee Variable Total d Scenario Scenario Scenario Scenario21 | P a g e
  19. 19. 1 2 1 2 25 118,750 100,000 69,500 189500 169500 289500 Illu stration 2: Age at Entry: 35 years Policy Term: 25 Years Sum Assured: Rs. 1,00,000/- Premium Paying Term: 25 Years Mode of Premium Payment: Yearly Annual Premium: Rs. 5,453/- Benefit Payable On Death/Maturity At The End Of Year End Of Total Premiums Paid Variable Total Year Till End Of Year Guarantee Scenario Scenario Scenario Scenario d 1 2 1 2 1 5453 300000 2,100 5,700 302100 305700 2 10906 300000 4,200 11,400 304200 311400 3 16359 300000 6,300 17,100 306300 317,100 4 21812 300000 8,400 22800 308400 322800 5 27265 300000 10,500 28500 310500 328500 6 32718 300000 12,600 34200 312600 334200 7 38171 300000 14,700 39900 314700 339900 8 43624 300000 16,800 45600 316800 34560022 | P a g e
  20. 20. 9 49077 300000 18,900 51300 318900 351300 10 54530 300000 21,000 57000 321000 357000 15 81795 300000 31,500 85500 331500 385500 20 109060 300000 56,000 152000 356000 452000 25 136325 300000 69,500 189500 369500 489500 Benefit Payable On Death/Maturity At The End Of Year End Of Total Premiums Paid Variable Total Year Till End Of Year Guarantee Scenario Scenario Scenario Scenario d 1 2 1 2 25 136325 100000 69500 189500 169500 289500 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. New Janaraksha Plan Summary: New Janaraksha Plan is an Endowment Assurance plan that provides financial protection against death throughout the term of plan. It provides full life insurance for 3 years even when the premiums are not paid. New Janaraksha23 | P a g e
  21. 21. Plan (with Profits) is specially designed for people with irregular income and whose job is not secure due to fluctuating income, i.e. Workers with unorganized sector, Daily wage earners, Call Center Employees, Farmers, Small businessman etc. Bonuses: New Janaraksha Plan is a with-profit plan and it participates in the profits of the LIC‟slife insurance business. You will get a share of the profit in the form of bonuses. Simple Revisionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. The Bonuses Once declared, they form part of the guaranteed benefits of the plan. 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 during the policy term. Accident Benefit: The Sum Assured (subject to a limit of Rs.5 lakhs) is payable in a lump sum on accidental death of the life assured during the policy term. In case of permanent disability of the life assured due to accident during the policy term, this benefit is payable in installments. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. Tax Benefit: The Premiums are exempt u/s 80C. Maturity/Death Claim is exempt u/s 10(10D) Premiums: You may pay premiums yearly, half-yearly, quarterly, monthly or through Salary deductions, throughout the term of the policy or earlier death. After at least two full years‟ premiums have been paid, full insurance cover is available even when premiums are not paid for up to three years.24 | P a g e
  22. 22. Eligibility Conditions and Restrictions for New Janaraksha Plan: Minimum age at entry: 18 years (Last Birthday) Maximum age at entry: 50 years (Nearest) Max. age at Maturity: 70 years Min. Term: 12 years Max. Term: 30 years Min. SA: 30,000 Max. Sum Assured: 10,00,000 Policy/ Housing Loan Available: Yes Cooling off period: If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to Life Insurance Corporation Of India within 15 days. Surrender Value: Buying a life insurance contract is a long-term commitment. However, surrender value will be available under the plan on earlier termination of the contract. The Unique Identification No. of New Janaraksha Plan is 512N083V01 ULIP (UNIT LINKED INVESTMENT PLAN): Unit-linked endowment Unit-linked endowments are investments where the premium is invested in units of a unitized insurance fund. Units are en-cashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units. This is the simplest definition.25 | P a g e

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