LIC Jeevan Vishwas Plan

Product summary:
This is an Endowment Assurance plan designed for the benefit of handicapped dependants.

Premiums:
Premiums are payable quarterly, half-yearly or yearly throughout the term of the policy or till the earlier death. Alternatively, the premium may be paid in one lump sum (single premium).

Guaranteed Additions:
The policy provides for the Guaranteed additions at the rate of Rs.60 per thousand Sum Assured for each  completed policy year while the policy is in full force. The Guaranteed Additions are  payable at the end of the policy term or on earlier death.

Loyalty Additions:
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 loyalty additions which are terminal bonuses payable along with death or maturity benefit. Loyalty addition may be payable from fifth year onwards depending on the experience of the Corporation.

Benefits on maturity or earlier death:
On surviving till the end of the term of the policy or earlier death, Sum Assured together with the Guaranteed Additions and Loyalty Additions, if any, become payable. 20% of such benefit amount shall be paid in a lump sum and the balance amount shall be utilized to provide an annuity on the life of handicapped dependant. A number of annuity options are available under the plan.

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 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.  In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra 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 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 premium 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.

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on the 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 136)
Age ate entry: 35 years
Age of dependant: 5 years
Premium paying term: 1 years
Sum Asured: Rs. 1,00,000/-
Annual premium: Rs. 36,645/-

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

36,645

100000

100000

100000

2

36,645

106000

106000

106000

3

36,645

112000

112000

112000

4

36,645

118000

118000

118000

5

36,645

124000

124000

124000

6

36,645

130000

130000

130000

7

36,645

136000

136000

136000

8

36,645

142000

142000

142000

9

36,645

148000

148000

148000

10

36,645

154000

154000

154000

15

36,645

184000

184000

184000

20

36,645

214000

214000

214000

30

36,645

280000



10000

280000

290000

Age ate entry: 35 years
Age of dependant: 5 years
Premium paying term: 15 years
Sum Asured: Rs. 1,00,000/-
Annual premium: Rs. 4,008/-

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

4008

100000

100000

100000

2

8016

106000

106000

106000

3

12024

112000

112000

112000

4

16032

118000

118000

118000

5

20040

124000

124000

124000

6

24048

130000

130000

130000

7

28056

136000

136000

136000

8

32064

142000

142000

142000

9

36072

148000

148000

148000

10

40080

154000

154000

154000

15

60120

184000

1000

184000

184000

20

80160

214000

10000

214000

224000

30

120240

280000

31000

280000

311000


* 20% of the amount shall be paid in a lump sum and the balance 80% shall be utilized to pay an annuity on the life of handicapped dependant.

(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) The maturity benefit is the amount shown at the end of the policy term.

Rate this post






+Admin


Leave a Reply

Your email address will not be published. Required fields are marked *