Life Insurance Corporation of India
1. Endowment Plans -
An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose Most endowments are designed to keep the principal amount intact while using the investment income for charitable efforts. These Are Following Plans Below-:
|
Sr. No. |
Product Name |
Plan No. |
UIN No. |
|
1 |
Lic's New Endowment Plan |
914 |
512N277V02 |
|
2 |
Lic's New Jeevan Anand |
915 |
512N279V02 |
|
3 |
Lic's New Bima Bachat |
916 |
512N284V02 |
|
4 |
Lic's Single Premium Endowment Plan |
917 |
512N283V02 |
|
5 |
LIC's Jeevan Lakshya |
933 |
512N297V02 |
|
6 |
Lic's Jeevan Labh |
936 |
512N304V02 |
|
7 |
LIC's Aadhaar Stambh |
943 |
512N310V02 |
|
8 |
LIC's Aadhaar Shila |
944 |
512N309V0 |
1. Lic's New Endowment Plan -:
LIC’s Accidental Death and Disability Benefit Rider: LICs Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.
Death benefit :
Provided all due premiums have been paid, the following death benefit shall be paid:
On Death during the policy term: Death benefit, defined as sum of Sum Assured on Death and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, Sum Assured on Death is defined as higher of 125% of Basic Sum Assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
The premiums mentioned above exclude service tax, extra premium and rider premiums, if any.
On death of policyholder at any time after policy term: Basic Sum Assured
Benefits payable at the end of Policy Term: Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.
Participation in Profits : The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during policy term provided the policy is in full force.
LIC’s New Bima Bachat Plan is a Single Premium Participating Anticipated Endowment Plan. Thus, LIC Bima Bachat is a traditional money back plan with scheduled payments along with return of single premium paid plus loyalty additions at the end of the policy tenure.
Key Features LIC Bima Bachat -:
-
LIC Bima Bachat is a Single Premium Plan of LIC Endowment & Saving Traditional plans.
-
LIC Bima Bachat is a Simple money back plan with bonus option
-
LIC Bima Bachat can be taken for a period of 9 years, 12 years or 15 years
-
Under LIC Bima Bachat, if the Life Insured is alive at the end of every 3 years, 15% of the Basic Sum Assured is paid as Survival Benefit and the policy continues
-
Under LIC Bima Bachat, on survival till the end of the policy tenure, the entire Single Premium paid along with Loyalty Addition would be paid to the policyholder as Maturity Benefit and the policy terminates
-
Under LIC Bima Bachat plan, if the life insured dies within the policy tenure, the entire Sum Assured + Loyalty Addition would be paid to the nominee as Death Benefit.
LIC’s New Bima Bachat Plan is a Single Premium Participating Anticipated Endowment Plan. Thus, LIC Bima Bachat is a traditional money back plan with scheduled payments along with return of single premium paid plus loyalty additions at the end of the policy tenure.
Key Features LIC Bima Bachat
-
LIC Bima Bachat is a Single Premium Plan of LIC Endowment & Saving Traditional plans.
-
LIC Bima Bachat is a Simple money back plan with bonus option
-
LIC Bima Bachat can be taken for a period of 9 years, 12 years or 15 years
-
Under LIC Bima Bachat, if the Life Insured is alive at the end of every 3 years, 15% of the Basic Sum Assured is paid as Survival Benefit and the policy continues
-
Under LIC Bima Bachat, on survival till the end of the policy tenure, the entire Single Premium paid along with Loyalty Addition would be paid to the policyholder as Maturity Benefit and the policy terminates
-
Under LIC Bima Bachat plan, if the life insured dies within the policy tenure, the entire Sum Assured + Loyalty Addition would be paid to the nominee as Death Benefit.
Policy Details -:
Grace Period: Not applicable under LIC Bima Bachat as there is no need for further premium payment.
Policy Termination or Surrender Benefit: The Surrender Benefit is available under LIC Bima Bachat plan:
-
Within the first year of LIC Bima Bachat: 70% of the Single premium paid excluding taxes and extra premium, if any
-
Under LIC Bima Bachat, from the 2nd year onwards, 90% of the Single premium paid excluding taxes, extra premium, if any and all survival benefits paid earlier.
Free Look Period: If you are not pleased with the coverage, and terms and conditions of LIC Bima Bachat policy, you have the option of cancelling LIC Bima Bachat policy within 15 days of receipt of the LIC Bima Bachat policy documents, provided there has been no claim.
Inclusions -:
Loan is available in LIC Bima Bachat, upto 60% of the surrender value.
Exclusions
Under LIC Bima Bachat, in case suicide is committed within 12 months of policy inception, only 90% of the single premium paid is returned to the nominee.
Documents Required -:
For LIC Bima Bachat policy, the policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person under LIC Bima Bachat.
Advantages of a Money Back Policy
A money back plan is one of the best types of life insurance policy available in the market. Besides offering insurance and investment, a money back plan offers guaranteed returns by way of redemption of money at regular intervals with a low degree of risk. Such a plan is ideal for people who require money at different stages in their life to meet fixed long and short-term financial needs such as buying a car and/or house, international vacations, paying for health expenses, school fees, etc.
Unlike traditional endowment plans where survival benefits are payable only at the end of the endowment period, a money back plan offers periodic payments of partial survival benefits during the tenure of the policy as long as the policyholder is alive.
Key Advantages of a Money Back Policy:
Insurance Cover as well as Investment Returns
A money back plan is ideal for risk averse individuals as it provides them with a life insurance cover in addition to significant guaranteed returns (investment returns). In fact a money back plan offers several advantages – maturity benefit, survival benefit, insurance cover and bonus, resulting in significant overall payouts.
All other investment plans pale in comparison to the advantages of a money back plan. Most give returns only at the end of the policy tenure, while some give returns over the lifetime of the policy, but none of them match up to the advantages offered by money back plans. A money back plan provides an insurance cover, regular income, tax benefits and bonuses.
Helps Plan Course of Life with Regular Payouts
Every individual has a set of dreams and aspirations for important stages in life. These can be fulfilled only if one has required amount of money to make these dreams reality.
A money back plan helps a person to chart the course of his or her life with a sum that is expected at regular intervals. With regular income through a money back plan, one can be sure that the dreams will see the light of the day without compromising one’s day to day responsibilities. Whether it is paying for child’s education, buying a car or any other important expense, it can be executed smoothly with the help of this policy. A money back plan helps meet intermittent liquidity requirements at important stages of life.
Returns Begin to Accrue After Few Years
Unlike most insurance products which pay benefits only at the time of maturity of the plan, a money back insurance plan starts giving returns after a few years of investment.
In case of long term policies, an amount is paid every few years (survival benefit) and the remaining on maturity. This amount totals to significant amount and can be utilised towards short or long term purchases.
The final payout given at the time of maturity with the maturity amount is larger than previous payouts. Survival benefit is paid only if the policyholder is alive. In case of passing away of the insured party, survival benefits do not accrue and the nominee/beneficiary only receive the sum assured plus any loyalty bonus amount.
Policyholder Receives Full Sum Assured on Maturity
Under a money back insurance plan, the policyholder receives the full sum assured amount at the time of maturity, irrespective of the survival benefits received earlier.
A money back plan pays more than just the maturity amount. The insured receives periodic survival benefits over the term of the policy. And he/she stands a chance to receive a bonus by way of loyalty addition at the end of the plan period, part of the maturity benefit.
Time Value of Money Higher with a Money Back Policy
The principle of time value of money states that the value of money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
This is why a money back plan scores over other kinds of life insurance plans. Survival benefits which are paid periodically over the policy tenure are worth more than if they were paid at the end of the policy term.
Helps Counter Volatility Arising from Market Linked Investments
The very nature of returns from market linked investments is unpredictable because of the volatile nature of markets. Money back plans help safeguard against losses arising from other forms of investment due to the guaranteed nature of its returns.
It is advisable to have a money back plan as part of one’s portfolio even if one relies heavily on market-linked instruments. In addition to definite returns, a money back plan offers a life insurance cover. The periodic survival benefit amount can be used to take care of expenses at different stages in life or even to make investments.
Bonus at Maturity Increases Overall Payout
The policyholder receives 2 kinds of bonuses under a money back plan, both of which significantly increase the overall payout.
The first is a reversionary bonus, declared at the end of each year by the life insurance company for its policies and added to the total sum payable to the insured at maturity. The bonus is declared as a percentage of the sum assured and can be of 2 types – simple revisionary bonus and compound revisionary bonus. The compound revisionary bonus for each year is added to the sum assured. It increases the sum assured amount, therefore the bonus figure for succeeding years is more as the sum assured has increased from the previous year’s amount.
The second bonus, the final additional bonus maybe given by the insurance company to the policyholder at the end of the policy tenure as a reward for loyalty.
Tax Savings
The premium paid under a money back life insurance policy is entitled for tax deductions under section 80C of the Income Tax Act, up to the specified limit, as long as the insurance premium is less than 10% of the sum assured. This way one can reduce his/her tax liability with the help of a money back plan.
Also, the maturity amount is exempt from tax deduction at source, as long as the sum assured is more than 5 times the premium paid for the policy.
Surrender Clause
A money back policy usually has a built in clause which allows surrendering the policy before the end of the policy term.
In such cases, the surrender value is calculated based on pre-defined formulae and paid by the insurance company to the policyholder.
Lic's Single Premium Endowment Plan-:
1. Benefits:
A. Death Benefit:
a) On death during the policy term before the date of commencement of risk: Return of single premium (excluding taxes, extra premium and rider premiums if any), without interest.
b) On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).
B. Maturity Benefit: On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable.
C. Participation in profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation. Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.
2. Eligibility Conditions and Other Restriction :
a) Minimum entry age 90 days (completed)
b) Maximum entry age 65 years (nearest birthday)
c) Maximum maturity age 75 years (nearest birthday)
d) Minimum policy term 10 years
e) Minimum age at maturity 18 years (completed)
f) Maximum policy term 25 years
g) Minimum Sum Assured ` 50,000
h) Maximum Sum assured Sum Assured will be in multiples of ` 5 000 /- only. No limit
i) Premium payment mode Single Premium only
3. Options Available :
I. Rider Benefits: The following two optional riders are available under this plan by payment of additional premium.
a. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02) This rider is available at inception of the policy only. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years.
b. LIC’s New Term Assurance Rider (UIN: 512B210V01) This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term.If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy term. The premium for LIC’s Accidental Death and Disability Benefit Rider shall not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan Each of above Rider Sum Assured cannot exceed the Basic Sum Assured under the Basic plan. For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.
II. Option to take Death Benefit in instalments: This is an option to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised by the Policyholder during minority of the Life Assured or by Life Assured aged 18 years and above, during his/ her life time; for full or part of Death benefits payable under the policy. The amount opted for by the Policyholder/Life Assured (ie. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable. The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under: Mode of Instalment payment Minimum instalment amount Monthly ` 5,000/- Quarterly ` 15,000/- Half-Yearly ` 25,000/- Yearly ` 50,000/
LIC Jeevan Lakshya Plan-:
LIC Jeevan Lakshya Policy is a participating endowment plan which provides both investment and insurance benefits. Since it is a participating plan, bonus benefits will be available. In case of death of the policyholder a regular income is provided to the nominee in addition to a lumpsum at the date of Maturity. There are some additional benefits which you can take in the form of riders.
How does LIC Jeevan Lakshya Policy work?
When buying the LIC Jeevan Lakshya Plan, the customer has to decide on the following:
-
Basic Sum Assured - this is the amount of cover that you want. You can choose a minimum amount of Rs. 1,00,000. There is no upper limit.
-
Policy Term - this is the period for which you wish to have the cover. The term can be anywhere between 13 to 25 years
-
Premium Payment Term - You need to pay the premiums for the Policy Term minus 3 years only.
Based
on the basic
sum assured, your age and
the policy
term selected.
your annual
premium will
be decided.
Since
it is a Participating plan, you will receive Simple Reversionary
Bonus and Final Additions as and when declared by LIC.
Benefits in the LIC Jeevan Lakshya Plan
Death
Benefit in LIC Jeevan Lakshya Plan-:
In
case of the death of the policyholder before the end of the policy
term, the nominee will receive all of the following:
-
10% of the Basic Sum Assured as an Annual Income Benefit from the next policy anniversary date to the policy anniversary date one year before the Maturity Date. We will explain this better in the example.
-
110% of the Basic Sum Assured payable on the Maturity Date
-
Simple Reversionary Bonus which has accrued throughout the policy term payable on the Maturity Date
-
Final Addition Bonus if declared payable on the Maturity Date
The
Death Benefit shall not be less than 105% of all premiums paid as on
date of death of the policyholder.
Maturity
Benefit in LIC Jeevan Lakshya Plan
At
the end of the policy term, the policyholder will receive the
following:
-
Basic Sum Assured
-
Simple Reversionary Bonus
-
Final Addition Bonus if declared.
LIC Jeevan Lakshya Plan with an Example
We
have Nitesh Dubey, age 35 who wishes to buy this plan. He goes in for
the plan with the following:
Sum
Assured -
Rs. 2,00,000
Term -
25 years
Premium
Payment Term =
25 - 3 = 22 years
Based
on these parameters, his annual
premium is Rs. 8,645 + Taxes =
Rs. 9,034. Here we have assumed the current tax rate of 4.5%.
Death
Benefit
Scenario
1 : If
Nitesh dies after 4 policy years.
In
4 years, he would have paid Rs. 36,136 as premiums. The Sum Assured
of his plan is Rs. 2,00,000.
His
nominee will get the following benefits:
-
Annual Income Benefit of 10% of Sum Assured - Rs. 20,000. At the end of the 4th year, the nominee will get Rs. 20,000. This amount would be paid every year till the end of the 24th year.
-
110% of Sum Assured - Rs. 2,20,000. At the end of the 25th year the nominee will get Rs. 2,20,000
-
Along with the Rs. 2,20,000 the Simple Reversionary Bonus which has accrued in the plan along with any Final Addition Bonus will also be paid to the nominee.
Scenario
2 : If
Nitesh dies after 15 policy years
In
15 years, he would have paid Rs. 1,35,510 as premiums. The Sum
Assured of his plan is Rs. 2,00,000.
His
nominee will get the following benefits:
-
Annual Income Benefit of 10% of Sum Assured - Rs. 20,000. At the end of the 15th year, the nominee will get Rs. 20,000. This amount would be paid every year till the end of the 24th year.
-
110% of Sum Assured - Rs. 2,20,000. At the end of the 25th year the nominee will get Rs. 2,20,000.
-
Along with the Rs. 2,20,000 the Simple Reversionary Bonus which has accrued in the plan along with any Final Addition Bonus will also be paid to the nominee.
Maturity
Benefit
Scenario
3 : If
Nitesh survives till the end of the policy term of 25 years -
Nitesh will get the Sum
Assured + Simple Reversionary Bonus + Final Addition Bonus as
declared.
Total
Premiums Paid =
Rs. 1,98,748
Sum
Assured =
Rs. 2,00,000
Let
us assume that
a Simple Reversionary Bonus of Rs. 49 per 1,000 Sum Assured. There is
no guarantee that this will be the bonus rate for all years.
Simple
Reversionary Bonus =
49 x 2,00,000 / 1,000 for 25 years = Rs. 2,45,000
LIC's JEEVAN LABH-:
LIC's Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.
1. Benefits:
Death benefit:
In
case of death during the policy term, provided all due premiums have
been paid, Death benefit, defined as sum of "Sum
Assured on Death",vested
Simple Reversionary Bonuses and Final Additional bonus, if any,
shall be payable. Where, "Sum
Assured on Death"
is defined as the higher of 10 times of annualised premium
or Absolute amount assured to be paid on death i.e. Basic Sum
Assured . This death benefit shall not be less than 105%
of all the premiums paid as on date of death.
Premiums referred
above shall not include any taxes, extra amount chargeable under the
policy due to underwriting decision and rider premium(s), if
any.
Maturity
Benefit:
"Sum
Assured on Maturity" equal
to Basic Sum Assured, along with vested Simple Reversionary
bonuses and Final Additional bonus, if any, shall be payable in lump
sum on survival to the end of the policy term provided all due
premiums have been paid.
Participation
in Profits:
The
policy shall participate in profits of the Corporation and shall be
entitled to receive Simple Reversionary Bonuses declared as per the
experience of the Corporation, provided the policy is in full
force.
Final (Additional) Bonus may also be declared under
the policy in the year when the policy results into a claim either
by death or maturity.
For More Information Please check The Brochure Plan -:
LIC's Aadhaar Stambh-:
LIC's Aadhaar Stambh Plan (Plan No: 943, UIN: 512N310V01) is a non-linked insurance plan, with profits and regular premium paying endowment plan. It is a aggregation for both savings as well as protection. LIC’s Aadhaar Stambh Plan is exclusively for male policyholders having aadhaar cards issued by UIDAI (Unique Identification Authority of India). This is a loyalty addition based plan and does not require any medical tests, available standard healthy lives.
It provides financial support to the family in case of unfortunate death of policyholder before maturity and a lump sum amount at the time of maturity for the surviving policyholder.
Features of LIC Aadhaar Stambh
This plan provides auto cover facility i.e., it provides Auto cover and cash flow requirements along with loan facility.Available only for males.It is a low premium plan.It is an Endowment policy wherein the amount is given as a lump sum at maturity i.e., at the end of the term.In this plan, Loyalty Addition will be paid additionally if the death occurs after 5 years, whereas normal insurance coverage will equal to Basic Sum Assured.
At the maturity of this plan, the policyholder receives Basic Sum Assured+Loyalty Addition.Critical illness benefits are not available under this plan.Loan facility is available under this plan but only after completion of three years.Benefits like LIC’s Accidental Rider and permanent disability rider are available.The revival of a lapsed policy is available under this policy within the two years of first unpaid premium.Paid premiums are exempted from income tax under Section 80c of the Income Tax Act, 1961.Maturity amount is tax-free under Section 10 (10D) of the Income Tax Act, 1961
Maturity Benefit
As it is an edowment plan, on successful completion of the policy term while the assured is alive and only if all the due premiums are clear and paid,
The ‘sum assured on maturity’ will be equal to the Basic Sum Assured.
The insured will get a lumpsum amount which will be equal to;
Maturity Benefit=Basic Sum Assured+Loyalty Addition.
Death Benefit
On death during the first 5 years of the policy:
The death claim amount will be equal to Basic Sum Assured.
On death after 5 years of the policy and before maturity:
The death claim amount will be equal to Basic Sum Assured+Loyalty Addition (LA).
LIC's Aadhaar Shila-:
LIC’s Aadhaar Shila Plan (Plan No: 944) is a non-linked insurance plan, with profits and regular premium paying endowment plan. This plan is a combination plan which offers both savings as well as protection.
LIC’s Aadhaar Shila Plan is primarily for female policyholders having Aadhaar cards provided by UIDAI (Unique Identification Authority of India). This is a Loyalty Addition based plan and does not require any medical tests.
This plan also provides financial assistance to the policyholder’s family in the event of his/her miserable death even during maturity period and if the policyholder survives the policy term a fixed sum assured is paid at the time of maturity.
Features of Aadhaar Shila Plan -:
-
Auto cover facility.
-
Female Only Plan.
-
Low premium plan.
-
Loyalty Addition will be paid additionally if the death occurs after 5 years, whereas normal insurance coverage will equal to Basic Sum Assured.
-
Critical illness benefits are not available under this plan.
-
Loan facility but only after completion of 3 years.
-
LIC’s Accidental Rider and Permanent Disability Rider are available.
-
Revival of lapsed policy within 2 years of first unpaid premium.
-
Paid premiums are exempted from income tax under Section 80C.
-
Maturity amount is tax-free under Section 10 (10D)
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