Month: January 2014

Table no. 818

LIC’s New Jeevan Nidhi Plan

A Compulsory Pension Plan from LIC

LIC’s New Jeevan Nidhi Plan is introduced with effect of 27th Jan 2014. This is  conventional with profit Pension Plan from LIC.

Eligibility conditions and restrictions:

1)  Minimum Age at entry for Life Assured   : 20 years (nearest Birth day)

2) Maximum Age at entry for Life Assured   : 58 years (nearest Bday) in Regular Premium

: 60 years (nearest Bday) in Single Premium

3) Minimum Deferment Period                     : 5 years under Single Premium

:7 years under Regular Premium

4) Maximum Deferment Period                    : 35 years

5) Minimum age at Maturity                          : 55 years (Nearest Birthday)

6) Maximum age at Maturity                         : 65 years (Nearest Birthday)

7) Premium payment mode                         : Yearly, Half-yearly, Quarterly, Monthly (SSS or

ECS ) Or Single Premium

8) Minimum Sum Assured                           : Rs 1,00,000/- for regular Premium

: Rs 1,50,000/- for Single Premium

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-

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Call for expert advice

Benefits:

Benefit on Vesting:  – Provided this policy is in full in force, on vesting, an amount equal to Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Final Additional Bonus if any shall be made available to the life assured. The benefits available on vesting shall  be payable as per details given below:

a) Option available to the Life Assured for utilization of benefit amount:

The following options will be available to the life assured for the utilization of benefit amount on vesting/surrender

1) To Purchase in immediate annuity

The life assured will have a choice to commute the amount available on vesting/surrender to the extent allowed under Income tax act. The entire amount available on vesting/surrender or the balance amount after commutation as the case may be, shall be utilized to purchase immediate annuity at then prevailing annuity rates. Commutation will only be allowed provided that the balance is sufficient to purchase the minimum amount of annuity as per the provisions of sections of insurance Act. 1938.

In case the said is insufficient to purchase the minimum amount of annuity then the said amount shall be paid as a lump sum to the life assured.

The annuity shall only be purchased from Life Insurance Corporation of India.

2) To purchase a new Single premium deferred pension product from Life Insurance Corporation of India.

Under this option the entire proceeds available on vesting/ surrender shall be utilized to purchase a new single premium deferred pension product provided the policyholder satisfied the eligibility criteria for purchasing a single premium deferred pension product.

b) Death Benefit:

Death during the first five policy years: Provided the full policy in force, basic sum assured along with accrued guaranteed addition bonus shall be paid as lump sum or in the form of annuity or partly in lump sum and balance in the form of annuity to the nominee/legal heir at then the prevailing immediate annuity rates.

Death during the first five policy years:

 

 

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Comparison between Table no. 814 and Table no. 14 of LIC
Posted by:V.K. sharma, January - 05 - 2014

Comparison between Table no. 814 to Table no. 14

Endowment Assurance Plan (Table No. 14) New Endowment Plan (Table No.814)
Maturity Benefit Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any. No Change
Death Benefit Sum Assured (SA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. ‘Sum Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death.
Age at entry 12 to 65 years 8 to 55 years
Age at Maturity Maximum  75 years Maximum  75 years
Policy Term 5 to 55 years 12 to 35 years
Premium mode Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS) Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured 50,000 and above 1,00,000 and above ( In multiples of 5000)
Rebate
  • 3% of tabular Premium for Yearly premium
  • 1.5% of tabular premium for Half-Yearly premium
  • 2% of tabular premium for Yearly premium
  • 1% of tabular premium for Half-Yearly premium
Loan
  • Available after payment of 3 full year’s premiums.
  • Loan granted shall be 90% of the Surrender Value in case of in force policies and 85% of the Surrender Value in case of Paid-up policies.
  • Foreclosure action shall be initiated on default of 2 or more half-yearly loan interest installments.
  • Available after payment of 3 full years premiums
  • The maximum amount of loan that can be granted as a percentage of Surrender Value shall  depend on the Policy Term,
  • Foreclosure action shall not be taken under fully paid-up and in force policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)
  • Available after payment of 3 full years premiums
  • GSV shall be equal to 30% of the total premiums paid less First Year Premium and extra premium, if any.
  • Available after payment of 3 full year’s premiums.
  • GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Examples of GSV factors applicable for total  premiums paid
    Policy Year ~ GSV factor
             3   =   30%
             5   =   50%
           t -1  =   80% (t=Policy Term)
Main Changes
  • A  Policy may be revived within a period of 5 years from the date of first unpaid premium.
  • Taxes, if any, were borne by the Corporation.
  • A  Policy may be revived within a period of 2 years from the date of first unpaid premium.
  • Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
NO Changes in
  • Back Dating
  • Paid-up Value
  • Grace Period
  • Assignment/Nomination
  • Back Dating
  • Paid-up Value
  • Grace Period
  • Assignment/Nomination
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 (Table No 814)

New Endowment Plan

LIC’s New endowment plan is introduced with effect of 3rd Jan 2014. This is  conventional with profit Endowment assurance plan.

Eligibility conditions and restrictions:

1)  Minimum Age at entry for Life Assured   : 8 years (completed)

2) Maximum Age at entry for Life Assured   : 55 years (nearest birthday)

3) Minimum Policy Term                               : 12 years

4) Maximum Policy Term                              : 35 years

5) Minimum age at Maturity                          : 18 years (Completed)

6) Maximum age at Maturity                         :  75 years (Nearest Birthday)

7) Premium payment mode                         : Yearly, Half-yearly, Quarterly, Monthly (SSS or

ECS )

8) Minimum Sum Assured                           : Rs 1,00,000/-

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-

 

Call for expert advice
Call for expert advice

Benefits:

Maturity Benefit – Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus.

Death Benefit – “Sum  Assured on Death” along with Vested Simple Reversionary Bonuses and Final Additional Bonus.

The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death.

What is Sum Assured on Death?

Sum  Assured on Death shall be Higher of ~ Basic Sum Assured (BSA)

OR 10 times Annualized Premium(10 x AP).

Note: The premiums mentioned in death benefit are excluding taxes, extra premiums and premiums for riders, if any

Guaranteed Surrender Value – Available after payment of 3 full years premiums.

Guaranteed Surrender Value shall be a percentage of total premiums paid excluding extra premium, if any and premium paid for riders, if opted for.

Examples of Guaranteed Surrender Value factors applicable for total  premiums paid are as under:

S.No.           Policy Year                  Guaranteed Surrender Value factor

1                           3                     30%

2                           5                     50%

3                        t -1                     80% (t=Policy Term)

Note: Guaranteed Surrender Value factor applicable to vested bonus

Examples of Vested bonus factors are as under:

Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses.

Year of SV        Policy Term                 Factor

3                      12                            18.60%

19                      25                            20.85%

29                      30                            30%

( In multiples of 5000)

Special Surrender Value (SSV) The discount factors shall be surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.

Surrender Value payable – The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.

LoanAvailable after payment of 3 full years premiums.

The maximum amount of loan that can be granted as a percentage of Surrender Value shall depend on the Policy Term.

Foreclosure action shall not be taken under fully paid-up and in force  policies even if there is default of loan interest.

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LIC’s SINGLE PREMIUM ENDOWMENT PLAN (TABLE NO. 817)
Posted by:V.K. sharma, January - 02 - 2014

  Table no. 817

(Single Premium Endowment Plan)

LIC’s single premium endowment plan is introduced with effect of 1st Jan 2014. This is single premium conventional with profit Endowment assurance plan.

Eligibility conditions and restrictions:

1)  Minimum Age at entry for Life Assured   : 90 days (completed)

2) Maximum Age at entry for Life Assured   : 65 years (nearest birthday)

3) Minimum Policy Term                               : 10 years

4) Maximum Policy Term                              : 25 years

5) Minimum age at Maturity                          : 18 years (Completed)

6) Maximum age at Maturity                         :  75 years (Nearest Birthday)

7) Premium payment mode                         : Single Premium Only

8) Minimum Sum Assured                           : Rs 50,000/-

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-

Note: Age at entry for the life assured is to be taken as age nearest birthday except for the minimum age at entry i.e. 90 days

Date of commencement of risk : In case the age at entry of the life assured is less than 8 years, risk under this plan will commence either 2 years from the date of commencement of from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, which ever is earlier. For those aged 8 years or more, risk will commence immediately.

Benefits:

a) Benefits payable on maturity

On survival to the end of the policy term, sum assured along with vested simple reversionary bonuses and final additional bonus shall be payable.

b) Benefits payable on death

On Death of life assured on or after the commencement of risk cover

Sum assured along with vested simple reversionary and final additional bonus will be payable.

On death of life assured before the commencement of risk

Return of single premium excluding taxes and extra premium if any shall be payable.

Benefits to people who buy policies with HIGH SUM ASSURED (per thousand Sum Assured) is as under:

Sum Assured (S.A.)                  Rebate (Rs)

50,000 to 95,000                         Nil

1,00,000 to 1,95,000                  18%o S.A.

2,00,000 to 2,95,000                  25%o S.A.

3,00,000 and above                   30%o S.A.

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Call for expert advice

 

Surrender Value:

The policy can be surrender any time during the policy term subject to realization of premium cheque.

Guaranteed Surrender Value:

The guaranteed Surrender Value shall be as under:

First Year : 70% of the single premium excluding taxes and extra premium, if any

Thereafter: 90% of the single premium excluding taxes and extra premium, if any

In addition, the surrender value of vested simple reversionary bonuses, if any , shall also be payable, which is equal to vested bonus multiplied by surrender value factor applicable to vested bonuses

Loan:

Loan facility is availability under this plan after completion of one policy year subject to following conditions:

a) The maximum loan that can be grafted as a percentage of surrender value for different policy terms and the policy year in which the loan applied are as under:

Policy Year

Policy Term

Upto 15 years

16 to 20 years

21 years & above

1

55%

40%

30%

2

60%

45%

30%

3

65%

50%

35%

4

75%

55%

40%

5

80%

60%

40%

6

90%

65%

45%

7

90%

75%

50%

8

90%

80%

55%

9

90%

90%

60%

10

90%

90%

65%

11

90%

90%

75%

12

90%

90%

80%

13 & Above

90%

90%

90%

b) The rate of interest to be charged for the loan amount would be determined from time to time by the corporation

c) No foreclosure shall be taken under this plan even if there is a default in payment of loan interest. However, any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

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