Category Archives: Life Insurance Industry News

Higher Maturity in LIC Plans
Posted by:V.K. sharma, April - 06 - 2016

Higher Maturity in LIC Plans

There are various life insurance companies operating in India but why there is higher maturity in LIC Plans on comparing with the plan or policies of other life insurance companies.

LIC India is operating since 1956. Over these long years, the total life fund of LIC has crossed Rs 20lakh Crores.

You name any reputed company or bank LIC has stake in that. LIC holds shares holding in a total of 27 Nifty companies. The major companies where LIC has raised its stake include Infosys, RIL,Coal India Ltd, Cairn India. ITC, Power Grid Corp, NTPC, Siemens, Bharti Airtel and Hero MotoCorp. Mahindra & Mahindra, HDFC Bank, ICICI Bank, Tata Motors, L&T, HDFC, Wipro, SBI, Maruti Suzuki, Dr Reddys, Bajaj Auto etc. Among the Nifty companies, LIC’s holding in terms of value is estimated to be highest in ITC (Rs 27,326 crore), followed by RIL (Rs 21,659 crore), ONGC (Rs 17,764 crore), SBI (Rs 17,058 crore), L&T (Rs 16,800 crore), and ICICI Bank (Rs 10,006 crore). These are companies which are growing and so it LIC.

In FY14, LIC invested Rs 2.25 lakh crore in government securities, bonds, infrastructure, debenture and equity. The insurer had booked Rs 21,000 crore profit from sale of equities and churning of the  portfolio.

With respect to the investment in infrastructure and the social sector, LIC invested Rs 10,995.33 crore in power, Rs 4,121.74 crore in housing, Rs 35.72 crore in water supply and sewerage, and Rs 5,012.13 crore in other infrastructure in FY13.

Higher Maturity in LIC Plans
Higher Maturity in LIC Plans

A whopping 25 per cent rally in the equity markets boosted the net profit, or valuation surplus in the official language, of Life Insurance Corporation by 10.4 per cent in 2014-15 at Rs 36,087 crore.

As per the LIC Act, the corporation has to distribute 95 per cent of its profits with the policyholders, and accordingly the financial powerhouse paid Rs 34,283 crore to its millions of policyholders in the year, while the remaining 5 per cent worth Rs 1,804.35 crore was paid to its owner, the government.

Now one can understand that when LIC is earning this much profit and 95% of that is going for its policyholders so the point is very much clear that there is higher maturity in LIC Plans. So buy today.

Higher Maturity in LIC Plans
Higher Maturity in LIC Plans
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Table No. 833 : LIC JEEVAN LAKSHYA
Posted by:V.K. sharma, March - 07 - 2015

LIC JEEVAN LAKSHYA

(Table No.833)

LIC’s Best Plan Ever for Child & Family

LIC Jeevan Lakshya is a limited premium paying, conventional With-Profits, Endowment Assurance plan. This plan provides for Annual Income benefit that may help to fulfill the needs of the family. Primarily the annual income benefit is for the education of the children, in case of unfortunate death of Policyholder any time before maturity, a lump sum amount at the time of maturity will be given to the nominee (Child) independent of survival of the Policyholder.

LIC Jeevan Lakshya
LIC Jeevan Lakshya

Benefits:
The benefits payable under an inforce policy are as under:

1. ) Maturity Benefit: On survival to the end of the policy term provided all due premiums have been paid, “Sum Assured on Maturity” along with vested Simple Reversionary bonuses and Final Additional bonus, shall be payable. Where Sum Assured on Maturity is equal to Basic Sum Assured.

2.) In case of death of the life assured in LIC’s Jeevan Lakshya, future premium will be waived, an annual income benefit equal to 10% of the sum assured (Also called educational benefit for the child) & maturity equal to 110% of point 1 above will also be given.

ELIGIBILITY CONDITIONS AND RESTRICTIONS for LIC’s Jeevan Lakshya:

For Basic Plan:

1)    Minimum Age at entry for Life Assured  : 18 years (last birthday)

2)    Maximum Age at entry for Life Assured : 50 years (nearer birthday)

3)    Maximum Maturity Age                          : 65 years (nearer birthday)

4)    Policy Term                                             : 13 to 25 years

5)    Premium paying Term                             : (Policy Term – 3) years

6)    Minimum Basic Sum Assured                : Rs. 1,00,000/-

7)    Maximum Basic Sum Assured               : No Limit

MODE OF PREMIUM PAYMENT in LIC’s Jeevan Lakshya: The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly (ECS only or through salary deductions)

LIC Jeevan Lakshya

 

REBATES:

The rebates for basic plan are as under:

Mode Rebate:

Yearly mode                                 : 2% of tabular premium

Half-yearly mode                         : 1% of tabular premium

Quarterly and monthly mode        : NIL

High Basic Sum Assured Rebate:

Basic Sum Assured                            Rebate (in Rs.)

1,00,000 to 1,90,000               –           Nil

2,00,000 to 4,90,000               –           2%o Basic Sum Assured

5,00,000 to and above            –           3%o Basic Sum Assured

LOAN:

Loan facility is available under this plan, after payment of premiums for at least 3 full years subject to following conditions:

a)    The maximum loan that can be granted as a percentage of surrender value are as under:

For inforce policies – 90%

For paid-up policies – 80%

However, the above percentages may vary from time to time.

LIC Jeevan Lakshya

GRACE PERIOD FOR PAYMENT OF PREMIUM: A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly mode of premium payment.

 

LIC Jeevan Lakshya
LIC Jeevan Lakshya

 

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Table No. 832 : New Children Money Back Plan
Posted by:V.K. sharma, March - 04 - 2015

LIC’s NEW CHILDREN MONEY BACK PLAN

(Plan No.832)

 

LIC’s New Children Money Back Plan is a non-linked, with-profits, regular premium
payment money back plan. It provides for the risk cover on the life of child (that is child will be the life assured in this plan). During the policy term, the of survival benefits equal to 20% of sum assured will be payable on surviving to the end of the specified duration.

New Children Money back Plan
New Children Money back Plan

Benefits:
The benefits payable under an inforce policy are as under:

1. ) Maturity Benefit: On the Life assured surviving the stipulated date of maturity, Sum
Assured on Maturity (which is 40% of the Basic Sum Assured) along with vested Simple
Reversionary Bonuses and Final Additional Bonus.

2. ) Survival Benefit : On the Life Assured surviving on each policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years of Life Assured, 20% of the Basic Sum Assured on each occasion shall be payable provided the policy is in full force.

New Children Money back Plan

3.) LIC’s Premium Waiver Benefit Rider : LIC’s Premium Waiver Benefit Rider is available on payment of additional premium.

4.) Death Benefit: On death Before the Date of Commencement of Risk: An amount equal to the total amount of premium/s paid excluding taxes, extra premium and rider premium, if any shall be payable.

On death After the Date of Commencement of Risk: Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus.

New Children Money back Plan

Mode of Premium Payment : The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly [ECS only or through salary deductions (SSS)].

Loan: Loan facility is available under New Children Money back plan after the payment of premiums for at least three full years . After obtaining the declaration from the proposer to the effect that loan is raised for the benefit of the minor life assured.

Rebates:

Mode Rebate:
Yearly mode : 2% of tabular premium
Half-yearly mode : 1% of tabular premium
Quarterly and monthly : NIL
High Sum Assured Rebate:

Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,90,000            Nil
2,00,000 to 4,90,000           Rs 2 per thousand Basic Sum Assured
5,00,000 and above            Rs 3 per thousand Basic Sum Assured

New Children Money back Plan

 Eligibility Conditions and Restrictions:

Basic Sum Assured Rebate (Rs.)
Minimum Age at entry for Life Assured (LBD)            0 years
Maximum Age at entry for Life Assured (LBD)           12 Years

Policy Term                                                                       (25-Age Entry) Yrs

maturity Age                                                                      25 Years

Minimum Sum Assured                                                   Rs 1 Lac

New Children Money back Plan
New Children Money back Plan
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LIC’s LIMITED PREMIUM ENDOWMENT PLAN (Plan No. 830)
Posted by:V.K. sharma, December - 06 - 2014

This is a limited premium paying conventional With-Profits Endowment Assurance plan. The benefits and other details of the plan are given below.

BENEFITS:

The benefits payable under an inforce policy are as under:

a)    Benefits payable on death:

On death of the Life Assured during the policy term, the 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 the higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. 125% of the Basic Sum Assured.

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Call for expert advice
Call for expert advice

b)    Benefits payable on maturity:

On survival to the end of the policy term, “Sum Assured on Maturity” along with vested simple reversionary bonuses and Final Additional bonus, if any, shall be payable. Where Sum Assured on Maturity is equal to Basic Sum Assured.

c)  Participation in Profits:

Depending upon the Corporation’s experience the policies shall participate in the profits and shall be eligible for simple reversionary bonus at such rate and on such terms as may be declared by the Corporation.

Final Additional Bonus may also be declared under the policy which will be payable on the expiry of the policy term or on earlier death, provided the policy has run for certain minimum term.

ELIGIBILITY CONDITIONS AND RESTRICTIONS:

For Basic Plan:

1)    Minimum Age at entry for Life Assured  : 18 years (completed)

2)    Maximum Age at entry for Life Assured :

Maximum Age at entry

   Term           (in Years)   PPT = 8 years PPT = 9 years

12

57

62

16

59

59

21

54

54

3)    Policy Term                                   : [12,16 and 21] years

4)    Premium paying Term                   : [8 and 9] years

5)    Minimum Basic Sum Assured       : Rs. 3,00,000/-

6)    Maximum Basic Sum Assured      : No Limit

The Basic Sum Assured shall be in multiples of Rs. 10000/- only.

 

Age at entry for the Policyholder is to be taken as age nearest birthday except for the minimum age at entry i.e. 18 years

 MODE OF PREMIUM PAYMENT:

The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly (ECS only or through salary deductions).

REBATES:

The rebates for basic plan are as under:

 Mode Rebate:

Mode                                             Percentage

Yearly mode                                 : 2% of tabular premium

Half-yearly mode                         : 1% of tabular premium

Quarterly and monthly mode        : NIL

 

High Basic Sum Assured Rebate:

Basic Sum Assured (B.S.A)         Rebate per Rs.1000 B.S.A

3,00,000 to 4,90,000                     : Nil

5,00,000 to 9,90,000                     : 0.50 ‰  B.S.A

10,00,000 and above                    : 0.75 ‰  B.S.A

 Click here to download the Ready reckoner of Table no. 830

” ” ” Ready Reckoner 830″ ” “

 

” ” ” Presentation for Table No. 830 ” ” “

 

 

 

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Call for expert advice
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How to be an LIC AGENT ?
Posted by:V.K. sharma, June - 03 - 2014

LIC OF INDIA is the biggest and govt. life insurance organization in India. Already more than 14,00,000 people are associated with LIC as LIC AGENTS. Many are earning in SIX FIGURES by just giving 2-3 hours a day.

To know more click here

Benefits of becoming LIC AGENT
1. Handsome Commission
2. Renewal & Hereditary Regular Income
3. Gratuity
4. Computer advance

To know more click here

5. Festival Advance
6. Foreign Trips
7. Regular Awards / Competitions
8. Office maintenance Allowance

To know more click here

9. Car Advance
10. E-support
11. Best Software for plan presentation
and much more

To know more click here

Contact : Mr. Vinay Kumar Sharma,
Development Officer, LIC OF INDIA,
Ph: 99100-39879, 9716-836-836

 

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Table no. 823 : Amulya Jeevan 2 : LIC’s Amulya Jeevan -2
Posted by:V.K. sharma, February - 03 - 2014

 

Table no. 823

Amulya Jeevan -2

Amulya Jeevan is a regular premium paying conventional WITHOUT profit pure protection plan

 

Eligibility Conditions And Restrictions:

1) Minimum Age at entry for Life Assured    : 18 years (completed)

2) Maximum Age at entry for Life Assured    : 60 years (nearest birthday)

3) Minimum Policy Term                                : 5 years

4) Maximum Policy Term                               : 35 years

5) Premium payment mode                           : Yearly, Half-yearly

6) Minimum Sum Assured                             : Rs 25,00,000/-

7) Maximum Sum Assured                            : No Limit

 

The Sum Assured shall be in multiple of Rs 1,00,000/-

 

Benefits:

Maturity Benefit – On Survival to the end of the policy term, no benefits shall be payable.

Death Benefit – On death of Life Assured during the term of the policy, Sum Assured will be payable.

 

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Call for expert advice

Grace Period:

Grace period of one calendar month but not less than 30 days will be allowed.

 

Additional Premium :

2% of the tabular annual premium will be payable for HALF YEARLY mode.

 

Higher Sum Assured: No Higher Sum assured rebate

 

Paid Up Value:  NIL

 

Surrender Value : NIL

 

Loan : Not allowed

 

Back Dating Interest:

Back dating allowed but no interest will be charged for back dating.

 

Assignment and Nomination is allowed as per normal rules.

Suggested and Must reading while studying Term Plans from LIC like Table no. 822 and 823.

Why Term Plan from LIC?

Why LIC?

LIC : A place in everyone life

LIC hai to kahin aur kyon jana.

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Table No. 822 : Anmol Jeevan-2 : Anmol Jeevan-2
Posted by:V.K. sharma, February - 02 - 2014

Table no. 822

Anmol Jeevan -1

Anmol Jeevan is a regular premium paying conventional WITHOUT profit pure protection plan

Eligibility Conditions And Restrictions:

1) Minimum Age at entry for Life Assured    : 18 years (completed)

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

3) Minimum Policy Term                               : 5 years

4) Maximum Policy Term                              : 25 years

5) Premium payment mode                            : Yearly, Half-yearly

6) Minimum Sum Assured                             : Rs 6,00,000/-

7) Maximum Sum Assured                            : Rs 24,00,000/-

 

The Sum Assured shall be in multiple of Rs 1,00,000/-

buy LIC plans before 30th Sept

 

Benefits:

Maturity Benefit – On Survival to the end of the policy term, no benefits shall be payable.

Death Benefit – On death of Life Assured during the term of the policy, Sum Assured will be payable.

 

Grace Period:

Grace period of one calendar month but not less than 30 days will be allowed.

          Why Term Plan from LIC?

Why LIC?

LIC : A place in everyone life

 

Additional Premium :

2% of the tabular annual premium will be payable for HALF YEARLY mode.

 

Higher Sum Assured:

No Higher Sum assured rebate

 

Paid Up Value:  NIL

 

Surrender Value : NIL

 

Loan : Not allowed

 

Back Dating Interest:

Back dating allowed but no interest will be charged for back dating.

 

Assignment and Nomination is allowed as per normal rules.

 

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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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