Insurance Regulatory
& Development Authority (IRDA) requires
all life insurance companies operating
in India to provide official illustrations
to their customers. The illustrations
are based on the investment rates of return
set by the Life Insurance Council (constituted
under Section 64C(a) of the Insurance
Act 1938) and is not intended to reflect
the actual investment returns achieved
or may be achieved in future by Life Insurance
Corporation of India (LICI). For
the year 2004-05 the two rates of investment
return declared by the Life Insurance
Council are 6% and 10% per annum.
This is a whole of life assurance plan
that provides financial protection against
death through out the lifetime of the
Life Assured.
Under Table Nos 2 & 5 the premiums are
payable yearly, half-yearly, quarterly,
monthly or through Salary deductions,
as opted by you. Under Table No 8 the
premium is payable in one lump sum (Single
Premium).
Under Table No 2 the premiums are payable
for a period of 35 years or up to age
80 years, whichever is later. Under Table
No 5 the premiums are payable up to the
selected premium paying period.
Under Table No 2 the premiums are payable
for a period of 35 years or up to age
80 years, whichever is later. Under Table
No 5 the premiums are payable up to the
selected premium paying period.
The premiums are payable for the periods
as specified above or up to earlier death
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.
The Sum Assured plus all bonuses to date
is payable in a lump sum upon the death
of the life assured.
This is a
whole of life assurance plan and hence
does not have a maturity date. You, however,
have the option to take the Sum Assured
plus all bonuses declared under the policy
anytime after 40 years from the date of
commencement of the policy provided you
have attained, at least, 80 years of age.
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.
Buying a life insurance contract is a
long-term commitment. However, surrender
value is available under the plan on earlier
termination of the plan.
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/additional premium.
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. 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 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.
Sum assured plus accrued bonuses and the
terminal bonuses, if any, on the policyholder
attaining age 80 years or on expiry of
term of 40 years from the date of commencement
of the policy whichever is later.
Sum assured plus accrued bonuses and the
terminal bonuses, if any, on the death
of the policyholder are paid to his/her
nominees/heirs.
“Some benefits are guaranteed and
some benefits are variable with returns
based on the future performance of your
insurer carrying on 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.”
Table No 2
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 45 years
Mode of premium payment: Yearly
Annual Premium: Rs.2917/-
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1 |
2917 |
100000 |
3900 |
10800 |
103900 |
110800 |
|
2 |
5834 |
100000 |
7800 |
21600 |
107800 |
121600 |
|
3 |
8751 |
100000 |
11700 |
32400 |
111700 |
132400 |
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4 |
11668 |
100000 |
15600 |
43200 |
115600 |
143200 |
|
5 |
14585 |
100000 |
19500 |
54000 |
119500 |
154000 |
|
6 |
17502 |
100000 |
23400 |
64800 |
123400 |
164800 |
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7 |
20419 |
100000 |
27300 |
75600 |
127300 |
175600 |
|
8 |
23336 |
100000 |
31200 |
86400 |
131200 |
186400 |
|
9 |
26253 |
100000 |
35100 |
97200 |
135100 |
197200 |
|
10 |
29170 |
100000 |
39000 |
108000 |
139000 |
208000 |
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15 |
43755 |
100000 |
58500 |
162000 |
158500 |
262000 |
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20 |
58340 |
100000 |
104000 |
288000 |
204000 |
388000 |
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25 |
72925 |
100000 |
130000 |
360000 |
230000 |
460000 |
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30 |
87510 |
100000 |
156000 |
432000 |
256000 |
532000 |
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35 |
102095 |
100000 |
182000 |
504000 |
282000 |
604000 |
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40 |
116680 |
100000 |
208000 |
576000 |
308000 |
676000 |
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45 |
131265 |
100000 |
234000 |
648000 |
334000 |
748000 |
Table No 5
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 15 years
Mode of premium payment: Yearly
Annual Premium: Rs.4,444/-
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| 1
|
4444
|
100000 |
3900
|
10800
|
103900
|
110800
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| 2
|
8888
|
100000 |
7800
|
21600
|
107800
|
121600
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| 3
|
13332
|
100000 |
11700
|
32400
|
111700
|
132400
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| 4
|
17776
|
100000 |
15600
|
43200 |
115600 |
143200 |
| 5
|
22220
|
100000 |
19500
|
54000
|
119500
|
154000 |
| 6
|
26664
|
100000 |
23400 |
64800 |
123400 |
164800 |
| 7
|
31108
|
100000 |
27300 |
75600 |
127300 |
175600 |
| 8
|
35552
|
100000 |
31200
|
86400
|
131200
|
186400
|
| 9
|
39996
|
100000 |
35100 |
97200 |
135100 |
197200 |
| 10 |
44440
|
100000 |
39000 |
108000 |
139000 |
208000 |
| 15
|
66660
|
100000 |
58500 |
162000 |
158500 |
262000 |
| 20
|
66660
|
100000 |
104000 |
288000 |
204000 |
388000 |
| 25
|
66660
|
100000 |
130000 |
360000 |
230000 |
460000 |
| 30
|
66660
|
100000 |
156000 |
432000 |
256000 |
532000 |
| 35
|
66660
|
100000 |
182000 |
504000 |
282000 |
604000 |
| 40
|
66660
|
100000 |
208000 |
576000 |
308000 |
676000 |
| 45 |
66660
|
100000 |
234000 |
648000 |
334000 |
748000 |
Table No 8
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 1 year
Single Premium: Rs.45,565/-
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| 1
|
45565
|
100000 |
4300
|
18700
|
104300
|
118700
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| 2
|
45565
|
100000 |
8600
|
37400
|
108600
|
137400
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| 3
|
45565
|
100000 |
12900
|
56100
|
112900
|
156100
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| 4
|
45565
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100000 |
17200
|
74800
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117200
|
174800
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| 5
|
45565
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100000 |
21500
|
93500
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121500
|
193500
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| 6
|
45565
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100000 |
25800
|
112200
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125800
|
212200
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| 7
|
45565
|
100000 |
30100
|
130900
|
130100
|
230900
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| 8
|
45565
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100000 |
34400
|
149600
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134400
|
249600
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| 9
|
45565
|
100000 |
38700
|
168300
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138700
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268300
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| 10 |
45565
|
100000 |
43000
|
187000
|
143000
|
287000
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| 15
|
45565
|
100000 |
64500
|
280500
|
164500
|
380500
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| 20
|
45565
|
100000 |
114500
|
498500
|
214500
|
598500
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| 25
|
45565
|
100000 |
143000
|
623000
|
243000
|
723000
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| 30
|
45565
|
100000 |
172000
|
748000
|
272000
|
848000
|
| 35
|
45565
|
100000 |
205000 |
872500
|
305000
|
972500
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| 40
|
45565
|
100000 |
229000 |
997000
|
329000
|
1097000
|
| 45 |
45565
|
100000 |
258000 |
1122000
|
358000
|
1222000
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Ni) 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.
v) The Maturity Benefit is the amount
shown at the end of 45 years.
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