Life Insurance Corporation of India (LIC) launches a new Single Premium plan with guaranteed return and High risk cover

Life Insurance corporation of India (LIC) has launched a single premium close ended plan  on 01/09/2014 during Insurance week celebrated by LIC between 01/09/2014 to 07/09/2014. The plan Jeevan Shagun (Table No. 826) is a single premium plan which is giving a fixed maturity sum assured on maturity after 12 year of term, it is also giving a risk cover of ten times of single premium paid by the customer. This plan is giving the maturity sum assured on maturity as money back in last 3 year ie 15% in 10th year, 20% in 11th year and remaining 65% with loyalty addition (If any) in 12th year. This plan is good for person between 8 to 35 years, though available for persons up to the age of 45 years (LBD). This plan will fulfil the need of investment and risk cover of an individual. 

Eligibility Conditions:
Minimum Entry Age                                         : 8 years (completed)

Maximum Entry Age                                         : 45 years (nearest birthday)

Minimum/Maximum Basic Sum Assured        : 10 times of tabular single premium 

Minimum Maturity Sum Assured                      : Rs. 60,000/-

Maximum Maturity Sum Assured                      : No Limit

Maturity Sum Assured shall be available in multiples of Rs. 5,000/-.

Policy Term                                                        : 12 years

Premium payment mode                                   : Single premium only

REBATE FOR HIGH MATURITY SUM ASSURED:

Below Rs.150,000                              Nil

Rs.150,000 to Rs. 395,000                 Rs. 15

Rs.4,00,000 and above                     Rs. 20

LOAN:

Loan can be availed under this plan any time after completion of one policy term and subject to terms and conditions as the Company may specify from time to time.

SURRENDER VALUE:

The policy can be surrendered for cash at any time during the policy term.  The minimum Guaranteed Surrender Value allowable shall be as under

1.     First year: 70% of the Single premium excluding extra premiums and taxes, if any.
2.     Thereafter: 90% of the Single premium excluding taxes, any extra premium paid and survival benefits, if paid earlier.
3.     The Corporation shall pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value (If the policy is surrendered after completion of five policy years Loyalty Addition, if any, based o
n surrender value, shall also be payable)

Tax:

Taxes, including Service Tax, shall be as per the Tax laws and the rate of tax shall be as applicable from timeto time.

The amount of tax as per the prevailing rates shall be payable by the policyholder on single premium including extra premium, if any. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.


COOLING- OFF PERIOD:

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may returned to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the proportionate risk premium for the period on cover, stamp duty charges and any charges incurred on medical examination and special reports.


EXCLUSIONS:
The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of  90% of the single premium paid excluding taxes and any extra premium paid.

BENEFITS:
Death Benefit:
On death during first five policy years:
Basic Sum assured i.e. 10 times the tabular single premium shall be payable.

On death after completion of five policy year:
Basic Sum assured i.e. 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.

Survival Benefit:
On Life Assured surviving to the end of the specified durations, the following Survival benefit shall be payable.
At the end of 10th policy year: 15% of the Maturity Sum Assured.
At the end of 11th policy year: 20% of the Maturity Sum Assured.

Maturity Benefit:
On maturity,  65% of the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
Loyalty Addition:
Depending upon the Corporation’s experience, a policy shall participate in the profits in the form of Loyalty Addition. The Loyalty Addition, if any, shall be  payable on death or surrender, provided the policy has run for atleast  five policy years, or on policyholder surviving to the maturity, at such rate and on such terms as may be declared by the 


Example:

For a person of age 30
Premium: 53736 (Single Premium: 52125 + Tax: 1611 (@ 3.09%))
Maturity Sum Assured: 100000
    Therefore Survival Benefits will be
    10th year:     15000
    11th year:     20000
    12th year:     65000 + Loyalty Addition (If declared)

Death Benefit: 521250 (10 time of single premium excluding tax 52125)