LIC’s Nivesh Plus is a Unit Linked, Non-Participating, Single Premium Individual
Life Insurance plan. On payment of single premium, the plan offer, insurance
cum investment cover throughout the term of the policy.
You can buy this plan offline (through an intermediary) as well as online. To
purchase this plan online, kindly log on to www.licindia.in.
Under this plan you have the flexibility to choose the type of Sum Insured at
the inception and also have a choice of investing the premium in one of the
four types of investment funds available. Single Premium paid after deduction
of Premium Allocation Charge will purchase units of the Fund type chosen.
The Unit Fund is subject to various charges and value of units may increase or
decrease, depending on Net Asset Value (NAV).
1. Benefits:
A) Death Benefit:
On death before the Date of Commencement of Risk:
An amount equal to the Unit Fund Value shall be payable.
On death after the Date of Commencement of Risk:
An amount equal to the higher of the following shall be payable :
• Basic Sum Assured less Partial Withdrawals, if any made during the two
years period immediately preceding the date of death; or
• Unit Fund Value .
Where Basic Sum Assured and Partial Withdrawal are as specified in para
3(V) and para 3(II) respectively.
Mortality charge, Accident Benefit charge, and Tax charges thereon
recovered subsequently to the date of death shall be paid back to the
nominee or beneficiary along with death benefit.
Any Guaranteed Addition added subsequent to the date of death (in case of
delay in intimation of death claim) shall be recovered from the Unit Fund
The death benefit shall be paid either in lump sum as specified above or in
instalments, if Settlement Option is opted for, as mentioned in Para 3.iv
below as per option exercised by the Policyholder/Life Assured.
B) Maturity Benefit:
On Life Assured surviving the date of maturity, an amount equal to Unit
Fund Value shall be payable.
2. Guaranteed Additions:
Guaranteed Additions as a percentage of Single Premium as mentioned in
table below shall be added to the Unit Fund on completion of specific
duration of policy years as mentioned below.
End of Policy Year Guaranteed Additions (as percentage of Single Premium)
6 3%
10 4%
15 5%
20 6%
25 7%
The allocated Guaranteed Addition shall be converted to units based on NAV of
the underlying Fund type as on the date of such addition and shall be credited
to the Unit Fund.
However, any Guaranteed Additons added subsequently to the date of death
(in case of delay in intimation of death claim) shall be recovered from the Unit
Fund.
3. Optional Benefits:
I. Rider Benefit:
You have an option of availing LIC’s Linked Accidental Death Benefit Rider
(UIN: 512A211V02).
This rider can be opted for at any policy anniversary provided the
outstanding policy term is atleast 5 years but on or before the policy
anniversary on which the age nearer birthday of the Life Assured is 65
years.. The benefit cover under this rider shall be available till the Date of
Maturity or till the policy anniversary on which the age nearer birthday of
the Life Assured is 70 years, whichever is earlier, provided the Policy is
inforce as on date of accident. If this rider is opted for, in case of accidental
death, the Accident Benefit Sum Assured will be payable in lumpsum along
with the death benefit under the base plan. This Rider will not be available
under the policy on the life of minor, during minority of the Life Assured
The Accident Benefit Sum Assured cannot exceed the Basic Sum Assured.
For more details on the above Rider, refer to the Rider Brochure or contact
LIC’s nearest Branch Office.
II. Partial withdrawals:
You can partially withdraw the units at any time after the fifth policy
anniversary, subject to the following:
i. In case of minors, partial withdrawals shall be allowed only after Life
Assured is aged 18 years or above.
ii. Partial withdrawals may be in the form of fixed amount or in the form of
fixed number of units.
iii. The Maximum amount of Partial Withdrawal as a percentage of fund
during each policy year shall be as under:
Policy Year Percent of Unit Fund
6th to 10th 15%
11th to 15th 20%
16th to 20th 25%
21st to 25th 30%
The above Partial withdrawal shall be allowed subject to minimum balance
equal to the single premium paid.The partial withdrawals which would
result in termination of a contract shall not be allowed.
iv. Partial withdrawal charge as specified in Para 7.D. (iii) shall be deducted
from the Unit Fund Value.
If partial withdrawal has been made then for two years’ period immediately
from the date of withdrawal, the Basic Sum Assured, shall be reduced to
the extent of the amount of partial withdrawals made. On completion of
two years’ period from the date of withdrawal the original Basic Sum
Assured shall be restored.
III. Switching:
You have an option to switch between the four fund types during the policy
term. On switching the entire Fund Value shall be switched to the new Fund
opted for. Switching shall be subject to Switching Charges as specified in
Para 7.D.(ii).
IV. Settlement Option:
This is the option to receive the Death Benefit in instalments. This option
can be exercised during the lifetime while in currency of the policy, specifying
the mode of instalment and period in years (not more than 5 years). The
death claim amount shall then be paid to the nominee as per the option
exercised and no alteration whatsoever shall be allowed to be made by the
nominee.
The Unit Fund under such policy will continue to be invested as per the fund
type existing as on the date of intimation of death
The instalment shall be the total number of units as on the date of intimation
of death divided by total number of instalments. The number of units
arrived at in respect of each instalment will be multiplied by the NAV of the
applicable fund type as on the date of instalment payment. The first
payment will be made corresponding to the date of intimation of death and
thereafter based on the mode opted.
During the Settlement Option period, no charges other than the Fund
Management Charge shall be deducted. The value of instalment payable on
the date specified shall be subject to investment risk i.e. the NAV may go up
or down depending upon the performance of the fund.
On death of the nominee after the commencement of the Settlement
Option period, the value of the outstanding units held in the Unit Fund shall
become payable to the legal heir in lump sum.
No partial withdrawal or switching of fund shall be allowed by the nominee
V. Basic Sum Assured option: You have the flexibility to choose Basic Sum
Assured at the inception.
The Sum Assured options are:
Option 1: 1.25 times of Single Premium;
Option 2: 10 times of Single Premium
The option once selected cannot be altered.
4. Eligibility Conditions And Other Restrictions:
a) Minimum/Maximum Basic Sum Assured:
Under Option 1: 1.25 times of the single premium
Under Option 2: 10 times of the single premium
b) Minimum Age at entry : [90] Days (completed) for Option 1 and 2
c) Maximum Age at entry : [70] years (nearer birthday) for Option 1
[35] years (nearer birthday) for Option 2
d) Minimum Maturity Age : [18] years (Completed)
e) Maximum Maturity Age : [85] years (nearer birthday) for Option 1
[50] years (nearer birthday) for Option 2
f) Policy Term
Option 1: If Basic
sum assured is
1.25 times of
single premium
Option 2: If Basic sum assured is 10 times of single
premium
For age at entry
upto 25 yrs
For age at entry
26 to 30 yrs
For age at entry
31 to 35 yrs
10 to 25 years 10 to 25 years 10 to 20 years 10 years
g) Premium Paying Mode : Single Premium only
h) Minimum Premium : Rs. 1,00,000
i) Maximum Premium : No Limits
Premiums shall be payable in multiple of Rs.10,000/-.
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than 8 years, the risk
under this plan will commence either on the completion of 2 years from
the date of commencement of policy or on policy anniversary coinciding
with or immediately following the completion of 8 years of age, whichever
is earlier. In case the age at entry of Life Assured is 8 years or more, risk will
commence immediately from the date of underwriting acceptance of risk
i.e. date of commencement of policy.
Date of vesting:
If the policy is issued on the life of minor the policy shall automatically vest
on the Life Assured on such vesting date i.e. on the policy anniversary
coinciding with or immediately following the completion of 18 years of age
and shall on such date of vesting be deemed to be a contract between the
Corporation and the Life Assured.
5. Investment of Funds:
Unit Fund:
The allocated premiums will be utilized to buy units as per the fund type
opted by the Policyholder out of the four fund types options available.
Various types of fund options and broadly their investment patterns are as
under:
Fund
Type
Investment in
Government /
Government
Guaranteed Securities /
Corporate
Debt
Short-term
investments such
as money
market instruments
Investment in
Listed
Equity
Shares
Objective Risk
Profile
SFIN .
Bond
Fund
Not less
than 60%
Not more
than 40%
Nil To provide relatively safe
and less volatile investment
option mainly through accumulation of income through
investment in fixed income
securities.
Low risk ULIF00124/
12/18LICULI
PBND512
Secured
Fund
Not less
than 45%
& Not
more
than 85%
Not more
than 40%
Not less
than
15% &
Not
more
than
55%
To provide steady income
through investment in both
equities and fixed income
securities.
Lower to
Medium
risk
ULIF00224/
12/18LICULI
PSEC512
Balanced
Fund
Not less
than 30%
& Not
more
than 70%
Not more
than 40%
Not less
than
30% &
Not
more
than
70%
To provide balanced income
and growth through similar
proportion investment in
both equities and fixed
income securities.
Medium
risk
ULIF00324/
12/18LICULI
PBAL512
Growth
Fund
Not less
than 20%
& Not
more
than 60%
Not more
than 40%
Not less
than
40% &
Not
more
than
80%
To provide long term capital
growth through investment
primarily in equities.
High risk ULIF00424/
12/18LICULI
PGRW512
The Policyholder has the option to choose any ONE of the above 4 funds.
Discontinued Policy Fund (SFIN: ULIF001201114LICDPFNLIF512): The in
vestment pattern of the Discontinued Policy Fund shall be a unit fund with
the following asset categories:
i) Money market instruments: 0% to 40%
ii) Government securities: 60% to 100%
6. Method of Calculation of Unit price:
Units will be allotted based on the Net Asset Value (NAV) of the respective
fund as on the date of allotment. There is no Bid-Offer spread (the Bid price
and Offer price of units will be equal to the NAV). The NAV will be com
puted on daily basis and will be based on investment performance and Fund
Management Charge of each type of fund and shall be computed as:
Market Value of investment held by the fund + Value of Current Assets –
Value of Current Liabilities & Provisions, if any
——————————————————————————————————
Number of Units existing on Valuation Date (before creation / redemption
of Units)
Applicability of Net Asset Value (NAV):
i. The allocation and redemption of units for various transaction will be at
the NAV as described below:
Type of Transaction Applicable NAV (Where transaction is
received before cut off Time)
Single Premium received:
• In case of Offline sale: by way of
a local cheque or a demand draft
payable at par at the place where
premium is received.
• In case of Online sale: by any
digital payment mode
NAV of Date of underwriting acceptance of risk i.e. Date of commencement of policy.
Partial withdrawal, Switching between
available Fund types, or Free-look
cancellation
NAV of the date of our receipt of the
request in writing.
Surrender NAV of the date of our receipt of surrender request in writing
Death claim NAV of the date of our receipt of the
intimation of death in writing along
with death certificate.
Settlement Option NAV of date of installment payment
under settlement option.
Maturity Benefit NAV of the date of maturity.
Termination NAV of date of termination.
Policy Alteration NAV of date of alteration in the policy.
Guaranteed Additions NAV on the date of allocation.
ii. Currently, the cut-off time is 3.00 p.m. as per the existing IRDAI guide
lines and changes in this regard shall be as per the instructions from
IRDAI. In case of New Business the cut-off time of 3.00p.m. for determi
nation of NAV shall be in reference to the date of acceptance of risk i.e
date of commencement of policy
iii. If the transaction request is received before the cut-off time in respect of:
a. Single Premium payment, at any branch office of the Corporation (ap
plicable for offline sale) or by any digital payment mode (applicable for
online sale)
b. Other transaction, by servicing branch of the Corporation
c. Successfull Registration of Service Requests as and when made available
on LIC’s Customer Portal.
the closing NAV of that day shall be applicable.
iv. If the transaction request is received after the cut-off time in respect of:
a. Single Premium payment, at any branch office of the Corporation (ap
plicable for offline sale) or by any digital payment mode (applicable for
online sale)
b. Other transaction, by servicing branch of the Corporation
c. Successful Registration of Service Requests as and when made available
on LIC’s Customer Portal.
The closing NAV of the next business day shall be applicable.
In case of Offline sale, premium paid by CTS 2010 cheque/demand draft
drawn on a bank which is participating in local/CTS/speed clearing house
shall only be accepted. Cheques /demand draft not coming under above
category shall not be accepted.
7. Charges under the Plan:
A) Premium Allocation Charge:
This is the percentage of the premium appropriated towards charges from
the premium received. The balance known as allocation rate constitutes
that part of the premium which is utilized to purchase units for the policy.
The allocation charges are as below:
• For Offline sale: 3.30%
• For Online sale: 1.50%
B) Mortality Charge:
Mortality Charge is the cost of life insurance cover, which is age specific and
this will be taken at the beginning of each policy month by canceling the
Unit Fund Value appropriately. The monthly charges will be one twelfth of
the annual Mortality Charges.
This charge shall depend upon the Sum at Risk i.e. the difference between
the Basic Sum Assured and Unit Fund Value as on the date of deduction of
charge, after deduction of all other charges, and shall be deducted only if,
the Basic Sum Assured is more than the Unit Fund Value on the date of
deduction.
In case of partial withdrawals, the Basic Sum assured shall be reduced to the
extent of all Partial Withdrawals made during the two years period immedi
ately preceding the date of deduction of Mortality Charges
The rate of Mortality Charge per annum per Rs. 1000/- Sum at Risk for some
of the ages in respect of a healthy life are as under:
Age 25 35 45 50
Rs. 1.23 1.60 3.59 6.18
C) Accident Benefit Charges ( if LIC’s Linked Accidental Death Benefit Rider
(is opted for):
Accident Benefit Charge is the cost of Accident Benefit cover, if LIC’s Linked
Accidental Death Benefit Rider(if opted for).This charge will be taken at the
beginning of each month by canceling appropriate number of units out of
Unit Fund while the policy is inforce. A level annual charge shall be at the
rate of Rs. 0.40 per thousand Accident Benefit Sum Assured per policy year.
If the Life Assured is engaged in police duty in any police organization other
than paramilitary forces and opted for this cover while engaged in police
duty, then the level annual charge shall be at the rate of Rs 0.80 per thou
sand Accident Benefit Sum Assured per policy year. The monthly charges
will be one-twelfth of the annual Accident benefit Charge
D) Other Charges: The following charges shall be deducted during the term of
the policy:
i. Fund Management Charge: This is a charge levied as a percentage of the
value of assets and shall be appropriated by adjusting the Net Asset
Value. Fund Management (FMC) Charge shall be as under:
• 1.35% p.a. of Unit Fund for all the four Funds available i.e. Bond Fund,
Secured Fund, Balanced Fund and Growth Fund
• 0.50% p.a. of Unit Fund for “Discontinued Policy Fund”
This is a charge levied at the time of computation of NAV, which will be done
on daily basis. The NAV thus declared will be net of FMC.
ii. Switching Charge: This is a charge levied on switching of monies from
one segregated fund to another available within the product. The charge
per switch, if any, shall be levied at the time of effecting the switch.
Within a given policy year 4 switches will be allowed free of charge. Sub
sequent switches in that year shall be subject to a Switching Charge of
Rs. 100 per switch. This charge will be recovered by canceling appropri
ate number of units out of the Unit Fund..
iii. Partial Withdrawal Charge: This is a charge levied on the Unit Fund at
the time of partial withdrawal of the fund during the contract period. A
flat amount of Rs. 100/- shall be deducted by cancelling appropriate
number of units out of Unit Fund on the date on which partial with
drawal takes place.
iv. Discontinuance Charge: This Charge shall be deducted by cancelling ap
propriate number of units out of Unit Fund Value as on the date of dis
continuance of Policy. The Discontinuance charge applicable is as under:
Where the policy is
discontinued during the policy year
Discontinuance Charges for
the Policies having Single
Premium up to Rs 3,00,000
Discontinuance Charges for
the Policies having Single
Premium above Rs 3,00,000
1 Lower of 2% * (SP or FV)
subject to maximum of Rs.
3000/-
Lower of 1% * (SP or FV)
subject to maximum of Rs.
6000/-
2 Lower of 1.5% * (SP or FV)
subject to maximum of Rs.
2000/-
Lower of 0.70% * (SP or FV)
subject to maximum of Rs.
5000/-
3 Lower of 1.00% * (SP or FV)
subject to maximum of Rs.
1500/-
Lower of 0.50% * (SP or FV)
subject to maximum of Rs.
4000/-
4 Lower of 0.5% * (SP or FV)
subject to maximum of Rs.
1000/-
Lower of 0.35% * (SP or FV)
subject to maximum of Rs.
2000/-
5 and onwards NIL NIL
Where
SP- Single Premium
FV – Unit Fund Value on the date of discontinuance of Policy.
“Date of discontinuance of the policy” shall be the date on which the insurer
receives the intimation from the Life Asured or policyholder about surrender
of the policy.
v. Tax Charge: Tax charges, if any, will be as per Tax laws and rate of tax as ap
plicable from time to time.
Tax Charge shall be levied on all or any of the charges as per the prevailing
Tax laws/ notification etc. as issued by Government of India or any other
Constitutional Tax Authority of India from time to time in this regard in this
regard without any reference to the policyholder.
vi. Miscellaneous Charge: This is a charge levied for an alteration during the
contract, such as Grant of Accident Benefit Rider after the issue of the
policy, and shall be a flat amount of Rs. 100/- which will be deducted by
cancelling appropriate number of units out of Unit Fund and the deduction
shall be made on the date of alteration in the policy.
E) Right to revise charges: The Corporation reserves the right to revise all or
any of the above charges except, Mortality charge and Accident Benefit
Charge. The modification in charges will be done with prospective effect
with the prior approval of IRDAI after giving the policyholders a notice of 3
months which shall be notified through our website.
Although the charges are reviewable, they will be subject to maximum
charges as declared by IRDAI from time to time. The current cap on charges
is as under :- The Fund Management Charge shall not exceed the limits
specified by IRDAI which are currently same as mentioned in Para 7.
D. i above.
– Partial withdrawal charge shall not exceed Rs. 500/- on each withdrawal.
d. Switching Charge shall not exceed Rs. 500/- per switch.
– Miscellaneous Charge shall not exceed Rs. 500/- each time when an
alteration is requested.
– Discontinuance charges shall not exceed the limits specified by IRDAI,
which are currently same as mentioned under Para 7.D.iv above
In case you do not agree with the revision of charges then you shall have
the option to withdraw the Unit Fund Value. If such revision in charges is
made during the lock-in-period of 5 years, withdrawal shall be allowed only
after the expiry of 5 years’ lock-in-period.
8. Surrender:
A policy can be surrendered anytime during the policy term. The surrender
value, if any, shall be payable as under:
If the policy is surrendered during the 5 years’ lock-in-period:
If you apply for surrender of the policy during the the 5 years’
lock-in-period, then the Unit Fund Value after deducting the Discontinuance
Charge as specified in Para 7.D.(iv) shall be converted into monetary amount
which shall be equal to the NAV of the underlying Fund Type as on the date
of receipt of application for surrender multiplied by the number of units in
the Unit Fund after deduction of Discontinuance Charge. This monetary
amount shall be transferred to the Discontinued Policy Fund by converting
the monetary amount into the units. The number of units transferred to the
Discontinued Policy Fund shall be the monetary amount divided by the NAV
of the Discontinued Policy Fund as on the date of transfer. The Proceeds of
the Discontinued Policy Fund in respect of this policy, as specified Para 9
below, shall be payable at the end of 5 years’ lock-in-period.
In case of death of the life assured after the date of surrender but before
the expiry of the 5 years’ lock-in-period, the Proceeds of the Discontinued
Policy Fund in respect of the policy shall be payable to the nominee/ legal
heir immediately.
If the policy is surrendered after the 5 years’ lock-in-period:
If you apply for surrender of the policy after 5 years’ lock-in-period, then the
Unit Fund Value as at the date of surrender shall be payable. There will be
no Discontinuance Charge under the policy.
Reinstatement of a surrendered policy shall not be allowed even if a request
for reinstatement is received from the policyholder during the 5 years’ lockin-period.
9. Calculation of Proceeds of the Discontinued Policy Fund:
The Proceeds of the Discontinued Policy Fund of the policy shall be higher
of Discontinued Policy Fund Value or the Guaranteed Monetary Amount.
The Guaranteed Monetary Amount is the accumulation of monetary
amount transferred into the Discontinued Policy Fund at the guaranteed
interest rate. The guaranteed interest rate shall accrue from the date when
the monetary amount is transferred to the Discontinued Policy Fund to the
date when the policy exits from the Discontinued Policy Fund either by
death or at the end of 5 years’ lock-in-period in case of surrender.
Currently this guaranteed interest rate is 4% p.a. and shall be subject to
change from time to time as declared by IRDAI.
10. Compulsory termination:
If the policy has run for at least 5 years and the balance in the Unit Fund is
not sufficient to recover the relevant charges, the policy shall be compul
sorily terminated and the balance amount in the Unit Fund, if any, shall be
refunded to the Policyholder.
11. Other Features:
a) Increase / Decrease of risk covers: No increase / decrease of benefits will be
allowed under the plan. The policyholder can, however, cancel the LIC’s
Linked Accidental Benefit Rider at anytime during the policy term. How
ever, once the rider is cancelled, the same cannot be subsequently restored
b) Top-up: No Top-up shall be allowed under the plan.
12. Risks factors and Disclaimers :
i) LIC’s Nivesh Plus is a Unit Linked Life Insurance product, which is different
from the traditional insurance products.
ii) The premium paid in Unit Linked Life Insurance policies is subject to invest
ment risks associated with capital markets and the NAVs of the units may
go up or down based on the performance of fund and factors influencing
the capital market and the insured is responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance Com
pany and LIC’s Nivesh Plus is only the name of the unit linked life insurance
contract and does not in any way indicate the quality of the contract, its
future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your In
surance agent or the Intermediary or policy document of the insurer.
v) The various fund types offered under this contract are the names of the
funds and do not in any way indicate the quality of these plans, their future
prospects and returns.
vi) All benefits under the policy are also subject to the Tax Laws and other
financial enactments as applicable from time to time.
vii) The actual value of units under your policy in the IRDAI prescribed FORM
D02 can be viewed through a secured login on the Corporation’s website
(www.licindia.in)
13. Free look period:
If you are not satisfied with the “Terms and Conditions” of the policy, the
policy may be returned to the Corporation within 15 days (30 days in case
of Online sale) from the date of receipt of the policy bond stating the
reasons of objections. On receipt of the same the Corporation shall cancel the
policy and the amount to be refunded shall be as under:
Value of units in the Unit Fund
Plus Unallocated Premium (equal to Allocation Charge multiplied by the
Premium received)
Plus Proportionate Mortality and Accident Benefit charge, if any, for the
balance period from the date of opting for Free-Look to the end of the
policy month for which the respective charges have been deducted
Plus Tax Charges deducted
Less Actual cost of medical examination and special reports, if any,
Less Stamp duty@ Rs.0.20 per thousand Basic Sum Assured and Accident
Benefit Sum Assured, if any.
14. Loan:
No loan shall be allowed under this plan.
15. Nomination and Assignment:
Nomination shall be as per Section 39 of the Insurance Act, 1938, as
amended from time to time.
Assignment shall be as per Section 38 of the Insurance Act, 1938, as
amended from time to time.
16. Exclusions:
Suicide: If the Life Assured commits suicide within 12 months from the date
of commencement of Policy, the nominee or beneficiary of the policy holder
shall be entitled to the Unit Fund Value available as on the date of
intimation of death alongwith death certificate. The Corporation will not
entertain any claim under the policy and the policy shall terminate
Any charges other than Fund Management Charges (FMC) recovered
subsequent to the date of death shall be added back to the Fund
Value as available on the date of intimation of death with death certificate .
Any Guaranteed Additions added subsequently date of death (in case of
delay in intimation of death claim) shall be recovered from the Unit fund
This clause shall not be applicable in case age at entry of the Life Assured is
below 8 years and death benefit as mentioned in para 1(A) shall be payable.
Sample Illustration:
Pulkit is 30 years old and opts to take LIC’s Nivesh Plus policy by payment of
lump sum amount of Rs 1,00,000/- for a policy term of 20 years. He can
choose the death benefit cover from two options:
a) Option 1: Basic Sum Assured is 1.25 * Single Premium.
b) Option 2: Basic Sum Assured is 10 * Single Premium
a) Option 1: Basic Sum Assured is 1.25 * Single Premium.
If Pulkit chooses Option 1, the various benefits available, based on the
assumed investment returns shall be as per the table below:
End of
Policy
Duration
(Years)
Rate of
return
(p.a.)
Fund
Value
before
Guaranteed Additions
( in Rs)
Guaranteed Additions
(in Rs)
Fund
Value
after
Guaranteed Additions
(in Rs)
Sum Assured
(in Rs)
Death
Benefit
payable
(in Rs)
6 @ 4 % 1,10,338 3,000 1,13,338 1,25,000 1,25,000
@8 % 1,38,538 3,000 1,41,538 1,25,000 1,41,538
15 @ 4 % 1,44,310 5,000 1,49,310 1,25,000 1,49,310
@8 % 2,50,768 5,000 2,55,768 1,25,000 2,55,768
20 @ 4 % 1,67,824 6,000 1,73,824 1,25,000 1,73,824
@8 % 3,47,186 6,000 3,53,186 1,25,000 3,53,186
Thus on the maturity date, Pulkit’s Maturity Benefit shall be as given below:
Where Net yield on projected rate of investment of @ 8 % p.a. is 6.79%.
b) Option 2: Basic Sum Assured is 10 * Single Premium.
If Pulkit chooses Option 2, the various benefits available, based on the
assumed investment returns shall be as per the table below:
End of
Policy
Duration
(Years)
Rate of
return
(p.a.)
Fund
Value
before
Guaranteed Additions
( in Rs)
Guaranteed Additions
(in Rs)
Fund
Value after Guaranteed
Additions
(in Rs)
Sum Assured
(in Rs)
Death
Benefit
payable
(in Rs)
6 @ 4 % 1,00,728 3,000 1,03,728 10,00,000 10,00,000
@8 % 1,27,772 3,000 1,30,772 10,00,000 10,00,000
15 @ 4 % 1,08,084 5,000 1,13,084 10,00,000 10,00,000
@8 % 2,05,285 5,000 2,10,285 10,00,000 10,00,000
20 @ 4 % 1,02,010 6,000 1,08,010 10,00,000 10,00,000
@8 % 2,61,893 6,000 2,67,893 10,00,000 10,00,000
Thus on the maturity date, Pulkit’s Maturity Benefit shall be as given below:
Rate of investment
@ 4 % p.a.
Rate of investment @
8 % p.a.
• Rs 1,73,824/-
• Rs 3,53,186/-
Where Net yield on projected rate of investment of @ 8 % p.a. is 6.79%
Disclaimer
i) This illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) life for a policy purchased
offline, wherein LIC’s linked Accidental Death Benefit rider is not opted.
ii) In 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 4% p.a. or 8% p.a., as the case may be. The Projected Investment
Rate of Return is not guaranteed and they are not upper or lower limits of
what you might get back as the value of your policy is dependant on a
number of factors including future investment performance.”
iii) The above illustration has been given considering the prevailing Tax Charge
(GST) of 18% which is subject to change from time to time.
iv) The main objective of the illustration is that the client is able to appreciate
the features of the product and the flow of benefitsin different circumstanes
with some level of quantification.
v) LIC does not authorize its agents/intermediaries, staff and officials to
express their opinion on the future performance of the “ULIP” fund,
excepting the above illustrative rate of 4% and 8% growth.
SECTION 45 OF THE INSURANCE ACT, 1938
The provision of Section 45 of the Insurance Act, 1938 shall be as amended
from time to time. The simplified version of this provision is as under:
Provisions regarding policy not being called into question in terms of Section
45 of the Insurance Act, 1938 are as follows:
1. No Policy of Life Insurance shall be called in question on any ground what so
ever after expiry of 3 yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may be called in question
within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
Rate of investment @
4 % p.a.
Rate of investment @
8 % p.a.
• Rs 1,08,010/-
• Rs 2,67,893/-
For this, the insurer should communicate in writing to the insured or legal
representative or nominee or assignees of insured, as applicable, mentioning
the ground and materials on which such decision is based.
3. Fraud means any of the following acts committed by insured or by his agent,
with the intent to deceive the insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true and which the insured
does not believe to be true;
b. The active concealment of a fact by the insured having knowledge or
belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent.
4. Mere silence is not fraud unless, depending on circumstances of the case, it
is the duty of the insured or his agent keeping silence to speak or silence is
in itself equivalent to speak.
5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if
the Insured / beneficiary can prove that the misstatement was true to the
best of his knowledge and there was no deliberate intention to suppress the
fact or that such mis-statement of or suppression of material fact are within
the knowledge of the insurer. Onus of disproving is upon the policyholder, if
alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3 years on the ground
that any statement of or suppression of a fact material to expectancy of life
of the insured was incorrectly made in the proposal or other document
basis which policy was issued or revived or rider issued. For this, the insurer
should communicate in writing to the insured or legal representative or
nominee or assignees of insured, as applicable, mentioning the ground and
materials on which decision to repudiate the policy of life insurance is based.
7. In case repudiation is on ground of mis-statement and not on fraud, the
premium collected on policy till the date of repudiation shall be paid to the
insured or legal representative or nominee or assignees of insured, within a
period of 90 days from the date of repudiation.
8. Fact shall not be considered material unless it has a direct bearing on the
risk undertaken by the insurer. The onus is on insurer to show that if the in
surer had been aware of the said fact, no life insurance policy would have
been issued to the insured.
9. The insurer can call for proof of age at any time if he is entitled to do so and
no policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof of age of life insured.
So, this Section will not be applicable for questioning age or adjustment
based on proof of age submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45 of the Insurance Act,
1938 and only a simplified version prepared for general information. Policy
Holders are advised to refer to the Section 45 of Insurance Act 1938, for complete and accurate details. ]
PROHIBITION OF REBATES (SECTION 41 OF THE INSURANCE ACT, 1938 :
1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate
of the whole or part of the commission payable or any rebate of the
premium shown on the policy, nor shall any person taking out or renewing
or continuing a policy accept any rebate, except such rebate as may be al
lowed in accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section
shall be liable for a penalty which may extend to ten lakh rupees.