Money Back Policy About the Report The present study is titled as “A project report on Money Back Policies”. The study is made with special reference to LIC. Objective of the study: To study about the need for the Life Insurance. To study about the Money Back Policies and its types. Terms and Conditions of the study. Advantages and Disadvantages of the study.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Money Back Policy
About the Report
The present study is titled as “A project report on Money Back
Policies”. The study is made with special reference to LIC.
Objective of the study:
To study about the need for the Life Insurance.
To study about the Money Back Policies and its types.
Terms and Conditions of the study.
Advantages and Disadvantages of the study.
Index
CH. Topic Pg.No
1Introduction gives introduction to the topic and to the
report.
5-11
Money Back Policy
2Gives an overview on LIC – A profile of the LIC. 12-19
3Deals with theoretical view of the topic. 22-26
4Deals with the different policies by LIC. 27-58
5Concludes the project study. 59
Money Back Policy
CHAPTER-1
INTRODUCTION
As a measure of providing protection against financial losses caused
by the premature death of breadwinner, life insurance has no parallel
or substitute.
There are two primary reasons why people purchase life insurance.
The better of the two reasons is to provide a death benefit (i.e., some
degree of financial assistance to other persons – usually family
members – when the insured dies). The other reason is to provide
savings, particularly for retirement.
Life insurance is often considered as the best estate planning “fuel”. It
can provide liquidity, help in business planning (“key person”
insurance), and provide substantial death benefits. The value for such
purposes is calculated in a different way, under ‘business insurance’.
The purpose of life insurance for most people is to protect their
beneficiaries’ standard of living in the event of and timely death of a
wage earner. Life insurance ensures that when the life assured dies,
his beneficiaries will have the financial resources in place to protect
the future income and pay for immediate and future financial
obligations. Without life insurance to meet the deficit, families can be
financially burdened or even devastated at the time of bread winners’
death.
Money Back Policy
There are 4 main types of insurance policies: -
1. Term insurance
2. Whole life insurance
3. Endowment
4. Annuities
Money Back Policy
TERM INSURANCE
Term Insurance pays a death benefit to the legal heirs if the person
insured, dies during the term of the policy. Such a policy provides
cover for a specified period only and may be described as temporary
insurance. Term insurance plans offer pure risk cover without any
element of saving. Hence they are the most inexpensive. The sum
assured is payable only if the insured dies during the selected period.
In case the insured does not die during tenure of insurance, nothing is
payable. Term insurance plans could be of the following different
types: -
a) Level term insurance: - Under this plan there is a uniform
premium and benefit throughout the term of the policy. In the
event of death anytime during the term the same sum assured is
payable. Where the term is for over a year, the renewal premium
is the same year. This policy plans is the most popular term
insurance plan mainly because of its simplicity. It is an answer to
neither a temporary need which neither increases nor decreases
over that period. For e.g., a lump sum amount which is due at
certain point time.
b) Decreasing term insurance: - Under this plan the premium is
constant throughout the term but the benefit decreases over a
period. Hence the amount payable on death depends on the
timing of the death even though the premium being paid is
constant. This plan is suited to cases where there is a temporary
need which is reducing. For e.g. where a mortgage loan has to
be repaid this reduces on a monthly or annual basis.
c) Increasing term insurance: - Under this plan the premium as
well as the benefit increase periodically. Te increases could be
Money Back Policy
at a fixed percentage or in line with an agreed index this plans is
useful in keeping the benefits in line with the time value of
money so that inflation does not erode the value of the benefits
received.
d) Renewable term insurance: - Though term insurance is for a
fixed period a renewable term policy gives the right to renew the
policy without submitting fresh evidence of health. The new
premium however is increased to reflect the increased age of
the insured.
e) Convertible term insurance: - Such a plan includes a
conversion privilege which gives Proposer the right to convert
the policy to a permanent plan (endowment) without evidence of
the health. If such an option is exercised the premium for the
plan must be the standard rate for such a plan and the actual
age of the life insured on the date of conversion of policy
convertible policy are useful for people who have low income
today and hence cannot afford to pay high premium in the initial
years.
Money Back Policy
WHOLE LIFE INSURANCE
Whole life insurance guarantees a death benefit cover throughout the
course of life provided the required premiums are paid. The
advantages of whole life insurance is that the policy if kept current
covers you over your entire life as opposed to term insurance that
covers you only for a certain term of years. Whole life insurance
policies pay out on the death of the assured whenever it occurs.
Premium may need to be paid throughout the life of the assured or a
lesser limited period.
ENDOWMENT INSURANCE
Pure endowment is a plan where the benefit is payable to the insured
only on survival of the specified term. Combining the features of term
assurance and pure endowment are endowment policies which out
either on the death of the assured whenever it occurs or after a fixed
number of years. Should the insured person survive the term of policy
the policy said to mature. Hence the claim under an endowment policy
may arise either by death or by maturity.
Money Back Policy
ANNUITIES
Annuities are a for of pension in which an insurance company makes
a series of periodic payment to a person (annuitant) or his /her
dependants over a number of years (term) in return for the money
paid to the insurance company either in lump sum or in installment.
Annuities start where life insurance ends. It is called the reverse of life
insurance. Annuities stops on the death of a person where as
theoretically life insurance starts on the death of the assured.
Annuities are of two types-
Immediate annuity: - Immediate annuity begins at once or
immediately on expiry of the designed period. Immediate annuity
is purchased with a single premium called purchase price this
type of typically purchased when a person reaches retirement
age and has a lump sum to invest. If the person buying the
annuity dies during his legal heirs or nominees get the remaining
installment of the annuity.
Deferred annuity: - Under a deferred annuity plan the annuity
payments to the annuitant commence at some specified time or
specified age of the annuitant. This type of annuity can be
funded either by a single payment or regular payments. The
annuity payment starts after lapse of a selected period called the
deferment period. Other the above the following two types of
policies are also popular in India.
Money Back Policy
Present Scenario
The Government of India liberalized the insurance sector in March
2000 with the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players and
allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent
equity cap for foreign partners in an insurance company. There is a
proposal to increase this limit to 49 percent. Premium rates of most
general insurance policies come under the purview of the government
appointed Tariff Advisory Committee.
Money Back Policy
CHAPTER-2
LIC – A PROFILE
The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in
those days a higher premium was charged for Indian lives than the
non-Indian lives as Indian lives were considered more risky for
coverage.
With largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It’s a business
growing at the rate of 15-20 per cent annually and presently is of the
order of Rs 450 billion. Together with banking services, it adds about 7
per cent to the country’s GDP. Gross premium collection is nearly 2
per cent of GDP and funds available with LIC for investments are 8
per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance
cover, health insurance and non-life insurance continue to be below
international standards. And this part of the population is also subject
to weak social security and pension systems with hardly any old age
income security. This it self is an indicator that growth potential for the
insurance sector is immense.
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure
development and at the same time strengthens the risk taking ability.
It is estimated that over the next ten years India would require
investments of the order of one trillion US dollar. The Insurance
Money Back Policy
sector, to some extent, can enable investments in infrastructure
development to sustain economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure
projects are fraught with a multitude of risks throughout the
development, construction and operation stages. These include risks
associated with project implementation, including geological risks,
maintenance, commercial and political risks. Without covering these
risks the financial institutions are not willing to commit funds to the
sector, especially because the financing of most private projects is on
a limited or non-recourse basis.
Insurance companies not only provide risk cover to infrastructure
projects, they also contribute long-term funds. In fact, insurance
companies are an ideal source of long term debt and equity for
infrastructure projects. With long term liability, they get a good asset-
liability match by investing their funds in such projects.
IRDA regulations require insurance companies to invest not less than
15 percent of their funds in infrastructure and social sectors.
International Insurance companies also invest their funds in such
projects.
Insurance is a federal subject in India. There are two legislations that
govern the sector – The Insurance Act-1938 and the IRDA Act-1999.
Money Back Policy
INSURANCE IN INDIA
The insurance sector in India has come as a full circle from being an
open competitive market to nationalization and back to a liberalized
market again. Tracing the developments in the Indian insurance sector
reveals the 360 degree turn witnessed over a period of almost two
centuries. A brief history of the Insurance sector The business of life
insurance in India in its existing from started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in
Calcutta. Some of the important milestones in the life Insurance
business in India are: 1912: The Indian Life Assurance Companies Act
enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses. 1938: Earlier legislation consolidated and
amended to by the Insurance Act with the objective of protecting the
interests of the insuring public. 1956: 245 Indian and foreign insurers
and provident societies taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace
its roots to the Triton Insurance Ltd., the first general Insurance
Company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in
India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company
to transact all classes of general insurance business.
Money Back Policy
1957: General Insurance Council, a wing of the Insurance Association
of India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act,
1972: Nationalized the general insurance business in India with effect
from 1st January.
1973: 107 insurers amalgamated and grouped into four companies’
viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.
Money Back Policy
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that
was only tapped by the state owned LIC till the entry of private
insurers. The penetration of life insurance products was 19 percent of
the total 400 million of the insurable population. The state owned LIC
sold insurance as a tax instrument, not as a product giving protection.
Most customers were under-insured with no flexibility or transparency
in the products. With the entry of the private insurers the rules of the
game have changed.
The 12 private insurers in the life insurance market have already
grabbed nearly 9 percent of the market in terms of premium income.
The new business premiums of the 12 private players have tripled to
Rs. 1000 crore in 2002-03 over last year. Meanwhile, state owned
LIC’s new premium business has fallen.
Innovative products, smart marketing and aggressive distribution.
That’s the triple whammy combination that has enabled fledging
private insurance companies to sign up Indian customers faster than
anyone ever expected. Indians, who have always seen life insurance
as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways.
They are coining money in new niches that they have introduced. The
state owned companies still dominate segments like endowments and
money back policies. But in the annuity or pension products business,
the private insurers have already wrested over 33 percent of the
market. And in the popular unit-linked insurance schemes they have a
virtual monopoly, with over 90 percent of the customers.
Money Back Policy
The private insurers also seem to be scoring big in other ways – they
are persuading people to take out bigger policies. For instance, the
average size of a life insurance policy before privatization was around
Rs. 50,000. That has risen to about Rs. 80,000. But the private
insurers are ahead in this game and the average size of their policies
is around Rs. 1.1 lakh to Rs.1.2 lakh-way bigger than the industry
average.
Objectives of LIC
Spread Life Insurance widely and in particular to the rural areas
and to the socially and economically backward classes with a
view to reaching all insurable persons in the country and
providing them adequate financial cover against death at a
reasonable cost.
Maximize mobilization of people’s savings by making
insurance-linked savings adequately attractive.
Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
Act as trustees of the insured public in their individual and
collective capacities.
Meet the various life insurance needs of the community that
would arise in the changing social and economic environment.
Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by
providing efficient service with courtesy.
Money Back Policy
Promote amongst all agents and employees of the Corporation a
sense of participation, pride and job satisfaction through discharge of
their duties with dedication towards achievement of Corporate
Objective.
Members on the Board of the Corporation
Shri. T.S. Vijayan (Chairman)
Shri. D.K. Mehrotra (Managing Director - LIC)
Shri. Thomas Mathew T (Managing Director - LIC)
Shri. Vinod Rai, Secretary (Financial Sector), Department of
Economic Affairs, Ministry Of Finance
Shri. V.P.Shetty (Chairman, IDBI)
Shri. R.K.Joshi (Chairman cum Managing Director, GIC)
Dr. Arvind Virmani (Principal Advisor, Planning Commission, Yojana
Bhavan)
Dr. A.Jayagovind (Director, National Law School of India )
Smt. Pushpa Girimaji (Social Activist)
Dr. (Ms.) Swati Piramal ( Director, Nicholas Piramal Ltd.)
Dr.Gautam Barua ( Director, IIT, Guwahati)
Money Back Policy
Money Back Policy, India
Money back policy provides for periodic payments of partial survival
benefits during the term of the policy, as long as the policyholder is
alive.
They differ from endowment policy in the sense that in endowment
policy survival benefits are payable only at the end of the endowment
period.
An important feature of money back policies is that in the event of
death at any time within the policy term, the death claim comprises full
sum assured without deducting any of the survival benefit amounts,
which may have already been paid as money-back components. The
bonus is also calculated on the full sum assured.
Money Back Policy
CHAPTER 3
MONEY BACK POLICIES – A
THEORITICAL VIEW
The story of insurance is probably as old as the story of mankind. The
same instinct that prompts modern businessmen today to secure
themselves against loss and disaster existed in primitive men also.
They too sought to avert the evil consequences of fire and flood and
loss of life and were willing to make some sort of sacrifice in order to
achieve security. Though the concept of insurance is largely a
development of the recent past, particularly after the industrial era –
past few centuries – yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the
year 1818. Oriental Life Insurance Company started by Europeans in
Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community
and Indian natives were not being insured by these companies.
However, later with the efforts of eminent people like Babu Muttylal
Seal, the foreign life insurance companies started insuring Indian
lives.
But Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance
Money Back Policy
and social security through insurance to various sectors of society.
Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave
rise to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906.
Inn 1907, Hindustan Co-operative Insurance Company took its birth in
one of the rooms of the Jorasanko, house of the great poet
Rabindranath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India
had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912, made it necessary
that the premium rate tables and periodical valuations of companies
should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on May accounts, putting the Indian
companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force
as Rs.22.44 crore, it rose to 176 companies with total business-in-
force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated
which failed miserably. The Insurance Act 1938 was the first
legislation governing not only life insurance but also non-life insurance
to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the
past but it gathered momentum in 1944 when a bill to amend the Life
Insurance Act 1938 was introduced in the Legislative Assembly.
Money Back Policy
However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was
accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the
ownership too by means of and a comprehensive bill. The Parliament
of India passed the Life Insurance Corporation Act on the 19th of June
1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much
more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC has 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956. Since life insurance
contracts are long term contracts and during the currency of the policy
it requires as variety of services need was felt in the later years to
expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of
new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance
of the corporation. It may be seen that from about 200.00 crores of
New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross
2000.00 crore mark of new business. But with re-organization
happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
Money Back Policy
Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the corporate office. LIC’s Wide
Area Network covers 100 divisional offices and connects all the
branches through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium collection facility
in selected cities. LIC’s ECS and ATM premium payment facility is an
addition to customer convenience. Apart from on-line Kiosks and
IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad,
Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders,
LIC has launched its SATTELITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
LIC continues to be dominant life insurer even in the liberalized
scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. LIC has issued over one
crore policies during the current year. It has crossed the milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous
year.
From then to now, LIC has crossed many milestones and has set up
unprecedented performance records in various aspects of life
insurance business. The same motives which inspired our forefathers
to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as
many homes as possible and to help the people in providing security
to their families.
Money Back Policy
The following are the objectives of the money back policy: -
The primary purpose of the life insurance is to provide
replacement of income to the family and dependence on
premature death of the bread winner.
Life insurance can also be used as regular saving cum
protection plan for meeting long term financial goals. While
saving through other instruments as individual does not get the
benefit of protection along with saving.
Through insurance one can provide protection against
outstanding loan liability in the event of death.
Provisions for one’s own later years become increasingly
necessary, especially in changing cultural and social
environment. One can buy a suitable insurance policy, which
will provide periodical payments in one’s old age.
Mission
“Explore and enhance the quality of life of people through financial
security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic
development.”
Vision
“A trans-nationally competitive financial conglomerate of significance
to societies and Pride of India.”
Money Back Policy
SOME FREQUENTLY ASKED QUESTIONS
BY INVESTOR
What is Money Back Policy?
Unlike ordinary endowment insurance plans where the survival
benefits are payable only at the end of the endowment period, money
back policies provide for periodic payments of partial survival benefits
during the term of the policy, of course so long as the policy holder is
alive.
An important feature of this type of policies is that in the event of death
at any time within the policy term, the death claim comprises full sum
assured without deducting any of the survival benefit amounts, which
may have already been paid as money-back components. Similarly,
the bonus is also calculated on the full sum assured.
How is it beneficial to me?
Under money back policies premiums can be paid as per the
insurance company’s policy. These could be quarterly, half yearly or
annually. The premiums for these policies are payable for the selected
term of years, or till death if it occurs earlier.
By buying such policies one can receive income at regular intervals
other than the risk cover it provides. Also a good amount of bonus on
the full sum assured is quite a good bargain.
Who should buy this plan?
Money Back Policy
Such plans are particular popular with individuals for whom income at
regular intervals is a necessity in addition to an insurance cover. The
minimum age is 12 years to be eligible for a Money-Back Policy.
How does the money-back policy work?
Site Ground has adopted the policy of refunding customers who
decide to stop using our services within the first 30 days of having
their shared Windows or Linux account with us. After the 30 days have
passed (e.g. if you request service cancellation on day 31) we will only
cancel your account.
Please note that Virtual Private Servers are not covered by the Money
Back Guarantee. Other excluded products are fees for dedicated
servers (including setup fees), shared hosting account setup fees as
well as ANY upgrades, extras or additional payments that have been
done after the initial purchase.
In case you are canceling a reseller account, we will subtract a $12
setup fee plus $8.95 for each of the registered domain names from
your refund.
SiteGround also reserves the right to keep a part of the domain name
registration fee. The domain name itself remains your property, and
you will be given access to a control panel, from which you are able to
change nameservers (useful when changing hosts) and WHOIS
information.
Important notice: This text contains selected information regarding the 30
day money-back guarantee and only has informative character. For more
details, please read carefully the Terms of Use for the respective product
before purchase
Money Back Policy
CHAPTER 4
MONEY BACK POLICY WITH LIC
Money back plans are a special type of endowment plans and are also
called as anticipated endowment assurance plans. Under money back
plans, survival benefits are spread over the term of the policy i.e.,
certain percentage of sum assured is paid at regular intervals. Apart
from the above death benefit continues like an endowment plan i.e.,
full sum assured shall be payable on death within the term irrespective
of earlier survival benefits.
I. Jeevan Surabhi Policy – Plan no.106
Features:
This plan was introduced in Oct 92 by LIC and is a modified version of
other money back plans offered by LIC. The difference between the
other money back plans and Jeevan Surabhi plans are that:
Maturity term is more than premium paying term.
Early and higher rate of survival benefit payment.
Risk cover increases every five years.
Special Features:
Longer policy terms & limited premium paying terms as under:
Plan No. Policy Term Premium Paying Term
106 15 years 12 years
Survival benefitsSurvival Benefits % of Basic Sum AssuredAt the end of 4 years 30At the end of 8 years 30At the end of 12 years 40At the end of 15 years Bonus
Money Back Policy
Maturity 15 years
Death Benefits:
If death occurs at anytime during the term of a policy (provided the
policy has been kept in force by payment of all premiums that had
fallen due), the basic sum assured along with the vested bonus will be
paid. The survival benefits already paid, if any, will not be deducted
from this claim amount. An additional amount (depending on the
duration of the policy) will also be paid on death under such a policy.
The additional amounts payable, at various stages are shown in the
table given below: -
Policy Parameters:
Min MaxEntry Age 14 55
Sum Assured 20000 No limitTerm 15 12
Mode of Payment Max Maturity AgePolicy loan available
Yearly, half yearly, quarterly, monthly,
salary saving scheme
70 Years No
Suitable for:
This plan holds special interest to people who besides wishing to
provide for their old age and family feel the need for lump sum
benefits at periodical intervals.
Money Back Policy
II. Jeevan Surabhi Policy – Plan no. 107
Special Features:
Longer policy terms & limited premium paying terms as under:
Plan No. Policy Term Premium Paying Term
107 20 years 15 years
Survival benefits:Survival Benefits % of Basic Sum AssuredAt the end of 4 years 25At the end of 8 years 25At the end of 12 years 25At the end of 15 years 25At the end of 18 years NilAt the end of 20 years BonusMaturity 20 years
Death Benefits:
If the death occurs at anytime during the term of a policy (provided the
policy has been kept in force by payment at all premiums that had
fallen due), the basic sum assured along with the vested bonus will be
paid. The survival benefits already paid, if any, will not be deducted for
this claim amount. An additional amount (depending on the duration of
the policy) will also be paid on death under such a policy.
Additional Amount to Be Paid in Case of Death for a Policy of Rs. 1000.Policy First 56th-10th 11th-15th 16th-20th
This plan holds special interest to people who besides wishing to
provide for their old age and family feel the need for lump sum
benefits at periodical intervals. This plan meets with periodical needs
although loans are not granted under this policy. A terminal bonus is
granted though.
The basic bonus under plan is slightly lower than the rate applicable to
endowment assurances. During 1998-99, LIC issued 40.23 lakh
policies under this scheme.
Money Back Policy
V. New Money back – Policy – Plan no. 93
Special Features:
Unlike ordinary endowment insurance plans where the survival
benefits are payable only at the end of the endowment period, this
scheme provides for periodic payments of partial survival benefits as
follows during the term of the policy, of course so long as the policy
holder is alive.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum
assured becomes payable each after 5, 10, 15 and 20 years, and the
balance 40% plus the accrued become payable at the 25th year.
An important feature of this type of policies is that in the event of death
at any time within the policy term, the death claim comprises full sum
assured without deducting any of the survival benefit amounts, which
may have already been paid as money-back components. Similarly,
the bonus is also calculated on the full sum assured.
Survival benefits:
Period 75/20 Years 92/20 YearsAt the end of 5 Years 20 % 15 %At the end of 10 Years 20 % 15 %At the end of 15 Years 20 % 15 %At the end of 20 Years Balance 40 % + 15 %Accrued BonusAt the end of 25 Years Nil Balance 40 percent +
Accrued Bonus
Permanent disability:
Benefit available
Income-tax rebate
Money Back Policy
Under section 88 on premiums paid.
100% Income tax free:
Permanent disability, maturity and death claims.
Death Benefits:
Full sum assured + bonus irrespective of survival benefits taken
Death before maturity.
Natural:
Payment of full Sum assured + accrued bonus.
Accident:
Payment of double the Sum Assured + Accrued bonus (Survival
benefits already paid will not be deducted).
Policy Parameters:
Min MaxEntry Age 13 50Sum Assured 20,000 No limitTerm 25 25 Mode of Payment Max Maturity Age Policy loan
availableYearly, half yearly, quarterly, monthly, special saving scheme
70 Years No
Suitable for:
This plan holds a special interest to people who besides wishing to
provide for their old age and family feel the need for lump sum
benefits at periodical intervals.
VI. Jeevan Sanchaya Policy – Plan no. 123
Features:
Money Back Policy
This is a money back plan which is giving Guaranteed Addition as well
as loyalty addition instead of participating in profits of LIC.
Guaranteed Addition :
The Guaranteed Addition @ Rs.70/- per thousand Sum Assured
payable for each completed policy year (during which the policy was in
force for the full Sum Assured) will be payable at the end of the term
of the policy or earlier death of the life assured.
Loyalty Addition (Final Payment):
If the premiums are paid for at least 5 years, loyalty addition may
become available along with claim payments. The rate of loyalty
addition will be declared by the corporation depending upon the
experience with regard to Mortality, Interest & Expenses and be based
on integral number of years premiums paid.
Accident Benefit:
The Accident Benefit will be exclusively guaranteed under this plan,
subject to a maximum of Rs.5, 00,000/- only.
Special Features:
Accident Benefit:
Accident Benefit will be granted under this plan subject to the payment
of additional premium of Rs.1/- per thousand S.A. subject to an
exclusive limit of Rs.5, 00,000. The following additional benefits will
accrue. On death due to accident during the term of the contract and
provided the policy is in full force on the date of death an additional
sum equal to the basic Sum assured will be payable. On disability due
to accident, the basic sum assured will be paid in monthly installment
spread over a period of 10 years starting from first of the month
following disablement. Waiver of the premiums payable in future.
Survival benefits:
Money Back Policy
Plan 123/12 % Of Sum Assured
At the end of 4 years 20At the end of 8 years 20At the end of 12 years 60
On Maturity, the policyholder will receive the balance sum assured as
given in the above table plus the guaranteed addition and loyalty
addition (if any).
Death Benefits:
On death of the life assured during the term of the policy, the basic
Sum assured is payable irrespective of survival benefits already paid.
In addition to the basic Sum Assured, Guaranteed and Loyalty
additions if any, as per provisions herein below are also payable.
Policy Parameters:
Min MaxEntry Age 14 58Sum Assured 25000 No LimitTerm 12Mode of Payment Max Maturity Age Policy loan