Jeevan Mitra (Triple Cover Endowment Plan)

Sunday, 16 November 2008

FEATURES

Product summary

This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.

Premiums :
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the term of the policy or earlier death.

Bonuses : 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.

BENIFITS

Death Benefit :
Table No 88: Twice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured.
Table No 133: Thrice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured.

Maturity Benefit : The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term.

Supplementary/Extra Benefits : 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.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value will be available under the plan on earlier termination of the contract.

Guaranteed Surrender Value :
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.

Company’s policy on surrenders :
In practice, the company 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 or at maturity. 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.


Note : The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

BENIFITS ILLUSTRATION



Statutory Warning

“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. 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 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 dependant on a number of factors including future investment performance.”

Illustration 1:
Table No 14
Age at entry: 35 years
Policy Term: 25 years
Sum Assured: Rs.1,00,000/-
Premium paying term: 25 years
Mode of premium payment: Yearly
Annual Premium : Rs.4,750 /-

End Of Year
Total Premiums Paid Till End Of Year

Benefit Payable On Death/Maturity At The End Of Year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

4,750

200000

2,100

5,700

202100

205700

2

9,500

200000

4,200

11,400

204200

211400

3

14,250

200000

6,300

17,100

206300

217,100

4

19,000

200000

8,400

22800

208400

222800

5

23,750

200000

10,500

28500

210500

228500

6

28,500

200000

12,600

34200

212600

234200

7

33,250

200000

14,700

39900

214700

239900

8

38,000

200000

16,800

45600

216800

245600

9

42,750

200000

18,900

51300

218900

251300

10

47,500

200000

21,000

57000

221000

257000

15

71,250

200000

31,500

85500

231500

285500

20

95,000

200000

56,000

152000

256000

352000

25

118,750

200000

69,500

189500

269500

389500

End of year
Total premiums paid till end of year

Benefit payable on death / maturity at the end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

25

118,750

100,000

69,500

189500

169500

289500





































Illustration 2:
Table No 133
Age at entry: 35 years
Policy Term: 25 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 25 years
Mode of premium payment: Yearly
Annual Premium: Rs.5,453 /-

End Of Year
Total Premiums Paid Till End Of Year

Benefit Payable On Death/Maturity At The End Of Year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

5453

300000

2,100

5,700

302100

305700

2

10906

300000

4,200

11,400

304200

311400

3

16359

300000

6,300

17,100

306300

317,100

4

21812

300000

8,400

22800

308400

322800

5

27265

300000

10,500

28500

310500

328500

6

32718

300000

12,600

34200

312600

334200

7

38171

300000

14,700

39900

314700

339900

8

43624

300000

16,800

45600

316800

345600

9

49077

300000

18,900

51300

318900

351300

10

54530

300000

21,000

57000

321000

357000

15

81795

300000

31,500

85500

331500

385500

20

109060

300000

56,000

152000

356000

452000

25

136325

300000

69,500

189500

369500

489500

End Of Year
Total Premiums Paid Till End Of Year

Benefit Payable On Death/Maturity At The End Of Year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

25

136325

100000

69500

189500

169500

289500



























i) 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.