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.