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Feature of plan: Market plus is a unit linked
deferred pension plan. The policyholder can choose the
plan with or without risk cover. He can choose the of
cover within the limits, which will depend on the mode
and amount of premium he desires to pay. The allocated
premium will be utilized to buy units as per the selected
found type. Units will be allotted and cancelled based
on the net asset value (NAV) of the respective fund
of the date of allotted / cancellation. There is no
bio-offer spread (both the bid price and offer price
of units will be equal to the NAV). The NAV will be
declared on a daily basis and will be based on the investment
performance, fund management charges (FMC) and whether
fund is expanding or contracting under each fund type.
Plan parameters
For basic plan
Age at entry: Min. 18 yrs. Comp. Max. 70 yrs (NBD).
However. If life cover is opted for, then 65 years nearest
birthday.
Vesting age: Min. 40 yrs. (LBD) Max.75 yrs (LBD)
Sum assured (min): *Regular 50,000 single 25,000
Sum assured (max): * Regular up to 20 times ann. Prem.
*single up to equal to S.P
Min. premium: Rs.5,000 pa for regular premium &
10,000 for S.P
Max. Premium: No limit
Premium in
Multiples of: Rs.1000/-
Min deferment
Period: 5 years
Modes allowed: YLY/HLY/QLY/Single
Mode rebate: N.A
Female lives category: II/III
Age proof: Non Std. NSAP- 1.2.3
Policy loan: yes
Housing loan: yes
Assignment: N. A
Revival: N.A
Backdating: N.A
Surrender of policy: yes
For accident benefit
Min. 18 yrs. Completed
Max. 65 yrs (LBD)
70 yrs (NBD) (max. benefit ceasing age 25,000
Rs.59 Lac over all Limit
No separate limit
No separate limit
5 years
Note: accident benefit shall be allowed only
if life cover is opted for under the basic plan.
Benefit
Death benefit: in case of death of the policyholder
within the deferment term where life cover is opted
for and is in force, the nominee shall be eligible to
get the sum assured under the basic plan together with
the fund value of units held in the policyholder's unit
account as at the date of booking the liability. The
liability shall be booked after receipt of intimation
along with death certificate. The benefit may be got
in a lump sum or in the form of pension. Will be based
on the then prevailing immediate annuity rates under
the relevant annuity option.
In case the policy is taken without risk cover, then
the fund value of units held in the policyholder's unit
account as at the date of booking the liability, as
mentioned above, shall be payable to the nominee. Again,
the nominee can choose either a lump sum or pension,
which will be based on the then prevailing immediate
annuity rates under the relevant annuity option.
The nominee can also taken the proceeds as a lump sum
and the balance as an annuity.
If the policy is in lapsed condition then only the fund
value of the units held in the policyholder's unit account
shall become payable to the nominee. This benefit may
be chosen either in lump sum or in the form of pension
as desired by the nominee. The pension will be based
on the then prevailing immediate annuity rates under
the relevant annuity option.
Benefit on vesting: on the policyholder surviving
up to the date of vesting, the fund alue of the units
held in the policyholder's unit account will compulsorily
be utilized to the provide an annuity based on the then
prevailing
Immediate annuity rates under the relevant annuity option
The policyholder will have to intimate his/her choice
of annuity option to the Corporation 6 month prior to
the date of vesting under the policy There is also an
option to commute up to one-third of the fund value
of the units held in the policyholder's unit account
time of vesting of the annuity which shall be paid in
sum. In case commutation is opted for, the amount of
annuity / pension available will be reduced proportionately.
There will also be an option to purchase pension from
any other life insurance company subject to regulatory
provisions. If the policyholder opts to purchase pension
from other insurance company, he/she will have to inform
LIC six months prior to the vesting date. In such cases,
LIC will transfer the fund value of the units held in
the policyholder's unit account
Directly to the chosen company Notwithstanding the purchase
the mentioned, in case the amount at the vesting date
is insufficient to purchase the minimum amount of pension
allowed by LIC, than the balance in the policyholder's
unit account at the vesting date shall be refunded to
the policyholder.
Option: i) life cover: the policy can be issued
either with or without life insurance cover. If life
insurance cover is opted for by the policyholder, he
/ she can choose sum assured within the following limits,
subject to a minimum of Rs.50,000 under regular premium
policies.
For single premium policies: up to and equal to the
single premium
For regular premium policies: up to 20 time of the ann.
Premium.
ii) Accident benefit rider option: accident benefit
(AB) can be availed of as an option rider benefit by
paying addition premium of Rs.0.50 for every Rs.1,000/-
of the accident benefit sum assured per policy `year
by cancellation of appropriate number of units out of
the policyholder's unit account every month. On accidental
death of the policyholder during the term of the policy,
a sum equal to the accident benefit sum assured will
become payable, provided the accident benefit cover
is opted for and is in force. Future, it will be available
up to the life cover sum assured opted for, subject
to an overall limit of Rs.50lakh taking all existing
polices of the life assured under individual as will
as group schemes including polices with inbuilt accident
benefit taken from life insurance corporation of India
and other insurance companies and the accident benefit
rider sum assured under the new proposal into consideration.
The accident benefit rider option will not be available
in case life cover sum assured is zero.
This benefit will be available only till the policy
anniversary on which the age nearer birthday of the
policyholder is 70 years. No change for this benefit
shall be deducted from the policy anniversary at which
the benefit ceases.
Annuity options: the rate at which the clime
amount will be converted into an annuity is not guaranteed
and will be available and the rate prevalent at that
time. Future a number of annuity option will be available
and the rate for different options may differ.
Charges under the plan:
Premium allocation charge: this is the percentage of
the premium appropriated toward charges from the premium
received. The balance known as allocation rate constitutes
that part of the premium which is utilized to purchase
(investment) units for the policy. The allocation charges
are as below.
Single premium: 3.3%
Charges for optional covers:
Mortality charge: this is the cost of life insurance
cover. Mortality charge, if any, will be taken every
month by canceling appropriate number of unit of the
policyholder's unit account as per the rate prevalent
at the time of policy issue. If opted for life cover,
charge in respect of the same, during a policy year,
will based on the age nearer birthday of the policyholder
as at the policy anniversary coinciding with or immediately
preceding the due date of cancellation of units and
hence may increase every year on each policy anniversary.
Future, the charges will also depend on health, occupation
and lifestyle of the policyholder.
Other charges:
- POLICY ADMINISTRA TION CHARGE: the policy administration
charge of Rs.60/- per month during the first policy
year and Rs.20/- per month thereafter, throughout
the term of the policy, will be deducted by canceling
appropriate number of units out of policyholder's
unit account:
- FUND MANAGEMENT CHARGE: fund management charges
(FMC) dependent on type of fund and are deductible
on the date of computation of NAV at the following
rate:
0.75% p.a of unit fund for "bond" fund
1.00% p.a of unit fund for "secured" fund
1.25% p.a of unit fund for "balance" fund
1.50% p.a of unit fund for "growth" fund
the NAV, thus declared, will be net of FMC.
- SWITCHING CHARGES- the policyholder can switch between
any fund types during the policy term, within a given
policy year, 4 switches will be allowed free of charges
subject subsequent switches shall be subject to a
switching charge of Rs.100 per switch.
- BID/OFFER SPREAD- Nil
- SURRENDER CHARGES- Nil
- SERVICE TAX CHARGE- a service tax chare shall be
levied on the life cover charges and accident benefit
charges, if any, and shall be taken by canceling appropriate
number of unit out of the policyholder's unit account
on a monthly basis as and when the corresponding life
cover and accident benefit charges are deducted. The
level of this charge will be as per the rate of service
of tax on risk premium as applicable from time to
time. Currently, the rate of service tax is 12% with
an education cess at the rate of 2% thereon and hence
effective rate is 12.24%
- MISCELLANEOUS CHARGE- this is a charge levied for
an alteration within the contract such as reduction
in policy term, charge in premium mode to lower frequency,
grant of accident benefit after the issue of the policy
etc., may allowed subject to a charge of Rs.50/- which
will be deducted by canceling appropriate number of
unit out of the policyholder's unit account and the
deduction shall be made on the alteration in the policy.
Top-up (addition premium): the policyholder
can pay top-up in multiples of Rs.1.000/- without any
limit at anytime during the term of the policy. In case
of quarterly, half-yearly or yearly mode of premium
payment such top-up can be paid only if all due premium
have been paid under the policy.
SURRENDER VALUE: the policyholder will have
an option to surrender the policy only after completion
of three policy years both units single and regular
premium contracts. The surrender value will be the fund
value of units held in the policyholder's unit account
at the date surrender.
Discontinuance of premiums
If premium are payable yearly, half-yearly or quarterly
and the same have not been paid within the days of grace
under the policy, will lapse. The policyholder will
have an option to revive the policy within the specified
period.
1. Where at least 3 years' premium have been paid, the
life cover and accident benefit rider, if any, shall
contiune during the revival period. During this period,
the charges for life cover and accident benefit cover,
if any, shall be taken, in addition to other charges,
by canceling an appropriate number of units out of the
policyholder's unit account every month. This will continue
to provide relevant risk covers for:
- Two years from the due date of first unpaid premium,
or
- The date of vesting, or
- Till such period that the policyholder's unit account
reduces to one annualized premium whichever is earlier.
The benefit payable under the policy in different contingencies
during this period shall be as under:
- In case of death: life cover sum assured plus fund
value of units held in the policyholder's unit account,
if life cover is opted for. If life cover is not opted
for, then only fund value of units held in the policyholder's
unit account is payable.
- In case of death due to accident: accident benefit
sum assured in addition to the amount under (a) above,
if accident benefit is opted for.
- In case of surrender: fund value of units held
in the policyholder' s unit account. Surrender value,
of however, shall be paid only after completion of
3 policy years.
- On vesting: fund value of units held in the policyholder's
unit account.
- Compulsory surrender: the policy shall be terminated
compulsorily in following case:
- The balance in the policyholder's unit account
at all times, shall be subject to a minimum balance
of one annualized premium. In case the policyholder's
unit account falls below this limit, the policy
shall compulsory be terminated with a notice to
the policyholder and the balance amount in the
policyholder's unit account will be refunded to
the policyholder.
- In case the policy is not revived during the
revival period, the policy will expire and the
life cover and accident benefit cover, if any,
shall cease and charges for these benefit and
also all other charges shall not be deducted thereafter.
Fund value of units shall be refunded to the policyholder.
- Where the policy lapses without payment of
at least 3 years' premium, that life cover and
accident benefit cover, if any, shall cease and
no charges for these benefit shall be deducted.
However deduction of all the charges shall continue.
The policyholder will have an option to revive
the policy within the specified period. The benefit
under such a lapsed policy shall be payable as
under:
- in case of death: fund value of units held
in the policyholder's unit, account.
- In case of death due to accident: the amount
under (a) above
- In case surrender: fund value of units/
monetary value of units, as the case may be,
held in the policyholder's unit account, shall
be payable after the completion of the third
policy anniversary. No amount shall be payable
within 3 years from the date of commencement
of policy.
- Compulsory surrender: in case the policy
is not revived during the period of revival,
then policy shall be terminated after completion
of three years from the date of commencement
of the policy or on expiry of revival period,
whichever is later? In case the period of
revival expiry before the third policy year,
then the fund value of units shall be converted
into monetary terms and no charges shall be
deducted thereafter. This monetary amount
shall be paid the policyholder after the end
of third policy year.
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