LIC Children Deferred Endowment Assurance Plan Features Benefits Benefit Illustration licindia.in

LIC Children's Deferred Endowment Assurance Plan Features Benefits Benefit Illustration licindia.in 

LIC Children's Deferred Endowment Assurance Plan Features licindia.in

Product Summary:
This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child’s life starts from the Deferred Date and is available during the latter period.
The Deferred Date in case of Plan No 41 is the policy anniversary date coinciding with or next following the date on which the child completes 21 years of age. In case of Plan No 50 it is the policy anniversary date coinciding with or next following the 18th birthday of the child.

Premiums:
Premiums are payable yearly, half-yearly, quarterly or monthly and this shall cease on the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed.

Bonuses:
This is a with-profits plan and participates in the profits of the Corporation’s life insurance business after the deferred date. 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.


LIC Children's Deferred Endowment Assurance Plan Benefits licindia.in 

Death Benefit:
The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded.

Maturity Benefit:
Sum assured along with all bonuses declared up to maturity date is payable in lump sum.

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 values are available on 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 minimum surrender value allowable under this policy is as under:

(a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year.

(b) After the Deferred date:

(i) If deferment period is less than 10 years:

90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date.

(ii) If deferment period is 10 years or more:

90% of a cash option plus 30% of premiums paid after the deferred date.
Corporation’s Policy On Surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable at death or maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender.

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.
LIC Children's Deferred Endowment Assurance Plan Benefit Illustration licindia.in 

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on ife insurance business. 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 future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.”

Illustration 1 (Table 41)
Age at entry: 10 years
Policy Term: 25 Years Deferment period: 11 years
Premium Paying Term: 25 Years
Mode of premium payment: Yearly
Sum Assured: Rs. 1,00,000 /-
Annual Premium: Rs. 2673 /-

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
2673
2673
-
-
2673
2673
2
5346
5346
-
-
5346
5346
3
8018
8018
-
-
8018
8018
4
10691
10691
-
-
10691
10691
5
13364
13364
 
-
13364
13364
6
16037
16037
-
-
16037
16037
7
18709
18709
-
-
18709
18709
8
21382
21382
-
-
21382
21382
9
24055
24055
-
-
24055
24055
10
26728
26728
-
-
26728
26728
12
2073
100000
2100
5500
102100
105500
15
40092
100000
8400
22000
108400
122000
20
53456
100000
18900
49500
118900
149500
25
66819
100000
46400
122000
146400
222000




























 
Note: The proposer will have the option to take a cash payment of Rs.39,890/- on the Deferred Date on cancellation of the policy contract entirely.
Illustration 2 (Table 50)
Age at entry: 10 years
Policy Term: 25 Years Deferment period: 8 years
Premium Paying Term: 25 Years
Mode of premium payment: Yearly
Sum Assured: Rs. 1,00,000 /-
Annual Premium: Rs. 2924 /-
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
2924
2924
-
-
2924
2924
2
5848
5848
-
-
5848
5848
3
8772
8772
-
-
8772
8772
4
11696
11696
-
-
11696
11696
5
14620
14620
 
-
14620
14620
6
17544
17544
-
-
17544
17544
7
20468
20468
-
-
20468
20468
8
23392
23392
-
-
23392
23392
9
26316
100000
2100
5500
102100
105500
10
29240
100000
4200
11000
104200
111000
12
35087
100000
8400
22000
108400
122000
15
43859
100000
14700
38500
114700
138500
20
58479
100000
25200
66000
125200
166000
25
73099
100000
46700
124500
146700
224500



























i) This illustration is applicable to a non-smoker male/female standard (from medical, life style andoccupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistentwith 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 theProjected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be6% 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 andthe 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.

v) The Maturity Benefit is the amounts shown at the end of the policy term.

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