LIC Wealth Plus Plan Features Benefits Benefit Illustration licindia.in

LIC Wealth Plus Plan Features Benefits Benefit Illustration licindia.in

LIC Wealth Plus Plan Features licindia.in 

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER”
LIC’s Wealth Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value at the end of policy term, based on highest Net Asset Value (NAV) over the first 7 years of the policy, or the NAV as applicable at the end of the policy term, whichever is higher. NAV of the fund will be subject to a minimum of Rs. 10/-. The policy term is 8 years with an extended life cover for 2 years after the completion of policy term. This plan will be available for sale for a limited period.
You can pay the premium either in a single lump sum or for 3 years. You can choose the level of cover within the limits, which will depend on your age whether the policy is a Single premium or Limited premium contract and on the level of premium you agree to pay. 
Premiums paid after allocation charge will purchase units of the Fund. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
  1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the 3 years premium paying term. Alternatively, a Single premium can be paid.

  2. Guaranteed NAV: In this product there is a guarantee of the highest NAV recorded on a daily basis, in the first 7 years of the policy, subject to a minimum of Rs. 10. This means the payment at the end of the policy term will be based on highest Net Asset Value (NAV) recorded over the first 7 years of the policy, or the NAV as applicable on the end of the policy term, whichever is higher. The guarantee will be applicable only for payment made at the end of the policy term irrespective of any partial withdrawals made during the policy term. The period of 7 years starts from the date of commencement of policy.

  3. Eligibility Conditions and Other Restrictions:
  4. (a) Minimum Age at entry          -           10 (age last birthday)
    (b) Maximum Age at entry          -           65 years (age nearer birthday)
    (c) Policy Term                             -            8 years
    (d) Extended Life Cover              -            2 years after the completion of policy term
    (e) Minimum Premium:
    3 years Premium Paying policies            -           Rs. [20,000] p.a.
    (Other than monthly (ECS) mode)
    Monthly (ECS) mode                   -           Rs. [2,000] p.m.
    Single premium policies               -           Rs. [40,000] p.a.
    (f) Sum Assured under the Basic Plan  -  
    Minimum Sum Assured:
    3 years Premium Paying Term: 5 times the annualized premium
                                        Single Premium:   1.25 times the single premium.
                                        Maximum Sum assured:
    3 years Premium Paying Term:
    10 times the annualized premium if age at entry is upto 50 years
    5 times the annualized premium if age at entry is 51 years and above
    Single Premium:
    5 times the Single premium if age at entry is upto 40 years.
    2.5 times the Single premium if age at entry is 41 to 50 years.
    1.25 times the Single premium if age at entry is 51 years and above.
    Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 500/-.
  5. Other Features:
  6. i) Partial Withdrawals: Youmay encash the units partially after the third policy anniversary subject to the following:
    1. In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
    2. Partial withdrawals will be allowed twice in a policy year.
    3. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units subject to a minimum amount of Rs. 2000/-.
    4. Under 3 years Premium Paying Term policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
    5. Under 3 years Premium Paying Term policies where all the’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least one annualized premium
    6. Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.

    ii) Increase / Decrease of risk covers:No increase or decrease of benefits will be allowed.
    iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.
    If the policy lapses, the Life Cover and Accident Benefit rider cover, if any, shall cease and no charges for these benefits shall be deducted. However, deduction of all the other charges shall continue. The benefits under such a lapsed policy shall be payable as under:
    1. In case of Death: The Policyholder’s Fund Value.

    2. In case of death due to accident: Only, the amount as under A above.

    3. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary value of units as the case may be, 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.

    4. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period.
    iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium. The period during which the policy can be revived will be called “Period of revival” or “revival period”.
    The policy may be revived within two years from the due date of first unpaid premium. The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest. The mortality charge thereafter shall be based on the age nearest birthday as on the date of revival. There will be a charge of Rs. 500/- at the time of revival.
    The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Proposer / Life Assured.
    Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall be terminated and thereafter revival will not be entertained.
  7. Reinstatement:
  8. A policy once surrendered cannot be reinstated.
  9. Risks borne by the Policyholder:
  10. LIC’s Wealth Plus is a Unit Linked Life Insurance products which is different from the traditional insurance products and are subject to the risk factors.
  11. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
  12. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Wealth Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
  13. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
  14. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
  15. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

  16. Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
                        Plus     unallocated premium.
                        Plus     PolicyAdministration charge deducted      
Less      charges @ Rs.0.20per thousand Sum Assured under Basic plan
                        Less      Actual cost of medical examination and special reports, if any.
  • Loan:
  •       No loan will be available under this plan.
  • Assignment:
  • Assignment will be allowed under this plan.
  • Exclusions:
  • In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death.

    LIC Wealth Plus Plan Benefits licindia.in 

    A) Death Benefit:
    In case of death during the policy term, the nominee shall receive Sum Assured under the basic plan together with the Policyholder’s Fund Value as death benefit.
    In case of death of the Life assured after the policy term, but before the expiry of extended period, the nominee shall receive the Sum Assured under the Basic Plan.
         
    B)Benefit at the end of Policy term:
    On the Life Assured surviving the end of the policy term of the contract, an amount equal to the Policyholder’s Fund Value based on highest Net Asset Value (NAV) recorded over the first 7 years of the policy, or the NAV as applicable on the end of the policy term, whichever is higher is payable.

    1. Option:
    Accident Benefit Option:
    If you are between 18 and 62 years of age, you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs. 50,000 and maximum of Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident Benefit sum assured shall be payable.

    2. Investment of Funds: The fund detail is as below:
    Fund Type
    Investment in Government / Government
    Guaranteed
    Securities / Corporate Debt
    Short-term investments
    such as money
    market instruments
    Investment in
    Listed Equity Shares
    Details and objective of the fund for risk / return
    Wealth Plus Fund
    0% to 100%
    0% to 100%
    0% to 100%
    Medium Risk
    In the period during which this product is open for sale, all premiums received shall be invested in Money Market instruments of applicable duration i.e. the period from the date of sale to the date of closure of the plan. After the date of closure of the plan the above investment pattern shall be followed.

    3. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the fund as on the date of allotment.  There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV).  The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge, Guarantee Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:
    Appropriation price is applied (when fund is expanding):
    Market value of investments held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).
    Expropriation price is applied (when fund is contracting):
    Market value of investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).
    Applicability of Net Asset Value (NAV):
    The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.
    Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable
    In respect of payment at the end of policy term, the Policyholders fund value shall be based on the highest NAV over the first 7 years of the policy or the NAV as applicable at the end of the policy term, which ever is higher. 
    The timing given is as per the existing guidelines and changes in this regard shall be as per the instruction from IRDA.

    4. Charges under the Plan:
    A) Premium Allocation Charge:
    This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:
                Single premium policies:

            Premium Band
         Allocation Charge
    Up to 4,00,000
    5.00%
    4,00,001 and above
    4.50%
    3 years Premium Paying Term:
    Premium Band
    (per annum)
    Allocation charge
    First year
    thereafter
    20,000 to 2,00,000
    12.00%
    2.50%
    2,00,001 to 4,00,000
    11.75%
    2.50%
    4,00,001 to 7,00,000
    11.50%
    2.50%
    7,00,001 and above
    11.25%
    2.50%
    B)   Charges for Risk Covers:
    i)  Mortality  Charge – This is the cost of life insurance cover. A level mortality charge based on the age at entry will be taken every month during the policy term by canceling the Policyholder’s Fund Value appropriately.
    The level charges per Rs. 1000/- Basic Sum Assured for some of the ages in respect of a healthy life are as under:
    Age
    25
    35
    45
    55
    Rs.
    1.65
    2.75
    6.85
    17.25
        1. Accident Benefit charge - It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year.
    C)   Other Charges:
    1. Policy Administration charge  - Rs. 60/- per month during the first policy year, Rs 25/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 25/- per month escalating at 3% p.a. These charges will be deducted on monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.
    2. Fund Management Charge – This is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the Net Asset Value (NAV) at 1.00% p.a. of Fund Value.
    3. This is a charge levied at the time of computation of NAV, which will be done on daily basis.
    4. Guarantee Charge – A charge of 0.35% p.a. of the Fund Value shall be levied for the cost of investment guarantee.
    5. This is a charge levied at the time of computation of NAV, which will be done on daily basis.
    6. Bid/Offer Spread – Nil.
    7. Surrender Charge –  Nil.      
    8. Miscellaneous Charge – This is a charge levied for revival and alteration within the contract, such as change in mode of payment to higher frequency within the premium paying term decided in the beginning of the contract, Grant of Accident Benefit after the issue of the policy etc..
    9. The flat charges for revival shall be Rs. 500/- and for alteration shall be Rs. 250/- which will be deducted by canceling the Policyholder’s Fund Value appropriately and the deduction shall be made on the date of revival/alteration in the policy.
    10. Service Tax Charge – A service tax charge, if any, shall be levied on the following charges
    a) Policy Administration, Mortality and Accident Benefit rider, if   any – by canceling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Policy Administration, Mortality and Accident Benefit rider charges are deducted.
    b) Premium allocation - at the time of allocation.
    c) Fund Management – at the time of deduction of Fund Management Charge.
    d) Guarantee – at the time of deduction of Guarantee Charge.
    e)  Miscellaneous charge - on the date of revival/alteration in the policy.
    The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 10% with an educational cess at the rate of 3% thereon and hence effective rate is 10.3%.
    D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.
    Although the charges are reviewable, they will be subject to the following maximum limit:

    - Policy Administration Charge
    Rs. 150/- per month during the first policy year, Rs. 50/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 50/- per month escalating at 3% p.a.
    -   Fund Management Charge: The Maximum for each Fund will be 1.30% p.a. of Fund Value
    -    Guarantee Charge shall not exceed 0.50% p.a. of the Fund Value.
     
    -   Miscellaneous Charge shall not exceed Rs. 750/- for revival and Rs. 350/- for alteration each time when an revival/alteration is requested.
    The above mentioned maximum limits are exclusive of service tax.
    In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value. No Guarantee shall apply in such case.

    5. Surrender:
    The policy can be surrendered only during the policy term. The surrender value, if any, is payable only after the completion of the third policy anniversary both under Single and 3 years Premium Paying Term contract. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge. The policy can not be surrendered during the extended life cover period.
    If you apply for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s fund value of units shall be converted into monetary terms. No charges shall be deducted thereafter and this monetary value shall be paid on completion of 3 years from the date of commencement of policy.
    In case of death of life assured after the date of surrender but before the completion of 3 years from the date of commencement of policy the monetary value payable on the completion of 3 years shall be payable to the nominee/ legal heir immediately on death.
    Compulsory Surrender:
    The policy shall be surrendered compulsorily in following cases:
    i) where the policy is not revived during the period of revival, the policy shall be terminated after completion of 3 years from the date of commencement of the policy or on expiry of revival period, whichever is later.
    ii) where single premium has been paid or premiums have been paid for less than 3 years and the policy is in force and the balance in policyholder’s fund value is not sufficient to recover the relevant charges;
    iii) where 3 full years’ premium are paid and the balance in policyholder’s fund value falls below 50%  of one annualized premium.
    The conversion in monetary value shall be as under:
    The NAV on the date of application for surrender or on the date when revival period is over (in case of compulsory surrender), as the case may be, multiplied by the number of units in the Policyholder’s Fund as on that date.

    LIC Wealth Plus 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 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.”
    PRODUCT FEATURES :
    Name of the Product: LIC's WEALTH Plus
    Unique Identification No.512L259V01
    Amount of Instalment Premium: 40000
    Policy Term : 8 Years
    Age : 30
    Premium Paying Term: Single
    Extended term cover 2 Years
    Funds opted for: WEALTH FUND
    Mode of Premium Payment : Single
    Service Tax rate 10.30%p.a
    Sum Assured : 100000
    Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interest as mentioned

    Gross Yield 10.00%
    Net Yield 7.38%

    (All charges are in Rupees)
    Policy
    Year
    Annualised
    Premium
    Premium
    Allocation Charge
    Amount Available
    for investment
    ( out of premium )
    Mortality
    Charge
    Service tax Policy Admin
    Charge
    Guarantee Charge Other Charges Addition to
    Fund (if any)
    Fund before FMC FMC Fund at End Surrender
    Value
    Death Benefit
                                 
    1 40000 2000 38000 195 354 720 136 0 3700 40294 388 39906 0 139906
    2       195 108 300 145 0 3934 43092 413 42680 0 142680
    3       195 113 309 155 0 4209 46117 441 45675 45675 145675
    4       195 119 318 166 0 4506 49383 472 48911 48911 148911
    5       195 124 328 178 0 4827 52913 506 52407 52407 152407
    6       195 130 338 190 0 5173 56727 542 56184 56184 156184
    7       195 137 348 204 0 5548 60848 582 60267 60267 160267
    8       195 144 358 219 0 5953 65303 624 64679 64679 164679
    9               0   0   0 0 100000
    10               0   0   0 0 100000
    Gross Yield 6%
    (All charges are in Rupees)
    Policy
    Year
    Annualised
    Premium
    Premium
    Allocation Charge
    Amount Available
    for investment
    ( out of premium )
    Mortality
    Charge
    Service tax Policy Admin
    Charge
    Guarantee Charge Other Charges Addition to
    Fund (if any)
    Fund before FMC FMC Fund at End Surrender
    Value
    Death Benefit
                                 
    1 40000 2000 38000 195 353 720 133 0 2220 38818 380 38438 0 138438
    2       195 105 300 137 0 2273 39974 389 39585 0 139585
    3       195 108 309 141 0 2341 41174 401 40773 40773 140773
    4       195 110 318 145 0 2411 42416 413 42003 42003 142003
    5       195 113 328 149 0 2484 43702 425 43276 43276 143276
    6       195 116 338 154 0 2560 45034 438 44595 44595 144595
    7       195 119 348 159 0 2638 46414 452 45962 45962 145962
    8       195 122 358 163 0 2719 47843 466 47377 47377 147377
    9               0   0   0 0 100000
    10               0   0   0 0 100000
    IN THIS POLICY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE.

    Note: 1) ' Addition to fund' shown above is interest income on the fund
    2) Rider Charges are not taken into account in this illustration.


    I ……………………….(Name), having received the information with respect to the above , have understood the above statement before entering into the contract.

    Marketing officials' Signature: Policyholders' Signature:
    Company Seal:

    Place:
    Date:
     
    PRODUCT FEATURES :
    Name of the Product: LIC's WEALTH Plus
    Amount of Instalment Premium: 20000
    Policy Term : 8 Years
    Age : 30
    Premium Paying Term: 3 Years
    Extended term cover 2 Years
    Funds opted for: WEALTH FUND
    Mode of Premium Payment : Yearly
    Service Tax rate 10.30%p.a
    Sum Assured : 100000

    Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interest as mentioned
    Gross Yield 10.00%
    Net Yield 7.29%

    (All charges are in Rupees)
     
    Policy
    Year
    Annualised
    Premium
    Premium
    Allocation Charge
    Amount Available
    for investment
    ( out of premium )
    Mortality
    Charge
    Service tax Policy Admin
    Charge
    Guarantee Charge Other Charges Addition to
    Fund (if any)
    Fund before FMC FMC Fund at End Surrender
    Value
    Death Benefit
                                 
    1 20000 2400 17600 195 366 720 61 0 1670 17927 175 17752 0 117752
    2 20000 500 19500 195 156 300 135 0 3665 40132 384 39748 0 139748
    3 20000 500 19500 195 189 309 215 0 5849 64189 613 63575 63575 163575
    4       195 145 318 231 0 6284 68970 659 68311 68311 168311
    5       195 152 328 249 0 6753 74141 708 73433 73433 173433
    6       195 161 338 267 0 7261 79733 761 78972 78972 178972
    7       195 170 348 288 0 7811 85783 819 84964 84964 184964
    8       195 180 358 309 0 8405 92327 881 91445 91445 191445
    9               0   0   0 0 100000
    10               0   0   0 0 100000
    Gross Yield 6%
    (All charges are in Rupees)
     
    Policy
    Year
    Annualised
    Premium
    Premium
    Allocation Charge
    Amount Available
    for investment
    ( out of premium )
    Mortality
    Charge
    Service tax Policy Admin
    Charge
    Guarantee Charge Other Charges Addition to
    Fund (if any)
    Fund before FMC FMC Fund at End Surrender
    Value
    Death Benefit
                                 
    1 20000 2400 17600 195 365 720 60 0 1002 17261 172 17090 0 117090
    2 20000 500 19500 195 154 300 130 0 2160 37971 370 37601 0 137601
    3 20000 500 19500 195 184 309 203 0 3382 59591 579 59012 59012 159012
    4       195 136 318 210 0 3498 61651 599 61051 61051 161051
    5       195 140 328 218 0 3620 63790 620 63171 63171 163171
    6       195 144 338 225 0 3745 66014 641 65373 65373 165373
    7       195 148 348 233 0 3876 68325 664 67661 67661 167661
    8       195 153 358 241 0 4012 70726 687 70039 70039 170039
    9               0   0   0 0 100000
    10               0   0   0 0 100000
     
    IN THIS POLICY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE.

    Note: 1) ' Addition to fund' shown above is interest income on the fund
    2) Rider Charges are not taken into account in this illustration.


    I ……………………….(Name), having received the information with respect to the above , have understood the above statement before entering into the contract.

    Marketing officials' Signature: Policyholders' Signature:
    Company Seal:

    Place:
    Date:

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