MONEY PLUS Table no 180 INSURANCE POLICY

MONEY PLUS INSURANCE POLICY BY LIC (Table No: 180)

Features of plan: Money plus unit limited endowment plan which offers investment-cum-insurance during the term of the policy. The policyholder can choose the level of cover within the limits, which will depend on the term chosen. Mode and amount of premium he desires to pay. The allocated premium will be utilized to purchase units as per the selected fund type. Units will be allotted and cancelled basic on the net asset value (NAV) of the respective fund applicable to the date of allotment/cancellation. No bid-offer spread (both the bid price and offer price of units will be equal to the NAV)

The NAV will be computed on daily basic and will be based on the investment performance, fund management charge (FMC) and whether fund is expanding or contracting under each fund type. Other details of this plan are as follows

The premium allocated to purchase units will be invested according to the investment pattern prescribed for different fund types.

• * Min. S.A for regular premium: higher of 5 time the annualized premium of half of the policy term times the single premium
• ** Max S.A. for regular premium: 20 time the annualized premium if age upto 65 years. Up to 55 yr. & 10 time of annualized premium if age at entry if 56 yrs & above max. S.A for S.P: if critical illness benefit rider is opted for
  5 times the single premium if age at maturity is up to 55 years.
  3 times the single premium if age at maturity is 56 to 60 years.
  If critical illness benefit is not opted for:
  5 times the single premium if age at maturity is upto 65 years.
  3 times the single premium if age at maturity is 66 to 7c years .
  2.5 times the single premium if age if at maturity is 71 years and above

Options:

1. Accident benefit rider option: accident benefit (AB) can be available of as an optional rider benefit by paying an additional 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 fund 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 as well as group schemes taken from life insurance Corporation of India and other insurance companies and accident benefit rider sum assured under the new proposal into consideration. If the age at entry the life assured is less then 18 years, then accident benefit rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 or more years of age. This benefit will be available only till policy anniversary on which the age nearer birthday of the policyholder is 70 years. No charges shall be deducted from the policy anniversary at benefit ceases.
2. Critical illness benefit option: an amount equal to the critical illness rider sum assured will be paying in case of diagnosis of defined category of critical illness subject to certain terms and conditions, provided the critical illness benefit cover is opted for and is in force. The maximum cover for this rider will be Rs.5lakh under all policy of the life assured with the corporation taken together including the new proposal under consideration. The critical illness rider sum assured shall also not exceed the sum assured under the basic plan. If age at entry of the life assured is less then 18 years, then critical illness benefit rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 years of age. This benefit will be available only till the policy anniversary on which the age nearer birthday of the policyholder is 60 years. No charges for this benefit shall be deducted from the policy anniversary at which the benefit ceases. Future, this benefit will be available only once during the term of the policy (i.e. till a critical illness claim, as per the conditions defined, arises under the policy). Once a claim under this rider has been admitted. No subsequent charge towards critical illness benefit rider shall be deducted charges toward life cover and accident benefit cover, if any, shall however continue to be deducted on a monthly basic, as usual.
3. Premium waiver benefit (PWB): no PWB will be allowed under this plan.
4. Settlement option: when the policy comes for maturity, the policyholder may exercise "settlement option" one month prior to the date of maturity. In case this option is exercised, the maturity claim under the policy shall not be paid in lump sum. the policyholder, in that case, shall encash the units held in policyholder's fund in regular (half-yearly / yearly installments) or irregular installments spread over a period of five years from the date of maturity. He/ she shall be required inform how he / she shall receive the maturity proceeds. In case of regular installments, the installment shall be the total number of units as on the date of maturity divided by total number of installment (i.e. 5 and 10 for yearly and half-yearly installment in 5 year period respectively). The number of units arrived at in respect of each installment will be multiplied by the NAV as on the date of installment payment. The first payment will be made on date of maturity and there after based on the mode opted by the policyholder i.e. every six months from the date of maturity or every year from date of maturity. In case policyholder wants maturity proceeds of the policy to be paid at irregular installment, then he/she wants to encash. In case of irregular encashment, the units outstanding in policyholder's account at the end of 5 years from the date of maturity shall be encashed compulsory.
   Settlement option shall not be allowed under a lapsed policy. During the settlement option period no charges other then the fund management charge shall be deducted. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.
   
5. Surrender value and surrender charge: the surrender value, if any, is payable only after the completion of the third policy anniversary both under single and regular premium contract. The surrender value will be the value of units held in the policyholder's fund at the date of surrender. There will be no surrender charge.
   If a policyholder applies for surrender of the policy within 3 years from the date of commencement of policy, then the fund value of units shall be converted into of monetary terms. No charges shall be made thereafter and this monetary amount shall be paid on completion of 3 years from the date of commencement of policy.
   The conversion in monetary shall be made as under:
   The NAV on the date of application for surrender or 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.
   Future this monetary amount shall be transferred to non-unit fund and the payment of surrender value when due shall be from this fund only
   In case of single premium policy or regular premium policy where premiums are paid for less then there years, if the balance in the policyholder's fund value, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the policyholder's fund will be refunded to the policyholder. In case of regular premium policy where premium are paid for at least three years, the balance in the policyholder's fund' at all times shall be subject to a minimum balance of one annualized Premium. In case the policyholder's fund value falls below this limit, the policy shall compulsory be terminated with a notice to the policyholder and the balance amount in the policyholder's fund shall be refunded to the policyholder. Once a policy is surrender it cannot be reinstated.
6. Commencement of risk under the policy: "date of commencement of risk" is the date from which life assurance cover accident benefit and critical Illness, if any, shall be available under the policy.
   If the age of the life to be assured is 12 years or more, both the date of commencement of risk date of commencement of policy shall be the date of completion of proposal.
   If the age of the life to be assured is less then 12 years, the date of commencement of policy will be date of completion of the proposal. The date of commencement of risk shall be per the following rules.
   Risk will commence either after 2 years from, the date of commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 7 years of age whichever is later in case the age at entry of the life assured is less than or equal to 10 years. Where the age at entry is more then 10 years but less then 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the life assured. In case of minors aged 12 years or more risk will commence immediately.

Benefits

Death benefit: in case of death of the policyholder when the cover is in full force, the nominee shall be eligible to get the sum assured under the basic plan or the value of units held in the policyholder' fund as at the date of booking the liability the liability shall be booked after receipt of intimation along with death certificate. Future, if partial withdrawal has been made during the last two years from the date of death the sum assured under the basic plan be reduced to the extent of the amount of partial withdrawals made.

If the policy is in lapsed condition then the value of units held in the policyholder's fund shall become payable to the nominee.

In case of death of the life assured aged less then 12 years before commencement of risk, only value of the units held in the policyholder's fund shall payable.

The risk in case of minors aged less then or equal to 10 years commences from the policy anniversary coinciding with or immediately following the completion of 7 years of age or 2 years after the date of commencement of the policy, whichever is later. In case age at entry is above 10 years but below 12 years, the risk commences from the policy anniversary coinciding with or next following the date on which life assured completes the age 12 years. In case of minors aged 12 years or more, risk will commence immediately.

Benefit on maturity: on the policyholder surviving the date of maturity an amount equal to the value of the units haled in the policyholder's fund is payable.

Charges and frequency of charges:

Premium allocation charges: this is the percentage of the premium appropriated towards 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.

Mortality charge: this is the cost of life insurance cover. Mortality charge will be taken every month by canceling appropriate number of units out of the policyholder's fund value as per the rate prevalent at the time of policy issue.

Mortality charge, during a policy year, will be 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. The mortality charge shall depend upon the difference between the sum assured under the basic plan and fund value of units as on the date of deduction of charge, after deduction of all other and shall be deducted only if, the basic sum assured is more then the fund value of the units on the date of deduction. Future, the charges will also depend on the underwriting decision at entry or subsequent revival of the policy.

The mortality charge per Rs.1000/- sum at risk (i.e. sum assured under basic plan minus fund value) per annum for standard lives, are given in annexure 1.

Charges from optional rider ride covers:

Critical Illness benefit charge: charges for critical Illness benefits rider, if any will be taken every month by canceling appropriate number of units out of the policyholder's fund value as per the rate prevalent at the time of policy issue. Critical Illness benefit charges, during a policy year, will be 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. Charges for critical Illness rider shall be deducted only if this rider has been opted for.

Critical Illness cover charges per Rs.1000/- sum assured for standard lives at present are also given in annexure I.

Accident benefit charge: charges for accident benefit rider, if any will be taken every month by canceling appropriate number of out of the policyholder's fund value as per the rate prevalent at the time of policy issue.

A level charge, at present, is the rate of Rs.0.50 per thousand accident benefit cover cancellation of appropriate number of units out policyholder's fund value every month along with the mortality and critical Illness benefit charges. Charges for accident benefit rider shall be deducted only if this rider has been opted for

Other charges:

• Policy administration charges: the policy administration charges 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 fund value.
• Fund management charge: fund management charges of (FMC) are dependent on type of fund and are deducted on the date of computation of NAV at the following rates:
  0.75% p.a. of units fund for "bond" fund
  1.00% p.a. of units fund for "secured" fund
  1.25% p.a. of units fund for "balance" fund
  1.50% p.a. of units fund for "growth" fund
  The NAV, this declared, will be net of FMC.
• Switching charges: this is a charge levied on switching of monies from one fund to another. This charge will be levied at the time of effecting switch at the rate specified.
• BID/0FFER spread: nil
• Surrender charges: nil 

1. Service tax charge: a service tax charge shall be levied on the charge for mortality, accident benefit and critical Illness benefit rider. If any and shall be taken by canceling appropriate number of units out of the policyholder's fund value on a monthly basic as and when the corresponding mortality, accident benefit and critical Illness benefit rider charge are deducted the level of this charge will be as per rate of service tax on risk premium as applicable from time to time. Currently, the rate of service tax is 12% with an educational cess at the rate of 2% thereon and hence effective rate is 12.24%.

2. Miscellaneous charge: this is a charge levied for an alteration within the contract, such as reduction in policy term, charge in premium mode to higher frequency, grant of accident benefit after the issue of the policy etc. may be allowed subject to a charge of Rs.50/- which will be deducted by canceling appropriate number of units out of the policyholder's fund value and the deduction shall be made on the date of alteration in the policy. The alteration will be effective from the policy anniversary coincident with or following the alteration.

The corporation reserves the right to accept or decline an alteration in the policy. The alteration shall take after from the policy anniversary coincident with or following the alteration only after the same is approved by the corporation and is specifically communicated in writing to the policyholder.

Right to revise charges: the corporation reserves this the right to revise all or any of the above charges expect premium allocation charge and mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA and after giving the policyholders a notice of 3 months.

• Additional features:

1. Switching: the policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the fund opted for within a given policy year, 4 switches will be allowed free charge. Subsequent switches shall be abject to a switching of Rs.100 per switch.
   On receipt of the policyholder's valid application for a switch from one fund to another, the value of the units held in the policyholder's fund after deducting switching charges, if any, shall be transferred to the new fund opted by to 4.15 p.m. by the servicing branch the closing NAV of the same day shall be applicable and in respect of the applications received after 4.15 p.m. by the servicing branch the closing NAV of the next business day shall be applicable.
2. Top-up: no top-up shall be allowed under the plan.
3. Increase/ decrease in benefits: no increase or decrease in benefit will be allowed under the plan.
4. Partial withdrawals: a policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:
• 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).
• Partial withdrawals may be in the from of fixed amount or in the from of fixed.
• For 2 years, period from the date of withdrawal, the sum assured under the basic plan shall be reduced to the extent of the amount of partial withdrawals made.
• Under regular premium policies where less then 3 years, premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
• Under regular premium policies where atleast 3 year's premium have been paid partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the policyholder's fund value.
• Under single premium policy, the partial withdrawal will be allowed subject to a minimum balance of Rs.5000/- in the policyholder's fund value.
5. Days of grace: a grace period of one calendar month but not less then 30 days will be allowed for payment of yearly or half-yearly or quarterly premium. If the death of life assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in-force and the date benefits shall be paid after deduction of all the relevant charges, if not recovered. If premium are not paid within the days of grace, the policy lapses.
6. Cooling-off period: if a policyholder is not satisfied with the "terms and conditions" of the policy, he/she may return of the policy.