MARKET PLUS INSURANCE POLICY BY LIC (Table: 181)
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:
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:
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.
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.
- 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.