Health Insurance Plan is a combination of Health Insurance and Investment with an objective of Income and Growth with Low risk, which provides for:

• Domiciliary Treatment Benefit (DTB)
• Hospital Cash Benefit (HCB)
• Major Surgical Benefit (MSB)

This plan fulfills the need for the hospitalization expenses in case of insured falling sick/undergoing Major Surgical (see list). apart form investment.

DTB (treatment taken at home) is also paid sub. to certain conditions if min. 3 years’ premium have been paid.

Extent of claim benefit of HCB  & MSB can be decided while taking the policy itself. LIC will release the funds to the Policyholder as & when claim for HCB & MSB is submitted.

A portion of the premium will be utilized for Health Insurance Cover. Each premium paid by the PI will be invested (after deduction of Allocation Charges) to purchase units.

Premium Allocation Charge: For the 1st year will be 30%  & 6% thereafter.

Health Insurance Charges:

HCB & MSB charge will be taken every month by canceling appropriate no. of units out of  Policy Fund. However, for an insured Child, charges for MSB shall be deducted from the policy anniversary coinciding with or immediately following the 18th birthday of that child. These charges, will be based on age nbd and hence may increase every year.

In case of HCB, the charges during the policy term will be applied on the Initial Daily Benefit.

Other Charges:

• Policy Administration Charge: 1st policy year 75/- Subsequent year 25/-
  

• Service Tax: on Health Insurance charges (Currently@ 12.36%)

Above Charges will be deducted by canceling appropriate no. of units out of Policy Fund per month.

• Fund Management Charge (FMC): 1.25% p.a. of Unit Fund deductible on daily basis, the NAV thus declared will be of FMC

Hospital Cash Benefit (HCB):

Benefit payable on Hospitalizaiton: If any of the insured lives is hospitalized due to Accidental Body Injury or Sickness and the stay in hospital exceeds a continuous period of 48 hours, then for any continuous period of 24 hours or part thereof thereafter, provided such part stay exceeds a continuous period of 4 hours in a Non-ICU ward/room, an amount equal to the Applicable Daily Benefit, and if admitted in ICU, double the Benefit shall be payable  subject to terms & conditions.

The amount of  Initial Daily Benefit will increase at each policy anniversary by 5% till it reaches a max. of 1.5 times which is considered as Applicable Daily Benefit.

Hospital Cash Benefit Limits:

• In the 1st Policy year a max. of 18 days hospitalization of which not more than 9 days shall be in ICU for each insured. From 2nd year onwards it will be 60 & 30 days respectively.

• No benefit would be paid  for the first 48 hours (2days ) of hospitalization.

• HCB would be payable, in respect of each Insured, during entire term of Policy shall be limited to a max. of 365 days & in case of Insured Child it will be 90 days till the completion of 5 years of child’s age

Applicable for both HCB/MSB:

• if a person is covered under various policies under this plan, then the max. benefit under all policies put, then the max. benefit under all policies put together shall not exceed the cap on benefits under this plan.
• MSB will be payable only if occurred within India if  Hospitalization under HCB & Surgery under.

Major Surgical Benefit (MSB):

MSB S.A. percentage, as specified shall be payable, in the event of any Insured lives, undergoing any of the listed surgeries. This benefit will remain fixed throughout. The above benefit will remain fixed throughout. The above benefit is sub. to exclusions & following terms & conditions:

• In case of claim, eligible for payment and regardless of actual costs, LIC will pay chosen MSB amount, calculated as a percentage of  S.A.  against each of the eligible surgeries.
• MSB for any Surgery is not payable, more than once for same Surgery during policy term
• Max. Benefit Amount payable in any Policy year during the Cover Period shall not exceed 100% of S.A. in respect of each insured.
• MSB shall be paid as a lump sum and is subject to proof to the satisfaction of LIC.
• Total Benefit Amount payable in respect of each Insured during the Cover Period shall not exceed a lifetime max lifetime max. limit of  3 times the S.A. Once the total Benefit amount Paid in respect of an Insured equals this lifetime max. limit, the MSB in respect of that Insured will cease.
• All surgical procedures claimed should be confirmed as essential & required, by a qualified Physical/Surgeon & to the satisfaction of LIC.
• Child included in the policy will be automatically covered for MSB from policy anniversary on which age l.b.d. is 18 yrs.

There will be no option for the PI to exclude the cover. Till that period such child is not covered for this benefit.

Domiciliary Treatment Benefit (DTB):

If at least 3 years’ premium have been paid, an amount  shall be payable out of Policy Fund equal to the actual amount spent to meet any medical expenses/domiciliary treatment over and above those paid through HCB & MSB incurred in respect of any of the Insured lives at any time, sub. to following conditions:

1. Max. 50%  of the policy Fund (Leaving at least one annualised prem. after payment.)
2. In a policy year Max. 2 payments allowed .
3. At least Rs. 2,500 is  Claimed amount ;

DTB ceases in respect of the child reaching 25 years n.b.d.

Expenses being claimed should not be older than one year. Payments subject to production of proof of medical treatment & supporting bills for treatment.

On completion of Policy term benefits:If any Balance in Policy Fund, will be payable.

On Death Payable Benefit:

1. If on single life policy is issued: In case of death of the legal heir, PI or the nominee shall get the Fund Value of units held in the Policy Fund.
2. If one or more insured lives (other than PI) are also covered:

On death of  PI before completion of 3 years form the D.O. C of policy- the nominee or legal heir shall get the Fund Value of units held in the Policy Fund and Policy will terminate.

From D.O.C. of policy-payment of Premiums will cease on death of  PI after completion of 3 years.  However, cover shall continue for or till the fund is sufficient to recover the charges for HCB & MSB, surviving insured lives till max. benefit ceasing age  which is earlier.

Till the fund is sufficient to recover all the charges or till the end of policy term, which is earlier Policy will continue. At the end of the policy term, balance in the Policy Fund, if any shall be refunded is earlier. At the end of the policy term, balance amount, if any, will be refunded to nominee/legal heir.

One the death of the Insured member(s), other than PI — payment of premiums cover for PI and other Insured members, if any shall continue.

Benefits will have to be claimed by the legal guardian if all the children covered are minor. On death of PI and spouse (whether insured or not), shall continue and can be claimed by the eldest major child covered.

On death of all Insured members- The nominee or legal heir shall get the Fund Value of units held in the Policy Fund.

Surrender benefits: Surrender value, if any, only after completion of 3rd policy anniversary is payable. It will be the Policy Fund value at the date of the date of surrender. No Surrender charge.

ADDITIONAL FEATURES:

• INCREASE IN PREMIUM :increase in premium: in multipls of Rs. 500 shall be allowed. There will not be any increase in benefitsn amount under HCB & MSB.
  REDUCTION IN PREMIUM PAID:  May be allowed sub. to min premium & benefit limits. How ever, there would be no change in benefit amounts provided to PI & other insured lives.
  Cover to new addition members: If the PI gets married/remarried during policy term, spouse can be included

No benefits are available and no payment will be made by LIC for any claim for HCB & MSB on account of any of the following:

1. 1. Pre-existing condition- any medical condition or related condition that have arisen at some point prior to the commencement of this coverage known to PI or insured will be deemed to be pre-existing.

The following conditions will be also deemed to be “pre-existing”;

• A condition arising between signing the application form & conformation of acceptance by LIC.
• A sickness, illness, complication or ailment arising out of or connected to the pre-existing illness.

In case of MSB, Surgery triggered by health related causes (not by Accident) within first 180 days from the Date of Commencement & 90 Days from the Date of revival/reinstatement after discontinuance of cover.

• In case of HCB : treatment not performed by a Physician or treatment of a purely experimental nature.
• In case of MSB: any treatment not performed by a Physician / Surgeon.
• Any treatement including Surgery that is performed un-conventionally under experimental conditions & purely experimental in future.
• Sickness classified as an Epidemic by Govt.
• Circumcision, cosmetic or aesthetic treatment, change of gender surgery or treatment, treatment (unless due to illness/accidental Bodily Injury with in 6 months)
• Hospitalisation/Surgery for donation of an organ.
• Hospitalisation / Surgery for correction of birth detects or congenital anomalies.
• Dental treatment or surgery of any unless necessitated by Accidental Bodily Injury.
• Convalescence, general debility, nervous or other breakdown, rest cure, congenital diseases or defect or anomaly, sterilisation or infertility (diagnosis and treatment ), any sanatorium, spa or rest cures or long term care or hospitalistion undertaken as a preventive or recuperative measure.
• Self afflicted injuries or conditions(attempted suicide), and/or the use or misuse of any drug or alcohol.
  • Any sexually transmitted diseases like AIDS.
  • Removal or conditional or replacement of any material that was implanted in a former Surgery before Date of Cover commencement.
  • In case of MSB any diagnosis or treatement or Surgery arising form or traceable to pregnancy (whether uterine or extra uterine).

In case of HCB any dignosis or treatement arising form  or traceable to pregnancy(whether uterine or extra uterine ), children including caesarean.

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W.e.f. 23-08-2007

Highlights of the plan:

1. No Surrender Charge

2. Option of AB Rider.

3. Freedom to choose Premium.

4. Facility of encasement of units in installments available at Maturity.

5. Easy Liquidity (partial Withdrawal).

6. Unlimited Switches from one Fund to other ( 4 free switches in a year).

7. Life risk cover with good returns on Investment.

8. Choice of 4 investment Funds as per ones risk appetite.

During the term of the policy, this is a Unit Linked Payment Endowment Plan which offers Investment-Cum-Insurance during the term of the policy. During the first year, the level of life cover will depend on the policy term chosen & amount of premium payable. The policy holder’s fund value will be subject to deduction of charges.

Payment is limited to only 5 years under this plan for a selected term of 5 to 20 years. The payment of premium every year during 2nd to 5th year will be 25% of the 1st year premium. The allocated premium will be invested to buy units in any one of the following type of Funds chosen by the policy holder:

1. SUC=Basic S.A. less 1st year premium paid
2. MHR & Introduction: As per current rules
3. Medical Exam. LIC cost borne
4. As per Endowment Assurance Plan all conditions will be underwritten.

Special Reports

For Majors:  According to the existing Spl. Report Chart For Minor lives,  plan will be allowed to std. lives only.

For Minors: According to the chart (Cir.2090/4/1-11-2006)

Taken together will apply to all the existing  rules regarding max. S.A. allowed to minor live for all policies taken together will apply.Date of commencement of Risk is the date from which life assurance benefits can be enjoyed. Date of completion of the proposal is the D.O.C. of risk and D.O.C. Policy both.
1. Death Benefit: Nominee shall be eligible to get Basic S.A. or value of units held in Policyholder’s Fund which ever is higher, as at the booking of the liability in case of the Death of the Policyholder. Basic plan shall be reduced to the extent of amount of partial withdrawals made if particial withdrawals has been made during the last 2 years from the date of the death S.A. under. The value of units held in the Policyholder’s Fund shall become payable to the nominee, if less than three years’ premium have been paid & the policy is in lapsed condition.
2.Maturity Benefit:An amount equal to the value of the units held in Policyholder’s Fund is payable on the date of maturity of Policyholder’s surviving.

OPTIONS:

Policyholder can opt for the Rider given below:

Accident Benefit Rider (ABR) @0.50  per  1000

Accident Benefit S.A. per policy year:
S.A. will become payable (in addition to the above mentioned Death Benefit), provided the AB cover is opted for and is in force. On the Accidental Death of the Policyholder during the  term of the policy a sum equal to the Accident Benefit

The ABR Benefit can be opted from Policy Anniversary coinciding with or immediately following the completion of 18 yrs of age, if the Age at entry of the L.A. is less than 18 yrs. By the  cancellation of appropriate units from the fund on a monthly basis, the charges for ABR if any will be deducted.

CHARGES:

Premium Allocation Charges:The balance known as allocation rate constitutes that part of the premium which is utilized to purchase units for the policy. This is the percentage of premium appropriated towards charges from the premium received.

Ex: if 20,000 is the Yly prem. then Allocation charge of Rs. 3,000 at 15%(See table below ) is deducted. Balance prem. of  purchase units. After purchasing units for Rs. 17,000 is utilized to purchase units. After purchasing units for Rs. 17,000 all other relevant charges will be deducted by canceling the units.

Mortality  Charge is the cost of Life Insurance Cover (as per chart given):

Mortality Charges during a policy year, will be based on Age (nbd) of the Policyholder, as the Policy Anniversary coinciding with the due date of cancellation of units. Hence charges may increase every year on each Policy Anniversary.

Mortality Charges shall depend upon the difference between the S.A. under the Basic plan and Fund Value of units as on the date of deduction, after deduction of all other charges( This shall be deducted only if, the Basic S.A. is more than the Fund Value of the units).

OTHER CHARGES:

1. Switching Charges: 4 switches will be allowed free of charge during the policy term within a given policy year between any Fund.  Subsequent switches shall be subject to Rs.100/- per switch. Switching shall not be allowed under a lapsed policy.
2. Bid/Offer Spread Charges: Nil
3. Fund management Charge (FMC) Per annum For: Bond Fund 0.75%; Balance Fund 0.75%; Secured Fund 1%; Secured Fund 1%; Balanced Fund 1.25%; Growth Fund 1.50%. The NAV, thus declared will be net FMC.
4. Policy Administration Charges: Will be Rs. 2o per month thereafter throughout the term of the policy and Rs. 60 per month during the first policy year.
5. Surrender Charges : Nil
6. Service Tax Charges: At present Service tax charge @12.36% on risk premium shall be charge levied on Mortality & ABR charges, if any. This will be deducted monthly by canceling appropriate units.
   1. Premium Payment
   2. Partial Withdrawal
   3. Switches
   4. Surrender
   5. Death Claim etc.

Extra Charge: Charge for higher EMR shall be multiples of Class I extra charge as applicable in other plans. The Std. extra to be charged in case of Occupation, shall be the rates applicable to Endowment Plan. Mortality charges will include – health extra for sub – std. lives, standard extra for occupation, residence, etc. and age proof extra for NSAP-2 and NSAP-3. Class I extra charge for Life Cover will be 25% of the Mortality Charges for Std. Lives .

Miscellaneous Charges:


Levied for an alteration within the contract, such as reduction in policy term,  grant of Accident Benefit after the issue of the policy, change in premium mode to higher frequency, change 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/-.

Right to revise charges: LIC reserves the right  to revise all or any of the above charges except Premium Allocation charge and Mortality Charge with prospective effect, after giving the Policyholders a notice of 3 months.

The Policyholder’s Fund Value will be subject to deduction of charges. Units will be allotted and canceled based on the NAV of the respective Funds as on the date of allotment/cancellation.

NAV (Net Asset Value): Bid Price and Offer Price of units will be equal to the NAV. It will be computed on daily basis and is bases on the investment performance, Fund Management Charges and whether fund is expanding or contracting under each Fund.

For:

Nav will be based on the time, the request received by LIC. If received upto 3:00 pm, closing NAV of the day will be applicable. If received after 3:00 pm, next business day’s closing NAV will be applicable. Outstation Cheque/ D.D shall not be  accepted.

Partial Withdrawals: After 3rd Policy Anniversary subject to certain conditions the Policyholder can partially withdraw the units anytime. Partial withdrawals may be in the form of fixed number of units or in the form of fixed amount

In case of minors, partial withdrawals allowed only on or after L.A. attains majority. For 2 years period from the date of withdrawals, the basic S.A. shall be reduced to the extent of the amount of partial withdrawals made.

Where less than 3 years’ premiums have been paid and further premiums are not paid , the partial withdrawals shall not be allowed.

Where at least 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of Rs.10,000/- in the Policyholder’s Fund Value.

GRACE PERIOD:  If premiums are not paid within the days of  grace, the  policy lapses. One calendar month but not less than 30 days will be allowed for payment of Yly or Qly premiums and 15 days will be allowed if premiums are paid Monthly (ECS).

Revival / Discontinuance of premiums: The Period during which the policy can be “Revival Period”. Lapsed policy can be revived during the period of First Unpaid Premium (FUP)  or before date of maturity, whichever is earlier. The Period during which the policy can be revived will be called “Revival Period”.

• If premiums have not been paid for at least  3 full years the policy may be revived within two years from the due date of  FUP. Revival shall be made on submission of proof of continued insurability. During this period No Life or ABR Cover is available hence no charges are deducted for the same.
• If at least 3 years’ premiums have been paid and subsequent premiums are not paid, the policy may be revived within two years form the due of FUP, but before the date of maturity, if earlier. For Revival No proof  of  continued insurance. During this period, Life or ABR covered will be in force & the charges will be deducted as long as there is min. balance of  Rs. 5,000 in the Fund (after deducting the charges).

In both the above cases of 1&2, all arrears of premium without interest can be paid.

SURRENDER VALUE:

There will be no Surrender Charge.The surrender value, if any, is payable only after the completion of the 3rd policy anniversary.At the date of surrender the surrender value will be the value of units held in the Policyholder’s Fund.

Compulsory Surrender: In case the policy is not received during the period of revival, then the policy shall be terminated after completion of three years from the date of commencement of policy or on expiry of revival period, whichever is later of policy or on expiry of revival period, which is later or if the balance in the Fund Value falls below Rs. 5,000.

Settlement Option:

On month prior to the date of maturity Policyholder may exercise “Settlement Option” .

(for other conditions of Settlement Options you may after refer artical under Fortune Plus Table 187.)

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General Conditions:

Min. age at entry:  12 years (completed).

Max. age at entry:  60 years (nbd).

Modes Rebate: Yly 2%; Hly 1%

Max. Maturity age: 70 years.

Modes Allowed: Yly/Hly/Qly/SSS

Accident benefit per 1000 SA: Re. 1 extra.

Min Term: 10 years.

Max Term: 35 years.

prem. in multiples: of Rs. 50 pm

Min. Prem.
Age 12 to 49  : Rs 250 p.m.
Age 50 to 60  : Rs 400 p.m.

Max. Prem.  :  No limit.

Term Rider option: Yes (Optional).

Requirements in writing:

Female lives category: I/II/III

Non-Medical General :  Allowed

Non-Medical Professional:  Allowed

Non-Medical Special:  Allowed

Risk Coverage: Death benefit SA + return of premium paid + LA, if any.

Age proof: Std./NSAP-1/2/3

Form Number:  300/340

Policy Servicing:

Term Rider : Yes.

Policy Loan @ 9%: Yes.

Revival: Yes.

Surrender of Policy: Yes.

Housing Loan: Yes.

Assignment: Yes.

Key-Man Insurance: No.

Term Rider Conditions:

Min. age at entry:  18 years (completed).

Max. age at entry:  50 years.

Min. S.A.: Rs. 50,000.

Max. SA.: Any amount.

Max. Maturity age: 60 years.

SA in Multiples: 10000

Term Same as Main Plan..

Features:

1.  This plan is suitable for: (a) Salaried Persons. (b) Due to its flexibility in term & anytime partial withdrawal facility, it is suitable for high Networth Individuals. (c) Person with uncertain income as LIC provides auto cover in case premium due remains unpaid for 1 year. (d) Person who need money for future contingencies like marriage/education of  children.

This plan with features of conventional plans & flexibility of unit link plans provides: (a) Flexibility & liquidity. Under the normal plans, one choose the SA. Whereas in this plan One has to choose the premium he wants to pay. Once the premium is chosen, SA payable on death gets determined. The SA is payable on maturity can then be obtained on the basis of age & policy term.(b) Smooth return. (c) Irrespective of age at entry & term death cover will be the same. However, Maturity SA will differ.

Benefits:

1. Maturity Benefits: Loyalty additions + Maturity Sum Assured, if any.

2. Loyalty addition: After the policy has been in full force for at least 10 years, it will be declared.

3. Partial Surrenders: After completion of 3 years or more from the DOC provided full premiums have been paid subject to conditions can be made any time.

4. Auto cover: If subsequent premiums are not paid, the risk cover under the main plan will continue for 12 months from the date fo first unpaid premium (If a policy is in force for full benefits for 3 or more years).

5. Optional Riders: For an additional premium ()Accidental Death & disability benefit rider. ()Term Assurance Rider will be available & their SA will not exceed the death Death Benefit SA.

6. Death Benefits: Loyalty Additions + 250 times the monthly basic premium (called Death Benefits SA) + Return of premiums paid (excluding 1st year premium & extra/rider premium) if any

7. Surrender Value: After it has been in forced for at least 3 years, the policy can be surrendered.

a. Gtd. Surrender Value: 30% of total premiums paid excluding: 1st year premium, all extra premiums & accident benefit/Term Rider premiums.

b. Special Surrender Value:  It will be sum of both these two points. (1) If less than 4 years premium has been paid then 80% of MSA will be paid.  If between 4 to less than 5 years premium paid, 90% MSA. If premiums are paid for 5 years and above, 100% of MSA. (2) The loyalty Additions, if any, for the term for which the policy has been in force, as announced as at 31st March immediately preceding the date of surrender.

8. Other Details: (a) Under all LIC Plans, Accident Benefit/Term Assurance will be Rs. 25 lakhs as a max cover. (b)Maturity SA for ages 12 to 17 will be the same as that for 18 years. (c) Based on basic premium before allowing any mode rebate, Maturity SA is to be calculated. Excluding any extra premium under this plan for sub-standard life, the rebates will apply to the basic premium thereafter. (d) For Endowment plan, all underwriting rules will apply. The death benefit SA should be considered for the purpose of Underwriting and SUC. As per Endowment plan, Standard extra premium (eg. Occupational extra or in case of physically handicapped lives) would be.

Example:

Mr. Mehndi aged 18 years takes a policy for a 20 year term & opts for an yearly basic premium of Rs 6000. After deducting 2% yearly mode rebate which comes to Rs 5880 & adding Double Accident premkum of Rs 125 (6000 Yly premium divided by 12 months = 500 monthly premium multiplied by 250 times = 125000 which is Death Benefit SA. For this DAB @ Re. 1 per 1000 SA = 125) he will pay a premium of Rs 6005. On maturity, he will receive Rs 140530 as maturity SA (Plus Loyalty Addition as declared by LIC at that time). In case of his natural death, after 5 years from the date of commencement of policy, his nominee will receive 250 times the monthly basic premium i.e. Rs 125000 (6000 basic yearly premium divided by 12 months = 500. Rs 500 X 250 times) + premiums paid for 5 years (less 1st year premium) Rs 23520. Hence nomiee will totally receive 148520.

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W.e.f.  21-03-2005

General Conditions:

Min. age at entry:  13 years completed.

Max. age at entry:  70 years.

Min. S.A.: Rs. 25000.

Max. SA.: Any Amount.

SA in multiples: Rs. 5000.

Max. Maturity age: 75 years.

Modes Allowed: Single premium.

Terms Allowed: 5 and 10 years.

Requirements in writing:

Risk Coverage:  SA + GA

Age proof: Std./Non-Std

Form Number:  300/340

Dating Back @ 8%: Allowed

Medical Exam (when TAR is not opted): Not required for any SA

Note: It is an Investment plan suitable for persons who can invest lump sum amount and who do not have regular income and expect reasonable return.

When Term Assurance Rider is NOT opted for:

(a) Irrespective of the Sum Under Consideration, no special reports will be called.

(b) On the basis of Satisfactory Declaration of Good Health (DGH), proposal will be considered. The proposal should be referred to CUS and FMR if DGH is not satisfactory.

(c) Without clubbing the Sum Under Construction with previously accepted proposals, this plan will be considered independently.

When Term Assurance Rider is opted for:  The Term Rider SA will be the Sum Under Consideration. The usual underwriting rules for clubbing, calling general, and special reports etc. will apply for the Term Rider SA.

Death Benefits: Accrued Guaranteed Addition along with SA will be paid if the policy holder dies before maturity of the policy. Term Assurance SA amount will be paid if Term Assurance Rider has been taken.

Maturity Benefits: At Rs. 50 & 55 per 1000 SA, Gtd. Addition is payable, compounded annually for 5 & 10 years term respectively.  SA + Compounded GA + LA, if any, is given.

Loyalty Addition: Depending upon Corporation’s experience with regard to mortality, interest & expenses & based on term of the policy ], LA, if any, is paid only at maturity.

Example:

Mr. Sad takes a 5 year term Bima Nivesh 2005 policy for Rs. 1 lakh SA. On maturity, he will receives Rs. 1,27,628 (Rs. 1,00,000 SA+ Rs 27628 being guaranteed Addition @ Rs 50 per 1000 SA compounded annually). In addition, he is also eligible to received loyalty Addition, if any, declared by LIC. In case, he dies before maturity, his nominee will receive Rs. 1 lakh SA + accrued GA at Rs 50 per 1000 SA per annum.

High Premium Rebate:

(a) Up to & including 50000  :-  Nil

(b) Rs 50001 to 1 lakh :-  1.0% of premium in excess of Rs 50000.

(c) Above Rs 1 lakh  :- Rs 500 + 1.5% of premium in excess of Rs 1 lakh.

It does not apply for Term Assurance Rider, if opted for. This rebate is applicable to the basic plan only.

Gtd. Surrender Value:

(a) GSV is equal to 90% of Single Premium paid* for 5 years Term Policy.

(b) GSV is equal to 80% of Single Premium paid* for 10 years Term Policy.

(c) Payable if policy has run for atleast 1 year..

*Excluding all extra premiums and the premium for the Term Assurance Rider.

Term Rider Condition:

Min. age at entry : 18 years (completed).

Max. age at entry:  50 years.

Max. maturity age: 60 years.

Min. Sum Assured: Rs. 1 lakh.

SA in multiples of:  5000.

Max SA: SA under the basic plan is subject to an overall limit of 25 lakhs on SA under Term Assurance Riders under all policies of the Life Assured with LIC taken together..

Special surrender value will be paid based on completed quarter years.

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Min.

Max. (plan 41/50)

Min. maturity age

Max. maturity age

Min. Term (41/50)

Max. Term

Min. S.A.

Max. S.A.

S.A. in multiples

Modes allowed0 yrs

17/14 yrs

30/25 yrs

60 yrs

13/11 yrs

50 yrs

50,000

1 crore

Rs.5000

All except SSS

This plan is designed in such a way that the parent or legal guardian or any other near relative of the child to provide for the child’s future by payment of a very low premium. Under this policy, the risk commences at a selected age.

(1) The period for the date of commencement of the policy to the deferred date (i.e. the date of commencement of risk on the child’s life) which is also called Deferrement period.

(2) The period for Deferred date to the on which the policy emerges as a claim by the death of the child or its survival to a stipulated date.

A combined policy is issued covering both the periods mentioned at (1) & (2) above. Police is issued on the lives of the children (Male/Female) who have not completed 18 yrs. commencement of the risk on the child’s life which may be 18 years (completed) for Table 50 & 21 yrs in the case of Table41. This is also called the “Vesting Age”.

No Medical Examination would be required where the deferrement period is 10 years & more.

Policies under this scheme will not be issued for deferrement period less than 4 years nor for maturity Age other than 30/35/40/45/50.

The main advantage of this scheme is that an assurance for a relatively large amount can be secured to a child on reaching the selected age for a premium substantially smaller than what would be required if the assurance were to be effected at that age and this irrespective of the state of the child’s health then.

This policy has (i) proposer (parent/Guardian/Nearest relative) & (ii) Life Assured (child).

The proposer can opt for a “Cash option” requesting for cancellation of the policy before the deferred date for policies with a deferrement period of 10 years or more if the premium are paid up to date.

No cash option for deferrement period less than 10 years is allowed.

In the event of proposer not exercising the “cash option” the Life Assured i.e. child will become the absolute owner of the policy of the deferrement date. Therefore the policies will be issued only if the deferrement date falls after the date on which the L.A. would attain majority so that the policy will automatically vest on the L.A. Bonus will commence from the deferrement date.

Maturity Benefit: S.A. + Accrued Bonus + FAB. If any.

Death Benefit: (I) if the L.A. dies after the Deferrement Date: S.A. +Assured Bonus + F.A.B. if any payable to nominee. (II) If the L.A. dies before the Deferrement Date: The policy shall stand cancelled and the premium paid (excluding extras like PWB) will be refunded to the proposer provided the policy is in full force or in force for a reduced cash option. (III) If proposer dies during the deferrement period: payment of premium does not case and must be continued to be paid during the currency of the policy. However if PWB is opted and if the policy is in force, on death of the proposer the premium payment is waived from the date of the proposer’s death to the end of the deferrement period.

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2) Child will not have any Insurance Coverage.3) the Policyholder can choose the level of life cover within the limit (Life cover depends on the amount of premium payable). 4) Foe regular premium policies, on death of the L.A. during the term of policy, provides for waiver of all future premiums.

• MATURITY BENEFIT: On L.A. or the CHILD nominee, surviving the date of maturity an amount equal to the policyholder’s Fund value is payable.
• Ø BENEFIF Payable on death when the cover is in full force:

A) On death of L.A., if the CHILD is alive:

(1) S.A. shall be payable to the nominee.

(2) In case of regular premium policy, payment of all future premium due shall be waived.(3) units equivalent to an amount equal to all future premium including outstanding premiums, if any (i.e. sum total of all premiums payable minus total premium paid) shall be credited to the policyholder’s fund. (4) The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue.

If less than 3 years’ premium have been paid and the policy is in lapsed condition, then the policyholder’s Fund Value shall become payable to the nominee and the policy will terminate.

B) ON death of L.A., after the death of CHILD: S.A. plus policyholder’s fund value together with an amount equal to all future premium including outstanding premiums ,if any, (i.e. sum total of all premiums minus total premium paid) shall be payable to the nominee/legal heir, at that time and the policy shall terminate. This shall also be applicable in case of simultaneous death of L.A. and the child nominee.

C) On death of CHILD before L.A.’s death: The policy will continue till maturity or till the L.A. survives, whichever is earlier.

D) On death of CHILD after L.A.’s death: An amount equal to the fund value of units shall be payable to the legal heir of L.A. and the policy shall terminate

• Ø CHARGES:

A) Premium Allocation Charge: This is the percentage of premium appropriated towards charges from premium received. The balance knows as allocation rate constitutes that part of the premium which is utilized to purchase units of the opted Fund Type under the policy.

For Top Up 1.25%

• MORTALITY CHARGE:

A) Life Cover Charge is the cost of life insurance cover to the L.A.

B) Premium Waiver Benefit Charge (for regular premium policies only): It is the charge to cover cost of waiver of all future premium including outstanding premium, if any, on death of L.A.

The above charge (A&B) will be taken every month by canceling the policyholder’s Fund Value appropriately. These charges will be deducted till the L.A. is alive.  Mortality Charges (as per chart), during a policy year, will be based on Age (nbd) of L.A. as at the policy Anniversary coinciding with the due date of cancellation of units. Hence may increase on each policy Anniversary.

The Life Cover charge shall depend up on the S.A. chose and the PWB charge shall depend upon the total amount of all future premiums.

Including outstanding premiums, if any, (i.e. total premium payable minus total premium paid) as on the date of deduction of charge.

Class I extra charge for Life Cover will be 25% of Mortality Charge for Std. Lives. Charge for higher EMR shall be multiples of class I extra charge as applicable in other plan. This extra chare will be included in the Mortality Charges.

• OTHER CHARGE:

A) Policy Administration Charge: Rs.60 p.m. during 1^st policy year & Rs.20 p.m. during 2^nd year. From 3^rd year onwards till the end of policy term Rs.20 per month escalating at 3% p.a.

B) Fund Management Charge (FMC) p.a. for: Bond Fund 0.06%; Secured Fund 0.08%; Balance Fund 1.00%; Growth Fund 1.20%. NAV, thus declared will be net of FMC.

C) Switching Charge: During the policy term switches will be allowed between one Fund to the other Fund. 4 free switches shall be allowed within a given policy year between any Fund. Subsequent switches shall be sub. To Rs.100 per switch. On switching, entire amount is switched to the Fund opted for.

D) Bid/Offer Spread charges: Nil

E) Surrender Charges: Nil

F) Service Tax Charges: At present Service tax @ 12.36% on risk premium shall be levied on Mortality, Policy Administration charges, Premium Allocation charges, FMC, Switching & Alteration. This will be deducted monthly by cancelling appropriate units.

G) Miscellaneous Charge: Levied for alteration within the contract, such as reduction in S.A., premium mode change to higher frequency may be allowed subject to a charge of Rs.50.

H) Right to revise charges: LIC reserves the right to revise all or any of the above charges except premium Allocation charge and Mortality Charge.

I) Policyholder’s Fund Value will be subject to deduction of charges: The units will be allotted and cancelled based on the NAV of the respective Fund as on the date of allotment/cancellation.

J) NAV (Net Asset Value): Bid price and Offer price of units will be equal to the NAV. It will be computed on daily basis and is based on the investment performance, FMC and whether fund is expanding or contracting under each Fund.

• FOR: 1) premium payment,  2) Surrender, 3) partial Withdrawal, 4) Death Claim, 5) Switches etc. NAV will be based on the time, the request received by LIC. If received unto 3:00pm, closing NAV of the day will be applicable. If received after 3:00pm, nest business day’s closing NAV will be applicable. Outstation cheque/DD accepted.

Partial Withdrawals: Is allowed anytime after 3^rd policy Anniversary subject to the following:

• Partial withdrawals may be in the from of fixed amount or in the from of fixed number on units.
• Under regular prem. Policy where less than 3 yrs. Premium been paid & further premiums are not paid, partial withdrawals not allowed.
• Where At least 3 years premium have been paid, partial withdrawal will be allowed sub. To a min. balance of 2 annualized premium in the policyholder’s Fund Value.

Under Single Premium policy partial withdrawal will be allowed sub. To a min. bal. of Rs.5, 000 in the policyholder’s Fund or 10% of single premium whichever is higher.

Partial withdrawal pertaining to Top-up premiums shall be allowed only after completion of 3 yrs from the date of allocation on that top-up premium. This condition will not apply if it is paid during the last 3 yrs of policy term.

After the death of L.A. during policy term, partial withdrawal may be made by the CHILD if he/she is major or by the appointee if the child is a minor.

Revival/Discontinuance of premium:

Lapsed policy can be revived during the period of 2 yrs. From the due date of First Unpaid premium (FUP) or before date of maturity   whichever is earlier. Period during which policy can be revived will be called “Revival Period”.

1. If premium not been paid for at least 3 full yes policy may be revived within 2 yrs from the due date of FUP. Revival shall be made on .Submission of proof of continued insurability.

2. If alt least 3 yrs premium have been paid and subsequent premium are not paid , The policy may be revived within two yrs from the due date of FUP, but before the date of maturity, if earlier. For Revival No proof of continued insurability required.

In both the above cases of 1 & 2, all arrears of premium without interest can be paid.

During this period Mortality charge shall be taken, as usual in addition to other charges, by cancelling an appropriate no. of units out of the policyholder’s Fund Value every month. This will continue to provide relevant risk cover for: (i) Two years from the date of FUP or (ii) till the date of maturity or (iii) till such period that the policyholder’s Fund Value reduces to one annualized premium whichever is earlier.

The benefit payable under the policy in different contingencies during the above said period when cover for charge is deducted shall be as per conditions applicable.

TOP-UP (Additional premium): Top-up in multiples of Rs.1, 000 allowed without any limit at anytime during the term without increase in S.A… At any point of time, the total of Top-up premium cannot exceed 25% of the total regular premium paid till date or 25% of the Single premium paid.

Increase/Decrease in Benefits: No increase in benefit will be allowed. However one can decrease the risk cover once in a year during the policy term, provided all due premium have been paid. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased/restored.

SURRENDER VALUE (S.V.): If any, is payable only after the completion of the 3^rd policy anniversary. S.A. will be the value of units help in the policyholder’s Fund at the date of surrender. There will be no surrender charge.

SETTLEMENT OPTION: L.A. if alive or child nominee may exercise Settlement Option1 month prior to maturity date.

On death of the policyholder after the commencement of Settlement Option period, the value of  outstanding units help in policyholder’s Fund shall become payable to the nominee/legal heir of L.A. in lump sum. (For other conditions of settlement Option you may after article under Fortune plus Table 187.)

HIGHLIGHTS OF THE PLAN:

1. Freedom to choose premium.
2. Provides for CHILD’S education/other needs.
3. Life risk cover with returns on investment.
4. Premium Waiver Benefit available.
5. Unlimited Switches from one Fund to other (4 free Switches from in a year)
6. Top-up & partial withdrawal facilities.
7. No Surrender Change.
8. Settlement Option on Maturity.

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This is a UNIT LINKED ENDOWMENT PLAN with  Regular premium paying Term which offers Investment-cum-Insurance during the term of the policy. The policyholder can choose the level of life cover with in the limits (Life Cover depends of the amount of premium one desires to pay).

The allocated premium will be invested to buy units in any one of the 4 following Type of Funds chose by the policyholder.

A) Maturity Benefit: On policyholder surviving the date of maturity. An amount equal to the value of the units help in policyholder’s Fund is payable.

B) Death Benefit: In case of death of the policyholder, when the cover is in full force, nominee shall be eligible to get Basic S.A. or value of units help in policyholder’s Fund which ever is higher, as at the date of booking liability.

In case of death Of L.A., aged less than 12 years, before commencement of risk, only value of the unite is payable.

OPTIONS:

Policyholder of Lic Money Plus 1 can opt for the following Riders:

1) Accident Benefit Rider (ABR) @ 0.50 per 1000 Accident Benefit S.A. per policy year: On Accidental Death of Policyholder during the terms of the Lic Money Plus policy a sum equal to the Accident Benefit S.A. will become payable  (in addition to the above mentioned Death Benefit), provided the AB cover is opted for and is in force.

2) Critical Illness Rider (CIR) (as per rates given at the end): An amount equal to the CIR S.A. will be payable in case of diagnosis of defined categories of critical illness, subject to certain terms and conditions, provided the CIR cover is obtained for and  is in force. CIR is available to Std. Lives only. CIR S.A. need not be added to Financial Underwriting.

Charges for ABR and CIR, if opted will be deducted every month by canceling appropriate no. of units out of Policyholders Fund Value in LIC Money Plus 1.

If the Age at entry of the L.A. is less than 18 years, then ABR/CIR Benefit can be opted from the Policy Anniversary coinciding with or immediately following the completion of 18 years of age.

Once the claim under CIR has been admitted no subsequent charge towards CIR Benefit shall be deducted. However charges towards Life cover & ABR, if any, shall continue to be deducted on monthly basis.

3) Premium Allocation Charge: This is the percentage of premium appropriated towards charges from the premium received. The balance know as allocation rate constitutes that part of the premium which is utilized to purchase (investment) units for the policy.

FOR EXAMPLE: If 10,000 is the Annual prem. Then Rs.2650 (Allocation charge at 26.5% ( See table below) is deducted towards charges in that 1^st year. Balance prem. Of Rs.7,350 is utilized to purchase units. After purchasing units for Rs.7,350, all other relevant charges will be deducted by canceling the units.

4) Partial Withdrawals:   The policyholder of Lic money plus 1 can partial withdraw units anytime after 3^rd policy Anniversary subject to certain conditions. Partial withdrawals (lic money plus) may be in the from of fixed amount or in the from of fixed number of units. In case of minors, partial withdrawals allowed only on or after 18^th birthday.

Fort 2 years period from the date of withdrawal, the Basis S.A. shall be reduced to the extent of the amount of partial withdrawals made.

MINOR LIVES: Allowed to std. Lives only

• Where the Age at entry is less than or equal : Risk will commence either after 2 year from the D.O.C. or from policy Anniversary coinciding with or immediately following completion of 7 yrs of age, which ever is later.
• Where the Age at entry is more than 10 years but less than 12 years: The risk shall commence from the policy anniversary coinciding with or next following 12^th Birthday of the L.A.
• In case of Minors aged 12 yrs or more: Risk will commence immediately.
• Non-Med. (Gen./Spl):  Allowed if CIR is not opted
• Non-Med. (Gen) OTHERS: Allowed (Max. S.A. restricted to 12 times the annualized premium).
• Overall limit for Non-med. (Gen), Non-Med. (Spl), various Non-std. age proofs & Female Cat. II& III will apply.
• Medical Exam. cost borne by LIC ,SUB=Basic S.A. less 1^st premium paid. ,MHR & Introduction : As per current rules, All other conditions for underwriting for Endowment Assurance plan will apply.
• Existing rules for Max. S.A. allowed to Minor Lives for all policies taken together will apply to this plan also.

Lic Money Plus 1: Mortality charge is the cost of Life Insurance Cover. This charge, during a policy year, will be based on the age (nbd).

Mortality charge shall depend up on the difference between the S.A. under the Basic plan and Fund Value of Units as on the date of deduction of charge, after deduction of all other charges (This shall be deduction only if, the Basic S.A. is more than the Fund Value of  the units)

Mortality charges and CIR charges, during a policy year, will be based on age (nbd) of the policyholder, as at the policy Anniversary coinciding with the due date of cancellation of units. Hence charges may increase every year on each policy (Lic money plus 1) Anniversary.

OTHER CHARGES:

A)  Policy Administration Charge: Will be Rs.60 per month during the first policy year, Rs.20 per month during 2^nd year, 3^rd year onwards throughout the term of the policy Rs.20 per month escalating at 3% P.a.

B)   Fund Management Charge (FMC): per annum for: Bond Fund 0.60%; secured Fund 0.80%; Balance Fund 1%:Growth Fund 1.20%. The NAV, thus declared will be net of FMC.

C)   Switching Charges: During the policy term of Lic Money Plus  4 switches will be allowed free of charge within a given policy year between any Fund. Subsequent switches shall be subject to Rs.100/- per switch.

D)  Bid/offer Spread Charges: NILL

E)   Surrender Tax Charges: At present Service tax charge on policy @ 12.36% on risk premium shall be levied on policy Admin., Mortality, ABR & CIR charge, if any, and on all other charges wherever applicable.

F)    Miscellaneous Charge: Levied for an alteration within the contract, such as reduction in policy term, charge in premium made to higher frequency, grant of Accident Benefit  after the issue of the policy etc., may be allowed subject to a charge of rs.50/-.

G)  Extra Charge: (Lic Money Plus 1) charge I extra charge for Life Cover will be 25% of the Mortality Charge for Std. Lives. Charge for higher EMR shall be multiples of class I extra charge as applicable in other plans. The std .extra to be charge in case of Occupation, Handicapped Lives & Resident etc. Shall be the rates applicable to Endowment plan & shall also be included in the Mortality charge. In case of sub-std. lives, Mortality charges will be inclusive of the extra charged. For Age proof NSAP-II & III Mortality charges will also include Age Proof extra.

H)  Right to revise charges: LIC reserves the right to revise all or any of the above charge except premium Allocation charge and Mortality Charge with prospective effect, after giving the policyholder a notice of 3 month.

I) NAV (Net Asset Value): The Bid price and offer price of units will be equal to the NAV. The NAV will be computer on daily and will be based on the investment performance and Fund Management charge (FMC) and whether Fund is expanding or contracting under each Fund Type. The policyholder’s Fund Value will be Subject to deduction of charge. The units will be allotted and canceled based on the NAV of the respective Fund as on the date of allotment/cancellation.

• FOR: 1) Premium Payment , 2) Surrender , 3) Partial Withdrawal, 4) Death Claim, 5) Death after maturity ( in case settlement option exercised), 6) Switches etc. NAV will be based on the time, the request received by LIC. If received up to 3.00pm, closing NAV of the day will be applicable.

Maturity claim where no settlement option is opted for, LIC NAV of the date of maturity shall be applicable. Outstation cheque /Demand draft shall not be accepted.

J)     Option to continue cover after revival period: If at least 3 yrs premium have bee paid, one many opt for continuation of cover even beyond revival period without revival and paying any further premium (can be exercised at least 1 month before completion of revival period). If the option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy Fund till the policyholder’s Fund Value reaches one annualized premium. No further premium shall be allowed to be allowed to be paid after the revival period is over.

K)  SURRENDER VALUE: The surrender value, if any, is payable only after the completion of the 3^rd policy anniversary. The surrender value will be the value of units help in the policyholder’s Fund at the date of surrender.

L)    Settlement Option: policyholder may be exercise “Settlement Option” one month prior to the date of maturity.

In this option, the maturity claim shall not be paid in lump sum. But one can   encash   the units in regular (HLY/YLY installments) spread over a period of 5 years from date of maturity. During the Settlement Option no charge other than the FMC shall be deducted. There shall not be any life cover during this period. No partial withdrawals or switching of fund shall be allowed after commencement of settlement option 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.

HIGHLIGHTS OF THE PLAN

1. Easy Liquidity (partial withdrawal).
2. Life risk cover with good returns on investment.
3. This plan can be given to Children also.
4. Freedom to choose premium.
5. Choice of 4 Investment Funds as per ones risk appetite.
6. Free Switch over from one fund to other (4 times in a year)
7. Extent of life cover of ones choice.
8. Option of CIR & AB Rider.

Check our Other LIC Plans:

1) Term Assurance Plans.

2) Children plans.

3) Basic Life Insurance Plans.

4) Unit Linked Plans.

5) LIC Micro Insurance Plan.

6) LIC Health Insurance Plans.

7) LIC Handicapped Dependants Plans.

8 ) General LIC insurance plans (Others).

==> Go back to LIC

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