Lic Market Plus 1 is a unit deferred pension plan with Single or Regular premium With or Without life cover. This Policy holder can choose the level of life cover within the limits (life cover defends on the mode and amount of premium one desires to pay). This allocated premium will be invested to purchase units in any one of the 4 following Type of Funds chosen by the Lic Market Plus 1 Policy holder:
(Plan closed on 31st August, 2010).
LIC Market Plus 1 Table
|Find Type||Investment in Govt./ Govt. Gtd. Securities/ Corporate Debt||Short-Term investments such as money market instruments||Investment in Listed Equity Shares||Details and objective of the Fund for Risk / Return|
|Bond Fund||*60%||# 40%||*15% & #55%||Steady Income-Lower to Med. Risk|
|Secured Fund||*45%||# 40%||*30% & # 70%||Bal. Income & Growth – med. Risk|
|Balance Fund||30%||# 40%||* 40% & # 80%||Long term Cap. Growth – High Risk|
|* Not less than # Not more than|
|Lic Market Plus 1 Eligibility Conditions||With Life Cover||Without Life Cover||Accident Rider||Critical Illness Rider|
|Min. S.A.||Rs. 25000||N.A.||Rs. 25000||Rs. 50000|
|Max. S.A. Single Regular: If CIR is opted If CIR not opted||Upto & equal to S.P. 10 times A.P. (Upto Age 40) 5 times A.P. (Upto Age 41 & above)20 times A.P.(Upto Age 40)10 times A.P. (Age 41 & above)||N.A.N.A.||Upto S.A. under Basic Plan (Overall50 Lacs)||Upto S.A under Basic Plan (Overall 10 lacs)|
|S.A. in multiple of||Rs. 5000||-||Rs. 5000||Rs. 10000|
|Min. Prem SingleMax. Prem RegularFurther in multiples ofMax. Prem||Rs. 25000Rs. 50000Rs. 1000 Mly (ECS)Rs.1000 Yly &250/- (ECS)no limit||Rs. 10000Rs. 5000 p.a.Rs1000 Mly (ECS)Rs.1000 Yly &250/-(ECS)no limit||No separate limit for min. & max. premium||No separate limit for min. & ma. premium|
|Min. Age at EntryMax. Age at Entry||18 (LBD)65 (nbd)||18 (lbd)74 (nbd)||18 (compl)65(nbd)||18 (compl)50(nbd)|
|Min. Def. Period/Term||5 yrs||5 yrs||5 yrs||10 to 35 yrs|
|Max. Ben. Ceasing Age||75 (nbd)||N.A.||70 (nbd)||60(nbd)|
|Min. Age at EntryMax. Age at Entry||18 (LBD)65 (nbd)||18 (lbd)74 (nbd)||18 (compl)65(nbd)||18 (compl)50(nbd)|
|Modes Allowed Mode/S.A. Rebate Age Proof Top-Ups allowed (Rs.)||All (except SSS)Not AllowedStd./NSAP I,II,III||All (except SSS) Not Allowed Any In multiples of 1000||Policy/Houseing LoanAssignmentDating BackNominationSurrender of Policy||NoNoNoYesYesYes|
|Min. Vesting AgeMax. Vesting Age||40 (Completed)75 (nbd)||40 (Completed)75 (nbd)||Policy Servicing/Others|
|When NSAP – 3 is given for With Life Cover, Maximum Age at entry is 50 yrs & Maximum Maturity Age is 65 Yrs. Note: if Min. S.A. is not in multiple of Rs. 5,000 it will be rounded off to next multiple of 5,000|
|The maximum S.A. under different Non-standard age proofs submitted will be as follows:|
|Age proof submitted||Maximum Sum AssuredAllowed|
|Single Premium||Regular Premium|
|NSAP-1||Equal to the Single Premium||20 times the annualised premium|
|NSAP-2||Equal to the Single Premium||15 times the annualised premium|
|NSAP-3||Equal to the Single Premium||10 times the annualised premium|
For single premium:3.3%
This is the percentage of the premium appropriated towards charges form the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase units for the policy
Note: Allocation rates for Top-ups:1.25%
LIC Market Plus 1 Features:
A. Benefits on Vesting: (Pension Starting Age):
On policyholder surviving upto the date of vesting, he can choose any one of the following:
1. the Fund Value of the units will be compulsorily utilized to provide a pension based on the then prevailing immediate annuity rates.
2. 1/3rd of the Fund value of the units can be commuted to get proportionate pension, Policyholder has to get proportionate pension.
Lic Market Plus 1 Policyholder has to inform LIC, 6 months prior to the date of vesting about the following:
- Annuity Option he would like to choose.
- Whether he wants to purchase pension from any other Insurance Company.
If the balance in the unit account is insufficient to purchase the minimum amount of pension the same will be refunded to the Policyholder.
B. Benefit on Death before Vesting:
- With Life Cover: in case of death of the Policyholder within the policy term where life cover is opted for and is in force, the nominee shall be eligible to get the S.A. under the basic plan plus Fund Value of the Units as at the date of settlement/booking liability whichever is earlier.
- Without Life Cover: In case the policy is taken without risk cover, then the fund value of the units shall be payable to the nominee.
- Lapsed Condition: if the policy is in lapsed condition, only the Fund Value of the Units held in the Policyholder’s Unit Account shall become payable to the nominee. In all above cases, the benefit may be taken by the nominee as lumpsum/partial lumpsum or in the form of pension on his/her life at the then prevailing immediate annuity rates under the relevant Annuity Option.
Options for LIC Market Plus 1:
Policyholder can opt for the following::
- Life Cover: The policy can be issued either with or without life insurance cover. When Policyholder wants life insurance cover he/she can choose S.A. under the basic plan and the life cover charges.
- Accident Benefits Rider (ABR) @0.50 per 1000 Accident Benefits S.A. per policy year:
On Accidental Death of Policyholder during the term of the 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. This option is not available if life cover S.A. is zero.
- 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 terms & conditions, provided the CIR cover is opted for & is in force. CIR can be added for Financial underwriting. CIR can be opted for at the inception of the policy & shall not be allowed thereafter.
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.
ABR & CIR is allowed only if life cover is opted. Charges for Life Cover, ABR & CIR, if opted will be deducted every month by canceling appropriate no. of units out of Policyholders Fund Value.
Lic Market Plus 1 Other Charges:
1. Policy Administration Charge:
Rs. 60/- per month for first policy year & Rs.20/-p.m. payable throughout the policy term.
2. Fund Management Charge (FMC): Will be deducted at the following rates p.a. on the date of computation of NAV: Balance Fund 0.5%; Secured Fund 0.6%; Balanced Fund 0.7%; Growth Fund 0.8% p.a. The NAV, thus declared will be net of FMC.
3. Switching Charges: During the policy term four switching will be allowed free of charges within a given policy year between any fund. Subsequent switches shall be sub. to 100/- per switch. On the date of switch, the units will be transferred to new fund at offer price after deducing switching charges:
Switching is not allowed under a lapsed policy.
4. Bid/Offer Spread Charges: Nil
5. Surrender Charges : Nil
6. Mortality Charges : is the cost of Life Insurance Cover. This Charge, during a policy year, will be based on the age (nbd).
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 Anniversary. Further the charges will also depend on the underwriting decision at entry or subsequent revival of the policy.
7. Service Tax Charges: At present Service tax charge @ 12.36% on risk premium shall be levied on Policy Admin., Mortality, ABR & CIR charges, if any, and on all other charges wherever applicable.
8. Miscellaneous Charges: Rs.50 per alteration is charged (reduction in term / S.A./ change in mode to higher frequency & grant of accident benefit after the issue of policy etc.) by canceling appropriate number of Units on the date of alteration in the policy.
Right to revise charges: LIC reserves the right to revise all or any of the above charges except Premium Allocation charges and Mortality Charge with prospective effect, after giving the Policyholders a notice of 3 months.
Lic Market Plus 1 NAV (Net Asset Value): The Bid Price and Offer Price of units will be equal to the NAV. Lic Market Plus 1 NAV will be computed on daily basis and will be based on the investment performance and Fund is expanding or contracting under each Fund Type. The units will be allotted and cancelled based on the NAV of the respective Fund as on the date of allotment/cancellation. For:
- Premium Payment
- Death Claim
- Switches etc. NAV will be based on upto 3.00pm, closing NAV of the day will be applicable. If received after 3.00 pm , next business day’s closing NAV will be applicable. In respect of amount available on vesting, NAV of the date of vesting of annuity shall be applicable.
Outstanding cheque/Demand draft shall not be accepted.
Discontinuance of Lic Market Plus 1 Premiums:
If Lic Market Plus 1 premiums are payable either yearly, half-yearly quarterly of Monthly (ECS) and the same have not been paid within the days of grace, the Policy will lapse. The Policyholder will have an option to receive the Lic Market Plus 1 policy within the specified period.
- I. Where at least 3 years’ Premiums have been paid, the Life cover, CIR, ABR, if any, shall continue during the revival period.
During this period, the charges for Life Cover CIR and AB cover, if any, shall be taken, in appropriate number of units out of the Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for:
- Two years from the due date of first unpaid premium, or
- Till the date of vesting or
- Till such period that the Policyholder’s fund value reduces to one annualized premium, whichever is earlier.
Benefits payable under the policy in different contingencies during the lapsation period shall be as under:
- A. In case of Death: Life cover S.A. plus Policyholder’s Fund Value, if cover is opted for. If Life cover is not opted for, then only Fund Value held is payable.
- B. In case of Death due to accident: Accident Benefit S.A. in addition to the amount under A above, if Accident Benefit is opted for.
- C. In case of CIR claim: CIR S.A.
- D. In case of Surrender: Fund Value in the Policyholder’s Account. Surrender value, however, shall be paid only after completion of 3 policy years.
- E. On vesting: Policyholder’s Fund Value.
- F. Compulsory Surrender: the Policy shall be terminated compulsorily in following cases:
- If the minimum balance in the Policyholders Fund Value will be refunded.
- In the case the policy is not revived during the revival period or on the data of vesting whichever is earlier and the balance amount in the Fund value of units shall be refunded to the policyholder.
- II. where the policy lapses without payment of atlest 3 years premiums, The Life Cover, CIR and ABR cover, if any ,shall cease and no charges for these benefits shall be deducted.
However deduction of all other changes shall continue. the benefits under such a lapsed policy shall be payable as under:
In case of Natural Death/Accidental Death:
Policyholders Fund Value.
In case of Lic Market Plus 1 Policy Surrender: Fund Value of units / monetary value of units, as the case may be, held in the Policyholder Fund Value shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 yrs. from the D.O.C. of policy.
Complusory Surrender: In case the policy is not revival, then the policy shall be terminated compulsorily after completion of three years from the D.O.C. of the policy or on expiry of revival period year, then the fund value shall be converted into monetary terms and no charges shall be converted into monetary terms and no charges shall be deducted thereafter. This monetary amount shall be deducted thereafter. This monetary amount shall be paid to the Policyholder after the end of third policy year. In case premiums are paid for less than three year, if the balance in the Policyholder’s Fund Value, at any time is not sufficient to recover the recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, will be refunded to the policyholder.
Lic Market Plus 1 Surrender Value (S.V.)
Lic Market Plus 1 Policy can be surrendered only after completion of 3 policy years both under Single & Regular premium. S.V. will be the Policyholder’s Fund Value at the date of surrender.
If surrendered within 3 years from D.O.C. then the Fund Value shall be converted into monetary terms. No charges shall be paid on completion of 3 years from D.O.C. of policy. Once a policy is surrendered it cannot be reinstate. In case of death of the life assured after the date of surrender but before the completion of 3 years from the D.O.C. of policy the monetary value payable to the completion of 3 years shall be payable to the nominee/legal heir immediately on death.
Lic Market Plus 1 Top-Up (Additional Premium):
The Policyholder can pay Lic Market Plus 1 Top-up in multiples of Rs. 1,000 without any limit at anytime during the term of the policy. In case of Monthly (ECS), Qly, Hly or Yearly mode of premium payment , such Top-up can be paid only if all due premiums have been paid under the policy.
Increase / Decrease in Benefits:
No increase in benefits will be allowed under the plan. However Policyholder can decrease any or all of the risk covers once in a year during the Policy term, provided all due premiums have been paid. When the life cover is decreased the Accident Benefit and Critical Illness rider sum assured, if any, shall also be reduced to the extent of reduced cover under the main plan. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased / restored.
|Charges for Life Cover Per Rs. 1000/- S.A. under Basic Plan per annum|
|Age nbd||Age nbd||Age nbd||Age nbd|
The unique Identification Number (UIN) for Lic Market Plus 1 is 512L24V01. This number has to be quoted in all relevant documents furnished to the Policyholders & other users. More
|Age nbd||Age nbd||Age nbd|