LIC Money Plus 1 : Table Number 193 : ULIP Plan
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.
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 1st 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 3rd 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 18th 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.
|Eligibility condition||Accident Rider||Critical Rider|
|Min. S.A||5 time the Annualized prem. (A.P)||RS.25,000||Rs.50,000|
|Max. S.A||30 times the A.P. (up to Age 45 nbd).20 times the A.P ( Age 46-60 nbd).
10 times the A.P. (Age 61-65 nbd).
|Up to S.A. under Basic plan (Overall 50 lakes)||Up to S.A. under Basic plan ( Rs.10lakhs overall limit)|
|S.A. in multiples of||Rs.5,000 (see note below)||Rs.5000||Rs.10,000|
|Min. prem.Further prem. In multiples of
|Rs.5,000 p.a.; Mly ECS: Rs.1,000Rs.1,000 p.a. Mly ECS: Rs.250
No limit (NO Top Ups Allowed)
No separate limit
No separate limit
|Age at Entry Min.:Age at Entry Max.:||0 years (lbd)65 yrs (nbd)||18 yrs (completed)65 yrs (nbd)||18 yrs (completed)50 yrs (nbd)|
|Policy Term||Min: 5 yrs Max:30 yrs||5 to 30 years||10 to 30 years|
|Maturity Age||Min.: 18 yrs (Com);Max.: 75 yrs (nbd)||70 yrs (nbd)||60 yrs (nbd)|
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 12th 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 1st 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.
A) Policy Administration Charge: Will be Rs.60 per month during the first policy year, Rs.20 per month during 2nd year, 3rd 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 3rd 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
- Easy Liquidity (partial withdrawal).
- Life risk cover with good returns on investment.
- This plan can be given to Children also.
- Freedom to choose premium.
- Choice of 4 Investment Funds as per ones risk appetite.
- Free Switch over from one fund to other (4 times in a year)
- Extent of life cover of ones choice.
- Option of CIR & AB Rider.