Benefits

1. Benefits:
A) Death Benefit:Higher of Sum Assured or the Policyholder’s Fund Value shall be available as death benefit. 

B) Maturity Benefit: On the Life Assured surviving the maturity date of the contract, an amount equal to the Policyholder’s Fund Value is payable. 

2. Options:
Accident Benefit Option:
If you are above 18 years of age, you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs. 25,000/- and maximum of Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident Benefit sum assured shall be payable.

4. Eligibility Conditions and Other Restrictions:

 

Minimum Age at entry	12 years (age last birthday)
Maximum Age at entry	60 years (age nearer birthday)
Minimum Maturity Age	18 years (completed)
Maximum Maturity Age	65 years (age nearer birthday)
Minimum Policy Term	5 years
Maximum Policy Term	20 years
Minimum Premium	Rs.20,000/- for first Premium
Sum Assured under the Basic Plan	Higher of 5 times the first year’s annualized premium or half of the policy term times the first year’s annualized premium.

 

Where the minimum Sum assured is not in the multiples of Rs. 5,000/-, it will be rounded off to the next multiple of Rs. 5,000/-.

5. Investment of Funds: Plan offers following four Funds detailed below:

Fund Type	Investment in Government / Government Guaranteed Securities / Corporate Debt	Short-term Investment such as money market Instruments (Including Govt. Securities & Corporate Debt)	Investment in Listed Equity Shares	Details and objective of the fund for risk/return
Bond Fund	Not less than 60%	100%	Nil	Low risk
Secured Fund	Not less than 45%	Not more than 85%	Not less than 15% & Not more than 55%	Steady Income - Lower to Medium risk
Balanced Fund	Not less than 30%	Not more than 70%	Not less than 30% & Not more than 70%	Balanced Income and growth - Medium risk
Growth Fund	Not less than 20%	Not more than 60%	Not less than 40% & Not more than 55%	Long term Capital growth - High Risk

 

The Policyholder has the option to choose any ONE of the above 4 funds.
6. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:

Appropriation price is applied (when fund is expanding): Market value of investments held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated). 

Expropriation price is applied (when fund is contracting): Market value of investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).

Applicability of Net Asset Value (NAV): The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, switches etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable.

In respect of maturity claim, NAV of the date of maturity shall be applicable.
The timing given is as per the existing guidelines and changes in this regard shall be as per the instruction from IRDA.

7. Charges under the Plan: 
A) Premium Allocation Charge: This is the percentage of the premium deducted from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

Premium Band (per annum)	Allocation Charge
	First year	thereafter
20,000 to 2,00,000	15.00 %	2.50 %
2,00,001 to 3,00,000	14.50 %	2.50 %
3,00,001 to 6,00,000	13.00 %	2.50 %
6,00,001 and above	13.50 %	2.50 %

 

B) Charges for Risk Covers: 

i) Mortality Charge - This is the cost of life insurance cover which is age specific and will be taken every month. The life insurance cover is the difference between Sum Assured under Basic plan and the Fund Value after deduction of all other charges. 

The charges per Rs. 1000/- life insurance cover for some of the ages in respect of a healthy life are as under:
 

Age	25	35	45	55
Rs.	1.42	1.73	3.89	10.76

 

ii) Accident Benefit Charge - It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year.

C) Other Charges: 
i) Policy Administration Charge - Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout the term of the policy. 

ii) Fund Management Charge - It is the charge levied as a percentage of the value of units at following rates:
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 “Balanced” Fund
1.50% p.a. of Unit Fund for “Growth” Fund
Fund Management Charge shall be appropriated while computing NAV.

iii) Switching Charge - This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch. 

iv) Bid/Offer Spread - Nil.

v) Surrender Charge - Nil. 

vi) Service Tax Charge - A service tax charge shall be levied on the Mortality Charges and,  Accidental benefit under charges if any, on the monthly basis THE level of the charges will be as
as per the rate of service tax as aplicable from time to time Presently the rate of service tax is 12% with a educaqtional cess at the rate of 3% thereon and  hence effective rate is 12.36%.

vii) Miscellaneous Charge - This is the charge levied for a alteration within the contract, such as reduction in policy term, change in premium mode etc. An alteration  may be allowed  subject to charge of Rs 50/-.

D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit:

Policy Administration Charge
Rs.150/- per month during the first policy year and Rs. 50/- per month thereafter, throughout the term of the policy.

Fund Management Charge: The Maximum for each Fund will be as follows:
i. Bond Fund: 1.5% p.a. of Unit Fund 
ii. Secured Fund: 2.0% p.a. of Unit Fund
iii. Balanced Fund: 2.5% p.a. of Unit Fund
iv. Growth Fund: 3.0% p.a. of Unit Fund

Switching Charge shall not exceed Rs. 200/- per switch.

Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

8. Surrender:
The surrender value, if any, is payable only after the completion of the third policy anniversary. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge.
If you apply for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s fund value of units shall be converted into monetary terms. No charges shall be deducted thereafter and this monetary value shall be paid on completion of 3 years from the date of commencement of policy.
In case of death of life assured after the date of surrender but before the completion of 3 years from the date of commencement of policy the monetary value payable on the complition of 3 years shall be payable to the nominee/ legal hair immediately on death

Compulsory Surrender:
The policy shall be surrendered compulsorily in following cases:
i) Where the policy is not revived during the period of revival policy shall be terminated after complition of 3 years from the date of commencement  of the  policy or on expiry of revival period  ,which ever is latter.However , if  date of maturity falls before the expiry of revival period, policy shall be terminated on the date iof maturity.
ii) where premiums have been paid for less than 3 years and the balance in policyholder’s fund value is not sufficient to recover the relevant charges;

iii) where premiums have been paid for at least 3 years and the balance in policyholder’s fund value falls below Rs. 5,000/-.
The conversion in monetary value shall be as under:
The NAV on the date of application for surrender or on the date when revival period is over (in case of compulsory surrender), as the case may be, multiplied by the number of units in the Policyholder’s Fund as on that date.