Benefit Illustration

Statutory warning:

 

"Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business.  If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page.  If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns.  These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance."

Illustration 1

 

Age at entry: 0 years
Premium Paying Term: 1 Year
Single Premium: Rs. 73,980/-
Policy Term: 26 years
Sum Assured: Rs. 1,00,000/-
 

Year	Total Premiums Paid Till End Of Year	Benefit on Death during the year (Rs.)
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	73980	73980	0	0	73980	73980
2	73980	73980	0	0	73980	73980
3	73980	73980	0	0	73980	73980
4	73980	73980	0	0	73980	73980
5	73980	73980	0	0	73980	73980
6	73980	73980	0	0	73980	73980
7	73980	145000	0	12000	145000	157000
8	73980	152500	0	16000	152500	168500
9	73980	160000	0	21000	160000	181000
10	73980	167500	0	26000	167500	193500
15	73980	205000	0	67000	205000	272000
20	73980	242500	0	128000	242500	370500
26	73980	287500	0	277000	287500	564500

 

 

End of year		Benefit on Survival / Maturity at the end of Year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
18		20000	0	0	20000	20000
20		20000	0	0	20000	20000
22		30000	0	0	30000	30000
24		30000	0	0	30000	30000
26		195000	0	277000	195000	472000

Illustration 2

 

Age at entry: 0 years
Premium Paying Term: 18 Years Annual Premium: Rs. 7281/-
Policy Term: 26 Years
Sum Assured: Rs. 1,00,000 /-
 

Year	Total premiums paid till end of year	Benefit on Death during the year (Rs.)
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	7281	7281	0	0	7281	7281
2	14562	14562	0	0	14562	14562
3	21843	21843	0	0	21843	21843
4	29124	29124	0	0	29124	29124
5	36405	36405	0	0	36405	36405
6	43686	43686	0	0	43686	43686
7	50967	145000	0	3000	145000	148000
8	58248	152500	0	5000	152500	157500
9	65529	160000	0	8000	160000	168000
10	72810	167500	0	11000	167500	178500
15	109215	205000	0	43000	205000	248000
20	131058	227500	0	71000	227500	298500
26	131058	242500	0	91000	242500	333500

 

 

End of year		Benefit on Survival / Maturity at the end of Year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
18		20000	0	0	20000	20000
20		20000	0	0	20000	20000
22		30000	0	0	30000	30000
24		30000	0	0	30000	30000
26		195000	0	176000	195000	371000

 

 

 

1. This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.


2. The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.


3. The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.