Benefits

A) Death Benefit:
If the Life cover is opted for, the Sum Assured under the Basic Plan together with the Policyholder’s Fund Value shall be payable either in a lump sum or as pension. In case the policy is taken without life cover, then the Policyholder’s Fund Value shall be payable either in a lump sum or as pension.
The amount of pension will depend on the payable lump sum and the then prevailing immediate annuity rates under the annuity option chosen.

B) Benefit  on Vesting:
On your surviving to the date of vesting, the Policyholder’s Fund Value will compulsorily be utilised to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option.  However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase pension from LIC or other life insurance company.

1. Options :
A) Life Cover Option:
This plan may be opted for with or without life insurance cover. If life insurance cover is opted for, he/ she can choose the level of cover within the limits. This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life Assured is 75 years.

B) Accident Benefit Option:
If you have opted for life cover, you may opt for Accident Benefit equal to life cover subject to minimum Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers). This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life Assured is 70 years. In case of death by Accident, an additional sum equal to Accident benefit will be payable.

C) Critical Illness Benefit Rider:
If you have opted for life cover, you may opt for Critical Illness Benefit equal to the life cover subject to a minimum of Rs. 50,000 and maximum of Rs. 10 lakh (including other policies with LIC of India) provided the policy term is 10 years and above. This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life Assured is 60 years or for a maximum policy term of 35 years whichever is earlier. In case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, a sum equal to the Critical Illness Benefit shall be payable

                                                                      
   2. Investment of Funds: The plan offers following four funds detailed below:

The Policyholder has the option to choose any ONE out of the above 4 funds.
3. 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, 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, 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 the policies vesting, NAV of the date of vesting 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.

4. Charges under the Plan:
A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges 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:
 For Single premium policies:      3.3%
 For Regular premium policies:  

Allocation charge for Top-up:      1.25%                                                                     
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 charges per Rs. 1000/- life insurance cover for some of the ages in respect of a healthy life are as under:

ii Critical illness Benefit rider charge - This is the cost of Critical Illness Benefit rider (if opted for). These are age specific and will be taken every month.The charges per Rs. 1000/- Critical Illness Rider Sum Assured per annum for some of the ages in respect of a healthy life are as under:

iii Accident Benefit charge - This 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:

1) Policy Administration charge:  Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout the term of the policy.

2) Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:
0.50% p.a. of Unit Fund for “Bond” Fund
0.60% p.a. of Unit Fund for “Secured” Fund
0.70% p.a. of Unit Fund for “Balanced” Fund
0.80% p.a. of Unit Fund for “Growth” Fund
     Fund Management Charge shall be appropriated while computing NAV.

3) Switching Charge –This is the 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.

4) Bid/Offer Spread – Nil.

5) Surrender Charge – Nil     

6) Service Tax Charge – A service tax charge, if any, shall be levied on the following charges
      a)Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider, if   any – by canceling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider charges are deducted.
         b) Premium allocation - at the time of allocation.
         c) Fund Management – at the time of deduction of Fund Management   Charge.
         d) Switching - at the time of effecting switch and
         e) Alteration ( as provided under Miscellaneous charge) -  on the date of alteration in               the policy.
The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an educational cess at the rate of 3% thereon and hence effective rate is 12.36%.

7) Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode, etc. An alteration may be allowed subject to a 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, 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:

1. Bond Fund:               1.00% p.a. of Unit Fund
2. Secured Fund:           1.10% p.a. of Unit Fund
3. Balanced Fund:          1.20% p.a. of Unit Fund
4. Growth Fund:             1.30% p.a. of Unit Fund

- Critical Illness Benefit charges shall not exceed by more than 200% of the current rate.
 
- Switching Charge shall not exceed Rs. 200/- per switch.

- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.
In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value.

5. Surrender:
The Surrender value, if any, is payable only after completion of the third policy anniversary both under Single and Regular premium contract. 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 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 completion of 3 years shall be payable to the nominee/ legal heir 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, the policy shall be terminated after completion of 3 years from the date of commencement of the policy or on expiry of revival period, whichever is later. However, if the date of vesting falls before the expiry of revival period, then the policy shall be terminated on the date of vesting.
ii)  where premiums have been paid for less than 3 years or under single premium policies, if 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 a minimum balance of one annualized premium.
Policyholder’s Fund Value shall be converted into monetary value 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 will be the monetary amount.