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 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

Table No. 147/148
Age at entry: 35 years
Policy Term: 25 years
Premium paying term: 25 years
Sum Assured: Rs. 1,00,000/-
Yearly Premium: Rs. 3,130/-
 

Year	Total premiums paid till end of year	Benefit on death payable at the end of year (Rs.)
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	3130	3130	79	188	3209	3318
2	6260	6260	238	576	6498	6836
3	9390	9390	479	1174	9869	10564
4	12520	12520	804	1996	13324	14516
5	15650	15650	1216	3055	16866	18705
6	18780	18780	1716	4366	20496	23146
7	21910	21910	2308	5943	24218	27853
8	25040	25040	2992	7803	28032	32843
9	28170	28170	3771	9961	31941	38131
10	31300	31300	4648	12438	35948	43738
15	46950	46950	15568	37222	62518	84172
20	62600	62600	29027	74718	91627	137318
25	78250	78250	78250	168913	145787	247163

 

 

Maturity Benefit
Year	Benefit Payable at Maturity	Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
25	78250	100000	53000	156500	153000	256500

 

Illustration 2:

Table No. 147/148
Age at entry: 35 years
Policy Term: 25 years
Sum Assured (Rs.): 100000
Single Premium (Rs.): 41,327  

Year	Total premiums paid till end of year	Benefit on death payable at the end of year (Rs.)
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	41327	41327	1033	2479	42360	43806
2	41327	41327	2092	5108	43419	46435
3	41327	41327	3177	7894	44504	49221
4	41327	41327	4290	10847	45617	52174
5	41327	41327	5431	13978	46758	55305
6	41327	41327	6599	17296	47926	58623
7	41327	41327	7798	20813	49125	62140
8	41327	41327	9026	24542	50353	65869
9	41327	41327	10285	28494	51612	69821
10	41327	41327	11575	32683	32683	74010
15	41327	41327	27910	72695	69237	114022
20	41327	41327	40905	118595	82232	159922
25	41327	41327	82878	241699	124205	283026

 

 

Maturity Benefit
Year	Benefit Payable at Maturity	Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
25	41327	100000	36500	216500	136500	316500

 

 

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

ii) 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.

iii) 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.

iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

v) The maturity sum shown in the illustration is to be annuitised. However, the policyholder can opt to take upto one-fourth of the maturity sum as a tax-free lump sum.