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Benefit Illustration

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 ife 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 (Table 89)

Age at entry : 35 years (Equivalent age)
Policy Term : 25 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 5361 /-
   

End of year
Total premiums paid till end of year
Benefit payable on first death of lives covered
 
Benefit payable on second death of lives covered during the policy term or on survival of one or both the lives till the date of maturity
Guaranteed Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 5,361
 
100000 100000 2,100
 
5,700
 
102,100 105,700
 
2 10,722
 
100000 100000 4,200
 
11,400
 
104,200
 
111,400
 
3 16,083
 
100000 100000 6,300
 
17,100
 
106,300
 
117,100
 
4 21,444
 
100000 100000 8,400
 
22,800
 
108,400
 
122,800
 
5 26,805
 
100000 100000 10,500
 
28,500
 
110,500
 
128,500
 
6 32,166
 
100000 100000 12,600
 
34,200
 
112,600
 
134,200
 
7 37,527
 
100000 100000 14,700
 
39,900
 
114,700
 
139,900
 
8 42,888
 
100000 100000 16,800
 
57,000
 
116,800
 
145,600
 
9 48,249
 
100000 100000 18,900
 
57,000
 
118,900
 
151,300
 
10 53,610
 
100000 100000 21,000
 
57,000
 
121,000
 
151,300
 
15 80,415
 
100000 100000 31,500
 
85,500
 
131,500
 
185,500
 
20 107,220
 
100000 100000 56,000
 
152,000
 
156,000
 
252,000
 
25 134,025
 
100000 100000 69,500
 
189,500
 
169,500
 
289,500
 


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 Benefit is the amounts shown at the end of the policy term.

vi) Equivalent age for premium calculation is worked out by referring to actual ages of the lives covered.

Life Insurance Corporation of India – Corporate Office : Yogakshema Building, Jeevan Bima Marg, P.O. Box No – 19953, Mumbai – 400 021 IRDAI Reg No- 512
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