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Benefits

JEEVAN SURABHI – (Table Nos. 106,107 & 108)

Introduction :
Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers.  The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).
 
For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

 

Product summary :

 
This is a with-profits plan available for three different terms of 15, 20 and 25 years with corresponding premium paying terms of 12, 15 and 18 years. The plan provides a specified percentage of Sum Assured on survival up to specified durations. A life insurance cover is available throughout the term of the plan which increases after every five yearly intervals.
 
Premiums:  
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the premium paying term of the policy or till the earlier death.
 
Bonuses : This is a with-profit plan and participate in the profits of the Corporation’s life insurance business.  It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided policy has run for certain minimum period.
 
Death Benefit :    
The Sum Assured alongwith the additional cover, if any, plus all bonuses declared till death is payable in a lump sum upon the death of the life assured during the policy term. The survival benefits paid prior to death will not be deducted from the claim amount.
 
Survival Benefit : A percentage of sum assured as mentioned below will be paid on your survival to the end of specified durations:
 

 
Percentage of Sum Assured payable at the end of specified duration
Plan and Term ( Premium Paying Term )
Duration 106/15(12) 107/20(15) 108/25(18)
4 30% 25% 20%
5 - - -
8 30% 25% 20%
10 - - -
12 40% 25% 20%
15   25% 20%
18 - - 20%
 

 
Maturity Benefit :   
The policy matures on your survival to the end of the policy term. All bonuses declared up to maturity date will be paid in a lump sum.
 
Supplementary/Extra Benefits :  These are the optional benefits that can be added to your basic plan for extra protection/option.  An additional premium is required to be paid for these benefits.
 
Surrender Value :   
Buying a life insurance contract is a long-term commitment.  However, surrender values are available under the plan on earlier termination of the contract.
 
Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more.  The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium in case no survival benefit payment has already fallen due. Where one or more survival benefits have fallen due, the guaranteed surrender value will be 30% of the premiums paid on or after the due date of payment of latest survival benefit.
 
Corporation’s policy on surrenders :
 In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the number of premiums paid and the duration at which surrender value is calculated. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
 
The Corporation reviews the surrender value under its plans from time to time depending on the economic environment, experience and other factors.
 
  Note :The above is the product summary giving the key features of the plan.  This is for illustrative purpose only.  This does not represent a contract and for details please refer to your policy document.
 
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 (Table 106)
Age at entry : 35 years
Policy Term : 15 Years  
Premium Paying Term : 12 Years 
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 10963 /-
 

 
Year
 
 
Total premiums paid till end of year Benefit on death during the year
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
             
1 10963 100000 2400 4800 102400 104800
2 21926 100000 4800 9600 104800 109600
3 32889 100000 7200 14400 107200 114400
4 43852 100000 9600 19200 109600 119200
5 54815 100000 12000 24000 112000 124000
6 65778 150000 14400 28800 164400 178800
7 76741 150000 16800 33600 166800 183600
8 87704 150000 19200 38400 169200 188400
9 98667 150000 21600 43200 171600 193200
10 109630 150000 24000 48000 174000 198000
12 131556 200000 28800 57600 228800 257600
15 131556 200000 36000 72000 236000 272000

 
 

Year Total premiums paid till the end of year Benefit on survival / maturity
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
             
1 10963 0 0 0 0 0
2 21926 0 0 0 0 0
3 32889 0 0 0 0 0
4 43852 30000 0 0 30000 30000
5 54815 0 0 0 0 0
6 65778 0 0 0 0 0
7 76741 0 0 0 0 0
8 87704 30000 0 0 30000 30000
9 98667 0 0 0 0 0
10 109630 0 0 0 0 0
12 131556 40000 0 0 40000 40000
15 131556 0 36000 72000 36000 72000

 

Illustration 2 (Table 107)
Age at entry : 35 years
Policy Term : 20 Years
Premium Paying Term : 15 Years 
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 9581 /-

              
Year Total Premiums paid till end of year Benefit on death during the year
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 9581 100000 2100 4600 102100 104600
2 19162 100000 4200 9200 104200 109200
3 28743 100000 6300 13800 106300 113800
4 38324 100000 8400 18400 108400 118400
5 47905 100000 10500 23000 110500 123000
6 57486 150000 12600 27600 162600 177600
7 67067 150000 14700 32200 164700 182200
8 76648 150000 16800 36800 166800 186800
9 86229 150000 18900 41400 168900 191400
10 95810 150000 21000 46000 171000 196000
12 114972 200000 25200 55200 225200 255200
15 143715 200000 31500 69000 231500 269000
20 143715 250000 42000 92000 292000 342000


 

 
Year
 
 
Total premiums paid till end of year Benefit on Survival / Maturity
 
Guaranteed
Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 9581 0 0 0 0 0
2 19162 0 0 0 0 0
3 28743 0 0 0 0 0
4 38324 25000 0 0 25000 25000
5 47905 0 0 0 0 0
6 57486 0 0 0 0 0
7 67067 0 0 0 0 0
8 76648 25000 0 0 25000 25000
9 86229 0 0 0 0 0
10 95810 0 0 0 0 0
12 114972 25000 0 0 25000 25000
15 143715 25000 0 0 25000 25000
20 143715 0 56000 122000 56000 122000

 

Illustration 3 (Table 108)
Age at entry : 35 years
Policy Term : 25 Years    
Premium Paying Term : 18 Years 
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 8776 /-


               
 
Year
 
 
Total premiums paid till end of year Benefit on death during the year
 
Guaranteed
Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
             
1 8776 100000 2800 6500 102800 106500
2 17552 100000 5600 13000 105600 113000
3 26328 100000 8400 19500 108400 119500
4 35104 100000 11200 26000 111200 126000
5 43880 100000 14000 32500 114000 132500
6 52656 150000 16800 39000 166800 189000
7 61432 150000 19600 45500 169600 195500
8 70208 150000 22400 52000 172400 202000
9 78984 150000 25200 58500 175200 208500
10 87760 150000 28000 65000 178000 215000
12 105312 200000 33600 78000 233600 278000
15 131640 200000 42000 97500 242000 297500
18 157968 250000 50400 117000 300400 367000
20 157968 250000 56000 130000 306000 380000
25 157968 300000 70000 162500 370000 462500

 

 
Year
 
 
Total premiums paid till end of year Benefit on survival / maturity
 
Guaranteed
Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 8776 0 0 0 0 0
2 17552 0 0 0 0 0
3 26328 0 0 0 0 0
4 35104 20000 0 0 20000 20000
5 43880 0 0 0 0 0
6 52656 0 0 0 0 0
7 61432 0 0 0 0 0
8 70208 20000 0 0 20000 20000
9 78984 0 0 0 0 0
10 87760 0 0 0 0 0
12 105312 20000 0 0 20000 20000
15 131640 20000 0 0 20000 20000
18 157968 20000 0 0 20000 20000
20 157968 0 0 0 0 0
25 157968 0 93000 220500 93000 220500

 

  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. 
  4. 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. 
  5. The maturity benefit is the amount shown at the end of the policy term.
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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