Market Plus

 Premium Calculator    Email this page   Print preview

Features:

Investment fund types:

Charges and frequency of charges:

Other Charges:

Applicability of net asset value (NAV):

Benefits:

Discontinuance of premiums:

Surrender value and surrender charge:

Policy parameters:

Additional features:

Modes of premium payment:

Days of grace:

Revivals:

Cooling-off period:

Back dating:

Assignments / nomination:

Features:

LIC's Market Plus (Plan No. 181) is a unit linked deferred pension plan. The policyholder can choose the plan with or without risk cover. He can also choose the level of cover within the limits, which will depend on the mode and amount of premium he/she desires to pay. The allocated premium will be utilized to buy units as per the selected fund type.

The Policyholder's Unit Account will be subject to deduction of charges. Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund of the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to the NAV). The NAV will be declared on a daily basis and will be based on the investment performance, Fund Management Charges (FMC) and whether fund is expanding or contracting under each fund type. Other details of this plan are as follows.

Investment fund types:

The types of fund and their investment pattern are as under:

The Policyholder will have the option to choose any one of the above 4 Funds. In case no Fund is opted for, the allocated premiums shall, by default, be invested in the Secured Fund. The NAV will be computed on a daily basis. For one month from the date of launch, the NAV under all funds will be Rs.10/-.

Charges and frequency of charges:

i) Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium, which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

Regular premium:

Allocation charge for Top-up: 1.25%

ii) Mortality Charge: This is the cost of life insurance cover. Mortality charge, if any, will be taken every month by canceling appropriate number of units out of the Policyholder's Unit Account as per the rate prevalent at the time of policy issue.

If opted for Life cover, charge in respect of the same, during a policy year, will be based on the age nearer birthday of the Policyholder as at the Policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. Further, the charges will also depend on health, occupation and lifestyle of the Policyholder.

iii) Accident Benefit Charge: Charges for Accident Benefit rider, if any, will be taken every month by canceling appropriate number of units out of the Policyholder's Unit Account as per the rate prevalent at the time of policy issue.

A level charge, at present, is at the rate of Rs.0.50 per thousand Accident Benefit Sum Assured per policy. Accident Benefit rider will be allowed only if life cover is opted for. The charges for life cover and rider benefit will be made only if they are opted for.

Other Charges:

The Policy Administration charge of Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout the term of the policy, will be deducted by canceling appropriate number of units out of Policyholder's Unit Account:

b) Fund management charge - Fund Management Charges (FMC) are dependent on type of Fund and are deductible on the date of computation of NAV at the following rates:

c) Switching charges - This is a charge levied on switching of monies from one fund to another.

d) Bid/offer spread - Nil.

e) Surrender charges - This is a charge levied on the unit fund at the time of surrender of the contract. This charge is nil.

f) Service tax charge - A service tax charge shall be levied on the Life Cover Charges and Accident Benefit charges, if any, and shall be taken by canceling appropriate number of units out of the Policyholder's Unit Account on a monthly basis as and when the corresponding Life cover and Accident Benefit charges are deducted. The level of this charge will be as per the rate of service tax on risk premium as applicable from time to time. Currently, the rate of service tax is 12% with an educational cess at the rate of 2% thereon and hence effective rate is 12.24%.

g) Miscellaneous Charge - This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode to lower frequency, Grant of Accident Benefit after the issue of the policy etc., may be allowed subject to a charge of Rs. 50/- which will be deducted by canceling appropriate number of units out of the Policyholder's Unit Account and the deduction shall be made on the date of alteration in the policy.

The Corporation reserves the right to accept or decline the alteration in the policy. The alteration shall take effect from the policy anniversary coincident or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except Premium Allocation charge and charges for optional covers. The modification in charges will be done with prospective effect with the prior approval of IRDA and after giving the policyholders a notice of 3 months.

Applicability of net asset value (NAV):

The allotment of units will be as per IRDA guidelines. The guidelines state as under:

The premiums received up to 4.15 p.m. by the corporation along with 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 4.15 p.m. by the corporation along with 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. The outstation cheque/ demand draft shall not be accepted.

In respect of the valid applications received for surrender, death claim, switches etc up to 4.15 p.m. by the servicing Branch the same day's closing NAV shall be applicable. For the valid applications received in respect of surrender, death claim, switches etc after 4.15 p.m. by the servicing Branch the closing NAV of the next business day shall be applicable. In respect of amount available on vesting, NAV of the date of vesting of annuity shall be applicable.

Benefits:

a) Benefits payable on death before vesting: In case of death of the policyholder within the deferment term where Life cover is opted for and is in force, the nominee shall be eligible to get the Sum Assured under the Basic Plan together with the Fund Value of units held in the Policyholder's Unit Account as at the date of booking the liability. The liability shall be booked after receipt of intimation along with death certificate. The benefit may be got in a lump sum or in the form of pension. The pension will be based on the then prevailing immediate annuity rates under the relevant annuity option.

In case the policy is taken without risk cover, then the Fund Value of units held in the Policyholder's Unit Account as at the date of booking the liability, as mentioned above, shall be payable to the nominee. Again, the nominee can choose either a lump sum or pension, which will be based on the then prevailing immediate annuity rates under the relevant annuity option. The nominee can also take the proceeds partially as a lump sum and the balance as an annuity.

If the policy is in lapsed condition, then only the Fund Value of the units held in the Policyholder's Unit Account shall become payable to the nominee. This benefit may be chosen either in lump sum or in the form of pension as desired by the nominee. The pension will be based on the then prevailing immediate annuity rates under the relevant annuity option.

b) Benefit on vesting:

On the policyholder surviving up to the date of vesting, the Fund Value of the units held in the Policyholder's Unit Account will compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option. The policyholder will have to intimate his/ her choice of annuity option to the Corporation 6 months prior to the date of vesting under the policy. There is also an option to commute up to one-third of the Fund Value of the units held in the Policyholder's Unit Account at the time of vesting of the annuity, which shall be paid in lump sum. In case commutation is opted for, the amount of annuity/pension available will be reduced proportionately. There will also be an option to purchase pension from any other life insurance company subject to Regulatory provisions. If the policyholder opts to purchase pension from other insurance company, he/she will have to inform LIC six months prior to the vesting date. In such cases, LIC will transfer the Fund Value of the units held in the Policyholder's Unit Account directly to the chosen Company.

Notwithstanding the above mentioned, in case the amount at the vesting date is insufficient to purchase the minimum amount of pension allowed by LIC, then the balance in the Policyholder's Unit Account at the vesting date shall be refunded to the Policyholder.

c) Options:

The policy can be issued either with or without life insurance cover. If life insurance cover is opted for by the policyholder, he/ she can choose Sum Assured within the following limits, subject to a minimum of Rs. 25,000 under Single Premium policies and Rs. 50,000 under Regular Premium policies. For maximum sum assured- For Single Premium policies: up to and equal to the Single Premium For Regular Premium policies: up to 20 times of the annualised premium. Further, Sum Assured under the Basic Plan shall be in the multiples of Rs.5,000.

Accident Benefit (AB) can be availed of as an optional Rider benefit by paying an additional premium of Rs.0.50 for every Rs.1,000/- of the Accident Benefit Sum Assured per policy year by cancellation of appropriate number of units out of the Policyholder's Unit Account every month. On Accidental death of the Policyholder during the term of the policy, a sum equal to the Accident Benefit Sum Assured will become payable, provided the Accident benefit cover is opted for and is in force. Further, it will be available up to the life cover Sum Assured opted for, subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes including policies with in-built accident benefit taken from Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

The Accident Benefit rider option will not be available in case life cover sum assured is zero. This benefit will be available only till the policy anniversary on which the age nearer birthday of the Policyholder is 70 years. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

The rate at which the claim amount will be converted into an annuity is not guaranteed and will be at the rate prevalent at that time. Further a number of annuity options will be available and the rate for different options may differ.

Discontinuance of premiums:

If premiums are payable either yearly, half-yearly or quarterly and the same have not been paid within the days of grace under the policy, the policy will lapse. The policyholder will have an option to revive the policy within the specified period.

Surrender value and surrender charge:

The policyholder will have an option to surrender the policy only after completion of three policy years both under Single and Regular premium contracts. The surrender value will be the Fund Value of units held in the Policyholder's Unit Account at the date of surrender. There will be no surrender charge.

If a policyholder applies for surrender of the policy within 3 years from the date of commencement of policy, then the Fund Value of units shall be converted into monetary terms. No charges shall be made thereafter and this monetary amount shall be paid on completion of 3 years from the date of commencement of policy.

The conversion in monetary amount shall be as under:

Irrespective of whether the policy is a single premium or regular premium policy or has run for less or more than three years, if the balance in the Policyholder's Unit Account, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder's Unit Account will be refunded to the policyholder.Once a policy is surrendered it cannot be reinstated.

Policy parameters:

(Sum assured shall be available in multiples of Rs. 5,000 & annualised premiums shall be payable in multiples of Rs. 1,000).

Additional features:

a) Switching: The policyholder can switch between any fund types during the policy term. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch. Switching shall not be allowed under a lapsed policy.

b) Top-up (Additional Premium): The policyholder can pay top-up in multiples of Rs.1,000/- without any limit at anytime during the term of the policy. In case of quarterly, half-yearly or yearly mode of premium payment such top-up can be paid only if all due premiums have been paid under the policy.

c) Increase / decrease in benefits: No increase (except to the extent of top-up stated above) or decrease in benefits will be allowed under the plan.

Modes of premium payment:

Regular premium can be paid either in yearly, half yearly or quarterly installments. The minimum Annualised Premium will be Rs. 5,000/- increasing thereafter in multiples of Rs. 1,000/-. There will be no mode specific charges/ rebates. Single premium can be paid subject to a minimum of Rs. 10,000 and thereafter in multiples of Rs. 1,000.

Days of grace:

A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums. If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in-force and the benefits the policy will be treated as in-force and the benefits shall be paid after deduction of all the relevant charges, if not recovered.

If the premium is not paid before the expiry of the days of grace, the policy lapses and benefits shall be paid as per details given in Para 6 above.

Revivals:

If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before vesting, whichever is earlier. The period during which the policy can be revived will be called "Period of revival" or "revival period".

Cooling-off period:

If a policyholder is not satisfied with the "Terms and Conditions" of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy.

Back dating:

Back dating of policy will not be allowed.

Assignments / nomination:

Notice of Nomination/ change of Nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. No assignment will be allowed under this plan.