Tuesday, August 30, 2011

Benefits Features

LIC’s Jeevan Arogya gives you:
As the name explains “LIC’s Bima Account – I ” is a simple non-linked plan under which you can be covered without undergoing any medical examination subject to certain conditions.

This plan offers you everything you think of an insurance plan should provide:

   1. Simplicity
   2. Liquidity
   3. Guaranteed minimum return
   4. No medical examination
   5. Transparent charges
   6. Risk cover

Under this plan, the premiums paid by you, after deduction of charges, will be credited to the Policyholder’s Account maintained separately for each policyholder. The risk cover will be provided by deduction of mortality charges from the Policyholder’s Account.

If all due premiums are paid, the amount held in your Policyholder’s Account will earn an annual interest rate of 6% p.a. which will be guaranteed for whole of the policy term. In addition to this guaranteed return, if all due premiums are paid, your account may earn an additional return depending upon the experience under this plan.

You will also have an option to pay additional (Top-up) premiums without any increase in risk cover.

Loan facility will also be available immediately after first policy anniversary.

PAYMENT OF PREMIUMS: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.


Policyholder’s Account shall consist of 2 parts:

   1. Policyholder’s Regular Premium Account - to which regular premiums, net of charges, shall be credited.
   2. Policyholder’s Top-up Premium Account - to which Top-up premiums, net of charges, shall be credited.

      ELIGIBILITY CONDITIONS  AND  OTHER  RESTRICTIONS:

             (in years)

   1. Minimum Entry Age              :     11 (completed)
   2. Maximum Entry Age              :     50 (nearest birthday)
   3. Policy Term                             :     5 to 7
   4. Minimum Maturity Age          :     18 (completed)
   5. Maximum Maturity Age         :     57 (nearest birthday)
   6. Minimum Premium:

            Regular premium:
             Mode           Instalment premium
            Yearly               ` 7,000
             Half-yearly      ` 4,000
             Quarterly          ` 2,000
             Monthly (ECS) ` 600

                           Top-up premium: ` 1000

   1. Maximum Premium:

            Regular premium:
            Mode            Instalment premium
                          Yearly               ` 14,000
                          Half-yearly       ` 7,000
                          Quarterly          ` 3,500
                          Monthly (ECS) ` 1100

          Top-up premium: Sum total of Regular Premiums paid upto the date of payment
                                       of top-up.

      Annualized Premiums shall be payable in multiple of `1000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of `100/-.

   1. Minimum Sum Assured: 10 times the annualized premium.

   1. Maximum Sum Assured:

                  20 times of the annualized premium up to age 35 years
                  14 times of the annualized premium for age between 36 to 45years
                  10 times of the annualized premium for age between 46 to 50 years
The maximum Sum Assured shall be subject to maximum non-medical limit applicable for the life to be assured.

CHARGES UNDER THE PLAN:

A) Expense Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance part of the premium will be credited to the Policyholder’s Regular Premium Account or Policyholder’s Top-up Premium Account, as the case may be.
The expenses charges are as below:

Regular premium:           
Expenses charge (including commission)

First Year
   

2nd & 3rd Years
   

Thereafter

27.5%
   

7.5%
   

5%

        Expense charge for top-up Premium:      2.5%

B) Other Charges:

   1. Mortality Charge – This is the cost of life insurance cover which is age specific and will be taken every month from the Policyholder’s Regular Premium Account appropriately. This charge shall depend upon the Sum Assured.

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