a novel 2-in-1 policy
DESCRIPTION
A novel 2-in-1 policy. Popularity Meter 17,77,352 policies sold in 2003-04 in the very 2 nd year after introduction. Attractions. Combines benefits of Endowment and Whole Life Policy. Intro. features. Financial protection against death throughout the lifetime with the - PowerPoint PPT PresentationTRANSCRIPT
Popularity MeterPopularity Meter
17,77,352 policies sold in 2003-04
in the very 2nd year after introduction
Intro
features
benefits
illustrations
Intro
features
benefits
illustrations
Intro
features
benefits
illustrations
For how many years is premium payable ?
You can choose premium payment terms between 5 and 57 years
Who can avail of this plan?
Male lives and female lives having their own income aged between 18 years (completed) and 65 years (near birthday)
For what sums is insurance available under this plan ?
Minimum Rs. 1 lakh. Maximum : no limit, but depends upon income
At what frequency can premium be paid?
Yearly, Half-Yearly, Quarterly, SSS
Intro
features
benefits
illustrations
(A) Minimum entry age : 18 yrs (completed)(B) Maximum entry age : 50 yrs (nearer birthday)(C) Maximum maturity age : 60 years (D) Minimum Sum Assured for the Critical illness Rider : Rs.50,000/= (E) Minimum Sum Assured of the Main plan on which the Critical illness Rider can be given: Rs.50,000(F) Maximum Sum Assured : An amount equal to the Basic Sum for the Critical Illness Rider Assured, subject to a maximum of Rs.5,00,000. (G) Term : 10 to 35 years under regular premium 5 to 35 years under Single premium and 15, 20 & 25 years under limited premium paying term policies.
This rider is allowed only if the maturity age under main policy is not greater than 60 years.
The policy term and premium paying term of the rider should match with the policy term and premium paying term under the main policy.
Critical Illness Rider : EligibilityCritical Illness Rider : Eligibility
Intro
features
benefits
illustrations
Critical Illness Rider : BenefitsCritical Illness Rider : Benefits
Critical Illness Sum Assured is payable on life assured surviving for a period of 28 days from date of occurrence of any of the following critical illnesses-
Heart Attack (Myocardial Infarction) Stroke (Cerebro-vascular Accident) Cancer Kidney Failure Major Organ transplant Paralysis 3rd Degree Burns Blindness Coronary Artery By-pass Surgery Heart Valve Replacement or Repair Aorta Graft Surgery
Premium Waiver Benefit: A policyholder has option to avail of a premium waiver benefit whereby premiums falling due on or after the date of diagnosis of critical illness are waived till maturity date of the main plan or earlier death of the life assured.
Intro
features
benefits
illustrations
Age Term Sum Assured Rs.
1 lakh 2 lakhs 5 lakhs 10 lakhs
20 10 11543 23,086 56965 112930
25 10 11766 23,532 58080 115161
30 20 5660 11,320 27550 54274
35 20 5873 11,747 28617 56408
40 30 3880 7,760 18650 36550
When are benefits payable?
Intro
features
benefits
illustrations
Survival Benefit :
When the policyholder survives till date of maturity and policy is in force,
Full sum assured + vested bonuses +final additional bonus, if any, is payable.
Risk cover Risk cover continues after continues after maturity, without maturity, without need to pay need to pay premium premium
Risk Cover :
On death during premium payment period,
Full sum assured + vested bonuses + final additional bonus, if any, is payable.
On death after premium paying period,
Full sum assured is payable.
Intro
features
benefits
illustrations
Age at entry: 35 years Premium paying term: 25 yearsMode of premium payment: Yearly Sum Assured: Rs.1,00,000/-Annual Premium: Rs.4,535 /-
Illustrations
End of Year
Total premium paid till end of year
Benefit payable on survival to the end of selected term
Guaranteed
Variable Total
Scenario 1
Scenario 2
Scenario 1Scenario
2
25 1,13,3751,00,00
0 4150014100
0 141500 241000
26onwards
1,13,3751,00,00
0 **- -
1,00,000 **
1,00,000 **
Intro
features
benefits
illustrations
Age at entry: 35 years Premium paying term: 25 yearsMode of premium payment: Yearly Sum Assured: Rs.1,00,000/-Annual Premium: Rs.4,535 /-
End of Year
Total premium
paid till end of year
Benefit payable on death during the selected term
Guaranteed *
Variable Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
1 4,535 1,00,0001500 5100
101500 105100
2 9,070 1,00,0003000 10200
103000 110200
3 13,605 1,00,0004500 15300
104500 115300
4 18,140 1,00,0006000 20400
106000 120400
5 22,675 1,00,0007500 25500
107500 125500
6 27,210 1,00,0009000 30600
109000 130600
7 31,745 1,00,00010500 35700
110500 135700
8 36,280 1,00,00012000 40800
112000 140800
9 40,815 1,00,00013500 45900
113500 145900
10 45,350 1,00,00015000 51000
115000 151000
15 68,025 1,00,00022500 76500
122500 176500
20 90,700 1,00,00033000 113000
133000 213000
25 1,13,375 1,00,00041500 141000
141500 241000
Illustrations
Intro
features
benefits
illustrations
The illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.
The non-guaranteed benefits in the illustrations 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.
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.
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.
Illustrations: Assumptions and Disclaimer