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 an Endowment Assurance plan offering the choice of three premium paying terms. It provides financial protection against death throughout the term of the plan with the payment of maturity amount on survival to the end of the policy term.
Premiums :
Premiums are payable yearly, half-yearly, quarterly or monthly, as opted by you, throughout the premium paying term or till earlier death.
Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Sum Assured at the time of claim.
Bonuses :
The policy participates in the profits of the Corporation’s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the policy.
Death Benefit :
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.
Maturity Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on survival to the end of the policy term.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value :
The policy may be surrendered for cash after more than one year’s premium have been paid. The guaranteed surrender value will be 30% of the total amount of premiums paid excluding the first year’s premium and the extra premiums, if any.
Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is available after completion of at least 3 years from the date of commencement of your policy. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances especially 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 payable 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. Guaranteed Additions:
Guaranteed Additions @ Rs.50%o Sum Assured for each completed year, for the first five years.
Participation in profits :
The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.
Maturity Benefit:
Sum Assured together with accrued Guaranteed Additions and accrued simple reversionary bonuses and Final Additional Bonus, if any, will be paid to the Policyholder on surviving the term of the policy provided the policy is in full force for full sum assured.
Death Benefit:
On death of the Life Assured during the term of the policy an amount equal to the Sum Assured along with accrued Guaranteed Additions and accrued Simple Reversionary Bonuses and Final Additional Bonus, if any, will be paid provided the policy is in full force for full sum assured.
Grace Period:
A grace period of 30 days will be available for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.
15 – days Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy you may return the policy to us within 15 days.
Paid-up Value
The policy will acquire paid-up value after more than one year’s premiums have been paid subject to Terms and Conditions.
Guaranteed Surrender Value
This policy can be surrendered for cash after more than one year’s premiums have been paid.
The Guaranteed Surrender Value allowable under the policy will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and the extra premiums, if any.
The cash value of any existing vested Guaranteed Additions and vested simple reversionary bonuses, if any, will also be payable after completion of 3 years.
Revival
The policyholder can revive his lapsed policy by paying arrears of premium together with interest within a period of five years from the date of first unpaid premium subject to satisfactory evidence of health and continued insurability of the Life Assured. The rate of interest will be as determined by the Corporation from time to time. Currently, the rate of interest is 8% p.a.
Loan:
Subject to Terms and Conditions loan is permissible after the policy has acquired paid-up value. The rate of interest charged on such loan amount would be determined from time to time. The present rate is 9% p.a. payable half-yearly.
Payment of premium :
Premiums under this policy are payable over a period of 3, 4 or 5 years. The following modes of payment of premium are allowed - Yearly, Half-yearly, Quarterly or Monthly.
Policy Term: 5, 10, 15, 20 or 25 years
Life insurance cover continues for a longer term even after premium paying term.
Apart from the basic Sum Assured payable at maturity or death, the policy also provides for a guaranteed addition at the rate of Rs.50/- per thousand Sum Assured per year for first 5 years and reversionary bonus thereafter.
This is an Endowment (limited payment) plan with Guaranteed Addition and with wide options to select premium paying terms as follows
| Policy Term (in yrs) | Premium paying term(in yrs) |
| 5 | 1,2 or 3 |
| 10 | 1, 2, 3, 4 or 6 |
| 15 | 1, 2, 3, 4, 6, 8 or 10 |
| 20 | 1, 2, 3, 4, 6, 8, 10 or 12 |
| 25 | 1, 2, 3, 4, 6, 8, 10, 12 or 16 |
