LIC Flexi Plus

LIC Flexi Plus

LIC Flexi Plus (Table No. 811) not only provides lump sum benefit on death of policy holder but also the maturity benefit irrespective of the survival of the Policyholder. This policy provides protection and long term savings both at the same time.

LIC Flexi Plus

Features at glance :

  • Flexibility term 10-20 years
  • Flexibility premium paying mode
  • Fund types: Debt Fund and Mixed Fund
  • Partial withdrawals in case of emergency
  • Anyone between 18-50 years old can buy this plan.
  • Flexible premium Rs.15000-Rs.1,00,000
  • 10 times sum assured of your annual premium

Premium:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode).

LIC Flexi Plus 811

Eligibility Conditions And Restrictions for LIC Flexi Plus:

  • Minimum Age at entry:    18 years (last birthday)
  • Maximum Age at entry:    50 years (nearest birthday)
  • Maximum Maturity Age:    60 years (nearest birthday)
  • Policy Term:    10 to 20 years

Partial Withdrawals:  You may encash the units partially after the fifth policy anniversary and provided all due premiums have been paid subject to the following:

  1. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
  2. Partial withdrawal shall be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund.

Fund Types:

  1. Debt fund
  2. Mixed Fund

Debt Fund:

  • Investment in Government / Government Guaranteed Securities / Corporate Debt:  Not less than 60%
  • Short-term investments such as money market instruments: Not more than 40%
  • Investment in Listed Equity Shares: Nil
  • Details and objective of the fund for risk /return: Low risk

Mixed Fund

  • Investment in Government / Government Guaranteed Securities / Corporate Debt:  Not less than 45%
  • Short-term investments such as money market instruments: Not more than 40%
  • Investment in Listed Equity Shares: Not less than 15% & Not more than 25%
  • Details and objective of the fund for risk /return: Steady Income –Lower to Medium risk

Premium:

Mode Minimum (Rs.) Maximum (Rs.)
Yearly

15,000

100,000

Half-Yearly

10,000

50,000

Quarterly

5,000

25,000

Monthly (ECS)

2,000

8,000

 

 

 

 

Premium Allocation Charges

Premium

Allocation Charge

1st  Year

7.50%

2nd  to 5th  Year

5.00%

Thereafter

3.00%

Mortality Charge:

Age 25 35 45 50
Rs. 1.36 1.66 3.73 6.29

Fund Management Charge:

  • 0.50% p.a. of Unit Fund for “Debt” Fund
  • 0.60% p.a. of Unit Fund for “Mixed” Fund

Policy Administration Charge:
Policy Year    Policy Admin Charge (per month)
1st Year    Rs. 50
2nd Year    Rs. 41.20
3rd Year    Rs. 42.44
4th Year    Rs. 43.71
5th Year    Rs. 45.02
6th Yr onwards    Rs. 34.78 in 6th year escalating at 3% p.a. thereafter.

In case, you discontinue policy, here are the charges:

Where the policy is discontinued during the policy year Discontinuance charges for the policies having annualized premium up to Rs. 25,000/- Discontinuance charges for the policies having annualized premium above Rs. 25,000/-

1

Lower of 15% * (AP or FV) subject to a maximum of Rs. 2500/-

Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-

2

Lower of 7.5% * (AP or FV) subject to a maximum of Rs. 1750/-

Lower of 4% * (AP or FV) subject to maximum of Rs. 4000/-

3

Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-

Lower of 3% * (AP or FV) subject to maximum of Rs. 3000/-

4

Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/-

Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-

5 and onwards

NIL

NIL

Sum Assured under the LIC Flexi Plus Plan:

10 times of your annual premium or 105% of the total premiums paid including any premiums which have fallen due but not paid, whichever is higher.

Example: If 30 years old Mr. Raj buys Flexi Plus for 10 years term and pays yearly premium of Rs.15,000/- he will get sum assured of Rs.1.5lakh.

Scenario 1 : Mr. Raj dies within 10 years while policy is in force, his nominee will get Rs.1.5 lakh (15000*10) plus all the future premium will be paid by LIC and his policy will continue till maturity. On Maturity his nominee will again get the fund value depending on the market NAV.

Scenario 2 : Mr. Raj survives till maturity, he will get the fund value.


Update: LIC Flexi Plus Table No. 811 Has Been Discontinued.


 

Unit Linked Insurance Plan Revised

Unit Linked Insurance Plan (ULIP) Revised Terms:

From September 01, 2010 all ULIP Plans will have following features:

Term:
The Minimum term for ULIP plan would be 10 years.

Locking Period for Top Up:
All Top-up premium lock in period would be 3 years. Also, Top up premium not allowed in during last 3 years of maturity.

Compulsory Insurance:
Insurance cover is mandatory including Pension Plan Hence there will be no ULIP without risk cover.

Pension ULIP:
Withdrawals will not be not allowed before maturity in case of Pension Plan.

Assignments and Loan:
Assignments and loans are not available in ULIP Plan.

Top Up Premium:
Risk cover is mandatory for top up premium and will be treated as single premium for each time you top up.

Surrender:
Surrender before 6 year will attract penalty.

ULIP Surrender Charges
Term Surrender Duration Charges
Less then 10 yrs 1st year 12.5%
2nd year 10%
3rd year 7.5%
4th year 5%
5th year 2.5%
6th year Nil
More than 10 yrs 1st year 15%
2nd year 12.5%
3rd year 10%
4th year 7.5%
5th year 5%
6th year 2.5%

If you want to buy LIC ULIP policy then visit : http://www.lifeinsuranceindiaonline.com/ulip-plans/

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ULIP vs. Mutual fund

ULIPs and mutual fund are similar type of investment but not same. As we know mutual funds are more into investments; whereas ULIPs are into investments as well as insurance. When we look into the basic concept the difference between the two is very small, and mainly consists of product structure and risk coverage.

The basic difference evolves regarding its regulation. The ULIPs are regulated by the IRDA, whereas mutual funds are regulated by the SEBI. Then the other important aspect is when we look from an industrial point of view, the main focus of mutual funds is on low costs while the main focus for the ULIPs lies in the better performance and the distribution of its products. The other aspect includes flexibility, in this case a ULIP allows us to increase our life cover and at the same time are premiums rates remain the same. This is achieved by reducing our investments. On the other hand you don’t get any life cover in mutual funds. The only option we are left is purchasing a new insurance policy which would ultimately lead to additional cost.

The other important point to be focused involves that even if the costs of the investments in ULIPs is more compared to Mutual funds, the ULIPs offer better products which are suited for long term investments, whereas mutual fund products can only be used for sole purposes or short term returns. And one more point which acts as a beneficiary in terms of insurance is, that we do not receive any insurance cover in mutual funds whereas we receive insurance cover in ULIP plans.

Mutual Funds and ULIPs both are subject to market risks; if something unfortunate happen to investor, family or nominee will receive only fund value. On the other hand ULIPs will give your family guaranteed sum assured in case of death of the policy holder.

As these investments are the most preferred investment options to invest. even a small drawback somewhere makes a strong impression in our minds. So in the case of ULIPs vs Mutual funds if we notice, ULIPs are more preferable even if both stand at the same level. Somewhere when we equate both the investment options ULIPs are more beneficial as well as flexible as per our requirements.

ULIP Insurance How it works?

What is ULIP Insurance? How it works?

ULIP is a part linked with insurance plan. In other words ULIP is an Insurance + Investment plan. ULIPs fall in the category where they are more goal oriented and give priority towards the safety of insurance protection. This plan enables you to secure protection for your family in the event of your untimely death and at the same time provides you an opportunity to earn a return on your premium paid. In this type of investment a part of the investment is used for providing you life cover. As this insurance is combined is somewhere linked with investment, therefore the funds which are saved in turn are used in stocks or bonds, hence the value of the investment keep varying as per the investment chosen by you. In Simple words, ULIPs are structured in such a form that they can be managed according to the specific needs of the consumers and the protection received is an added benefit. In this way the ULIPs offer flexibility to their customers.

There are certain important points to be taken into consideration before we opt for ULIP plans.

  • Firstly, we should be aware about all the charges ie. allocation charges, mortality charges etc.
  • Secondly, person can get a tax rebate of a maximum of Rs 100000 when invested in ULIP plans.
  • Third point is what are the locking period and other fine prints like surrender charges before the maturity.

As now we know what exactly is an ULIP plan, now the next question normally pops out in our minds is how does this plan works out? No plan is easy to understand, so in the same way even it is critical to know the working of ULIP plan and how our money gets invested. ULIPs basically work like a mutual fund with a life cover involved in it. The premium is invested by them in the investments like mutual funds, bonds, stock markets. When the amount of the premium is decided the insurer firstly deducts some portion of the ULIP premium and then the rest of the premium is invested in the funds. The next step involves deduction of the mortality charges by the administration. The charges are deducted as per the type chosen by us. It may be on monthly basis or sometimes daily basis. As the fund invested by us in the ULIP plan as an underlying value, the fund value provides us the value of the asset. And as the plan gets matured, we are entitled to receive the amount of out fund as per its face value.

The points must be considered and the proper knowledge of the ULIP plan is a must. If all these factors are viewed, this policy is very beneficial in the future.
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If you want to buy LIC ULIP policy then visit : /ulip-plans/

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Child Fortune Plus (Plan No.194)

Child Fortune Plus (Plan No.194)

Child Fortune Plus Plan No.194 Summary:

All of us wish to ensure the best possible future for our children. With the cost of education sky rocketing, it is all the more important that an early provision is made to ensure that your sweet child get a good head start in this competitive life.  LIC’s Child Fortune Plus is a total solution to your child’s education and other needs. The plan is a unit linked (ULIP) one offering the prospects of long term capital appreciation.

Who is Eligible?

Child Fortune Plus Plan No.194 is a unit linked plan (ULIP) which will be allowed to the parents who have a child upto the age of 17 years last birthday. The risk cover under the plan will be on the life of the parent who will be the life assured. There will be no insurance coverage on the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till the life assured attains the age of 75 years nearest birthday, whichever is earlier. The purpose of the plan is to meet the educational and other needs of the child named as nominee in the policy.

Child Fortune Plus Plan No.194

Features:

Switching of funds:

The policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the Fund opted for. 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.

Partial Withdrawals:

The policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:

1. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
2.
Under regular premium policies where premiums have been paid for less than 3 years’ and further premiums are not paid, the partial withdrawal shall not be allowed.
3.
Under regular premium policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.
4.
Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/-in the Policyholder’s Fund or 10% of single premium, whichever is higher.
5.
Partial withdrawal from Policyholder’s Fund pertaining to top-up premiums shall be allowed only after completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term..
6.
After the death of life assured during the policy term, partial withdrawal may be made by the child named in the policy if he/she is major i.e. after completion of 18 years of age or by the appointee if the child is a minor subject to an undertaking by the appointee that the partial withdrawal is solely for the benefit of the named child.

Payment of Premiums:

Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments. The minimum Annualized Premium (other than monthly through ECS) will be Rs. 10,000/-increasing thereafter in multiples of Rs. 1,000/-. In case of monthly (ECS) the minimum premium will be Rs. 1,000 p.m. increasing thereafter in multiples of Rs. 250/-.

Single premium:

Single premium can be paid subject to a minimum of Rs. 25,000 and thereafter in multiples of Rs.1,000.

Investment Options:

The plan offers a choice of four investment options: Bond Fund, Secured Fund, Balanced Fund, and Growth Fund; each tailored to different levels of risk and return. The Policyholder will have the option to choose any ONE of the above 4 Funds.

BENEFITS:
a) Benefits payable on death:
On death of Life Assured, if the child is alive. In case of death of the Life Assured within the policy term, when the cover is in full force and the child is alive, Sum Assured shall be payable to the nominee. Also, in case of regular premium policy, when the cover is in full force, payment of all future premiums due under the policy shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue. If less than 3 years’ premiums have been paid and the policy is in lapsed condition, then the Policyholder’s Fund Value shall become payable to the nominee and the policy will terminate.

On death of the Life Assured, after the death of the child:

In case of death of the Life Assured during the policy term, after the death of the child, Sum Assured plus policyholder’s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be payable to the nominee/ legal heir, as the case may be, at that time and the policy shall terminate. This shall also be applicable in case of simultaneous death of life assured and the child nominee.

On death of child before life assured’s death: The policy will continue till maturity or till the life assured survives, whichever is earlier.

On death of child after life assured’s death: An amount equal to the Fund Value of units shall be payable to the legal heir of life assured and the policy shall terminate.

b) Benefits payable on maturity: On the life assured or the child nominee surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.

Eligibility Conditions And Restrictions for Child Fortune Plus:

1. Minimum Age at entry for child: 0 (age last birthday)
2. Maximum Age at entry for child: 17 years (last birthday)
3. Minimum Age at entry for Life Assured: 18 years (last birthday)
4. Maximum Age at entry for Life Assured: 55 years (nearest birthday)
5. Policy Term: (25 – age last birthday at entry of life assured’s child) or (75 -age nearest birthday at entry of life assured), whichever is lower Maximum Policy Term: 30 years
6. Maximum Maturity Age: [25] last birthday of child or [75] nearest birthday of life assured, whichever is earlier.

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC of India within 15 days.

The Unique Identification Number (UIN) for LICs Child Fortune Plus plan is 512L251V01.

How to Apply for Child Fortune Plus policy?


Update: Child Fortune Plus Table No.194 Has Been Discontinued.


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.