LIC Single Premium Endowment Plan | Features and Benefits

If you're looking for LIC Single Premium Endowment Plan endowment insurance plan, you're at right place. This article will give you all details about LIC Single Premium Endowment Plan.

LIC Single Premium Endowment Plan

LIC's Single Premium Endowment Plan is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

LIC Single Premium Endowment Plan Benefits

Death Benefit:

a) On death during the policy term before the date of commencement of risk: Return of single premium excluding service tax and extra premium, if any, without interest.

b) On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Maturity Benefit:

Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

Participation in profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

LIC Single Premium Endowment Plan Benefits Illustration

Statutory warning:

“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of the corporation. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.”

[caption id="attachment_1121" align="aligncenter" width="629"] LIC Single Premium Endowment Plan[/caption]

Notes

• This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.


• The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 4% p.a.(Scenario 1) and 8% 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 4% p.a. or 8% 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.

LIC Single Premium Endowment Plan Parameters

ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS :

1.Minimum entry age	: 90 days (completed)
2.Maximum entry age	: 65 years (nearest birthday)
3.Maximum maturity age:	: 75 years (nearest birthday)
4.Minimum policy term	: 10 years
5.Minimum age at maturity	: 18 years (completed)
6.Maximum policy term	: 25 years
7.Minimum Sum Assured	: Rs.50,000
8.Maximum Sum assured	: No limit
Sum Assured will be in multiples of Rs.5,000 /- only.
» Premium payment mode	: Single Premium only

LIC Single Premium Endowment Plan Policy Document

You may download LIC Single Premium Endowment Plan Policy Document from here.

You may also like to see details of LIC Jeevan Labh Endowment Plan

LIC Jeevan Labh Endowment Plan | Features and Benefits

If you're looking for LIC Jeevan Labh endowment insurance plan, you're at right place. This article will give you all details about LIC Jeevan Labh.

LIC Jeevan Labh Introduction

LIC's Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.

LIC Jeevan Labh Eligibility

Minimum Basic Sum Assured :Rs. 2,00,000
b)    Maximum BasicSum Assured :No Limit
(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)
c)     Policy Term/Premium Paying Term : (16/10), (21/15)(25/16)years
d)    Minimum Age at entry :[8] years (completed)
e)    Maximum Age at entry:[59] years (nearest birthday) for Policy Term 16 years
[54] years (nearest birthday) for Policy Term 21 years &
[50] years (nearest birthday) for Policy Term 25 years

f)     Maximum Maturity Age : [75] years (nearest birthday)

LIC Jeevan Labh Death Benefit

[caption id="attachment_1097" align="alignleft" width="150"] LIC Jeevan Labh[/caption]

In case of death during the policy term, provided all due premiums have been paid, Death benefit, defined as sum of "Sum Assured on Death",vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, "Sum Assured on Death" is defined as the higher of 10 times of annualised premium or Absolute amount assured to be paid on death i.e. Basic Sum Assured . This death benefit shall not be less than 105% of all the premiums paid as on date of death.

LIC Jeevan Labh Maturity Benefit

"Sum Assured on Maturity" equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

LIC Jeevan Labh Bonus

Participation in Profits:
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.

LIC Jeevan Labh Policy Document

You may download the policy document from here.

LIC Jeevan Pragati | Features and Benefits

If you're looking for LIC Jeevan Pragati endowment insurance plan, you're at right place. This article will give you all details about LIC Jeevan Pragati.

LIC Jeevan Pragati Introduction

LIC's Jeevan Pragati Plan is a non-linked, with - profits plan which offers a combination of protection and savings. This plan provides for automatic increase in risk cover after every five years during the term of the policy. In addition, this plan also takes care of liquidity needs through loan facility.

LIC Jeevan Pragati Eligibility

1. Minimum Basic Sum Assured : Rs. 1,50,000


2. Maximum Basic Sum Assured : No Limit

(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)

3. Policy Term : 12 to 20 years


4. Minimum Age at entry : 12 years (completed)


5. Maximum Age at entry : 45 years (nearer birthday)


6. Maximum Maturity Age : 65 years (nearer birthday)

LIC Jeevan Pragati Death Benefit

[caption id="attachment_1094" align="alignleft" width="200"] LIC Jeevan Pragati[/caption]

In case of death during the policy term, provided all due premiums have been paid, Death benefit, defined as sum of "Sum Assured on Death ", vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where "Sum Assured on Death" is defined as the higher of 10 times of annualised premium or Absolute amount assured to be paid on death i.e. 100% of the Basic Sum Assured during first 5 policy years, 125% of the Basic Sum Assured during 6th to 10th policy years, 150% of the Basic Sum Assured during 11th to 15 th policy years and thereafter 200% of the Basic Sum Assured.

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium, if any.

LIC Jeevan Pragati Maturity Benefit

"Sum Assured on Maturity" equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

LIC Jeevan Pragati Bonus

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in force. The Bonuses shall be declared on the Basic Sum Assured.

Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.

LIC Jeevan Pragati Policy Document

You may download the policy document from here.

LIC Aam Admi Bima Yojana | Features and Benefits

If you're looking for details of LIC Aam Admi Bima Yojana, you're at right place. This article will give full details of LIC Aam Admi Bima Yojana with all benefits in detail.

LIC Aam Admi Bima Yojana - Introduction

LIC Aam Admi Bima Yojana is a social security scheme from Government of India for people below poverty line. It proves insurance to a person at very low premium rate.

LIC Aam Admi Bima Yojana - Details

Eligibility criteria :

1. The members should be aged between 18 years completed and 59 years nearer birthday.

2. The member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.

2. Nodal Agency

"Nodal Agency" shall mean the Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO appointed to administer the Scheme as per the rules. In the case of "Rural Landless Households", the nodal agency will mean the State Government/Union Territory appointed to administer the Scheme.

3. Age Proof :

• a) Ration Card


• b) Extract from Birth Register


• c) Extract from School Certificate


• d) Voter's List


• e) Identity card issued by reputed employer/Government Department


• f) Unique Identification Card (Aadhar Card)

LIC Aam Admi Bima Yojana Premium

The premium to be charged initially under the scheme will be Rs.200/- per annum per member for a cover of Rs.30,000/-, out of which 50% will be subsidized from the Social Security Fund . In case of Rural Landless Household (RLH) remaining 50 % premium shall be borne by the State Government/ Union Territory and in case of other occupational group the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory

LIC Aam Admi Bima Yojana Benefits

 

i) NATURAL DEATH

Upon death of a member, during the period of insurance cover the Sum Assured of Rs.30,000/- under assurance, then in force, shall become payable to the nominee.

ii) ACCIDENTAL DEATH / DISABILITY BENEFITS :

The following benefits are provided to members in case of accident, during the period of insurance cover
a) On death, due to accident Rs.75,000/-
b) Permanent Total Disability, due to accident Rs.75,000/-
i. Loss of 2 eyes or 2 limbs OR
ii. Loss of one eye & one limb, in an accident
c) Loss of one eye or one limb, in an accident Rs.37,500/-

iii) Scholarship benefits

Scholarship as a Free Add-on benefit will be provided to a maximum of two children of the beneficiary studying between 9th to 12th Standard @ Rs.100/= per month for each child payable half yearly – on 1st July and on 1st January, each year.

LIC Aam Admi Bima Yojana Claim Procedure

The death or disability claims under the scheme will be settled by the P&GS Unit of LIC by making direct payment to the beneficiaries through NEFT or where there is no NEFT facility available then in such cases directly to the bank account of beneficiaries with prior approval from Competent authority the A/C payee cheque or claim can be paid by any other mode as decided by LIC.

In the event of death of the member during the period of coverage and while the policy is in force, his/her nominee will have to make an application along with Death Certificate for payment of claim amount to the designated official of the Nodal Agency.

The designated official of the Nodal Agency shall verify the claim papers and submit the same along with the death certificate and a certificate that the deceased member was head /earning member of the family belonging to the BPL/Marginally above BPL family under the eligible occupations under the scheme.
Nodal Agency should submit along with the application, the following requirements:

a) Claim Form duly completed in all respects
b) Original death certificate along with a copy duly attested.
In case of accident benefit claim the following additional requirements will have to be submitted along with the Death Registration Certificate:
Copy of FIR
Post Mortem Report
Police Inquest Report
Police Conclusion Report / Final Report of Police.

7. Permanent Total Disability Benefit :

The claimant has to submit documentary evidence of the accident, as also the Medical certificate from a Government Civil Surgeon or qualified Government Orthopaedician certifying permanent total/ partial disability due to accident, stating loss of limb/s of the member covered under the scheme.

Every member shall appoint a nominee to receive the claim amount after his death. Nomination form is a part of the membership application form and it should include particulars of the nominee to receive the claim amount. It should be ensured that this procedure is followed without fail so that there is no difficulty at the time of settlement of death claims. The Nomination form will be kept in the custody of the Panchayat/ Nodal Agency and shall be forwarded to LIC along with the claim papers on the death of the member.

8. Claim Procedure for Scholarships :

1. The member whose child is eligible for scholarship shall fill up an application form half yearly and submit it to the Nodal Agency. The Nodal Agency will identify the students.

2.The Nodal Agency in turn will submit the list of beneficiary students to the concerned P&GS unit with full details such as name of the student, school's name, class, member's name, master policy no., membership no. and NEFT details for direct payment.

3. Every half year, for 1st July and 1st January, each year LIC will credit the scholarship payment to the Account of the beneficiary student, by NEFT.

4. Any other mode of payment of scholarships as decided by LIC/Government may be applicable in future.

OCCUPATIONS/ VOCATIONS COVERED UNDER
AAM AADMI BIMA YOJANA

Sr.No.	Occupation	Sr.No.	Occupation
				1	Beedi Workers	25	Food Stuffs like Khandsari / Sugar
2	Brick Kiln Workers	26	Textile
3	Carpenters	27	Manufacture of Wood Products
4	Cobblers	28	Manufacture of Paper Products
5	Fishermen	29	Manufacture of Leather Products
6	Hamals	30	Printing
7	Handicraft Artisans	31	Rubber & Coal Products
8	Handloom Weavers	32	Chemical Products like candle manufacture
9	Handloom & Khadi Weavers	33	Mineral products like earthen toys manufacture
10	Lady Tailors	34	Agriculturists
11	Leather & Tannery Workers	35	Transport Drivers Association
12	Papad Workers attached to ‘SEWA’	36	Transport Karmacharis
13	Physically Handicapped Self Employed Persons	37	Rural Poor
14	Primary Milk Producers	38	Construction Workers
15	Rickshaw Pullers / Auto Drivers	39	Fire Crackers’ Workers
16	Safai Karamacharis	40	Coconut Processors
17	Salt Growers	41	Aanganwadi Teachers
18	Tendu Leaf Collectors	42	Kotwal
19	Scheme for the Urban Poor	43	Plantation Workers
20	Forest Workers	44	Women Associated with Self-Help Groups
21	Sericulture	45	Sheep Breeders
22	Toddy Tappers	46	Overseas Indian Workers
23	Powerloom Workers	47*	Rural Landless Households
24	Hilly Area Women	48	Unorganized workers covered under RSBY

* 50% of the premium to be met by the State Govt

How to Join LIC Aam Admi Bima Yojana

The Scheme is based on Nodal Agency Model. A Nodel Agency can be Panchayats, NGOs, Self Help Groups or any other Institutionalised arrangements. The Nodal Agency can contact the nearest Pension and Group Scheme office or any LIC Branch office the details of which are available under the TAB Locator.

Truth of HDFC Standard Life Insurance - Savings Assurance Plan

Today I got one email from one of my visitor of website, requesting me to give impartial view of HDFC standard life insurance product - Savings Assurance Plan. Instead of giving answer individually, I decided to publish an article on inside story of this product for the benefit of all.

To get the truth of any insurance product, it's better to download its brochure from the official website of the company. So, I get it from http://www.hdfcinsurance.com.

After going through the brochure, I analyzed the following points.

The product is a simple plan - pay the premium and get the bonus as decided by the company every year. Let me explain this point little more.

As per brochure, the premium for a person age 40 years, term 10 years - the annual premium would be Rs.12,016 for a Sum assured (S.A.) of Rs. 1,00,000.

Now, this person will pay total of Rs.12,016 * 10 = Rs.1,20,160 in 10 years. Generally, the customer always pays more premium than the S.A. in such plans.

The company will declare bonus every year, will be accumulated and will given on maturity. The rate of such bonus is not defined in the brochure and will be decided every year by the company.

One very important point - which every customer MUST know. The company will not give interest on bonus.

How?

Let us say, in the first year, the customer has paid Rs.X as a premium to the company and at the end of the year, the company declares Rs.Y as a bonus. Remember, the bonus will be declared and NOT to be given to the customer. That bonus amount Rs.Y will be given to the customer on maturity WITHOUT any interest.

Similarly, no interest on subsequent year's bonus will be given to the customer.

The interest on bonus will be with company itself.

Now, let us try to calculate the rate of bonus which the company can give. In India, in the present scenario, no one can get more than 8% p.a. interest on any Govt. scheme / bond. Same rule applies to companies also. Even, if the company is getting 8% p.a. interest, it has give at least 2% to its agent as renewal commission, 1% will be with company to meet their expenses. So, finally, the customer will not get more than 5% simple interest p.a.

Insurance

On death during the first year, a sum equal to 80% of premiums received is payable. On death after the first year and during the policy term, all premiums paid to date will be returned with compound interest calculated at 6% per annum, subject to a maximum of the Sum Assured plus Reversionary Bonuses declared till date.

So, there is NO insurance in the 1st year.

Partial Withdrawal

The plan does not allow the customer to withdraw any amount from its plan as partial withdrawal. So, the customer has to look for other options in case of financial crises for some cash.

Summary: I do not see any major positive point in this plan. If you do not want to take much risk with your money, you can go for some good balanced mutual fund, where the major portion of your money will be invested in debt and not in stock market. You can also consider investing in PPF and Gold. They give you steady return in long term. Now-a-days, you can even buy Gold in your demat account which is safe and transparent.

If you get any queries related with this article, please feel free to post that in comments section below.