LIC Pension Plus Plan Features Benefits Benefit Illustration licindia.in
LIC Pension Plus Plan Features licindia.in
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDERLIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover.
You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.
2 . Eligibility Conditions And Other Restrictions:
a) Minimum Entry Age - 18 years (last birthday)
b) Maximum Entry Age - 75 years (nearest birthday)
c) Minimum Vesting Age - 40 years (completed)
d) Maximum Vesting Age - 85 years (nearest birthday)
e) Minimum Deferment Term - 10 years
f) Sum Assured - NIL
g) Minimum Premium -
Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m.
Single premium: Rs. [30,000]
h) Maximum Premium -
Regular premium : Rs. [1,00,000] p.a.
Single premium: No Limit
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.
3. Charges under the Plan:
A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:
For Single premium policies: 3.3%
For Regular premium policies:
Allocation charge for Top-up: 1.25%
B) Other Charges: The following charges shall be deducted during the term of the policy:
Although the charges are reviewable, they will be subject to the following maximum limit:
- Policy Administration Charge Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy
- Fund Management Charge: The Maximum for each Fund will be as follows:
- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested. In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value which shall be utilised to provide an annuity.
4. Discontinuance of Premiums: If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:
If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy. There shall be no change in payments of benefits during the notice period.
The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below will compulsorily be utilized to provide an annuity, and shall be payable after completion of 5 years from the date of commencement of the policy.
If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value will compulsorily be utilized to provide an annuity.
5. Method of calculation of Monetary amount and Proceeds of the Discontinued Policy: The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.
The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.
6. Other Features:
i ) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums if any, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.
The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.
ii )Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.
iii ) Top-up (Additional Premium) : You can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of policy. Top-up shall not be allowed during the last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.
iv) Switching: You can switch between the two fund types during the policy term subject to switching charges, if any.
v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.
vi) Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.
The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.
Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.
vii) Conversion to annuity: The benefit amount, payable in case of surrender or on discontinuance of premium or on vesting, shall compulsorily be utilized to provide an annuity subject to the following conditions:
1. You will have an option to commute upto a maximum of one third of the
a) Higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, in the event of vesting, or
b) Proceeds of the discontinued policy, if policy is discontinued or surrendered within 5 years from the date of commencement of policy, or
c) Policyholder’s Fund Value, if policy is discontinued or surrendered after 5 years from the date of commencement of policy,
whichever is applicable.
The commutation will be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity.
The balance amount shall compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option.
2. The minimum amount of annuity payable shall be subject to the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. In case the applicable amount as mentioned in (a) to (c) of Para 10.vii) above is insufficient to purchase the minimum amount of annuity, then the said amount shall be refunded as a lump sum to you.
3. You shall have an option to purchase immediate annuity from any other life insurance company “registered with IRDA” subject to Regulatory provisions. In such cases, LIC will transfer your fund amount directly to the chosen Insurer.
If you opt to purchase immediate annuity from any other life insurance Company, you would be required to inform your such intention to the Corporation six months prior to the vesting date.
7. Reinstatement:
A policy once surrendered cannot be reinstated.
8. Risks borne by the Policyholder:
Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus PolicyAdministration charge deducted
Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy
10. Loan:
No loan will be available under this plan.
11. Assignment:
Assignment shall not be allowed under this plan.
LIC Pension Plus Plan Benefits licindia.in
A) Death Benefit:
The Policyholder’s Fund Value shall be payable either in a lump sum or as an annuity, as desired by the nominee.
The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates under the annuity option chosen.
B) Benefit on Vesting:
On your surviving to the date of vesting, the higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, as defined under para 10(i), will compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase annuity from LIC or other life insurance company.
1.Investment of Funds: The plan offers following two funds detailed below:
The Policyholder has the option to choose any ONE out of the above 2 funds.
2. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:
Appropriation price is applied (when fund is expanding):
Market value of investments held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).
Expropriation price is applied (when fund is contracting):
Market value of investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).
Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.
Similarly, in respect of the valid applications received for surrender, complete withdrawal, death claim, switches etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, complete withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable
In case of discontinuance, as specified in Para 8 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.
In respect of the policies vesting, NAV of the date of vesting shall be applicable.
The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instruction from IRDA.
3. Surrender: The surrender value, if any, is payable as under:
If the policy is surrendered within 5 years from the date of commencement of the policy:
If you apply for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge shall be converted into monetary terms as per para 9 below. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the Discontinued Policy, as per para 9 below, shall be utilized for payment of an annuity, on completion of 5 years from the date of commencement of policy.
In case of death of life assured after the date of surrender but before the completion of 5 years from the date of commencement of policy the Proceeds of the Discontinued Policy shall be payable to the nominee/ legal heir immediately.
If the policy is surrendered after 5 years from the date of commencement of the policy:
If you apply for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value, as at the date of surrender, shall be utilized for payment of an annuity. There will be no Discontinuance Charge.
LIC Pension Plus Plan Benefit Illustration licindia.in
LIC Pension Plus Plan Features licindia.in
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDERLIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover.
You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.
2 . Eligibility Conditions And Other Restrictions:
a) Minimum Entry Age - 18 years (last birthday)
b) Maximum Entry Age - 75 years (nearest birthday)
c) Minimum Vesting Age - 40 years (completed)
d) Maximum Vesting Age - 85 years (nearest birthday)
e) Minimum Deferment Term - 10 years
f) Sum Assured - NIL
g) Minimum Premium -
Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m.
Single premium: Rs. [30,000]
h) Maximum Premium -
Regular premium : Rs. [1,00,000] p.a.
Single premium: No Limit
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.
3. Charges under the Plan:
A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:
For Single premium policies: 3.3%
For Regular premium policies:
Premium |
Allocation Charge
|
First Year
|
6.75%
|
2nd to 5th Year
|
4.50%
|
thereafter
|
2.50%
|
B) Other Charges: The following charges shall be deducted during the term of the policy:
- Policy Administration charge:
Rs. 30/- per month during the first policy year and Rs 30/- per month
escalating at 3% p.a. thereafter, throughout the term of the policy
shall be levied.
- Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:
0.70% p.a. of Unit Fund for “Debt” Fund
0.80% p.a. of Unit Fund for “Mixed” Fund
Fund Management Charge shall be appropriated while computing NAV. - Switching Charge –This
is the charge levied on switching of monies from one fund to another.
Within a given policy year 2 switches will be allowed free of charge.
Subsequent switches in that year shall be subject to a switching charge
of Rs. 100 per switch.
- Bid/Offer Spread – Nil.
- Discontinuance Charge – The discontinuance charge for regular premium policies is as under:
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/- 1Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/-Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-2Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/-Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-3Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-4Lower 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 onwardsNILNIL
AP – Annualised Premium
FV – Policyholder’s Fund Value excluding the fund value in respect of Top-up premiums paid, if any, on the date of discontinuance.
There shall not be any discontinuance charge under Single Premium
- Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.
- Miscellaneous Charge – This is a charge levied for change in premium mode, if opted for by the policyholder during the deferment term. An alteration may be allowed subject to a charge of Rs. 50/-.
Although the charges are reviewable, they will be subject to the following maximum limit:
- Policy Administration Charge Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy
- Fund Management Charge: The Maximum for each Fund will be as follows:
- Debt Fund: 1.20% p.a. of Unit Fund
- Mixed Fund: 1.30% p.a. of Unit Fund
- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested. In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value which shall be utilised to provide an annuity.
4. Discontinuance of Premiums: If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:
- Revival of the policy, or
- Complete withdrawal from the policy
If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy. There shall be no change in payments of benefits during the notice period.
The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below will compulsorily be utilized to provide an annuity, and shall be payable after completion of 5 years from the date of commencement of the policy.
If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value will compulsorily be utilized to provide an annuity.
5. Method of calculation of Monetary amount and Proceeds of the Discontinued Policy: The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.
The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.
6. Other Features:
i ) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums if any, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.
The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.
ii )Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.
iii ) Top-up (Additional Premium) : You can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of policy. Top-up shall not be allowed during the last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.
iv) Switching: You can switch between the two fund types during the policy term subject to switching charges, if any.
v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.
vi) Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.
The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.
Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.
vii) Conversion to annuity: The benefit amount, payable in case of surrender or on discontinuance of premium or on vesting, shall compulsorily be utilized to provide an annuity subject to the following conditions:
1. You will have an option to commute upto a maximum of one third of the
a) Higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, in the event of vesting, or
b) Proceeds of the discontinued policy, if policy is discontinued or surrendered within 5 years from the date of commencement of policy, or
c) Policyholder’s Fund Value, if policy is discontinued or surrendered after 5 years from the date of commencement of policy,
whichever is applicable.
The commutation will be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity.
The balance amount shall compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option.
2. The minimum amount of annuity payable shall be subject to the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. In case the applicable amount as mentioned in (a) to (c) of Para 10.vii) above is insufficient to purchase the minimum amount of annuity, then the said amount shall be refunded as a lump sum to you.
3. You shall have an option to purchase immediate annuity from any other life insurance company “registered with IRDA” subject to Regulatory provisions. In such cases, LIC will transfer your fund amount directly to the chosen Insurer.
If you opt to purchase immediate annuity from any other life insurance Company, you would be required to inform your such intention to the Corporation six months prior to the vesting date.
7. Reinstatement:
A policy once surrendered cannot be reinstated.
8. Risks borne by the Policyholder:
- LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
- The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
- Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Pension Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
- Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
- The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
- All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.
Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus PolicyAdministration charge deducted
Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy
10. Loan:
No loan will be available under this plan.
11. Assignment:
Assignment shall not be allowed under this plan.
LIC Pension Plus Plan Benefits licindia.in
A) Death Benefit:
The Policyholder’s Fund Value shall be payable either in a lump sum or as an annuity, as desired by the nominee.
The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates under the annuity option chosen.
B) Benefit on Vesting:
On your surviving to the date of vesting, the higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, as defined under para 10(i), will compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase annuity from LIC or other life insurance company.
1.Investment of Funds: The plan offers following two funds detailed below:
| Fund Type | Investment in Government / Government Guaranteed Securities / Corporate Debt | Short-term investments such as money market instruments |
Investment in Listed Equity Shares
|
Details and objective of the fund for risk /return |
| Debt Fund Mixed Fund |
Not less than 60% Not less than 45% |
Not more than 40% Not more than 40% |
Nil Not less than 15% & Not more than 35% |
Low risk Steady Income – Lower to Medium risk |
2. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:
Appropriation price is applied (when fund is expanding):
Market value of investments held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).
Expropriation price is applied (when fund is contracting):
Market value of investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).
Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.
Similarly, in respect of the valid applications received for surrender, complete withdrawal, death claim, switches etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, complete withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable
In case of discontinuance, as specified in Para 8 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.
In respect of the policies vesting, NAV of the date of vesting shall be applicable.
The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instruction from IRDA.
3. Surrender: The surrender value, if any, is payable as under:
If the policy is surrendered within 5 years from the date of commencement of the policy:
If you apply for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge shall be converted into monetary terms as per para 9 below. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the Discontinued Policy, as per para 9 below, shall be utilized for payment of an annuity, on completion of 5 years from the date of commencement of policy.
In case of death of life assured after the date of surrender but before the completion of 5 years from the date of commencement of policy the Proceeds of the Discontinued Policy shall be payable to the nominee/ legal heir immediately.
If the policy is surrendered after 5 years from the date of commencement of the policy:
If you apply for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value, as at the date of surrender, shall be utilized for payment of an annuity. There will be no Discontinuance Charge.
LIC Pension Plus Plan Benefit Illustration licindia.in
| PRODUCT FEATURES : Name of the Product:LIC's Pension Plus Unique Identification No.512L260V01 Age:30 Sum Assured:0 Premium Paying Term:20 Amount of Instalment Premium:25000 Service Tax Rate:10.30% Policy Term :20 Mode of Premium Payment :Yearly Funds opted for:Debt Fund Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interst as mentioned(All charges are in Rupees) |
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Note: 1. 'Addition to Fund' shown above is interest income on the fund. 2. Service Tax charge is as per existing laws & rate. (Service tax on FMC is based on the existing tax laws considering FMC rate as 1.35% p.a., the maximum prescribed by IRDA) 3. The commission/brokerage, if payable to any agent/broker under col. 20. This amount is included in total charges mentioned in col. (8) or col. (15) 4. Other charges include only service tax on FMC |
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| PRODUCT FEATURES : Name of the Product:LIC's Pension Plus Unique Identification No.512L260V01 Age:30 Sum Assured:0 Premium Paying Term:20 Amount of Instalment Premium:50000 Service Tax Rate:10.30% Policy Term :20 Mode of Premium Payment :Yearly Funds opted for:Debt Fund Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interst as mentioned(All charges are in Rupees) |
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IN THIS POLICY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE. Note: 1. 'Addition to Fund' shown above is interest income on the fund. 2. Service Tax charge is as per existing laws & rate. (Service tax on FMC is based on the existing tax laws considering FMC rate as 1.35% p.a., the maximum prescribed by IRDA) 3. The commission/brokerage, if payable to any agent/broker under col. 20. This amount is included in total charges mentioned in col. (8) or col. (15) 4. Other charges include only service tax on FMC |
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| PRODUCT FEATURES : Name of the Product:LIC's Pension Plus Unique Identification No.512L260V01 Age:30 Sum Assured:0 Premium Paying Term:20 Amount of Instalment Premium:25000 Service Tax Rate:10.30% Policy Term :20 Mode of Premium Payment :Yearly Funds opted for:Debt Fund FMC Rate :0.80% p.a Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interst as mentioned(All charges are in Rupees) |
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IN THIS POLICY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE. Note: 1. 'Addition to Fund' shown above is interest income on the fund. 2. Service Tax charge is as per existing laws & rate. (Service tax on FMC is based on the existing tax laws considering FMC rate as 1.35% p.a., the maximum prescribed by IRDA) 3. The commission/brokerage, if payable to any agent/broker under col. 20. This amount is included in total charges mentioned in col. (8) or col. (15) 4. Other charges include only service tax on FMC |
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| PRODUCT FEATURES : Name of the Product:LIC's Pension Plus Unique Identification No.512L260V01 Age:30 Sum Assured:0 Premium Paying Term:1 Amount of Instalment Premium:50000 Service Tax Rate:10.30% Policy Term :20 Mode of Premium Payment :SINGLE Funds opted for:Mixed Fund FMC Rate :0.80% p.a Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interst as mentioned(All charges are in Rupees) |
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IN THIS POLICY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE. Note: 1. 'Addition to Fund' shown above is interest income on the fund. 2. Service Tax charge is as per existing laws & rate. (Service tax on FMC is based on the existing tax laws considering FMC rate as 1.35% p.a., the maximum prescribed by IRDA) 3. The commission/brokerage, if payable to any agent/broker under col. 20. This amount is included in total charges mentioned in col. (8) or col. (15) 4. Other charges include only service tax on FMC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||