Lic endowment plan 14

LIC of IndiaLIC of Indiapresentspresents

its most popular its most popular Endowment PolicyEndowment Policy

Table Table No.14No.14

Most preferred plan Most preferred plan

Popularity MeterPopularity Meter : 76,11,104 policies sold in 2003-04



Simplest of plansSimplest of plans Savings OrientedSavings Oriented Wide range of terms: 5 to Wide range of terms: 5 to

55 55 Most popular plan Most popular plan High liquidityHigh liquidity Better returns Better returns

Attractions Attractions !!!!!!

Loan available Loan available Options available for Options available for

termterm rider and critical illness rider and critical illness riderrider



eligibilityeligibility

Who can avail of the plan ?Those aged between age 12 years (completed) and 65 years (nearer birthday).The maximum age at maturity is 75 years.

For how many years is premium payable ? Premium is payable over the entire term in monthly, quarterly, half-yearly and yearly modes over premium payment terms of 5 to 55 years.

For how many years is risk cover available ?

Choice of policy term from 5 to 55 years is available subject to maximum maturity age of 75 years.



benefitsbenefits

Death Cover : On unfortunate death during the term of the policy, an amount equal to sum assured plus vested bonus plus final additional bonus, if any, is payable, provided policy is in full force. Term rider, if availed, benefits will be additional.

Maturity benefit : On survival upto date of maturity, an amount equal to sum assured plus vested bonus plus final additional bonus, if any, is payable, provided policy is in full force



What are the benefits of the term assurance rider ?On death of the Life Assured during the term of cover under the rider, an amount equal to the Term Assurance Sum Assured is payable. The rider can be availed of by payment of a small additional premium.

Who can avail of the rider ?Those aged between age 18 years (completed) and 50 years (nearer birthday).The maximum age at maturity is 60 years.

What is the minimum and maximum sum assured allowed ?The minimum Sum Assured for the Term Rider is Rs. 1,00,000 and maximum sum assured is an amount equal to the Basic Sum Assured,subject to a maximum overall limit of Rs. 25,00,000.

OptionalOptional

Term Term AssuranceAssurance

RiderRider



OptionalOptional

Term Term AssuranceAssurance

RiderRider

What are the terms allowed ?

The policy terms allowed are 10 to 35 years under regular premium policies;

5 to 35 years under Single premium policies and

15, 20 and 25 years under limited premium paying term policies.

This rider is allowed only if the age at maturity under the main policy is less than or equal to 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



OptionalOptionalCritical Illness Critical Illness

Rider : Rider : EligibilityEligibility

(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 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.

OptionalOptionalCritical Critical Illness Illness Rider - Rider -

BenefitsBenefits



IllustrationIllustration

Age at entry: 35 years Policy Term: 25 yearsPremium paying term: 25 yearsMode of premium payment: YearlySum Assured: Rs.1,00,000/- Annual Premium : 4047/-



i) This illustration is applicable to a non-smoker

male/female standard (from medical, life style

and occupation point of view) life.

ii) 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 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.

iii) 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.

iv) 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.

v) The maturity benefit is amount shown at the end

of policy term.

Illustration Illustration AssumptionsAssumptions

And And DisclaimerDisclaimer

Lic endowment plan 14

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