Contents
LIC Money Plus Policy Review
Plan No – 180
Lic Money Plus Plan No-180 Introduction
Money Plus plan is a unit linked endowment plan Introduced On – 20/12/2006 Withdrawn On- 15/08/2007 which offers investment cum insurance during the term of policy. Hence, life cover is compulsory under Money plus plan.The policyholder can choose the level of cover within the limits,which will depend on the term chosen.Mode and amount of premium he desires to pay.
The allocated premium will be utilized to purchase units as per the selected fund type.Units will be allotted and cancelled basic on the net asset value(NAV) of the respective fund applicable to the date of allotment/cancellation.The NAV will be computed on daily basis and will be based on the investment performance,fund management charge (FMC) and whether fund is expanding or contracting under each fund type.
Money Plus Plan Parameters
Entry age : Minimum: 0 years LBD (last birthday).
Maximum: 65 years NBD (nearer birthday).
Maturity age: Minimum: 18years completed
Maximum: 75 years NBD.
Policy term: 5 to 20 years.
Mode of payment: Yearly,Half-yearly,Quarterly,Single.
Alteration in mode of payment: From HLY to YLY will be allowed without charging alteration fee. If mode changed from lower to higher frequency than alteration charge will be required
Minimum premium : Regular premium -> Rs. 5000/- per annum
Single premium-> Rs. 10000/-
Maximum premium: No limit.
Sum Assured:
Minimum Sum Assured :
| Regular premium policies | Higher of 5 times the annualized premium ORHalf of the policy term times the annualized premium |
| Single premium policies | 1.25 times the single premium. |
Maximum Sum Assured:
| Regular premium |
|
| Single premium | If critical illness rider is not opted for:
If critical illness rider is opted for:
|
Otherwise, 2.5 times of the Single Premium if age at maturity is 71 yrs and above.
Sum assured shall be available in multiple of Rs. 5000 and annualized premium shall be payable in multiple of Rs.1000/- where minimum sum assured is not in the multiple of Rs.5000/- , it will be rounded off to the next multiple of Rs.5000/-.
The maximum sum assured under different non-medical age proofs will be as follows
| AGEPROOF | MAXIMUM SUM ASSURED | |
| SINGLE PREMIUM | REGULAR PREMIUM | |
| NSAP-I | 5 Times the single premium | 20 times the annualized premium |
| NSAP-II | 3 Times the single premium | 15 times the annualized premium |
| NSAP-III | 2 Times the single premium | 10 times the annualized premium |
Money Plus Plan Benefits
Maturity Benefits:
On the policyholder surviving the date of maturity an amount equal to the fund value of the units held in the policyholder’s fund is payable as maturity claim.policyholder may exercise “Settlement option” one month prior to the date of maturity.In case , this option is exercised, the maturity claim under the policy shall not be paid in lump sum.The policyholders fund in regular instalments( Half-yearly or yearly) or irregular instalments spread over a period of 5 years from the date of maturity.
In case of regular installments, the installment shall be the total no of units as on the date of maturity divided by the total no of instalments. (i.e 5 for yearly and 10 for half-yearly).
The no. of units arrived at in respect of each instalment will be multiplied by the NAV as on date of instalment payment.
The first payment will be made on date of maturity and thereafter based on the mode i.e yearly or half-yearly opted by the policyholder.
In case policyholder wants maturity paid at irregular instalments, then they has to claim the same by sending an application indicating the of units want to encash. At the end of 5 years Settlement option shall not be allowed under lapsed policy.During the settlement option period, no other charges shall be deducted. There shall not be any life cover during this period. The value of instalment payable on the date specified shall depend on NAV applicable on that date.
Death Benefits:
In case of death of the policyholder when the cover is in full force, the nominee shall be eligible to get the sum assured under the basic plan.
POLICY IN FORCE ( DEATH OF POLICYHOLDER BEFORE FUP OR WITHIN DAYS OF
GRACE OR WITHIN AUTO COVER PERIOD):
In case of death of policyholder when the policy is in force, the death claim payable will
be , HIGHER OF , 1) sum assured under the basic plan 2) or the fund value of units held in
the policyholder’s fund value as at the date of booking the liability.
Both sum assured + unit value is not payable
- If partial surrender has been made during last 2 years prior to date of death, the sum assured under the basic plan shall be reduced to the extent of the amount of partial surrender made. After reducing this amount, higher of 1) or 2) should be given.
- In case of death of the life assured aged less than 12 years before commencement of risk, only value of the units held in the policyholder’s fund shall payable.
- If cause of death is due to accident , then DAB sum assured will be payable in full.
- If the policy is in lapsed condition then the value of units held in the policyholder’s fund shall become payable to the nominee.
POLICY IS IN LAPSED CONDITION AND PREMIUM HAVE BEEN PAID FOR LESS THAN 3 YEARS OR DEATH OF LIFE ASSURED BEFORE COMMENCEMENT OF RISK:
- In above case, fund value of the units in the policyholder’s fund as on date of intimation of death would become payable.
Options under Money plus plan
ELIGIBILITY CONDITIONS FOR ACCIDENT BENEFIT:
Accident benefit can be availed as an optional rider benefit by paying an additional premium of Rs. 0.50 paise for every 1000 accident benefit sum assured per policy by cancellation of appropriate no of units out of policyholder’s unit account every month.
For Example: If you are above 18 years of age,you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs.25,000 and maximum of Rs.50 lakh.In case of death by Accident,an Additional Sum equal to Accident Benefit Sum assured shall be payable.
| Sum assured | Minimum->25000 Maximum->50,00,000 sub to all policies taken together. |
| Age at entry | Minimum 18 yrs completed Maximum 65 yrs nearer birthday |
| Policy term | 5 to 20 years. |
| Maximum age up to which DAB can be available | 70 yrs NBD. |
| sum assured shall be available in multiple of | Rs. 5000/- |
CRITICAL ILLNESS RIDER:
If you are between 18 and 50 years of age, you may opt for Critical Illness Benefit equal to the life cover subject to a minimum of Rs. 50,000 and maximum of Rs. 5 lakhs.Provided the policy term is 10 years and above.An additional sum equal to the Critical Illness Benefit shall be payable.
| Sum assured | Minimum->50,000Maximum->5,00,000 taking CIR sum assured taken together under all policies .CIR sum assured shall not exceed sum assured under basic plan. |
| Age at entry | Minimum -> 18 yrs completedMaximum-> 50 yrs NBD. |
| Policy term | 10 to 20 years. |
| Maximum age up of which CIR benefit is allowed | 60 yrs NBD. |
| Sum assured under CIR will be in multiple of | Rs. 10000. |
Other benefits of Money plus plan
Investment Fund Type and Switching over of Fund: There are 4 Fund types under Money plus plan .The policyholder will have the option to choose any one of the above 4 funds.
1) Bond fund 2) Secured fund 3) Balanced fund 4) Growth fund.
| MONEY PLUS (180) | Launch Date:20/12/2006 | ||||
| Balanced | ULIF003201206LICMNY+BAL512 | 10.00 | 20.1922 | 20.1922 | 20.1922 |
| Bond | ULIF001201206LICMNY+BND512 | 10.00 | 19.1966 | 19.1966 | 19.1966 |
| Growth | ULIF004201206LICMNY+GRW512 | 10.00 | 16.7523 | 16.7523 | 16.7523 |
| Secured | ULIF002201206LICMNY+SEC512 | 10.00 | 19.7085 | 19.7085 | 19.7085 |
The net asset value (NAV) will be computed on daily basis from date of launch of plan. For this
plan, NAV is not fixed for first 1 month @ Rs. 10/- per unit.
ALLOCATION OF PREMIUM:
Total premium received is divided into unit fund and non-unit fund. This allocation is done as per percentage given under single premium and regular premium policies. The unit fund premium is utilized for arriving at the no of units by dividing it by the applicable NAV rate.No. of units are to be rounded off up to 3 decimals.
Further, unit capital will be always 10 times of the no. of units.
Single premium:
| Premium band | Allocation rate |
| Up to 4,00,000 | 4.25% |
| 4,00,001 to 6,00,000 | 4.00% |
| 6,00,001 and above | 3.75% |
| CEIS | NIL |
Regular premium i.e yearly, half-yearly, quarterly :
| Premium band ( per annum)* | Allocation charge | ||
| 1st year | 2nd , 3rd year | 4th year onwards | |
| 5,000 to 75,000 | 26.50% | 5.00% | 2.50% |
| 75001 to 1,50,000 | 25.50% | 5.00% | 2.50% |
| 1,50,001 to 3,00,000 | 24.00% | 5.00% | 2.50% |
| 3,00,001 and above | 23.00% | 5.00% | 2.50% |
| CEIS | NIL | NIL | NIL |
Top up premium:
There is no provision to pay top up premium under this policy.
Recovery of charges and frequency of charges:
Sum of all charges should not be deducted from allocated amount, but no. of units will be deducted. The total no. of units to be deducted will be calculated as:
=total amount of following charges/ Applicable NAV rate as per time applicable.
( no. of units to be cancelled will be calculated up to 3 decimals)
Charges under Money plus plan
1) Mortality (life cover) charges:
Mortality charges will be taken every month by canceling appropriate no. of units out of the policyholder’s fund value as per NAV rate applicable.
Mortality charge, during the policy year will be based on age nearer birthday of policyholder as at the policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence will increase every year on each policy anniversary.
Mortality charge shall be deducted only if the basic sum assured is more than the fund value of the units on the date of deduction.
2) ACCIDENT BENEFIT CHARGE:
If accident benefit cover is opted for, then charge of 0.50 paise per 1000 sum assured of accident benefit per policy year by monthly cancellation of appropriate no. of units will be deducted.
3) CRITICAL ILLNESS BENEFIT CHARGE:
CIR charges during a policy year will be based on the age NBD of policyholder as at the policy anniversary coinciding with or immediately preceding the due date of cancellation of units. Hence premium will increase every year.
4) POLICY ADMINISTRATION CHARGES:
Policy administration charges of Rs.60/- per month during the first policy year and Rs 20/- per month thereafter throughout the term of the policy will be deducted by canceling appropriate no. of units out of policyholders’ fund value.No flat fee or policy charge will be charged separately.
5) SERVICE TAX CHARGE:
A service tax charge shall be levied on the charges for mortality, Accident benefit and critical illness benefit rider , if any and shall be taken canceling appropriate no. of units out of policyholders fund value on monthly basis, as and when above charges are deducted. At present F.Y. 2006-07 rate is 12.24% i.e 12% service tax + 2% education cess on service tax. For F. Y. 2007-08 rate is 12.36% i.e. 12% service tax + 3% education cess on service tax. For information about Tax on Life Insurance Policies www.taxqueries.in
Additional Information about Money Plus plan
DAYS OF GRACE:
A grace period of 1 calendar month but not less than 30 days will be allowed for payment of YLY/HLY/QLY premiums. If premium is not paid within days of grace, policy will lapse.If death of life assured occurs within the grace period but before the payment of premium due, the policy will be treated in force and death benefits shall be paid after deduction of all charges.
AUTO COVER:
Under auto cover benefit , where regular premiums mode policies, if premium is not paid
within days of grace, the policy will lapse, but with certain conditions , life cover,accident benefit and critical illness rider cover will be continued.
Under regular premium policies, where at least 3 full years premiums have been paid fully,
then auto cover period will be continued to provide risk cover for life, DAB, & CIR for
1) Two years from the date of FUP. OR
2) The date of maturity OR
3) Till such period that the policyholders’ unit account reduces to one annualized premium ; WHICHEVER IS EARLIER.
REVIVAL OF POLICY:
- Where premiums have been paid for less than 3 years, the revival shall be made on the
submission of proof of continued insurability i.e evidence of good health and the payment
of arrears of premium without interest.
- Where premiums have been paid for at least 3 years or more , policy may be revived
without any evidence of health + arrears of premiums without interest.
COMMENCEMENT OF RISK UNDER MINOR’S LIFE:
- If age of life assured under the policy is less than 12 year as on date of commencement of policy, the ‘ date of commencement of risk ‘ will be as follows. This is a date from which life insurance cover under the policy will start.
- If age at entry of life assured is less than or equal to 10 yrs, then risk will commence either after 2 years from date of commencement of policy
- In case of minor aged 12 years or more, risk will commence immediately.
LOAN:
No loan shall be granted under this plan.
ASSIGNMENT:
Assignment / change of nomination will be allowed as per rule.
PARTIAL WITHDRAWAL/ SURRENDER:
Partial withdrawal may be in the form of fixed amount or in the form of fixed
number of units.
Under regular premium policies, where less than 3 years premiums have been paid
and further premiums are not paid, partial withdrawal shall not be allowed. where at least 3 years premiums have been paid ,partial withdrawal will be allowed sub to minimum balance of 2 annualized premium in fund.
COMPULSORY SURRENDER:
The concept of compulsory surrender is also introduced under Money plus plan.
FULL SURRENDER VALUE AND SURRENDER CHARGE:
The policyholder will have an option to surrender the policy only after completion of 3 policy years both under single and regular premium policies. There is no need to pay 3 years premium for getting surrender value.
Benefit Illustration of LIC Money Plus Policy
Name of the Product: LIC’s Money Plus – I
Age: 35
Sum Assured: 600000
Premium Paying Term: 15
Amount of Installment Premium: 20000
Mode: Yearly
Service Tax Rate: 10.30%
Policy Term : 15
Mode of Premium Payment : Yearly
Funds opted for: Growth Fund
Combination: BASIC PLAN WITH LIFE COVER
Gross Yield: 10%
Net Yield: 8.26%
Statement of Various charges along with growth of the fund expected over the duration of the policy with assumed rate of interest as mentioned
(All charges are in Rupees)
| PolicyYear | AnnualisedPremium | PremiumAllocn Charge | Amount Availablefor investment( out of premium ) | Mortality Charge | Service Tax | Policy AdminCharge | Guarantee Charge | OtherCharges | Addition toFund (if any) | Fund Before FMC | Fund MgtCharge | Fund atthe End | SurrenderValue | DeathBenefit |
| 1 | 20000 | 5300 | 14700 | 1018 | 736 | 720.00 | 0 | 0 | 0 | 13533 | 110 | 13423 | 0 | 600000 |
| 2 | 20000 | 1000 | 19000 | 1053 | 263 | 240.00 | 0 | 0 | 0 | 34009 | 264 | 33745 | 0 | 600000 |
| 3 | 20000 | 1000 | 19000 | 1090 | 285 | 247.20 | 0 | 0 | 0 | 56286 | 434 | 55852 | 55852 | 600000 |
| 4 | 20000 | 500 | 19500 | 1127 | 258 | 254.62 | 0 | 0 | 0 | 81130 | 623 | 80507 | 80507 | 600000 |
| 5 | 20000 | 500 | 19500 | 1162 | 284 | 262.25 | 0 | 0 | 0 | 108170 | 829 | 107342 | 107342 | 600000 |
| 6 | 20000 | 500 | 19500 | 1207 | 312 | 270.12 | 0 | 0 | 0 | 137592 | 1053 | 136539 | 136539 | 600000 |
| 7 | 20000 | 500 | 19500 | 1236 | 341 | 278.23 | 0 | 0 | 0 | 169629 | 1297 | 168333 | 168333 | 600000 |
| 8 | 20000 | 500 | 19500 | 1230 | 369 | 286.57 | 0 | 0 | 0 | 204558 | 1563 | 202996 | 202996 | 600000 |
| 9 | 20000 | 500 | 19500 | 1207 | 397 | 295.17 | 0 | 0 | 0 | 242662 | 1853 | 240809 | 240809 | 600000 |
| 10 | 20000 | 500 | 19500 | 1174 | 427 | 304.02 | 0 | 0 | 0 | 284236 | 2169 | 282067 | 282067 | 600000 |
| 11 | 20000 | 500 | 19500 | 1122 | 458 | 313.15 | 0 | 0 | 0 | 329616 | 2514 | 327102 | 327102 | 600000 |
| 12 | 20000 | 500 | 19500 | 1039 | 489 | 322.54 | 0 | 0 | 0 | 379183 | 2891 | 376292 | 376292 | 600000 |
| 13 | 20000 | 500 | 19500 | 908 | 519 | 332.22 | 0 | 0 | 0 | 433370 | 3303 | 430067 | 430067 | 600000 |
| 14 | 20000 | 500 | 19500 | 713 | 547 | 342.18 | 0 | 0 | 0 | 492669 | 3753 | 488915 | 488915 | 600000 |
| 15 | 20000 | 500 | 19500 | 431 | 570 | 352.45 | 0 | 0 | 0 | 557643 | 4247 | 553396 | 553396 | 600000 |
Gross Yield: 6%
| PolicyYear | AnnualisedPremium | PremiumAllocn Charge | Amount Availablefor investment( out of premium ) | Mortality Charge | Service Tax | Policy AdminCharge | Guarantee Charge | OtherCharges | Addition toFund (if any) | Fund Before FMC | Fund MgtCharge | Fund atthe End | SurrenderValue | DeathBenefit |
| 1 | 20000 | 5300 | 14700 | 1019 | 736 | 720 | 0 | 0 | 0 | 13009 | 108 | 12902 | 0 | 600000 |
| 2 | 20000 | 1000 | 19000 | 1055 | 263 | 240 | 0 | 0 | 0 | 32198 | 254 | 31944 | 0 | 600000 |
| 3 | 20000 | 1000 | 19000 | 1096 | 284 | 247 | 0 | 0 | 0 | 52307 | 410 | 51897 | 51897 | 600000 |
| 4 | 20000 | 500 | 19500 | 1139 | 255 | 255 | 0 | 0 | 0 | 73963 | 578 | 73385 | 73385 | 600000 |
| 5 | 20000 | 500 | 19500 | 1183 | 278 | 262 | 0 | 0 | 0 | 96658 | 754 | 95904 | 95904 | 600000 |
| 6 | 20000 | 500 | 19500 | 1243 | 304 | 270 | 0 | 0 | 0 | 120426 | 938 | 119489 | 119489 | 600000 |
| 7 | 20000 | 500 | 19500 | 1293 | 330 | 278 | 0 | 0 | 0 | 145334 | 1131 | 144203 | 144203 | 600000 |
| 8 | 20000 | 500 | 19500 | 1315 | 354 | 287 | 0 | 0 | 0 | 171470 | 1333 | 170137 | 170137 | 600000 |
| 9 | 20000 | 500 | 19500 | 1329 | 378 | 295 | 0 | 0 | 0 | 198906 | 1546 | 197360 | 197360 | 600000 |
| 10 | 20000 | 500 | 19500 | 1347 | 404 | 304 | 0 | 0 | 0 | 227702 | 1768 | 225933 | 225933 | 600000 |
| 11 | 20000 | 500 | 19500 | 1367 | 431 | 313 | 0 | 0 | 0 | 257926 | 2002 | 255924 | 255924 | 600000 |
| 12 | 20000 | 500 | 19500 | 1379 | 458 | 323 | 0 | 0 | 0 | 289658 | 2248 | 287410 | 287410 | 600000 |
| 13 | 20000 | 500 | 19500 | 1377 | 486 | 332 | 0 | 0 | 0 | 322991 | 2506 | 320485 | 320485 | 600000 |
| 14 | 20000 | 500 | 19500 | 1351 | 512 | 342 | 0 | 0 | 0 | 358033 | 2777 | 355255 | 355255 | 600000 |
| 15 | 20000 | 500 | 19500 | 1293 | 536 | 352 | 0 | 0 | 0 | 394906 | 3062 | 391843 | 391843 | 600000 |
IN THIS POLICY, THE INVESTMENT RISK IS BORN BY THE POLICY HOLDER AND THE ABOVE INTEREST RATES ARE ONLY FOR ILLUSTRATION PURPOSE.