Contents

1 LIC Money Plus – I policy Review

LIC Money Plus – I policy Review

Plan No 193

Introduction about Lic Money Plus Plan – I No-193

Money Plus plan is a unit linked endowment plan Introduced On – 22/05/2008 Withdrawn On-After withdrawal of money plus plan no 180, there was no unit linked endowment ass plan with regular premium paying term. To fill this gap or demand of market, LIC has introduced this plan with some new features.

The plan has attractive features like enhanced limits for investment in the Equity market for Secured and Balanced types of funds, lower Fund Management Charges, enhanced limits for Critical Illness coverage and liberalized conditions for continuance of the policy after lapsation.

Lic Money Plus Plan Parameters

Entry age : Minimum: 0 years LBD (Last birthday).

Maximum: 65 years NBD (nearer birthday).

Maturity age: Minimum: 18 years completed

Maximum: 75 years NBD.

Policy term: 5 to 30 years.

Mode of payment: Yearly, half-yearly, Quarterly, ECS( monthly)

Minimum premium : Regular premium ->Rs. 5000/- per annum &

Multiple of Rs.1000/0

ECS (monthly) premium -> Rs. 1000/-increasing @Rs.250

Maximum premium: No limit.

Sum Assured:

Minimum Sum Assured : Regular premium policies->Higher of 5 times the annualized

premium.

Maximum Sum Assured:

Regular premium:

30 times of annualized premium if age at entry is up to 45 years.

20 times of annualized premium if age at entry is 46 to 60 years

10 times of the annualized premium if age at entry is 61 yrs 7 above

For sub-standard lives maximum sum assured will be restricted:

Age at entry	EMR class	Maximum sum assured
Up to 45 yrs	Up to class IV	30 times the annualized premium
	Class V and above	20 times the annualized premium
46 yrs to 55 yrs	Up to class IV	20 times the annualized premium
	Class V and above	10 times the annualized premium
56 yrs & above	Up to class IV	10 times the annualized premium
	Class V and above	5 times the annualized premium

The maximum sum assured under different non-medical age proofs will be as follows

AGEPROOF	MAXIMUM SUM ASSURED
	REGULAR PREMIUM
NSAP-I	20 times the annualized premium
NSAP-II	15 times the annualized premium
NSAP-III	10 times the annualized premium

Lic Money Plus – I Plan – 193 Benefits

Maturity Benefit:

On survival of the policyholder till the maturity date,

Maturity claim = fund value of the units held in the policyholder’s fund value.

If incase , Settlement option is exercised by the policyholder, then

Maturity claim under the policy will not be paid in lump sum.

The policyholder shall encash the units held in the policyholders fund in regular instalments or irregular instalments spread over a period of 5 years from the maturity date.

In case of regular installments, the installment shall be

= total no of units as on the maturity date

total no of instalments.

Number of units arrived at in respect of each instalment will be multiplied by the NAV (Net Asset Value) as on the date of instalment payment. The first payment will be made on maturity date and thereafter based on the mode( yearly or half-yearly) opted by the policyholder.

In case of irregular installments,then

policyholder has to claim the same by sending an application indicating the no. of units want to encash.

The unit outstanding in policyholder’s account shall be encashed compulsorily, at the end of 5 years.

Under lapsed policy, settlement option is not allowed.
During settlement option period, other charges will not be deducted.
Also during settlement option period,there shall not be any life cover.
The value of instalment payable on the specified date shall depend on NAV applicable on that date.

Death Benefit:

On the death of policyholder when the policy is in force, the death claim payable will be, HIGHER OF ,

sum assured (SA) under the basic plan
or the fund value of units held in the policyholder’s fund value as at the booking date of the liability.

Both sum assured + unit value is not payable, since mortality charges are recovered on sum assured – unit value.

If partial surrender has been made during last 2 years before the death date, the sum assured (SA) 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.

If incase cause of death is due to accident , then DAB (Double Accident Benefit) sum assured will be payable in full.

In case policy gets surrendered before the completion of 3 years from DOC (date of commencement), then fund value of units is transferred to non-unit fund , waiting for completion of 3 years for its payments.

If policyholder expired, during this waiting period, the amount payable at the end of lock-in-period shall be payable to nominee immediately on death.

If incase policy is in lapsed condition and premium have been paid for less than 3 years or death of life assured before commencement of risk, fund value of the units in the policyholder’s fund as on date of intimation of death would become payable.

Options under Lic Money Plus – 193 Plan

Eligibility conditions for Accident Benefit:

Accident benefit is an optional rider which can be availed by paying an additional premium of Rs. 0.50 paise for every 1000 Accident benefit SA (sum assured) per policy, every month by cancellation of appropriate number of units out of policyholders unit account.

If policyholder is employed in any high risk job like in police organization and he wish to have DAB with police duty, then the rate of premium for DAB will be Rs 1.00/- per 1000 sum assured.

Disability benefit i.e PDB / EPDB is not included in accident benefit.

Sum assured	Minimum : Rs. 25,000 Maximum : Rs. 50,00,000 subjected to all policies takentogether.
Age at entry	Minimum : 18 years completed Maximum : 65 years nearer birthday
Maximum age up to which DAB can be available	70 years nearer birthday
Policy term	5 to 30 years
sum assured in multiple	Rs. 5000/-

Eligibility conditions for Critical Illness Rider (CIR):

Sum assured	Minimum : Rs. 50,000 Maximum : Rs.10,00,000 taking CIR sum assured takentogether under all policies
Age at entry	Minimum : 18 years completed Maximum : 50 years nearer birthday
Maximum age up to which CIR benefit is allowed	60 years nearer birthday
Policy term	10 to 30 years
sum assured in multiple	Rs. 10,000

Other benefits of Lic Money Plus – 193 Plan

Investment Fund Type and Switching over of Fund:

Under Lic Money plus plan – 193, there are four fund types. The policyholder will have the option to choose any one of the below 4 funds.

1) Bond fund

2) Secured fund

3) Balanced fund

4) Growth fund.

MONEY PLUS – I (193)		Launch Date:22/05/2008
Balanced	ULIF003220508LICMY1+BAL512	10.00	21.6279	21.6279	21.6279
Bond	ULIF001220508LICMY1+BND512	10.00	18.2773	18.2773	18.2773
Growth	ULIF004220508LICMY1+GRW512	10.00	21.9725	21.9725	21.9725
Secured	ULIF002220508LICMY1+SEC512	10.00	22.2258	22.2258	22.2258

The net asset value (NAV) will be computed on daily basis from date of launch of plan. For this plan, NAV (net asset value) is not fixed for first 1 month at the rate of Rs. 10/- per unit.

The policyholder can switch between any fund types during the term of the policy. 4 switches will be allowed free of charge, within a given policy year. Subsequent switches shall be subject to switching charge of Rs.100 per switch. Switching shall not be allowed under a lapsed policy.

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 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 number of units. The difference between NAV and face value of the unit i.e Rs.10/- will be credited /debited to unit capital premium A/c.

Regular premium: i.e yearly, half-yearly, quarterly and monthly :

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:

Under Lic Money plus policy, there is no provision to pay top-up premium.

Recovery of charges and frequency of charges:

After premium receipt and further deduction of allocation charge, from balance amount, total no. of units available in policyholder’s unit capital account will be calculated.

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 Lic Money Plus Plan

Mortality (life cover) charge:

Mortality charges will be taken every month by canceling appropriate number of units out of the policyholder’s fund value as per NAV (net asset value) rate applicable.

During the policy year, mortality charge will be based on age nearer birthday (NBD) 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.

Accident Benefit Charges:

If accident benefit cover is chosen, then charge of Rs. 0.50 paise per 1000 sum assured of

accident benefit per policy year by monthly cancellation of appropriate no. of units will be

deducted.

Critical Illness Benefit (CIR) charge:

If Critical Illness Rider is chosen , then charges will be taken every month per 1000 sum assured of CIR, by canceling appropriate no. of units out of policyholders fund value as per NAV (net asset value) rate prevalent.

Policy Administration charges:

Policy administration charges of Rs.60/- per month during the first policy year and Rs. 20/-

per month thereafter, for 2nd year of the policy will be deducted by canceling appropriate

number of units out of policyholders’ fund value. Flat fee or policy charge will not be charged separately.

Service Tax Charge:

A service tax shall be charged on the charges for mortality, Accident benefit and critical illness rider benefit, 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 Lic Money Plus Plan

Days of Grace:

A grace period of 1 month but not less than 30 days will be allowed for payment of YLY/HLY/QLY premiums and 15 days for Monthly-ECS. If premium is not paid within days

of grace, policy will lapse.

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 (CIR) 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, accident benefit and critical illness rider (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:

If premiums have been paid for less than 3 years, the revival shall be made on the submission of proof of continued insurability.

If 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 years as on commencement date 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 years, 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:

Loan facility is not available under Lic Money plus plan.

Assignment:

Assignment / change of nomination will be allowed under Money plus policy.

Partial withdrawal / surrender:

A policyholder after paying at least 3 full years premiums under regular premium policies and also completion of 3 policy years, can partially withdraw the units.

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.