- 1 LIC whole life Policy Review
- 2 Plan no 1 and 2
- 3 Introduction on Lic whole life Policy
- 4 LIC Whole life policy Conditions
- 5 Lic Whole life Policy Rebates
- 6 LIC Whole Life Policy Maturity Benefits
- 7 LIC whole life Policy Death Benefits
- 8 LIC Whole life policy Surrender Value
- 9 Policy can be surrendered after paying premiums for at least of 3 full years. In case of regular premium paying policies, if policy is surrendered after completion of 3 years Guaranteed surrender value will be 30% of the total premium amount paid minus premium paid for first year.If policy was surrendered before 3 years then policyholder receives nothing. Guaranteed surrender value depends on no.of years premium paid.
- 10 PAID UP VALUE :
- 11 Riders Available in LIC whole life policy
- 12 Bonus on LIC Whole life plan
- 13 Simple Bonuses are declared per thousand of Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. FAB (Final Additional Bonus) is one of the other benefit which is applicable only at the time of maturity.
- 14 LIC whole life Policy Benefit illustration
LIC whole life Policy Review
Plan no 1 and 2
Introduction on Lic whole life Policy
LIC Whole life policy plan no 1 and 2 are actually started in the year 1986 by Lic Of India and policy got withdrawn in the year 2002.
In LIC Whole life policy, premiums are payable for minimum of 35 years from the date of commencement of policy or till attaining an age of 80 yrs . Whatever is more comfortable to the policyholder. Whole life policy is one of the cheapest policy.
LIC whole life policy basically provides Sum assured + bonuses on the death of the policyholder to nominee.
The maturity amount are payable after attaining age of 80 years to the policyholder or for a term of 35 years whichever is later. Whole life policy in LIC is an asset for the upcoming generation of the policy holder.
LIC Whole life policy Conditions
Sum Assured : Minimum – 10,000 /-
Maximum – no limit
Entry age : Minimum – 18 yrs
Maximum – 60 yrs
Premium paying term : 35 years or attaining the age of 80 years
premium payment mode : Yearly, Half Yearly, Quarterly, Monthly( SSS or ECS)
Plan is allowed under non-medical and medical basis.
All female categories are allowed.
Standard and non-standard age proofs are acceptable.
No restriction on sub-standard lives.
Lic Whole life Policy Rebates
Rebates are divided into 2 types
- sum assured rebate and
- mode rebate (premium payment mode)
Premium payment mode Rebate: Yearly 3% of tabular premium
Half-yearly 1.5% of tabular premium
Sum Assured rebate for regular premium policies :
|Rs 50,001 to 1 lakh||1.00 Rs|
|Rs 1,00,000 & Above||2.00 Rs|
LIC Whole Life Policy Maturity Benefits
This LIC whole life insurance plan does not have a maturity date. However, have the option to take the Sum Assured + all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy or on attaining 80 years of age.
Speaking Frankly there will be no maturity claim under whole life policies. Hence, LIC settles full sum assured along with the bonus to life assured as maturity claim on achieving 80 years of age as provided, if death claim has not occurred earlier.
Finally With effect from year 2002 when whole life policy will become ready for maturity claim on fulfilling all conditions, Policyholder have a option to take maturity claim till his death. Payment will be treated as maturity claim.
Conclusion: Finally it has been decided that Policy will be matured anytime after 40 years from the date of commencement or attaining 80 years of age. On attaining the age of 80 years policy settles maturity claim that is ( Full sum assured + bonus + FAB(Final Additional Bonus) – Outstanding premiums up to policy year of death)
LIC whole life Policy Death Benefits
LIC Whole life insurance plan provides insurance coverage for lifelong and it replaces financial loss to the family occurred due to the death of policyholder.
Death claim before date of maturity : full sum assured + bonus – (Outstanding premiums up to policy year of death + one time increase in basic sum assured)
Death claim after date of maturity: full sum assured + bonus + one time increase in basic sum assured – Outstanding premiums up to policy year of death
LIC Whole life policy Surrender Value
PAID UP VALUE :
= sum assured x No of years premiums paid / No of years premiums payable (PPT)
Riders Available in LIC whole life policy
Basically there are two types of riders: 1.Accident benefit Rider 2.Term assurance rider
- Accident benefit Rider: Available for this plan
- Term assurance rider: Not Available.
Bonus on LIC Whole life plan
Simple Bonuses are declared per thousand of Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. FAB (Final Additional Bonus) is one of the other benefit which is applicable only at the time of maturity.
For Example: Lic Declares Simple Bonus Rs 70 per 1000 Rs./- Sum Assured per annum.
LIC whole life Policy Benefit illustration
If Naveen chooses a LIC whole Life policy and his age at entry of policy is 30 years for a sum assured of Rs 1,00,000/-. Premium paying term is 45 yrs and mode of premium payment is Annually.
His Annual Premium is Rs 2917/-
|year||paid till end of year||Guaranteed||VariableScenario 1||Variable Scenario 2||TotalScenario1||totalScenario 2|
TABULAR ANNUAL PREMIUM PAYABLE UNDER PLAN 1- WHOLE LIFE WITHOUT PROFIT PER 1000 SUM ASSURED FOR DIFFERENT DATES OF COMMENCEMENT OF POLICY.
|AGE ATENTRY NBD||UOTO31/3/1980||FROM1/4/1980 TO
|NOTIONAL PREMIUM RATESFROM 1/5/1998 TREATED AS P’ FOR ONE TIME INCREASE IN SUM ASSURED **|
** P’=corresponding NOTIONAL Tabular premium as per the revision of premiums w.e.f. 1/5/1998 for original premium paying term & age at entry, irrespective of date of commencement of policy.(co/act/1703/4 dt. 9/12/1999)
TABULAR ANNUAL PREMIUM PAYABLE UNDER PLAN 2 – WHOLE LIFE WITH PROFIT PER 1000 SUM ASSURED FOR DIFFERENT DATES OF COMMENCEMENT OF POLICY.
|AGE ATENTRY NBD||UOTO31/3/1980||FROM1/4/1980 TO|