WHOLE LIFE POLICY TABLE NOS. 02, 05 & 08

LIC presents ‘Whole Life Policy’ in 3 variants

1.       (Table 02) – Regular Premium Payment

2.       (Table 05) – Limited Premium Payment

3.       (Table 08) – Single Premium Payment

Attractions

§  This plan is mainly devised to create an estate for the heirs of the policyholder as it provides

for payment of sum assured plus bonuses on the death of the policyholder.

§   Considering the increased longevity of people, LIC has amended the above provision, thereby

providing for payment in the form of maturity claim on completion of age 80 years or on expiry

of term of 40 years from date of commencement whichever is later.

§  This policy is suitable for people of all ages who wish to protect their families from financial

crises that may occur owing to the policyholder’s premature death.

§  Bonus is higher than endowment and money back plans.  In case of limited premium   

payment, bonus continues to accrue even after premium is fully paid.   

Features

• Who can avail of this plan ?

Those aged between 12 years (completed) and 60 years (nearer birthday)

•   What will be minimum & maximum Sum Assured?

Minimum Sum Assured – Rs.30,000/-

Maximum Sum Assured –  No limit.

•   For many years is premium payable ?

Under Table 2, premiums are payable for a period of 3 years or up to age 80 years,

whichever is later.

Under Table 5, premiums are payable for a period of 5 years to 55 years, depending upon

the policyholders’ choice.

Under Table 8, premiums are payable in a single installment.

•   Whether loan can be granted?

Yes.

•   Is bonus payable under this policy?

This is a with-profit plan and participates in the profits of the Corporation’s life insurance business.  It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

•   Whether Key Man Insurance be granted under  this plan?

Yes.

Benefits

Death Benefit :   

The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured.

Maturity Benefit :

This is a whole life assurance plan and hence does not have a maturity date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age.

Supplementary/Extra Benefits :   

These are the optional benefits that can be added to your basic plan for extra protection/option.  An additional premium is required to be paid for these benefits.

Illustration 1:

Table No 2

Age at entry: 35 years

Sum Assured: Rs.1,00,000/-      

Premium Paying term: 45 years                               

Mode of premium payment: Yearly    

Annual Premium: Rs.2917/-

End of year	Total premiums paid till end of year	Benefit payable on death / maturity at the end of year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	2917	100000	3900	10800	103900	110800
2	5834	100000	7800	21600	107800	121600
3	8751	100000	11700	32400	111700	132400
4	11668	100000	15600	43200	115600	143200
5	14585	100000	19500	54000	119500	154000
6	17502	100000	23400	64800	123400	164800
7	20419	100000	27300	75600	127300	175600
8	23336	100000	31200	86400	131200	186400
9	26253	100000	35100	97200	135100	197200
10	29170	100000	39000	108000	139000	208000
15	43755	100000	58500	162000	158500	262000
20	58340	100000	104000	288000	204000	388000
25	72925	100000	130000	360000	230000	460000
30	87510	100000	156000	432000	256000	532000
35	102095	100000	182000	504000	282000	604000
40	116680	100000	208000	576000	308000	676000
45	131265	100000	234000	648000	334000	748000

Illustration 2:

Table No 5         

Age at entry: 35 years   

Sum Assured: Rs.1,00,000/-

Premium Paying term: 15 years 

Mode of premium payment: Yearly

Annual Premium: Rs.4,444/-

End of year	Total premiums paid till end of year	Benefit payable on death / maturity at the end of year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	4444	100000	3900	10800	103900	110800
2	8888	100000	7800	21600	107800	121600
3	13332	100000	11700	32400	111700	132400
4	17776	100000	15600	43200	115600	143200
5	22220	100000	19500	54000	119500	154000
6	26664	100000	23400	64800	123400	164800
7	31108	100000	27300	75600	127300	175600
8	35552	100000	31200	86400	131200	186400
9	39996	100000	35100	97200	135100	197200
10	44440	100000	39000	108000	139000	208000
15	66660	100000	58500	162000	158500	262000
20	66660	100000	104000	288000	204000	388000
25	66660	100000	130000	360000	230000	460000
30	66660	100000	156000	432000	256000	532000
35	66660	100000	182000	504000	282000	604000
40	66660	100000	208000	576000	308000	676000
45	66660	100000	234000	648000	334000	748000

Illustrations : Disclaimer and Assumptions

§   This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life. 

§   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.

§   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.

§   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.

§   The Maturity Benefit is the amount shown at the end of 45 years.