Source of Information: http://www.licindia.com/profit_plus_features.htm
It is a unit linked Endowment plan where the premium payment term (PPT) is limited to single lump sum, or uniformly over 3, 4 or 5 years. You can choose the level of cover within the limits, which will depend on whether the policy is a Single premium or Limited premium contract, term chosen and on the level of premium you agree to pay.
Four types of investment Funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
Benefits:
(Source: http://www.licindia.com/profit_plus_benefits.htm)
A) Death Benefit: Higher of Sum Assured or the Policyholder’s Fund Value* shall be available as death benefit.
*For the Life Assured of age less than 12 years before the commencement of risk, the Policyholder’s Fund Value shall be paid in case of death.
B) Maturity Benefit: On the Life Assured surviving the maturity date of the contract, an amount equal to the Policyholder’s Fund Value is payable.
3. Options:
A) Accident Benefit Option:
If you are above18 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 (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident Benefit sum assured shall be payable.
B) Critical Illness Benefit 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 lakh (including other policies with LIC of India) provided the policy term is 10 years and above. In case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, an additional sum equal to the Critical Illness Benefit shall be payable.
4. Eligibility Conditions and Other Restrictions:
| (a) |
Minimum Age at entry |
0 years (age last birthday) |
| (b) |
Maximum Age at entry |
65 years (age nearer birthday) |
| (c) |
Minimum Maturity Age |
18 years (completed) |
| (d) |
Maximum Maturity Age |
For PPT 3 years: 70 years nearest birthday. For Single Premium, PPT 4 or 5 Years: 75 years nearest birthday. |
| (e) |
Minimum Policy Term |
5 years |
| (f) |
Maximum Policy Term |
20 years |
| (g) |
Minimum Premium |
Rs. 20,000 for Single Premium |
| (h) |
Sum Assured under the Basic Plan |
Regular premium : Single Premium : Minimum Sum assured :1.25 times the single premium. Maximum Sum assured : • 5 times the Single premium if age at maturity is upto 55 years. |
Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals over the premium paying term of 3, 4 or 5 years.
The minimum premium will be Rs.10000/-. Alternatively, a Single premium can be paid subject to a minimum of Rs.20,000/- .
Other Features:
i) Partial Withdrawals: You may encash the units partially after the third policy anniversary subject to the following:
i) In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
iv) Under Limited Premium Paying Term policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
v) Under Limited Premium Paying Term policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least Rs. 10000/-.
vi) Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/- in the Policyholder’s Fund Value.
ii) Switching: You can switch between any fund types for the entire Fund Value during the policy term subject to switching charges, if any.
iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.
I Where atleast 3 years’ premiums have been paid, the Life Cover, Accident Benefit and Critical Illness Benefit riders, if any, shall continue during the revival period.
During this period, the charges for Mortality, Accident Benefit and / or Critical Illness Benefit cover, if any, shall be taken, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for:
i. two years from the due date of first unpaid premium, or
ii. till the date of maturity, or
iii. till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-, whichever is earlier.
The benefits payable under the policy in different contingencies during this period shall be as under:
A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals made, if any.
B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the amount under A above, if Accident Benefit is opted for.
Risks borne by the Policyholder:
i) LIC’s Profit Plus is a Unit Linked Life Insurance products which is different from the traditional insurance products and are subject to the risk factors.
ii) The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Profit Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
v) The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
vi) All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.
Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days.
