PROFIT PLUS

(Table No: 188) w.e.f. 23.08.2007

LIC has introduced a unit linked Endowment plan, which offers investment- cum- insurance
during the term of the policy. with premium payment limited to single, 3,4 or 5 years. The
policyholder can choose the level of cover within the limits, which will depend on the term
chosen, mode as per the amount of premium he desires to pay. The allocated premium will be
utilized to purchase units as per the selected fund type

Investments Fund Type

Fund Type Investment in Short- term- Investments in Details and

Govt./Govt. investments such Listed Equity Objective of the
Guaranteed as money market Shares fund for
Securities/Corpora instruments risk/return
te Debt (Including Govt.
Securities
Corporate Debt)
Bond Fund Not less than 60% 100% Nil Low risk
Secured Fund Not less than 45% Not more than 85% Not less than Steady Income-
15%and not Lower to Medium
more than 55% risk
Balanced Fund Not less than 30% Not more than 70% Not less than 30% Balanced Income
and not more and growth-
than 70% Medium risk
Growth Fund Not less than 20% Not more than 60% Not less than 40% Long term Capital
and not more growth- High risk
than 80%

Regular Premium allocation charge

Premium Band Prem.Paying term 3 or 4 yrs Prem.Paying term 5 yrs

(per annum)
First Yrs. Thereafter First Yrs. Thereafter

20,000 to 2,00,000 15.00% 2.50% 24.00% 4.00%

2,00,001 to 3,00,000 14.50% 2.50% 23.50% 4.00%

3,00,001 to 6,00,000 14.00% 2.50% 23.00% 4.00%

6,00,001 and above 13.00% 2.50% 22.50% 4.00%

 CHARGES AND FREQUENCY OF CHARGES

Single Premium Policies

Premium Band Alloction Charge
Up to 4,00,000 5.00%
4,00,001 and above 4.50%

MORTALITY/CRITICAL ILLNESS BENEFIT/ACCIDENT BENEFIT CHARGE: Will be

taken every month by cancelling apporpriate number of units out of the Policyholder’s
fund value.

Policy Administration Charge: Rs.60/ per month during the first policy and Rs.20/-
per month thereafter through the term of the policy will be deducted by cancelling
appropriate number of units out of Policyholder’s Fund Value.

Fund Management Charge: (FMC) are dependent on type of fund and are
deductible on the date of computation of NAV at the following rates: The NAV thus
declared,will be net of FMC.

0.75% p.a. of Unit Fund for “Bond” Fund

1.00% p.a. of Unit Fund for “Bond” Fund
1.25% p.a. of Unit Fund for “Bond” Fund
1.50% p.a. of Unit Fund for “Bond” Fund

Switching Charges: Within a given policy year, 4 switches will be allowed free
of charge. Subsequent switches shall be subject to a switch ing charge of Rs.100 per
switch.

Applicability of Net Asset Value (NAV): The premium received up to 3.00 p.m. by
the corporation along with a local cheque or demand draft payable at par at the
place where the premium is received, the closing NAV of the day on which premium
is received shall be applicable, the premiums received after3.00 p.m. by the
corporation. Along with a local cheque or a demand draft payable at par at the
palace where the premium is received, The closing NAV of the next business day
shall be applicable. The outstation cheque/ Demand draft shall not be
accepted. This rule applies to switching option also.

Miscellaneous Charge: This is a charge levied for an alteration within the

contract. Such as reduction in policy term, change in premium mode to higher
frequency, Grant of Accident Benefit after the issue of the policy etc. may be allowed
subject to a charge of Rs.50/-which will be deducted by canceling appropriate
number of units out of the Policyholder’s Fund Value.
Right to Revise Charges: The modification in charges will be done with prospective
effect with the prior approval of IRDA and after giving the policyholders a notice of
three months.
ELIGIBILITY CONDITIONS AND FEATURES: For Basic Plan
Minimum Sum Assured higher of 5 times the annualized premium or half of
Regular premium the policy term times the annualized premium
Single premium 1.25 times the single premium
Maximum Sum Assured Higher of 5 times the annualized premium or half of

If Critical Illness Benefit Rider is opted for 5 Times the Single Premium if age
at maturity is 55 years or less.
3 Times the Single Premium if age at
maturity is 56 years or less.
If Critical Illness Benefit Rider is opted for 5 Times the Single Premium if age at
maturity is 65 years or less.
3 Times the Single Premium if age at
maturity is 66 to 70 years.
2.5 Times the Single Premium if age
at maturity is 71 years and above.
The Sum Assured shall be available
in multiples of Rs.5,000/-
Min./Max Prem. -Regular premium Rs. 10,000 p.a. for limited PPT/No
limits.
Single Prem. Rs. 20,000/ No limit
Premium Paying Term 3 to 5 years or single premium
Mode of premium payment Single-Yly, Hly, Qly,&Mly(ECS)
Minimum Entry Age 0 years last birthday
Maximum entry Age 65 years nearest birthday
Policy term 5 to 25 years
Minimum Maturity Age 18 years completed
Maximum Maturity Age For PPT 3 years: 70 years nearest
birthday
For Single Premium, PPT 4 or 5 years: 75 years nearest birthday
BENEFITS: In case of death of the policyholder when the cover
Is full force. The nominee shall be eligible to get higher of Sum Assured under the
Basic Plan or the Value of units held in the Policyholder’s Fund as at the date of
booking the liability. Further, if partial withdrawal has been made during the last two
years from the date of death the Sum Assured under the Basic plan shall be reduced to
the extant of the amount of partial withdrawals made.
If less than 3 year’s premiums have been paid and the policy is in lapsed condition,
then the value of units held in the Policyholder’s Fund shall become payable to the
nominee.
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 be payable. The risk
in case on minors risk, commences from 7 years of age or 2 years after the date of
commencement of the policy, whichever is later, In case aged 12 years or more, risk
will commence immediately.
Benefits payable on Maturity On the policy holder surviving the
date of maturity an amount equal to the Value of the units held in the policyholder’s
Fund is payable.
Premium Waiver Benefit (PWB) No PWB will be allowed under this
plan

Settlement Option: On maturity, the policy holder may exercise “Settlement Option”
one month prior to the date of maturity. The policyholder, in that case, shall encase
the units held in policyholder’s Fund in installments spread over a period of five years
from the date of maturity. The installment shall be the total number of units as on the
date of maturity divided by total number of installments (i.e. 5 and 10 for yearly and
half-yearly installments in 5 years period respectively). The number of units arrived at
in respect of each installment will be multiple by the NAV as on the date of
installments payment. Settlement Option shall not be allowed under a lapsed policy.
During the Settlement Option period no charge other than the Fund Management
Charge shall be deducted. There shall not be any life cover during this period . On
death of life Assured after the commencement of Settlement Option period,the value
of outstanding units held in Policyholder’s Fund shall become payable to the
nominee/legal heir in lump sum.
No partial withdrawal or switch in of fund shall be allowed after commencement of
Settlement Option period.
Top-Up: no top-up shall be allowed under the plan.

Service Tax Charge-A service tax charge shall be levied on the charges for Mortality
charge Accident Benefit and Illness Benefit Currently, the rate of service tax is 12 %
with an educational cess at the rate of 3 % thereon and hence effective rate is 12.36%

Surrender Value And Surrender Charge: After 3 yrs from the date of
commencement. There will be no Surrender charge. Within 3 years from the date of
commencement of policy, then the Policyholder’s Fund Value shall be converted into
monetary terms. No charges shall be made thereafter and this monetary amount
shall be paid on completion of 3 years from the date of commencement of policy. In
case of death of the life Assured after the date of surrender but before the
completion of 3 years shall become payable to the nominee/legal heir immediately
on death. In case of Single Premium policy or Regular premium policy where
premiums are paid for less than three years, if the balance in the Policyholder’s Fund
Value at any time is not sufficient to recover the relevant charges, the policy shall
compulsorily be terminated and the amount will be negligible. In case of regular
premium policy where premiums are paid for at least three years, the balance In the
Policyholder’s Fund Value at all times, shall be subject to a minimum balance of
Rs.5000. In case the Policyholder’s Fund Value falls below this limit, the policy shall
compulsorily be terminated with a notice to the policyholder and the balance amount
in the Policyholder’s Fund Value , if any shall be refunded to the Policyholder.
Once a policy is surrendered it cannot be reinstated.

Compulsory surrender: The policy shall be terminated compulsorily in following

cases.
1) The balance In the Policyholder’s fund, at all times shall be subjected to a
minimum balance of Rs.5,000/
2) .In case the policy is not revived during the period of revival then the policy
shall be terminated on expiry of revival period or on maturity, whichever is
earlier
3) In case premiums are paid for less than three years if the balance in the Policy
holder fund value, at any time is not sufficient to recover the charges.
Partial withdrawals: A Policyholder can partially withdraw the units at any time
after the third policy anniversary subject to the following:
1) In case of minors, at attainment of majority (I.E. on or after 18 birthday)
2) Partial withdrawals may be either in the form of fixed amount or in the form of
fixed number of units.
3) For 2 years period from the date of withdrawal, the Sum Assured under the
Basic plan shall be reduced to the extant of the amount of partial withdrawal
made.
 4) 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.
5) Under Limited Premium Paying Term policies where at least 3 years premiums
hav ben paid, partial withdrawal will be allowed subject to policy holder’s Fund
Value being at least Rs.10000/-
6) Under Single Premium policies, the partial withdrawal will be allowed subject to
minimum balance of rs. 5000/- in the policyholder’s Fund Value.
Commencement of risk Under The Policy Risk will commence either after
2 years from the date of commencement of policy or from the policy
anniversary coinciding with or immediately following the completion of 7
years ofge, whichever is later, where the age at entry is more than 10 years
but less 12 years ,the risk shall commence from the policy anniversary
coinciding with or next following 12th birthday of the Life Assured.
Revivals: If premiums have not ben paid for at least 3 full years, the policy may be
revived within two years from the due date of first unpaid premium without interest
subject to proof of continued insurability to the satisfaction the Corporation. The
Corporation reserves the right to accept the revival atits won terms or decline the
revival of a lapsed policy, Revival of surrendered policy will not be allowed.

Requirements for Claim: As applicable to Endowment Plans.

Days of Grace: 30 days will be allowed for payment of yearly or half-yearly or

quarterly prem.

LOANS: No loan shall be granted under this plan.

Cooling-Off Period: Within 15 days from the date of receipt of the policy.
Back Dating: Back dating of policy will not be allowed.
Assignmen/Nomination: Allowed

Tax Rebate: allowed u/s80C. On death u/s 10(10D)

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