Jeevan Anand Plan - (Table No 149) Benefit Illustration
Jeevan Anand Plan - (Table No 149) Benefit Illustration
Jeevan Anand Plan - (Table No 149) Benefit Illustration
Benefit Illustration
Introduction
Insurance Regulatory & Development Authority (IRDA) requires all life insurance
companies operating in India to provide official illustrations to their customers. The
illustrations are based on the investment rates of return set by the Life Insurance
Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not
intended to reflect the actual investment returns achieved or may be achieved in future
by Life Insurance Corporation of India (LICI).
For the year 2003-04 the two rates of investment return declared by the Life Insurance
Council are 6% and 10% per annum.
Product summary
This plan is a combination of Endowment Assurance and Whole Life plans. It provides
financial protection against death throughout the lifetime of the life assured with the
provision of payment of a lump sum at the end of the selected term in case of his
survival.
Premium :
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary
deductions as opted by you throughout the selected term of the policy or till earlier
death.
Bonuses:
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 of the plan. Bonuses will
be added during the selected term or till death, if it occurs earlier. Final (Additional)
Bonus may also be payable provided the policy has run for certain minimum period.
Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on
death due to accident up to age 70 of life assured. In case of permanent disability of the
life assured due to accident this additional Sum assured is payable in instalments.
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.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values
are available on the plan on earlier termination of the contract.
The Corporation’s surrender value will be reviewed from time to time and may change
depending on the economic environment, our experience and other factors.
Note : The above is the product summary giving the key features of the plan. This is
for illustrative purpose only. This does not represent a contract and for details please
refer to your policy document.
Benefit Illustration:
Statutory warning
“Some benefits are guaranteed and some benefits are variable with returns based on
the future performance of your insurer carrying on life insurance business. If your policy
offers guaranteed returns then these will be clearly marked “guaranteed” in the
illustration table on this page. If your policy offers variable returns then the illustrations
on this page will show two different rates of assumed future investment returns. These
assumed rates of return are not guaranteed and they are not upper or lower limits of
what you might get back as the value of your policy is dependent on a number of factors
including future investment performance.”
Age at entry: 35 years
Premium paying term: 25 years
Mode of premium payment: Yearly
Sum Assured: Rs.1,00,000/-
Annual Premium: Rs.4,535 /-
* In addition to the benefits given in the column, an Accident Benefit of Rs. 1,00,000 /- will
also be available without payment of extra premium in case of death/disability due to accident.
** Benefit payable on death after the selected term. If the death occurs due to accident up to
age 70 an additional Rs. 1,00,000/- will also be paid.
i) The above illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) life.
ii) 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.
iii) 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.
iv) 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.