lic's new policy endowment plan table 814 vs lic endowment plan 14
DESCRIPTION
This is a new plan recently launched in Jan 2014TRANSCRIPT
LIC’s NEW ENDOWMENT
PLAN
Plan No. 814
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Table No. 14Endowment Assurance Plan
Table No.814New Endowment Plan
Maturity Benefit Maturity Benefit
Basic Sum Assured along with
Vested Simple Reversionary
Bonuses and Final Additional
Bonus, if Any.
Basic Sum Assured along with
Vested Simple Reversionary
Bonuses and
Final Additional Bonus, if Any.Death Benefit Death Benefit
Sum Assured (SA) along with
Vested Simple Reversionary
Bonuses and Final Additional
Bonus, if any.
‘Sum Assured on Death’ along
with Vested Simple Reversionary
Bonuses and Final Additional
Bonus, if any.
Benefits
Particulars
Table No. 14Endowment Assurance
Plan
Table No. 814New Endowment Plan
Age at entry 12 to 65 years 8 to 55 years
Age at Maturity Maximum 75 years Maximum 75 Years
Policy Term 5 to 55 years 12 to 35 years
Premium mode
Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured 50000 and above
100000 and above ( In multiples of 5000)
Eligibility Conditions and Restrictions
LIC’s New Endowment Plan
ModeRebate
Table No. 14 Table No. 814
Yearly3% of tabular Premium 2% of tabular
premium
Half-yearly1.5% of tabular premium
1% of tabular premium
Quarterly Nil NilTable No 14
Endowment Assurance PlanTable No. 814
New Endowment Plan
Basic Sum Assured
Rebate (Rs.)
Basic Sum Assured Rebate (Rs.)
100001 and above
2.00‰ SA 5,00,000 and above
3.00‰ BSA
50001 to 100000
1.00‰ SA 2,00,000 to 4,95,000
2.00‰ BSA
Upto 50000 Nil <1,95,000 Nil
LIC’s New Endowment Plan ~ Rebates
Table No. 14Endowment Assurance Plan
Table No. 814New Endowment Plan
Available after payment of 3 full years premiums.
Available after payment of 3 full years premiums.
Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value in case of Paid-up policies irrespective of the policy term.
The maximum amount of loan that can be granted as a percentage of Surrender Value shall depend on the Policy Term, as given in the table below.
Foreclosure action was initiated on default of 2 or more half-yearly loan interest installments.
Foreclosure action shall not be taken under fully paid-up and inforce policies even if there is default of loan interest.
Policy Term Upto 23 24 to 27 28 to 31 32 to 35
% for inforce policies 90% 80% 70% 60%
% for Paid-up policies 80% 70% 60% 50%
% of loan modified
LIC’s New Endowment Plan ~ Policy Loan
Table No.14 Table No. 814
Guaranteed Surrender Value (GSV) Guaranteed Surrender Value (GSV)
Available after payment of 3 full years premiums.
Available after payment of 3 full years premiums.
GSV shall be equal to 30% of the total premiums paid less First Year Premium and extra premium, if any.
GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders,if opted for.Examples of GSV factors applicable for total premiums paidPolicy Year ~ GSV factor 3 = 30% 5 = 50% t -1 = 80% (t=Policy Term)
Cash Value of vested bonuses, if any.
GSV factor applicable to vested bonus,if any. Examples of Vested bonus factors –Year of SV – Policy Term – Factor 3 12 18.60% 19 25 20.85% 29 30 30%
LIC’s New Endowment Plan ~ Surrender Value
Table No. 14Endowment Assurance Plan
Table No. 814New Endowment Plan
Special Surrender Value (SSV) Special Surrender Value (SSV)
Surrender Value shall be the discounted value of the Paid-up Sum Assured and vested simple reversionary bonuses.
Surrender Value shall be the discounted value of the Paid-up Sum Assured and vested simple reversionary bonuses.
The discount factors shall be surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
The discount factors shall be surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Surrender Value Payable Surrender Value payable
The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.
The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.
LIC’s New Endowment Plan
Table No 14Endowment Assurance Plan
Table No 814New Endowment plan
A Policy may be revived within a period of 5 years from the date of first unpaid premium.
A Policy may be revived within a period of 2 years from the date of first unpaid premium.
Taxes, if any , were borne by the corporation.
Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
There shall be no change in the following Items
Back Dating
Grace Period
Paid-up Value
Assignment/Nomination
LIC’s New Endowment Plan ~ Table No. 814
• ‘Sum Assured on Death’ has been defined separately.
• Age at entry has been reduced.
• Percentage of Loan payable as a percentage of Surrender Value shall depend upon policy term.
• GSV percentage shall also depend on policy term and year of Surrender.
• Rebates for high SA and premium mode modified.
LIC’s New Endowment Plan –Changes over Table No.14