You can pay the premiums either in a single lump sum or for a limited premium paying term of 5 years. You can choose the level of cover within the limits, which will depend on your age, whether the policy is a Single premium or Limited premium contract and on the level of premium you agree to pay.

Premiums paid after allocation charge will purchase units of the Fund. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the NAV.

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the premium paying term of 5 years. Alternatively, a single premium can be paid.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

Eligibility Conditions And Other Restrictions:

(a) Minimum Age at entry       -           8 (age last birthday)
(b) Maximum Age at entry     -           65 years (age nearer birthday)
(c) Policy Term                         -         10 years
(d) Minimum Premium           –           

5 years Premium Paying policies: Mode Minimum
Instalment Premium
Yearly:                            ` [15,000]
Half-Yearly                    ` [8,000]
Quarterly                        ` [4,000]
Monthly (ECS only)   ` [1,500]
Single premium:                              Single                          ` [30,000]

(e) Maximum Premium            –        
5 years Premium Paying Term          -           ` [1,00,000] p.a.
Single premium                                   -           No Limit

(f) Sum Assured under the Basic Plan           -
Minimum Sum Assured:
5 years Premium Paying Term policies:
For age at entry below 45 years: 10 times the annualised premium
For age at entry 45 years and above: 7 times the annualised premium

Single Premium policies:
For age at entry below 45 years: 1.25 times the single premium
For age at entry 45 years and above: 1.10 times the single premium

Maximum Sum assured:
5 years Premium Paying Term policies:
For age at entry below 45 years: 20 times the annualized premium
For age at entry 45 years and above: 10 times the annualized premium

Single Premium Policies:
5 times the Single premium, if age at entry is upto 55 years.
1.25 times the Single premium, if age at entry is 56 to 65 years.

Where the minimum Sum Assured is not in the multiples of ` 5,000, it will be rounded off to the next multiple of ` 5,000. Annualized Premiums shall be payable in multiple of ` 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of ` 250/-.

Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.  There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV).  The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge, Guarantee Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:
Appropriation price is applied (when fund is expanding):
Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

Expropriation price is applied (when fund is contracting):
Market value of investment held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).

Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a 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 after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim and in case of complete withdrawal etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim and in case of complete withdrawal etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable

In case of discontinuance, as specified in Para 10 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.

In respect of maturity claim, the Policyholders fund value shall be based on the highest NAV over the first 100 months of the policy or the NAV as applicable on the date of maturity, whichever is higher.

The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDA.

Charges under the Plan:

A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:
For Single premium policies:             3.3%
For Regular premium policies:

B) Charges for Risk Covers:
i) Mortality  Charge – This is the cost of life insurance cover which is age specific and will be taken every month. The life insurance cover is the difference between Sum Assured under Basic plan and the Fund Value after deduction of all other charges.
The charges per ` 1000/- life insurance cover for some of the ages in respect of healthy lives are as under:

Accident Benefit charge – It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of ` 0.50 per thousand Accident Benefit Sum Assured per policy year.

C) Other Charges: The following charges shall be deducted during the term of the policy:

Policy Administration charge ` 30/- per month during the first policy year and ` 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.

Fund Management Charge – It is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the Net Asset Value (NAV) at 0.90% p.a. of Fund Value.

This is a charge levied at the time of computation of NAV, which will be done on daily basis.

Guarantee Charge – A charge of 0.40% p.a. of the Fund Value shall be levied for the cost of investment guarantee.

This is a charge levied at the time of computation of NAV, which will be done on daily basis.

Bid/Offer Spread – Nil.
Discontinuance Charge –  The discontinuance charge for 5 years premium paying term policies is as under:

AP – Annualised Premium
FV – Policyholder’s Fund Value on the date of discontinuance

There shall not be any discontinuance charge under Single Premium.

1. Service Tax Charge – Service tax charge shall be levied on all or any of the charges applicable to this plan as per the prevailing service tax laws / notifications etc. as issued by Government of India from time to time in this regard without any reference to the policyholder.

1. Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as change in premium mode and grant of Accident Benefit after the issue of the policy. An alteration may be allowed subject to a charge of ` 50/-.

D)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge, Mortality charge and Accident Benefit charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit:

Policy Administration Charge

` 60/- per month during the first policy year and ` 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

Fund Management Charge: The Maximum for Fund will be 1.30% p.a. of Fund Value

-    Guarantee Charge shall not exceed 0.60% p.a. of the Fund Value.

-   Miscellaneous Charge shall not exceed ` 100/- each time when an alteration is requested.
In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value.

Discontinuance of Premiums:

If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

Revival of the policy, or
Complete withdrawal  from the policy

During the notice period of 30 days, the policy shall be treated as in force and the charges for Mortality, Accident Benefit cover, if any, shall be taken in addition to other charges, by canceling an appropriate number of units out of the Policyholder’s Fund Value. The cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period).

If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

The benefits payable under the policy during the notice period shall be same as that under an in-force policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.

The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge, if any, shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below shall be payable after completion of 5 years from the date of commencement of the policy.

Method of calculation of Monetary amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% compounded annually from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

Compulsory termination:

If the balance in the Policyholder’s Fund Value, at any time after partial withdrawal of units, is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, shall be refunded to the policyholder.

Other Features:

Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

Partial Withdrawals: Youmay en-cash the units partially after the fifth policy anniversary and provided all due premiums have been paid subject to the following:

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).

Partial withdrawals will be allowed twice in a policy year.

Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units subject to a minimum amount of ` 2000/-.

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.

Under 5 years Premium Paying Term policies, partial withdrawal will be allowed subject to a minimum balance of at least one annualized premium in the Policyholder’s Fund Value.

Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.

Increase / Decrease of risk covers:No increase or decrease of covers will be allowed under the plan.

Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

Reinstatement:

A policy once surrendered cannot be reinstated.

Risks borne by the Policyholder:

1. LIC’s Samridhi Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
2. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAV 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.
3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Samridhi 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.
4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
5. The fund offered under this contract is the name of the fund and does not in any way indicate the quality of this plan, its future prospects and returns.
6. 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. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
Plus unallocated premium
Plus PolicyAdministration charge deducted
Less          charges @ ` 0.20per thousand Sum Assured under Basic plan
Less Actual cost of medical examination and special reports, if any.
Loan:

No Loan will be available under this plan.

Assignment:

Assignment will be allowed under this plan.

LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover.

You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of 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).

1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or   quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

2 . Eligibility  Conditions  And  Other  Restrictions:
a)  Minimum Entry Age – 18 years (last birthday)
b)  Maximum Entry Age – 75 years (nearest birthday)
c)  Minimum Vesting Age  – 40 years (completed)
d)  Maximum Vesting Age -  85 years (nearest birthday)
e)  Minimum Deferment Term  -  10 years
f)   Sum Assured – NIL
g)  Minimum Premium -
Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m.
Single premium:  Rs. [30,000]
h)  Maximum Premium -
Regular premium : Rs. [1,00,000] p.a.
Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.

3. Charges under the Plan:
A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

For Single premium policies:  3.3%
For Regular premium policies:

Allocation charge for Top-up: 1.25%

B) Other Charges: The following charges shall be deducted during the term of the policy:

1. Policy Administration charge:  Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.
2. Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:

   0.70% p.a. of Unit Fund for “Debt” Fund
   0.80% p.a. of Unit Fund for “Mixed” Fund
   Fund Management Charge shall be appropriated while computing NAV.

3. Switching Charge –This is the charge levied on switching of monies from one fund to another. Within a given policy year 2 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.
4. Bid/Offer Spread – Nil.
5. Discontinuance Charge – The discontinuance charge for regular premium policies is as under:
   

   Where the policy is discontinued during the policy year	Discontinuance charges for the policies having annualized premium up to Rs. 25,000/-	Discontinuance charges for the policies having annualized premium above Rs. 25,000/-
   1	Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/-	Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-
   2	Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/-	Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-
   3	Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-	Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-
   4	Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/-	Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-
   5 and onwards	NIL	NIL

   
   AP – Annualised Premium
   FV – Policyholder’s Fund Value excluding the fund value in respect of Top-up premiums paid, if any, on the date of discontinuance.

   There shall not be any discontinuance charge under Single Premium

6. Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.
7. Miscellaneous Charge – This is a charge levied for change in premium mode, if opted for by the policyholder during the deferment term. An alteration may be allowed subject to a charge of Rs. 50/-.

C)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge, with the prior approval of IRDA.
Although the charges are reviewable, they will be subject to the following maximum limit:

- Policy Administration Charge Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

- Fund Management Charge: The Maximum for each Fund will be as follows:

1. Debt Fund: 1.20% p.a. of Unit Fund
2. Mixed Fund: 1.30% p.a. of Unit Fund

- Switching Charge shall not exceed Rs. 200/- per switch.
- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value which shall be utilised to provide an annuity.

4. Discontinuance of Premiums: If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

1. Revival of the policy, or
2. Complete withdrawal  from the policy

During the notice period of 30 days, the policy shall be treated as in force till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period) and the charges shall be taken, as usual.

If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

There shall be no change in payments of benefits during the notice period.

The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below will compulsorily be utilized to provide an annuity, and shall be payable after completion of 5 years from the date of commencement of the policy.

If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value will compulsorily be utilized to provide an annuity.

5. Method of calculation of Monetary amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. TheProceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

6. Other Features:
i ) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums if any, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.
The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.

ii )Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

iii ) Top-up (Additional Premium) : You can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of policy. Top-up shall not be allowed during the last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.

iv) Switching: You can switch between the two fund types during the policy term subject to switching charges, if any.

v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.

vi) Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

vii) Conversion to annuity: The benefit amount, payable in case of surrender or on discontinuance of premium or on vesting, shall compulsorily be utilized to provide an annuity subject to the following conditions:

1. You will have an option to commute upto a maximum of one third of the

a) Higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, in the event of vesting, or
b) Proceeds of the discontinued policy, if policy is discontinued or surrendered within 5 years from the date    of commencement of policy, or
c) Policyholder’s Fund Value, if policy is discontinued or surrendered after 5 years from the date of    commencement of policy,
whichever is applicable.

The commutation will be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity.
The balance amount shall compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option.

2. The minimum amount of annuity payable shall be subject to the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. In case the applicable amount as mentioned in (a) to (c) of Para 10.vii) above is insufficient to purchase the minimum amount of annuity, then the said amount shall be refunded as a lump sum to you.

3. You shall have an option to purchase immediate annuity from any other life insurance company “registered with IRDA” subject to Regulatory provisions. In such cases, LIC will transfer your fund amount directly to the chosen Insurer.

If you opt to purchase immediate annuity from any other life insurance Company, you would be required to inform your such intention to the Corporation six months prior to the vesting date.

7. Reinstatement:

A policy once surrendered cannot be reinstated.

8. Risks borne by the Policyholder:

1. LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
2. 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.
3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Pension 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.
4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
5. 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.
6. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

9. 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. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus PolicyAdministration charge deducted
Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy

10. Loan:
No loan will be available under this plan.

11. Assignment:

Assignment shall not be allowed under this plan.

The product structure ULIP and Mutual funds

• In terms of product structure, excluding risk coverage there is only a small difference between ULIP schemes and a Mutual fund scheme.
• Both market linked for returns, and they will both carry market risk.
• Based on the investor’s selected stock performance, his returns will reflect    exactly that in both cases.
• A fund manager will be responsible for running the scheme for both options.

Differences
Regarding regulation, Mutual Funds are regulated by the SEBI, while ULIPs are regulated by the IRDA. From an industrial point of view, while Mutual Funds focus on low costs and better performance as the USP, ULIP looks more at distribution reach as the USP.

Mutual Funds have very stringent transparency requirements compared to ULIPs, but this also ensures that the investor is availed as much information as necessary, unlike with ULIPs. Daily NAV are followed with Mutual Funds.

While keeping your premium the same a ULIP will allow you to increase your life cover. By reducing your investment allocation this is achieved. You cannot increase your life cover if you have a term policy purchased on top of a Mutual Fund. You would only have the option of purchasing a new policy, thus incurring new administration costs again.

In terms of costs of insurance, typically investing in a Mutual Fund will cost you less than it will cost for a general ULIP scheme. Mutual Funds are better suited for those that solely focus on investment and medium-term returns. ULIP products are better suited for long term investment bundled with insurance cover,

Summary:

• Eligibility Conditions And Other Restrictions:
  

  Basic Plan
  Minimum Age at entry	:	18 years completed
  Maximum Age at entry	:	70 years (age nearer birthday). However if life cover is opted for, then 65 years
  Minimum Age at vesting	:	40 years (age last birthday)
  Maximum Vesting Age	:	75 years (age last birthday)
  Minimum Deferment Term	:	5 years
  Minimum Sum Assured	:	Rs. 25,000 for Single premium Rs. 50,000 for Regular premium
  Maximum Sum Assured	:	Single Premium - Equal to single premium Regular Premium - 20 times of the annualized premium

  
  

• Investment of Funds:The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. Various types of fund and their investment pattern will be as under:
  

  Fund Type	I	Short-term investments such as money market instruments (including Govt. Securities & Corporate Debt)	Investment in Listed Equity Shares
  Bond Fund	Not less than 80%	100%	Nil
  Secured Fund	Not less than 65%	Not more than 85%	Not less than 15% & not more than 35%
  Balanced Fund	Not less than 50%	Not more than 70%	Not less than 30% & not more than 50%
  Growth Fund	Not less than 20%	Not more than 40%	Not less than 60% & not more than 80%

  The Policyholder has the option to choose any ONE of the above 4 funds. In case no fund has been opted for, the allocated premiums shall, by default, be invested in the SECURED FUND.

• Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based oninvestmenvestment in Government / Government
  Guaranteed
  Securities / Corporate Debtnt performance, Fund Management Charge and whether fund is expanding or contracting under each fund type.

• Charges under the Plan: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type.
  
  (A) Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

  For Single premium policies: 3.3%

  For Regular premium policies:

  Premium Band (per annum)	Allocation charge
  	First Year	Thereafter
  5,000 to 75,000	16.50%	2.50%
  75,001 to 1,50,000	15.75%	2.50%
  1,50,001 to 3,00,000	15.00%	2.50%
  3,00,001 to 5,00,000	14.25%	2.50%
  5,00,001 and above	13.50%	2.50%

  
  Allocation charge for Top-up: 1.25%

  (B) Charges for Risk Covers:

  Mortality Charge: This is the cost of insurance cover. These are age specific and will be taken every month.

  Accident Benefit charge: This is the cost of Accident Benefit rider and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year.

  (C) Other Charges:

  Policy Administration charge: Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout the term of the policy.

  Fund Management Charge: This is the charge levied as a percentage of the value of units and shall be appropriated by adjusting NAV at following rates: 0.75% p.a. of Unit Fund for “Bond” Fund 1.00% p.a. of Unit Fund for “Secured” Fund 1.25% p.a. of Unit Fund for “Balanced” Fund 1.50% p.a. of Unit Fund for “Growth” Fund

  Switching Charge: This is the charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

  Bid/Offer Spread: Nil.

  Surrender Charge: Nil

  Service Tax Charge: A service tax charge shall be levied on the Mortality and Accident Benefit rider charge, if any, on a monthly basis. The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an educational cess at the rate of 2% thereon and hence effective rate is 12.24%.

  Miscellaneous Charge: This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode, etc. An alteration may be allowed subject to a charge of Rs. 50/-.

  (D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge and charges for risk covers, with the prior approval of IRDA .

  Although the charges are reviewable, they will be subject to a cap for which please refer to the policy document.

• Surrender: The surrender value, if any, is payable only after the completion of the third policy anniversary both under Single and Regular premium Contract.No partial withdrawal of units will be allowed under this plan.

• Other Features: i)Top-up (Additional Premium): The policyholder can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of the policy. In case of yearly, half-yearly or quarterly mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.ii)Switching: You can switch between any fund types during the policy term subject to switching charges, if any.iii)Discontinuance of premiums and revival: If premiums are payable either yearly, half-yearly or quarterly 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.If you have opted for life cover, under Regular premium policies where at least 3 years’ premiums have been paid, and the subsequent premiums are not paid, the life cover and accident benefit cover, if any, will be compulsorily available under the policy and the charges for the same if any, shall be taken, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Unit Account every month subject to the following :

  two years from the due date of first unpaid premium, or

  two years from the due date of first unpaid premium, or

  till such period that the Policyholder’s Unit Account reduces to one annualized premium, whichever is earlier.

  iv)Increase / decrease of benefits: No increase (except to the extent of Top-up stated above) or decrease of benefits will be allowed under the plan.

  iiv)Conversion to annuity at Vesting date: The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate annuity rates under the relevant annuity option at the vesting date.

• Reinstatement: A policy once surrendered cannot be reinstated.

• Risks borne by the Policyholder:i) Unit Linked Life Insurance products are 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 Market 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.
  
• Loan: No loan will be available under this plan.
  
• Assignment: Assignment will not be allowed under this plan.

• Exclusions: In case the Life Assured commits suicide at any time, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Fund Value of the units held in the Policyholder’s Unit Account on death.

Two plans have been introduced by LIC.

(a)  Child Career Plan.

(b) Child Future Plan.

The features of both the plans remain similar except for Survival Benefit & Death Benefit even though these are two different plans (T-184 & T185). Proposer can choose either plans to suit the needs, such as education / marriage/Career/ Risk Coverage depending upon Male/Female child’s Age at entry and Maturity Age.

General Conditions:

Min. age at entry:  0 year (lbd).

Max. age at entry:  12 years (lbd).

Min. S.A.: Rs. 1 lakh.

Max. SA.: Rs 1 crore.

SA in multiples: Rs. 5,000

Min. Maturity age: 23 years.

Max. Maturity age: 27 years.

Modes Allowed: Yly/Hly/Qly/SSS

Min Term: 11 years.

Max Term: 27 years.

Max. Age end of PPT: 70 years (nbd).

Premium paying Term: 6 years OR Term minus 5years.

PWB Prop. Age Min: 18 years completed.

PWB Prop. Age Max: 55 years (nbd).

Requirements in writing:

Female lives category: I/II (Proposer).

Risk Coverage:  SA + Bonus

Age proof (proposer): Std. if PWB opted.

Age proof – 0 to 4 years : Birth Certificate.
5 yrs & above : School certificate.

Form Number:  340/360

Dating Back @ 8%: Allowed

Actual Sum assured: Basic SA.

SUC : As per existing rules.

Extended Risk Cover : Maturity Age + 7 years

Policy Servicing:

Term Rider Option: No.

Critical Illness Rider: No.

Policy Loan @ 9%: No.

Revival: Yes.

Surrender of Policy: Yes.

Housing Loan: No.

Assignment: No**.

Survival Benefits: Yes.

P.W.B.: Yes

**Assignment can be done after policy vests in the LA.

Plans allowed to Std./ Sub-Standard children attracting EMR class III for over weight only.

.

.

Survival Benefit payable under plan 184 & 185.

. Note: Survival benefits are payable 5th, 4th, 3rd, 2nd & 1 year before the date of expiry of Term & on the date of expiry of Term coinciding with the Policy Anniversary.

Death Benefit payable under plan 184 & 185.

.

==> To meet educational and other needs of growing child these two plans are designed. Not only during the policy term but also during the Extended Term, it provides risk cover on the life of the child. Maturity Age minus Age at entry is equal to Policy term. For any maturity age between 23 & 27 years this policy can be taken.

==> From the date of expiry of Policy Term extended term will be 7 years, i.e. 7 years from Maturity Age.  Till start of Survival benefits premiums are to be paid or for 6 years from DOC. Hence, during extended period, no premiums are payable.

Example: Age at entry of child: 5 yrs.; Maturity Age chosen: 24 years. Policy Term = 24 minus 5(age at entry) = 19 years. PPT=19 minus 5 = 14 years.  In case, PPT is chosen as 6 years, the premium has to be paid for 6 years from the DOC and policy will belike Limited Payment Policy.

Proposer: The proposer must be the father of the child. Mother can also proper if she has her own income (Female Cat. I & II). With child’s parent consent, Grand parent can propose. Legal guardian can propose if both parents are not alive.

Financial Underwriting: Based on parent’s income eligibility. (their income should be adequate for both insurance on their own lives and on the lives of their children).

Date of Vesting: On LA attaining majority, policy will vest automatically.

Matching Insurance: Insurance on the lives of parents will not be insisted:

1. Up to 5 lakh if PWB is opted for and allowed.

2. Up to 2 lakh if PWB is not opted for.

Auto Cover:  Full death cover shall continue for a period of 2 years from the date of first unpaid premium if atleast two full years premiums have been paid but any subsequent premiums not duly paid.

Premium Waiver Benefit (PWB): On production of proposer’s std. age proof and during PPT,  PWB is available on payment of extra premium. Under Non-Medical (special) and Non-medical (Gen)  to professionals, PWB on the lives of the parents is allowed. Pregnant ladies are not covered under PWB. Allowed to std./Non-std. (including physically handicapped) proposers.

Date of Commencement of Risk (DOC):

1. For those aged 12 years or more risk will commence immediately.

2. If the age at entry is more  than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the LA.

3. If age at entry is less than pr equal to 10 years, the risk will commence either after 2 years from the DOC or from policy anniversary coinciding with or immediately following completion of 5 years age of LA, whichever is later.

Example Table 184:

Mr. Derick (proposer: 35 years) takes a policy on his son Master Ben aged 5 years fo 5 Lakhs SA (MA: 23, PPT: 13) and opts for PWB.

1. All future premiums are waived if proposer dies at the age of 9 of the Master Ben (during PPT). Master Ben will get survival Benefit etc.

2. Master Ben’s nominee will get one more SA of Rs 5 lakhs if he dies at the age of 28 during the extended term of 7 years.

3. All the premiums paid (excluding premiums for PWB & Extra) along with interest @ 3 % compounded annually will be returned if at the age of 6 years before commencement of the risk Master Ben dies.

4.  SA of Rs. 5 lakhs alongwith vested Bonus + FAB, if any, is payable if at the age of 15 (before age 18 and after commencement of risk) master Ben dies.

5. SA of Rs. 5 lakhs + FAB, if any, only will be payable if at the age of 21 (between age of 18 & 23) Master Ben dies. Since, at the age of 18 years, he’d have already received Bonus.  The survival benefits  of Rs 150000 paid at the age of 18 & Rs 150000 (Rs 75000  each paid at the age of 19 & 20) totalling to Rs 3 lakhs will not be deducted from the SA of Rs 5 lakhs payable.

6. On Master Ben surviving till the end of the policy term, he will get Rs 150000 (30% of SA) + bonus at his 18th year of age. Further he will get Rs. 75000 (15% of SA) every year at his age of 19, 20, 21, 22, & 23. He will also get FAB, if any, alongwith the last payment of Survival benefit. Totally, he will receive Rs 525000 + Bonus 247000 @ 38 + FAB 55000 @ 110  827000.

Examples Table 185:

Ms. Lexi’s (3 years) father Mr. Dirk takes a policy for his daughter for SA of Rs 5 lakhs (MA 23 years, PPT 15 years). Ms. Lexi will get Rs 125000 (25% of SA) at her age of 18. At her age 19, 20, 21 & 22, she will get Rs 50000 (10% SA). At the age of 23, i.e. at the end of Policy Term, she will receive Rs 250000 (50% of SA) alongwith Bonus + FAB, if any. Totally she will receive of Rs. 575000 + Bonus 4 lakhs @ 40 + 11000 FAB @ 220 = 1085000.

All other examples/illustration will remain the same as given in the example of Table 184 except in the event of Lexi’s death ( see point number 5 above) between her age of 18 & 23, SA + Vested Bonus + FAB, if any, is payable.