IN
THIS POLICY, THE INVESTMENT RISK IN INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
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:
|
Premium
|
Allocation
Charge
|
|
First
Year
|
6.75%
|
|
2nd
to 5th Year
|
4.50%
|
|
thereafter
|
2.50%
|
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.
The Proceeds 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:
