Life Insurence

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.” Illustration 1 Age at entry: 35 years Sum Assured: Rs.1,00,000/- Premium Paying term: 25 years Mode of premium payment: Yearly Annual Premium: Rs. 4,535 /- End of year Total premiums paid till end of year Benefit payable on death / maturity at the end of year Guaranteed * Variable Total Scenario 1 Scenario 2 Scenario 1 Scenario 2 1 4,535 100000 1500 5100 101500 105100 2 9,070 100000 3000 10200 103000 110200 3 13,605 100000 4500 15300 104500 115300 4 18,140 100000 6000 20400 106000 120400 5 22,675 100000 7500 25500 107500 125500 6 27,210 100000 9000 30600 109000 130600 7 31,745 100000 10500 35700 110500 135700 8 36,280 100000 12000 40800 112000 140800 9 40,815 100000 13500 45900 113500 145900 10 45,350 100000 15000 51000 115000 151000 15 68,025 100000 22500 76500 122500 176500 20 90,700 100000 33000 113000 133000 213000 25 1,13,375 100000 41500 141000 141500 241000 End of year Total premiums paid till end of year Benefit payable on death / maturity at the end of year Guaranteed * Variable Total Scenario 1 Scenario 2 Scenario 1 Scenario 2 26 1,13,375 100000 41500 141000 141500 241000 27 1,13,375 100000** - - 100000** 100000** * 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.