LIC's New Bima Kiran

NEW BIMA KIRAN

Product summary
This is a premium back term assurance plan that provides financial protection against death throughout the term of plan together with a return of premiums paid at maturity.

Premiums :
Premiums are payable quarterly, half-yearly or yearly throughout the term of the policy.

Loyalty additions : This is a with-profits plan and participates in the profits of the Corporation's life insurance business. It gets a share of the profits in the form of loyalty additions. The Loyalty additions will be paid along with death benefit or maturity benefits, provided the policy is in full force and depend on the future experience of the Corporation with regard to mortality, interest and future expenses as well as the term and duration of the policy. No loyalty addition will be payable in case of death in the first 4 policy years.

Death Benefit : The Sum Assured plus loyalty additions, if any, is payable in a lump sum upon the death of the life assured.

Extended Term Cover : On survival of the term, an extended term cover (without accident benefit) shall be available thereafter for a period of 10 years on the following scale :
Policy Term ----- Extended Death cover
10 - 14 years ----- 20% of Sum Assured
15 - 19 years ----- 30% of Sum Assured
20 - 24 years ----- 40% of Sum Assured
25 - 29 years ----- 50% of Sum Assured
30 years ----- 60% of Sum Assured

Maturity Benefit : A sum equal to the total amount of premiums paid (Including accident benefit premium but excluding other extras) shall become payable on the Life Assured surviving the term.

Supplementary/Extra Benefits : The plan has an in-built Accident benefit cover up to a maximum of Rs.5,00,000 cover both accidental death and Total and Permanent disability arising due to accident.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract.

Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year's premium.

Corporation's policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value - which is usually higher than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.

Benefit Illustration :
Statutory warning
"Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. 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 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 dependant on a number of factors including future investment performance."



i) This 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.