LIC’s JEEVAN ANKUR -Child Educational Plan

Click on the link below, to know complete details of Pension fund transfer from UK to LIC’s Jeevan Akshay V1.

http://qropstoindia.blogspot.in/2012/10/lics-jeevan-akshay-qrops-pension-scheme.html?spref=fb

LIC’s Jeevan Ankur is a conventional with profits plan, specially designed to meet the educational and other needs of your child. If you are the parent of a child aged upto 17 years, LIC’s Jeevan Ankur is the most suitable insurance plan for you which ensures that your responsibilities are met whether you survive or not and without depending on anyone else.

The risk cover under this plan will be on your life as a parent and the named child shall be the nominee under the plan. The policy term shall be based on the age at maturity of the child.

1. Benefits

1) Death benefit: 

On death of the Life Assured during the policy term: Basic Sum Assured shall be payable to the nominee and an income benefit equal to 10% of Basic Sum Assured shall be payable on each policy anniversary, from the policy anniversary coinciding with or next following the date of death, till the end of the policy term.

On death of child, when Life Assured is alive: On death of the child, the Life Assured will have an option to nominate another child/person and the policy will continue with the same benefit payable to new nominee/legal heirs after the death of the Life Assured during the term of the policy. 

 On death of child/nominee after Life Assured’s death: The policy shall continue and the benefits shall be payable to the legal heir(s).

  2) Maturity Benefit: At the end of the policy term an assured maturity benefit equal to Basic Sum assured along with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.

  3) Loyalty Addition: Depending upon the Corporation’s experience the policy will be eligible for Loyalty addition on the stipulated date of maturity irrespective of survival of Life Assured.

2. Optional Benefits: You may choose  the following optional riders by payment of additional premium-

  a) Accident Benefit Rider:  This benefit is available under regular premium policies only. An additional sum equal to Accident Benefit Rider Sum Assured is payable upon death due to accident. The Accident Benefit Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 70 yrs.

  b)  Critical Illness Rider:  An amount equal to Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illnesses. The Critical Illness Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to a minimum of Rs. 50,000 and a maximum of Rs. 5 lakh (including all policies with LIC of India). This benefit will be available provided the policy matures on or before the Life Assured attains 60years of age.

Critical Illness Rider can be availed with or without Premium Waiver Benefit. If Critical Illness Rider is opted with Premium Waiver Benefit, then in the event of Life Assured diagnosed with any of the Critical Illnesses covered under the policy, the total future premium in respect of the policy will be waived. The Basic Sum Assured under such policies should be equal to the Critical Illness Rider Sum Assured.

3. Eligibility Conditions and Other Restrictions (For Basic Plan):

a) Minimum Sum Assured                               :   Rs. 100,000

b) Maximum Sum Assured                              :   No Limit

                  (The Sum Assured shall be in multiples of Rs. 5000/-)

c) Minimum Age at entry for Life Assured   : 18 years (completed)

d) Maximum Age at entry for Life Assured  : 50 years (nearest birthday)

e) Maximum Maturity Age for Life Assured : 75 years (nearest birthday)

f) Minimum Age at entry for child                : 0  years (last birthday)

g) Maximum Age at entry for child               : 17 years ( last birthday)

h) Minimum Term                                        : Higher of (18 – age of child, 8) years

i) Maximum Term                                       : (25 – age of child) years

 

4. Sample premium Rates:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid.

A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

 

5. Sample premium Rates:

 Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:

Single Premium
Age	Policy term
	10	15	20	25
20	615.45	494.95	405.95	348.00
30	618.80	503.35	422.10	375.30
40	638.75	541.60	483.60	463.60

Annual Regular Premium
Age	Policy term
	10	15	20	25
20	90.65	56.45	39.70	31.10
30	91.20	57.50	41.35	33.50
40	94.70	62.35	47.80	41.75

6. Mode and High S.A. Rebates:

Mode Rebate:

Yearly mode                            -    2% of Tabular Premium
Half-yearly mode                     -   1% of the Tabular premium
Quarterly & Salary deduction   -     NIL

Sum Assured Rebate:

Single Premium:

             Sum Assured                         Rebate (Rs.)

            1,00,000 to 1,95,000               Nil

            2,00,000 to 4,95,000               4.00 %o S.A.

            5,00,000 and above                6.00 %o S.A.

     Regular Premium:

             Sum Assured                         Rebate (Rs.)

            1,00,000 to 1,95,000               Nil
            2,00,000 to 4,95,000               2.00 %o S.A.
            5,00,000 and above                3.00 %o S.A.

7. Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived from the date of first unpaid premium and before the date of maturity by paying all the arrears of premium together with interest within a period of five years, subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the life assured. Riders shall be revived along with the basic plan and not in isolation.

8. Paid-up Value:

Under regular premium policies, if after atleast three full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy for a reduced paid-up sum assured. This Paid-Up Sum Assured shall be payable on the date of maturity or on Life Assured’s prior death.

Further, in case of death during the term of the policy, the paid up value shall be paid immediately on death. But, neither income benefit nor paid up value on maturity shall be payable.

Accident Benefit and Critical Illness riders do not acquire any paid-up value.

9. Surrender Value:

The Guaranteed Surrender Value will be as under:

1. Single Premium Policies: The Guaranteed Surrender value will be available after completion of atleast one policy year and is equal to 90% of the premium paid excluding premium for optional rider and extras, if any.

1.    Regular Premium Policies: The Guaranteed surrender value will be available after completion of three policy years and atleast three full years’ premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.

Corporation may, however, pay Special Surrender value, as the discounted value of the Paid-up Sum Assured as applicable on date of surrender, provided the same is higher than Guaranteed Surrender value.

10. Policy Loan:

No loan facility will be available under this plan.

11. Service Tax: 

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on premium(s) as and when the premiums are paid.

12. 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 from the date of receipt of the policy bond.

13. Exclusion:

Suicide:- This policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time within one year from the date of commencement of risk and the Corporation will not entertain any other claim by virtue of this policy except to the extent of a maximum of 90% of single premium paid excluding any extra premium (in case of single premium policies).

Mis-Selling of financial products

Click on the link below, to know complete details of Pension fund transfer from UK to LIC’s Jeevan Akshay V1.

http://qropstoindia.blogspot.in/2012/10/lics-jeevan-akshay-qrops-pension-scheme.html?spref=fb

It is unfortunate to hear the news from various noted magazines that financial institutions like banks are the biggest perpetrators of financial products mis-selling. One can observe that banks have continuously been moving away from their core banking activities, towards becoming financial behemoths selling an arry of investment products. So finally leading to giving up the actual interest of the bank account holder.

Day to day misselling by banks is becoming rampant and from the customer point of view Reserve bank of India do bring measures to check the menace.  As per the data posted by Association of Mutual funds of India last year on Commission income of the top distributors operating in 20 or more locations, not only has the commission income on sale of mutual funds gone up for the top 10 players, eight entities in the top 10 were banks. It doesn’t mean there is an issue with banks raking in the moolah, this is the conduit through which sales have been rather dubious. This is evident from the alarming rise in the number of complaints  against misselling by banks.

If one looks up for the data on the distribution channel, that accounts for sales of insurers, many banks have insurance subsidiaries in both the life & non-life space. Also the regulator has allowed non-bank promoted insurers to form tie-ups with banks to distribute insurance products under the bancassurance channel. The advantages of routing business through bank are obivious. The cost of sale is low for the insurers in case the business is routed through banks. On the other hand, it is an extension of existing business that earns banks additional income with comparatively less effort.

It sounds like this would solve the problems of underinsurance & low penetration of financial products like mutual funds and insurance. But the actual result is something else, thanks to the transaction based approach followed by banks compared with agent advisors and distributors. It is usually the agent who has little to defend himself and also take the flak for mis-selling.

Most of the bank account holders got mindset that their bank managers are well versed  with all kinds of financial matters including personal finance management & this mindset avoids them to meet Financial planners to plan their finances properly. The fact is that personal finance management is totally a different & unique topic, that is addressed by Certified financial planners as well as experienced Individual financial advisors. There are rumors that financial products like mutual funds, insurance are convinced by extending over-draft facilities to the customers by banks. This rumor clearly shows that customer requirement doesn’t come into picture at all while selling the financial products. 

It seems both customers and regulators like SEBI-IRDA-RBI have greater role in checking this problems. The regulators do bring measures & make respective financial institution like bank accountable for mis-selling the financial products. On the other hand, customers should approach Certified financial planners & other authorized financial advisors to plan their personal finance properly.

Disclaimer: The information given above are the result of personal readings of related genuine documents and personal understanding of the subject matter. This  is written to make the customers understand, how importance to be aware of the mis-selling of the financial products & the impact of the mis-selling on them financially. . However, this blog is not responsible for any error or inaccuracy in the same.