LIC Health Protection Plus features table no 902

LIC Health Protection Plus features (table no 902)


LIC has launched LIC’s Health Protection Plus plan, a unique long term health insurance plan that can combine health insurance covers for the entire family (husband, wife and the children) 
Hospital Cash Benefit (HCB) and
Major Surgical Benefit (MSB) along with a ULIP component (investment in the form of Units) that is specifically designed to meet Domiciliary Treatment Benefit (DTB) / Out Patient Department (OPD) expenses for the insured members.

I. Vital Information

Accumulation period
1.Age
Principal Insured
Spouse Insured
Child Insured
Min Policy Entry Age /Age Last Birthday
18
18
3months
Min Age / HCB Cover / Age Last Birthday
18
18
3months
Min Age / MSB Cover / Age Last Birthday
18
18
18
Maximum Entry Age Age Nearest Birthday
55
55
17


2. Premium Payment.

Mode of Payment: Yearly, Half-Yearly & Monthly (ECS Mode only)

Minimum Annual Premium Conditions
Number of Lives covered
Higher of the two conditions in each category listed below:
Single Life
6 times the HCB of the Principal Insured OR Rs.5000 p.a.
Two Lives
The arithmetic sum of 6 times the HCB of PI and 3 times the HCB of the second insured. OR Rs.7500 p.a.
More than two Lives
The arithmetic sum of 6 times the HCB of PI and 3 times the HCB of each of the others insured OR Rs.10,000 p.a.
Annualized Premiums are payable in multiples of Rs.500.

3. Sum Assured.
The Principal Insured must first choose the respective levels of HCB for each member to be covered under the policy. The sum assured for major surgical benefits will be 200 times of the HCB you choose.

Major Surgical Sum Assured
Principal Insured Spouse Insured
Child Insured
200 times the HCB applicable to each insured life under the policy.  

4. Other Terms of the Policy.

Age Nearest Birthday Principal Insured
Spouse Insured
Child Insured
Max. HCB and MSB Cover ceasing age
75
75
25
Premium Ceasing Age 65 Years Nearest Birthday of the Principal Insured
DTB ceasing age
No age limit
No age limit
25

5. Addition of New Members. It is important for the Principal Insured (the person taking the policy) to decide which of the existing family members are to be covered and include them at the beginning (proposal stage) itself. Eligible existing family members cannot be added at a later stage. New members can however be added under the following three situations.

Situation When to include?
The cover starts from
Marriage/remarriage of the Principal insured after taking the policy Within one year from the date of marriage The following policy anniversary
A Child born or Legally adopted child less than 3 months after taking the policy Health Cover starts from the policy anniversary falling immediately after the child completes 3 months
Legally adopted child is more than 3 months old From the policy anniversary falling after date of adoption

6. Increase/Decrease of Premiums. Increase or decrease of premiums is allowed during the term of the policy. Increase in premium must be in multiples of Rs.500. In case of decrease, the minimum premium conditions must be satisfied. However, increase/decrease in premiums does not affect the level of health cover and HCB and MSB benefits. II. CONDITIONS & RESTRICTIONS1. Premium Discontinuance and Revival. The policy will lapse if the premiums are not paid within the days of grace. The PI shall have the option to revive the policy any time within a period of two years from the due date of first unpaid premium by payment of arrears of premiums or by availing Premium Holidays. During the period of discontinuity, the charges for HCB and MSB covers will continue to be deducted (even beyond two years) from the policy fund till: i. the policy fund has sufficient balance, or ii.the lives covered reach the benefit ceasing age, or iii.the maximum lifetime benefits are exhausted, or iv.the policy is terminated due to death or any other reason, if any, whichever is earlier. In case the policy is not revived during the revival period and the balance in the Policy Fund is not sufficient to recover the charges i.e. if the Policy Fund exhausts, the policy shall compulsorily be terminated with a notice to the PI. All other charges will also continue to be deducted from the Policy Fund till the fund exhausts. 2. Premium Holidays. If the policy lapses after at least 3 years’ premiums have been paid the Principal Insured has the option of either paying all the due premiums in full or avail of premium holiday by just paying the latest instalment premium without any interest. The premium holidays can be availed only as long as the policy fund has a balance of at least one annualized premium at the time of revival. 3. Surrender. No surrender will be allowed. 4. Policy Loans. No policy loan will be available under this policy. 5. Assignment. No assignment will be allowed under this policy. 6. Tax Benefit. The premium payable under this product is eligible for Section 80(D) benefit of Income Tax Act, 1961.
7. Risks borne by the Policyholder:i)LIC’s Health Protection Plus is a Unit Linked Health Insurance product which is different from the traditional insurance products and is subject to 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 Health Protection Plus is only the name of the unit linked health 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 fund offered under this contract is the name of the fund 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. 8. 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. III. EXCLUSIONS 1. Common Exclusions in respect of HCB & MSB Benefits: No benefits are available hereunder and no payment will be made by the Corporation for any claim for Hospital Cash Benefit and Major Surgical Benefit under this Policy on account of Hospitalization directly or indirectly caused by, based on, arising out of or howsoever attributable to any of the following: a.“Pre-existing condition”- any medical condition or any related condition (e.g. illnesses, symptoms, treatments, pains and surgery) that have arisen at some point prior to the commencement of this coverage, irrespective of whether any medical treatment or advice was sought. Any such condition or related condition about which the PI or insured dependant know, knew or could reasonably have been assumed to have known, will be deemed to be pre-existing. The following conditions will also be deemed to be “pre-existing”: i.Conditions arising between signing the application form and confirmation of acceptance by the Corporation ii.Any Sickness, illness, complication or ailment arising out of or connected to the pre-existing illness b.Any Sickness that has been classified as an Epidemic by the -Central or State Government. c.Self afflicted injuries or conditions (attempted suicide), and/or the use or misuse of any drugs or alcohol. d.Any sexually transmitted diseases or any condition directly or indirectly caused to or associated with Human Immuno Deficiency (HIV) Virus or any Syndrome or condition of a similar kind commonly referred to as AIDS. e.War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection military or usurped power of civil commotion or loot or pillage in connection herewith. f.Naval or military operations(including duties of peace time) of the armed forces or air force and participation in operations requiring the use of arms or which are ordered by military authorities for combating terrorists, rebels and the like. g.Any natural peril (including but not limited to avalanche, earthquake, volcanic eruptions or any kind of natural hazard). h.Participation in any hazardous activity or sports including but not limited to racing, scuba diving, aerial sports, bungee jumping and mountaineering or in any criminal or illegal activities. i.Radioactive contamination. j.Non-allopathic methods of surgery and treatment. 2. Additional Exclusions in respect of Hospital Cash Benefit: No benefits are available hereunder and no payment will be made by the Corporation for any claim for Hospital Cash Benefit under this Policy on account of Hospitalization directly or indirectly caused by, based on, arising out of or howsoever attributable to any of the following: a.Hospitalization due to illness within the first 180 days from the Date of Cover commencement or 90 days from the date of revival/reinstatement if revived after discontinuance of the cover. b.Removal of any material that was implanted in a former surgery before Date of Cover commencement c.Any diagnosis or treatment arising from or traceable to pregnancy (whether uterine or extra uterine), childbirth including caesarean section, medical termination of pregnancy and/or any treatment related to pre and post natal care of the mother or the new born. d.Hospitalization for the sole purpose of physiotherapy or any ailment for which hospitalization is not warranted due to advancement in medical technology e.Any treatment not performed by a Physician or any treatment of a purely experimental nature. f.Any routine or prescribed medical check up or examination. g.Medical Expenses relating to any hospitalization primarily for diagnostic, X-ray or laboratory examinations h.Circumcision, cosmetic or aesthetic treatments of any description, change of gender surgery, plastic surgery (unless such plastic surgery is necessary for the treatment of Illness or Accidental Bodily Injury as a direct result of the insured event and performed with in 6 months of the same). i.Hospitalization for donation of an organ. j.Hospitalization for correction of birth defects or congenital anomalies k.Dental treatment or surgery of any kind unless necessitated by Accidental Bodily Injury. l.Convalescence, general debility, nervous or other breakdown, rest cure, congenital diseases or defect or anomaly, , sterilization or infertility (diagnosis and treatment), any sanatoriums, spa or rest cures or long term care or hospitalization undertaken as a preventive or recuperative measure. 3. Additional Exclusions in respect of Major Surgical Benefit: No benefits are available hereunder and no payment will be made by the Corporation for any claim for Major Surgical Benefit under this Policy directly or indirectly caused by, based on, arising out of or howsoever attributable to any of the following: a.Surgeries not listed in the Surgical Benefit Annexure I b.Surgery triggered by health related causes (and not by Accident) within the first 180 days from the commencement date or 90 days from the date of revival/reinstatement if revived after discontinuance of the cover. c.Any Surgery for which claim has already been made and paid by the Corporation. d.Any treatment not performed by a Physician/Surgeon. e.Any treatment including Surgery that is performed un-conventionally under experimental conditions and purely experimental in nature. f.Circumcision, cosmetic or aesthetic treatments of any description, change of life surgery or treatment, treatment (including surgery) for obesity, plastic surgery (unless necessary for the treatment of Illness or accidental Bodily Injury as a direct result of the insured event and performed with in 6 months of the same). g.Surgery for donation of an organ. h.Removal or correction or replacement of any material that was implanted in a former Surgery before Date of Cover commencement i.Surgery for correction of birth defects or congenital anomalies. j.Any diagnosis or treatment or surgery arising from or traceable to pregnancy (whether uterine or extra uterine).
IV. INVESTMENT OF FUNDS

The premiums allocated to purchase units will be strictly invested in a Health Protection Plus Fund (Income and Growth – Low Risk) as follows: A. Government/ Government Guaranteed/ Corporate Securities/ Debt
   
Not less than 50%
 

B. Short term investments: Money Market instruments including A above     Not more than 90%  

C. Investment in listed equity shares     Not less than 10% & Not more than 50% 1. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) on the date of allotment. There is no Bid-Offer spread. The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether the fund is expanding or contracting. a. Applicability of Net Asset Value (NAV): The premiums received up to 3 p.m. (as per IRDA guidelines) by the servicing branch of the corporation by a local cheque or by 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 by a local cheque or by 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. b. Redeeming of Units: In respect of valid applications received for reimbursement of medical expenses, death claim, 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 Domiciliary Treatment Benefit, death claim etc after 3 p.m. (as per IRDA guidelines) by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable.

What is a Systematic Investment Plan (SIP) ?

Systematic Investment Plan (SIP) is a disciplined way of investing, where you invest every month and amount of investment is fixed and that amount is depends on the investor.


How does a SIP work?

 Since the monthly amount is fixed,so if market is down than more units are bought at lower rate and if market is moving up than less units get bought at higher rate. This makes your purchase at an average and Thus giving more returns.
Keep investing irrespective of market high/low. If market is low, you buy at lesser rate, so don’t panic.

Compounded Returns:


Example:
Person A started investing Rs 10,000 per month at the age of 30. Person B started investing the same amount every year at the age of 35. When they attained the age of 40 respectively, A had built a corpus of approx Rs 33.6 lakhs while person B’s corpus was only Rs 9.76 lakh. For this example, a rate of return of 12% compounded has been assumed. So the difference of Rs 6 lakhs in amount invested made a difference of about Rs 23 lakh to their end-corpus. That difference is due to the effect of compounding

  

Invest In Mutual Funds

If you are planning to invest your hard earned money than mutual funds are best option for you as they provide good returns. Over last five years average returns from mutual funds of top performing funds is around 14% which is good return.

For detail list of scheme returns visit below links

Risk Factor in Mutual Funds
There is a risk in Mutual funds if you are planning for short term like one year or less than. If you consider the returns which they give in long terms. so if you are investing your money for 3years or more better option is SIP (Systematic Investment Plan)or MIP (Monthly Income Plan).

Best Mutual Fund Schemes.

  1. Top 25 Equity Diversified Schemes
  2. Top 10 Tax saving Schemes

How to Invest In Mutual Fund.

  1. For investing in Mutual funds you should have a PAN card because it is mandatory for all investments in mutual funds.
  2.  Other documents are a cheque (it is used for SIP or MIP for ECS Debit clearing ) in favour of fund house like HDFC Mutual Fund with scheme name or ICICI pru with scheme name.
  3. Complete application form with these documents and address proof only one time.

Need More Help : mail me at   basant4help@gmail.com 

send your email id i will send you more information
 

REVIEW of Samridhi Plus Policy by LIC in Feb 2011

  • Buying this policy is a good idea if you are looking at twin benefits of capital protection as well as growth. The ‘guaranteed’ feature makes this policy a good choice for conservative investors who want to limit their risk to the ‘medium’ category.
  • Another positive point about this policy is that you can make a lump sum investment by paying a one time premium (single premium). Therefore, this policy is suitable for those investors who want to make one time bulk investments and also for those with irregular income structure. Apart from this, the charges for paying in lump sum are much lower than the charges levied for regular pay. So this policy should be attractive enough for one time investors.
  • Revival is also easier under this policy. No additional documentation and medical tests are required for revival. There are policies in the market which can be revived only after a tedious documentation processes and a medical test, in case you are opting for revival after six months or more, of missed premiums.
  • No top-up is allowed under this policy. So at any point of time, you will not be able to make additional investments in to this policy. Additionally, you do not have an option of increasing or decreasing your risk cover. However there are plan in the market which give you an option of alteration in risk covers.
  • The plan could have provided more riders in addition to the one it is already providing. Accidental Disability rider is the one widely known to be provided across policies. So, in terms of protection, the policy could have done much better.
  • Also the overall cost structure depicts that the charges are on the higher side as compared to the other products in the market where the charges start falling drastically 5th year onwards.
  • Another fact that you will have to be cautious about is the feature of the guarantee of highest NAV. This is more or less a misleading term. Under such schemes, your money is invested in the equity markets in the beginning and the highest NAV is locked. After the first 100 months are over, your money keeps moving to the debt portfolio in an attempt to preserve the capital and keep the NAV close to the highest NAV. Your money is never shifted back to equity to gain from any further rise in the market. So it is sensible for investors looking at capital preservation to buy this policy. It would be more beneficial for aggressive investors and young investors to go in for other products which provide with a higher exposure to equity so as to maximise returns. 

 

For whom is This Policy
If you are looking for modest returns, like 8-10%, you can invest in these policies. The return of these policies may be high in the beginning, if market does well; but when market starts performing badly, the returns can take a hit and then be in a tight range. Your NAV will be protected for sure, but the returns wont be, since over time the CAGR return will go down. Remember, if your NAV is 10 today and you highest NAV is 20, for a 2 year period, the return is a good enough 41%, but by the 4th year it’s just 18.9%.

You will get better return  than fix deposit with risk cover.

For more details of  click here Smaridhi Plus

Samridhi Plus Policy by LIC in Feb 2011

LIC’s Samridhi Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value at the end of policy term, based on highest Net Asset Value (NAV) over the first 100 months of the policy, or the NAV as applicable on the date of maturity, whichever is higher. NAV of the fund will be subject to a minimum of ` 10/-. This plan is available for sale for a maximum period of 3 months from the date of launch.
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:        

Premium
Allocation Charge
First Year
6.00%
2nd to 5th Year
4.50%

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:

Age 25 35 45 55
` 1.42 1.73 3.89 10.76

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:

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

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.

Top 10 tax saving mutual fund (ELSS)

These some top schemes unders ELSS tax saving in order

  1. canrobeco eqty taxsaver
  2. hdfc tax saver
  3. fidelity tax advantage
  4. icici pru tax plan
  5. shara taxgain
  6. hdfc long tern advantage.
  7. reliance tax saver.
  8. tata tax advantage fund-1.
  9. franklin india tax shield.
  10. taurus tax shield.

All of them are under Growth scheme.

Top 25 Schemes in Equity diversified mutual funds for investing in year 2011

Equity Diversified funds data for Three years

 

Scheme 1 YEAR % 2 YEAR % 3 YEAR %
BIRLA SL Dividend yield(G) 24.1 53.0 15.9
ICICI PRU DISCOVERY FUND(G) 19.5 72.7 15.5
QUANTUM LONG TERM EQUITY 24.8 58.5 13.7
ING DIVIDEND 22.9 59.4 13.4
UTI DIVIDEND 23.2 48.2 13.3
HDFC EQUITY FUND 26.3 64.4 12.7
TATA DIVIDEND 24.8 56.7 11.1
HDFC TOP 200 21.9 54.7 11.0
TEMPLETON (I) EQUITY INCOME
TEMPLETON (I) GROWTH FUND
UTI MASTER VALUE
IDFC PREMIER
RELIANCE EQUITY OPPOR
HDFC MID-CAP
ICICI PRU DYNAMIC
UTI EQUITY
DSP-BR EQUITY
FIDELITY INDIA GROWTH
RELIGARE CONTRA
DSP-BR SMALL MID-CAP
UTI OPPOR
FIDELITY INTERNATIONAL 19.5 49.3 7.9

These are some top performing funds in last three years

Income Tax Rates Brackets for the year 2011-12

Some of the important changes from last year are as follows: 
  1. The basic tax exemption limit has been increased to Rs 1,80,000 which will provide tax relief of Rs 2,060 to all tax brackets.
  2. For senior citizen the exemption limit has been increased from Rs. 2,40,000 to Rs. 2,50,000/-
  3. For senior citizen the qualifying age reduced from 65 years to 60 years.
  4. Another major change is introducing a high new tax slab for senior citizens of over 80 years in age (Super Seniors) who will not be required to pay taxes for income upto Rs 5,00,000
  5. The Rs 20,000 exemption limit for investments into Infra bonds stays for this year
  6. The Govt is also thinking of doing away with the requirement of filing returns if salary is your only source of income and TDS is being deducted.  

Tax Slabs

Men up to 60 Years          

            
 Upto 1,80,000  Nil
                  
1,80,001 to 5,00000  10%
5,00,001 to 8,00000   20%
800000 and above      30%






         
      
 Women up to 60 years
Upto 1,90,000  Nil
                  
1,90,001 to 5,00000  10%
5,00,001 to 8,00000   20%
800000 and above      30%







                  
Senior Citizen above 60 years in age

Upto 2,50,000  Nil
                  
2,50,001 to 5,00000  10%
5,00,001 to 8,00000   20%
800000 and above      30%







                     
Senior Citizen Above 80 Years in age
 
 Upto 500000              Nil
5,00,001 to 8,00000   20%
800000 and above      30%








Union Budget 2011:Negative Highlights

Health Check-Ups in Private hospitals to become expensive
 
EXPENSIVE: International Air Travel
 
EXPENSIVE: Domestic Air Travel
 
Tax on life insurance service providers could be negative for insurance companies
 
Travel, Healthcare to become expensive due to increased service tax
 
Lack of FDI in retail was a disappointment
New service tax to hurt companies in hospitality
Hike in export duty on Iron Ore is a negative, says Motilal Oswal
Branded clothes may cost more