FORTUNE PLUS
It is a unit linked assurance plan where premium payment term
(PPT) is 5 years and the premium payable in the first year will be 50% of total
premium payable under the policy. The level of cover will depend on the level
of premium you agree to pay.
Four types of investment funds are offered. Premiums paid after allocation
charge will purchase units of the Fund type chosen. The Unit Fund is subject to
various charges and value of the units may increase or decrease, depending on
the Net Asset Value (NAV). The plan therefore serves the purpose of
insurance-cum-investment.
Eligibility Conditions and Other Restrictions:
|
(a) |
Minimum Age at entry |
12 years (age last birthday) |
|
(b) |
Maximum Age at entry |
60 years (age nearer birthday) |
|
(c) |
Minimum Maturity Age |
18 years (completed) |
|
(d) |
Maximum Maturity Age |
65 years (age nearer birthday) |
|
(e) |
Minimum Policy Term |
5 years |
|
(f) |
Maximum Policy Term |
20 years |
|
(g) |
Minimum Premium |
Rs.20,000/- for first Premium |
|
(h) |
Sum Assured under the Basic Plan |
Higher of 5 times the first year’s
annualized premium or half of the policy term times the first year’s
annualized premium. |
Where the minimum Sum assured is not in the multiples of Rs. 5,000/-, it will be rounded off to the next multiple of
Rs. 5,000/-.
Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly
(ECS) intervals for 5 years. The minimum First year premium will be Rs.20,000/- and you may pay any amount exceeding it. From second
year onwards each year’s premium will be 25% of the first year premium.
Other Features:
i) Partial Withdrawals: You may encash the units partially after the third policy
anniversary subject to the following:
i) 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 after18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the form of
fixed number of units.
iii) 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.
iv) Under policies where less than 3 years’ premiums
have been paid and further premiums are not paid, the partial withdrawals shall
not be allowed.
v) Under policies where atleast 3 years’ premiums
have been paid, partial withdrawal will be allowed subject to Policyholder’s
Fund Value being atleast Rs.
10,000/-.
ii) Switching: You
can switch between any fund types for the entire Fund Value during the policy
term subject to switching charges, if any.
iii) Discontinuance of premiums:
If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS)
and the same have not been duly paid within the days of grace under the Policy,
the Policy will lapse. A lapsed policy can be revived during the period of two
years from the due date of first unpaid premium.
I) Where atleast 3 years’ premiums have been paid,
the Life Cover and Accident Benefit rider, if any, shall continue during the
revival period.
During this period, the charges for Mortality and Accident Benefit cover, if
any, shall be taken, in addition to other charges, by cancelling
an appropriate number of units out of the Policyholder’s Fund Value every
month. This will continue to provide relevant risk covers for:
i. two years from the due date of first unpaid
premium, or
ii. till the date of maturity, or
iii. till such period that the Policyholder’s Fund
Value reduces to Rs. 5,000/-,
whichever is earlier.
The benefits payable under the policy in different contingencies during this
period shall be as under:
A. In case of Death:
Higher of Sum Assured under the Basic Plan or the
Policyholder’s Fund Value. The Sum Assured shall be subject to provisions of
Partial Withdrawals made, if any.
B. In case of Death
due to accident: Accident Benefit Sum Assured in addition to the amount under A above, if Accident Benefit is opted for.
C. On Maturity: The
Policyholder’s Fund Value.
D. In case of Surrender
(including Compulsory Surrender): The Policyholder’s Fund Value. The Surrender
value, however, shall be paid only after the completion of 3 policy years.
E. In case of Partial
Withdrawals: 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.
II) Where the policy
lapses without payment of at least 3 years’ premiums, the Life Cover and
Accident Benefit rider cover, if any, shall cease and no charges for these
benefits shall be deducted. However, deduction of all the other charges shall
continue. The benefits under such a lapsed policy shall be payable as under:
F. In case of Death:
The Policyholder’s Fund Value.
G. In case of death
due to accident: Only, the amount as under F above.
H. In case of
Surrender (including Compulsory Surrender): Policyholder’s Fund Value /
monetary value as the case may be, shall be payable after the completion of the
third policy anniversary. No amount shall be payable within 3 years from the
date of commencement of policy.
iv)
Revival: If due premium is not paid within the days of grace, the policy
lapses. A lapsed policy can be revived during the period of two years from the
due date of first unpaid premium or before maturity, whichever is earlier. The
period during which the policy can be revived will be called “Period of revival”
or “revival period”.
If premiums have not been paid for at least 3 full years, the policy may be
revived within two years from the due date of first unpaid premium. The revival
shall be made on submission of proof of continued insurability to the satisfaction
of the Corporation and the payment of all the arrears of premium without
interest.
If atleast 3 full years’ premiums have been paid and
subsequent premiums are not paid, the policy may be revived within two years
from the due date of first unpaid premium but before the date of maturity. No
proof of continued insurability shall be required but all 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 lapsed policy. The revival of a lapsed policy shall
take effect only after the same is approved by the Corporation and is
specifically communicated in writing to the Proposer
/ Life Assured.
Irrespective of what is stated above, if less than 3 years’ premiums have been
paid and the Policyholder’s Fund Value is not sufficient to recover the
charges, the policy shall be terminated and thereafter revival will not be
entertained. If 3 years’ or more than 3 years’ premiums have been paid and the
Policyholder’s Fund Value reduces to Rs. 5000/-, the
policy shall terminate and Policyholder’s Fund Value as on such date shall be
refunded to the Life Assured and thereafter revival will not be allowed.
v) Settlement Option:
When the policy comes for maturity, you may exercise “Settlement Option” and
may receive the policy money in instalments spread
over a period of not more than five years from the date of maturity. There
shall not be any life cover during this period. The value of installment payable
on the date specified shall be subject to investment risk i.e. the NAV may go
up or down depending upon the performance of the fund.
Reinstatement:
A policy once surrendered will not be reinstated.
Risks borne by the Policyholder:
i) LIC’s Fortune Plus is a
Unit Linked Life Insurance product which is different from the traditional
insurance products and are subject to the 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
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 various funds offered under this contract are the names of the funds 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.
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.
Loan:
No loan will be available under this plan.
Exclusions: any
amount exceeding it. From second year onwards each year’s premium will be 25%
of the first year premium.
In case the Life Assured commits suicide at any time within one
year, the Corporation will not entertain any claim by virtue of the policy
except to the extent of the Policyholder’s Fund Value on death.
2. Benefits:
A) Death Benefit:Higher of Sum Assured or the
Policyholder’s Fund Value shall be available as death benefit.
B) Maturity Benefit:
On the Life Assured surviving the maturity date of the contract, an amount
equal to the Policyholder’s Fund Value is payable.
3. Options:
Accident Benefit Option:
If you are above 18 years of age, you may opt for Accident Benefit equal to the
amount of life cover subject to minimum of Rs.
25,000/- and maximum of Rs. 50 lakh
(taken all policies with LIC of India and other insurers). In case of death by
Accident, an additional sum equal to Accident Benefit sum assured shall be
payable.
5. Investment of Funds: Plan
offers following four Funds detailed below:
|
Fund Type |
Investment in Government /
Government Guaranteed Securities / Corporate Debt |
Short-term Investment such as money
market Instruments (Including Govt. Securities & Corporate Debt) |
Investment in Listed Equity Shares |
Details and objective of the fund
for risk/return |
|
Bond Fund |
Not less than 60% |
100% |
Nil |
Low risk |
|
Secured Fund |
Not less than 45% |
Not more than 85% |
Not less than 15% & Not more than 55% |
Steady Income - Lower to Medium risk |
|
Balanced Fund |
Not less than 30% |
Not more than 70% |
Not less than 30% & Not more than 70% |
Balanced Income and growth - Medium risk |
|
Growth Fund |
Not less than 20% |
Not more than 60% |
Not less than 40% & Not more than 55% |
Long term Capital growth - High Risk |
The Policyholder has the option to choose any ONE of the above 4
funds.
6. 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 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 investments 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 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 investments 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 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, switches 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,
switches etc after such time by the servicing branch of the Corporation the
closing NAV of the next business day shall be applicable.
In respect of maturity claim, NAV of the date of maturity shall be applicable.
The timing given is as per the existing guidelines and changes in this regard
shall be as per the instruction from IRDA.