Deferred Annuity Plan – Plan No. 227 and 228
These are the most unique plans from LIC Intl which are unlikely to be available elsewhere. The plans provide for Pension in the true sense of return in the post retirement years at a guaranteed rate which does not change inspite of the fluctuation of the market.
Under both with life cover as well as without life cover options, on vesting the sum assured along with the bonuses (bonus is declared every year) can be converted into annuity. The type and the rate of annuity will be available at the time of vesting.
Alternatively, at the time of vesting, the policyholder has the option to commute either in full or part of the corpus. However, the option of commutation will not be available if the policy is transferred to LIC of India.
In case of unfortunate death of the policyholder during the deferment period, under with life cover option, an amount equal to sum assured along with vested bonuses if any, will be paid to the nominee in one lump sum, provided the policy is in force. Under without life cover option, the premiums paid will be returned with interest at such rates as decided by the Company from time to time.
The policyholder has an option under with life cover plan to choose Accident Benefit Rider during the term of the policy or up to the age of 70, whichever is earlier. In the event of unfortunate death due to accident when the policy is in force, an additional amount equal to accident benefit sum assured is paid along with the claim.(This Rider is available for a maximum Sum Assured US $ 100,000 for an individual inclusive of all the policies, held by him).
In case of total and permanent disability arising as a result of an accident, all future premiums to the extent of sum assured equivalent to accident benefit sum assured are waived and an amount equal to accident benefit sum assured will be paid in equal monthly installments spread over for 10 years.
BASIC PRODUCT FEATURES, RESTRICTIONS AND APPLICABILITY
|Attribute||Minimum limit||Maximum limit|
|Sum Assured||US $ 5000 and multiples of US $ 1000||No limit|
|Age Entry||30 Years Completed||65 years (age nearer birthday|
|Age at vesting||40 Years (age last birthday.)||75 years (age last birthday|
|Deferment Period||5 years for regular premium policies and 10 years for limited premium policies||20 Years.|
|Term||5 years||20 Years|
|Mode of Premium Payment||Yearly, Half Yearly, Quarterly, Monthly|
Discontinuance of premium payment
If you are unable to continue the payments of premium due to unforeseen circumstances, at any time after you have paid premiums for 3 years in case of full term and 2 Years in case of limited term, your policy will be converted into a reduced paid up policy for reduced pension.
Under the WITH LIFE COVER option, policy holder can avail Loan under the policy
Paid up Value
If you are unable to continue the payments of premiums due to unforeseen circumstances at any time after you have paid premiums for three years in case of full term and two years in case of limited term your policy will be converted into a reduced paid up policy for reduced pension.
Modes of Annuity Payments
On vesting the annuity will be paid in Yearly, Half yearly, Quarterly or Monthly Installments subject to minimum annuity installment of US $ 265. If the annuity payable is less than the minimum of US $ 265, the company will have the right to change the mode of payment of annuity to yearly, half yearly, quarterly or to pay a lump sum.
Commutation of Premium
All future premium payable for the remaining period can be made in lump sum at a special discounted rate.
One can pay premium in advance up to a period of 5 years in lump sum at a discounted rate. Unutilized portion of lump sum amount, if any, is refundable.
Upon repatriation to India, if at least two years premiums are paid, the transfer value under the policy will be utilized to purchase pension under annuity plans of LIC of India.