Systematic Wealth Creation Plan – Plan No. 271
This is an individual life unit-linked, limited premium, whole of life plan. The plan provides the policyholder a platform to invest and participate in the performance of various market linked funds managed by different fund houses through the All-Funds platform and also provides a benefit of 101% of the fund value to the nominees on death of the life assured. The investment risk under this plan is borne by the policyholder.
BENEFITS
Death Benefit
In the event of unfortunate death of the life assured, 101% of the fund value as on the date of death, shall be paid to the nominee/beneficiary.
The policy shall terminate on payment of the death benefit.
Maturity Benefit
As the product is a whole life product, there is no maturity benefit payable on any fixed policy term. However the policy holder can withdraw 100% of fund value at any point of time, subject to the surrender charges and applicable charges if any.
OPTIONAL BENEFITS
Partial Withdrawal
The policyholder has the option to make partial withdrawals anytime during the policy term, subject to the minimum Fund Value after withdrawal being USD 5,000. At any time, the minimum amount for partial withdrawals will be USD 5,000. The partial withdrawal amount payable to the policyholder shall be net of surrender charges, if any. Following a partial withdrawal, the policy continues to be in-force.
Switching
During the policy term, the policy holder has an option to switch their funds from one fund to another fund. There is no limit in the number of switches in a policy year. No charge will be deducted for switches.
If the fund house withdraws any funds under their management, then the policy holder will be informed well in advance about the withdrawal of funds. Then the policy holder will be given following two options.
(i) Switch the funds from the withdrawn funds to another fund either from the same fund house or another fund house.
(ii) Full withdrawal of fund value from the withdrawn funds.
The policy holder can choose any of the above two options. No charges will be deducted to implement the change. In case of full withdrawal of fund value, no surrender charge will deducted and full value of the units shall be payable to the policyholder.
BASIC PRODUCT ELIGIBILITY CONDITIONS
| Attribute | Minimum Limit | Maximum Limit |
| Premium (In multiples of USD 100) | Monthly – USD 500
Quarterly – USD 1,500 Half-Yearly – USD 2,500 Yearly – USD 5,000 |
No Limit (Subject to Underwriting) |
| Top Up Premium (In multiples of USD 100) | USD 500 | No Limit (Subject to Underwriting) |
| Entry Age | 0 Years | 75 Years (completed) |
| Term | Whole of life | |
| Premium Paying Term | Limited Premium Paying terms of 10, 15 and 20 Years | |
| Mode of Premium Payment | Yearly, Half Yearly, Quarterly and Monthly | |
SERVICING ASPECTS
Mode of Premium Payment
The modes of premium payment allowable under this plan will be Yearly, Half Yearly, Quarterly and Monthly. The premium shall be allocated to the unit-fund/s in the proportion selected by the policyholder after deduction of relevant charges.
Top Up Premium
Top up single premium shall be allowed at any point during premium paying term, subject to relevant charges. The premium shall be allocated to the unit-fund after deduction of relevant charges and all benefits as payable under the unit-fund shall apply subsequently.
Grace Period for Payment of Premium
Grace period as applicable under the policy of the Company shall be applicable under this plan.
Policy on a Life of Minor
Where the policy has been taken for the benefit of Life Assured who is a minor, the policy shall automatically vest unto the Life Assured on his/her attaining majority.
Paid Up Value
Upon expiry of the grace period, in case of discontinuance of policy due to non-payment of premium, the policy shall be converted to a reduced paid-up policy. All charges as per terms and conditions of the policy shall continue to be deducted.
The policy shall terminate when the Fund Value is not sufficient to meet the charges.
Surrender Value
The policy shall acquire a surrender value on completion of three full policy years. The surrender value shall be the Fund Value after deducting the relevant surrender charge, if any.
The policy shall terminate on payment of surrender value.
Revival\Reinstatement
In case the policyholder opts to revive the policy, the premiums collected after charges will be used to purchase the units of the fund as per the NAV as on date of revival.
Loan
Loan shall not be available under this plan.
Restrictions in Case of Death of Life Assured
Suicide
In case of death resulting directly or indirectly due to suicide (whether sane or insane at that time) before the expiry of 12 months of the risk commencement date, only Fund Value shall be payable as the death benefit after deducting the applicable charges.
Other Restrictions
If the life assured dies as a result of a violent act of the beneficiary / nominee, the latter shall lose his/her rights to the Death Benefit, which shall nevertheless remain payable to the other legal heirs.
The Company shall not be liable to pay any claim if the claim arises directly or indirectly as a result of the life insured’s active involvement in:
-War or warlike operations (Whether war is declared or not)
-Invasion, hostilities, mutiny, riot, civil commotion, civil war, rebellion, insurrection or the usurping of government power.
-an act committed by a foreign enemy.
-any activity (military or otherwise) or conspiracy that causes or leads to the proclamation of martial law or a state of siege, or
– Terrorism or conspiracy to commit terrorism which includes any activity that jeopardizes the continuance of human life or causes damage to property.
Free Look Period
The plan provides for a period of 30 days as a “free look period”. The Free Look Period starts on the date of policy issuance, the date when coverage commences, or the date when the policy documents are signed by the client, whichever is earlier. During the free look period, the policyholder may review the terms and conditions of the policy and where he/she disagrees to any of those terms and conditions, he/she has the option to return the policy. The policyholder shall be entitled to the value of units allocated on the date of receipt of request plus any unallocated premium plus charges levied by cancellation of units. The Company may deduct reasonable medical underwriting costs that have been incurred, for which a receipt and report must be provided to the policyholder.
Nominee/Beneficiary
The Life Assured may appoint a beneficiary / nominee to receive the policy moneys in the event of his/her death. Such appointment of beneficiary / nominee can be made while effecting the policy or subsequently by an endorsement on the policy. The appointment of beneficiary/ nominee can be cancelled or changed by the Life Assured during his life time. However, the change of beneficiary /nominee shall not be operative as against the Company unless it is communicated to in writing and registered by the Company and the policy is endorsed to that effect.
Assignment
No assignment will be allowed under this plan.
Charges under the Plan
All the charges under the plan are guaranteed and fixed throughout the policy term. However, it can be revised based on the experience and subject to the regulatory approval.
Establishment Charge
Establishment Charge of 5.9% p.a. of the annual premium shall be deducted. The charge will be deducted by deduction of units as soon as premium is received.
Establishment Charge of 2.5% of the top-up premium if any, will be deducted immediately from the top-up premium before allocation to the unit-linked funds.
Policy Management Charge
Policy Management Charge is 1.5% p.a. of the Fund Value. 1/12th of this charge shall be deducted at the end of every month from the fund value by deduction of units. This can be deducted after the declaration of NAV.
Policy Administration Charge
A fixed Policy Administration Charge of USD 17 per month shall be deducted at the start of each month until completion of premium payment term. The charge will be deducted monthly by deduction of units.
Fund Charges
The ongoing fund charges is deducted from each fund by the fund manager, prior to calculating the unit price. This includes charges levied by fund managers to cover other fees and costs incurred in the running of the funds.
Mortality Charge
The Mortality charge for this product is zero.
Surrender Charge
The Surrender Charge as a percentage of total premiums paid till the date of surrender will be as follows:
| Policy Year of Surrender | Premium Paying Term | ||
| 10 | 15 | 20 | |
| 1 | 23% | 34% | 44% |
| 2 | 9% | 15% | 20% |
| 3 | 4% | 8% | 12% |
| 4 | 2% | 4% | 7% |
| 5 | 0% | 2% | 4% |
| 6 | 0% | 0% | 2% |
| 7 and above | 0% | 0% | 0% |
Surrender charge will be applied as a percentage of the total premiums paid till the time of request for surrender or partial withdrawal. The Charge will be deducted by cancellation of units.
Switching Charge: There is no charge for switching between the funds by the policyholder.
Funds
We offer a collection of funds that covers a range of investment styles, risk levels and asset types. When you invest money into the fund you will buy units in your chosen funds.
The value of units will vary depending on the investment performance of the funds. The value of the policy, at any time, will be the current value of the units in the funds you have chosen. Your surrender value will be the current value less outstanding surrender charge.
Your financial professional can help you decide the funds that suit your risk profile. Further information on funds available with Systematic Wealth Creation, including the fund prices, charges, fund performance and historical data is available on our website www.licinternational.com.
Risk factors and Disclaimers
- LIC (International) B.S.C. (c)’s Systematic Wealth Creation Plan is a Unit Linked Life Insurance product, which is different from the traditional insurance products.
- The premium paid in Unit Linked Life Insurance policies is 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.
- LIC (International) B.S.C. (c), is only the name of the Insurance Company and Systematic Wealth Creation 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.
- Please know the associated risks and the applicable charges, from your Chief Agent, Consultant, Brokers registered with the company or policy document of the insurer.
- The various fund types offered under this contract are the names of the funds and do not in any way indicate the quality of the funds, their future prospects and returns.