New Bima Gold

Report
NEW
BIMA GOLD
[ Table 179 ]
MONEY BACK PLAN WITH
LOYALTY ADDITIONS
A PRESENTATION BY
AMRITSAR DIVISION
It has been decided to re-launch New
Avatar of LIC ’s ‘Golden Jubilee Policy’ Bima Gold (Close Ended Plan No. 174)
i.e. ‘New Bima Gold’ (Open Ended Plan
No. 179)
*****
This is a money back type plan where total
premiums paid under the policy shall be paid
back to the policyholder in installments at the
specified durations in case of survival and Sum
Assured shall be paid in case of death during
the term of the policy irrespective of whether
or not any survival benefits have been paid
earlier.
New Avatar Features
• OPEN ENDED PLAN
• Extended Term: The Extended Term will be
half of the policy term and shall commence
immediately on the expiry of the policy term.
For example, for a 16 years policy term, the
Extended Term will be 8 years with the
result the total term will be 24 years. No
premiums are payable during the Extended
Term of the plan.
• Reduced Premium Rates & Rebates
• Revised Terms & Maturity Age
Benefits:
• Death Benefit: On death of the Life
Assured during the term of the policy, an
amount equal to Sum Assured and 50% of
the Sum Assured during the extended term,
provided the policy is in force.
• Maturity Benefit: Total amount of premiums
(excluding extra/optional rider premiums, if
any) paid plus Loyalty Additions, if any, less
the amount of survival benefits paid earlier,
shall be payable in case of Life Assured
surviving to the end of the term provided
the policy is in full force.
Benefits:
• Survival Benefit: In case the life assured is
surviving to the end of the specified durations, the
following benefits shall be payable provided the
policy is in full force.
For policy term 12 years : 15% of the Sum Assured
under Basic Plan at the end of each 4th & 8th
policy year
For policy term 16 years : 15% of the Sum Assured
under Basic Plan at the end of each 4th, 8th &12th
policy year
For policy term 20 years : 10% of the Sum Assured
under Basic Plan at the end of each 4th, 8th, 12th
& 16th policy year
Loyalty Additions:
• This is a with-profits Plan and the policy shall
participate in the profits of the Corporation’s withprofits assurance business. The policy shall,
however, be eligible to a share of profits in the
form of Loyalty Addition (one time) only payable on
maturity. On the Life Assured surviving the
stipulated date of maturity, the policy may be
eligible for payment of Loyalty Addition, if any,
depending upon the experience of the Corporation
at such rate and on such terms as may be declared
by the Corporation.
Auto Cover Facility:
• If at least two full years’ premiums have been paid
in respect of this policy, any subsequent premium
be not duly paid, full death cover shall continue for
a period of two years from the date of First
Unpaid Premium (FUP). This period of 2 years from
FUP shall be called Auto-Cover period.
• During the Auto-Cover period, one or more
installments of premiums can be paid along with
interest without any revival requirements.
• On revival or payment of part/full arrears of
premiums during Auto-Cover period, the date of
FUP will shift and accordingly the Auto-Cover
facility shall again be available for two years from
the date of revised FUP.
Rider Options:
Accident Benefit Rider shall be available as an
optional benefit for a premium at the rate of Rs.1
per thousand Accident Benefit Rider Sum Assured.
Accident Benefit Rider shall be available for an
amount not exceeding the Sum Assured under the
Basic Plan subject to an overall limit of Rs.50 lakh
taking all existing policies of the Life Assured
under individual as well as group schemes including
policies with in-built accident benefit taken with
Life Insurance Corporation of India and other
insurance companies and the Accident Benefit
Rider Sum Assured under the new proposal into
consideration. NOT AVAILABLE DURING THE
EXTENDED TERM.
Miscellaneous:
• LOAN Available after the policy acquires paid-up value (at
least three full years’ premiums have been paid).
• SURRENDER VALUES (GSV,SSV) If at least three full
years’ premiums have been paid, the GSV is equal to 30 per
cent of the total amount of premiums paid excluding the
premiums for the first policy year, all extra premiums paid,
the premiums paid for Accident Benefit Rider and the
amount of survival benefits paid earlier.
• Special Surrender Value will be calculated using the
surrender value factors as applicable in the case of
Endowment Plan and paid-up value as defined above.
• GRACE PERIOD FOR PAYMENT OF PREMIUM
• COOLING-OFF PERIOD
• BACK DATING INTEREST Back- dating interest will be
charged at the prevailing rate at the time of completion of
policy for dating back in excess of one month.
Rebates/Incentives:
• Mode Rebate / Extra:
Rebates are available at the following rates:
Yearly mode
: 2% of tabular premium
Half-yearly mode
: 1% of tabular premium
Quarterly and SSS : NIL
Monthly mode
:5% extra on tabular premium
• High Sum Assured Rebates:
Less than Rs.1 Lac : NIL
1 Lac & Less than 2 Lac : Rs.5.00 per 000 SA
Rs.2 Lac and above
: Rs.7.50 per 000 SA
• CEIS REBATE: The rebate shall be @ 10% of
the Tabular Premium for the basic plan.
Eligibility Conditions
• Entry Age: Minimum 14 Years LBD;
Maximum 57 Yrs NBD (Term 12), 51 Yrs
NBD (Term 16) & 45 Yrs NBD (Term 20)
• Max Age at Maturity: 75 years NBD
• Term
: 12, 16 or 20 Yrs.
• Min Sum Assured
: Rs.40,000 /• Max Sum Assured
: No limit
• Sum Assured will be in multiples of
Rs.5000 /- only.
Commission & Credit
• Agents, Corporate Agents:
1st Year 2nd & 3rd Year
Renewal
15%
7.5%
5%
Bonus Commission : 40% of 1st year commission.
• Brokers:
1st Year Renewal
20%
5%
No Bonus Commission shall be paid to the Brokers.
• Development Officers’ Credit:
For term 12 years
: 60%
For terms 16 and 20 years : 100%
GOLD – Low Cost Money Back
[Comparative Cost of Insurance – Tabular Rates Rs.1000 SA]
PLAN >>> 75-20 174-20 179-20 While making
a comparison
Age 15 64.95 41.75 40.40
the fact
Age 20 65.15 42.25 41.20
regarding
the VERY
Age 25 65.70 42.85 42.30
HIGH
Age 30 66.80 44.00 44.20
REBATES
Age 35 68.70 46.45 47.55
for the Sum
Age 40 71.85 50.40 52.75
Assured
Age 45 76.70 56.15 60.15 above 1 Lac
MUST be
Age 50 83.90 64.25
kept in mind.
First among the Equals
Illustration I-Low Cost Money Back
Comparison with Popular 75-20 (Age 15, Std. Life)
Items of Comparison
75-20
179-20
Sum Assured
2 Lac
2 Lac
Yearly Premium
12200
6418
SB I
5 40000
4 20000
SB II
10 40000
8 20000
SB III
15 40000
12 20000
SB IV
16 20000
Maturity 20
80000+Bonus+FAB
48360+LA
31.03.2005 [80000+164000+FAB]
[68360+LA]
Valuation
G
V
V
G
V
RISK COVER
2 Lac
2 Lac
‘G’–Guaranteed; ‘V’-Variable
Other Point of View
Illustration II-More Value in Lesser Cost
Comparison with Popular 75-20 (Age 15, Std. Life)
Items of Comparison
75-20
179-20
Sum Assured
2 Lac
4 Lac
Yearly Premium
12200
12836
SB I
5 40000
4 40000
SB II
10 40000
8 40000
SB III
15 40000
12 40000
SB IV
16 40000
Maturity 20
80000+Bonus+FAB 96720+LA
31.03.2005 [80000+164000+FAB] [136720+LA]
Valuation
G
V
V
G
V
RISK COVER
2 Lac
4 Lac
‘G’–Guaranteed; ‘V’-Variable
Other Possibilities
• ‘GOLDEN ANAND’ Term Assurance
Money Back with Return of Premium
with Free Risk Cover After Maturity:
Offer the Plan-179 for Equal SA under
Plan-75 & Purchase an add on Plan-149
for Balance Amount of Premium
• ‘स्वयं सिद्ध’ – LIC’s Self Reliant Policy:
Auto Financing of the Premium after 4
Years from the SB Payments
‘GOLDEN ANAND’
Illustration III
COMBI PLAN 179+149 20 Yrs (Age 25,
75-20
179-20
SA
2 Lac
2 Lac
Premium 12546
6991
SB I
5 40000
4 20000
SB II
10 40000
8 20000
SB III
15 40000
12 20000
SB IV
16 20000
Maturity 20 80000+B+F 79820+LA
RISK
FREE
[80000+164000+F
2 Lac [4]
-
59820+L
2 Lac [4]
1 Lac
Std. Life)
149-20
1 Lac
5946
1 Lac+B
100000+86000]
1 Lac [2]
1 Lac [2]
Benefits - Golden Anand
• Low Cost
• Free Life Risk Cover after Maturity (T149 as well as T-179)
• Early Survival Benefits (T-179)
• More Number of the SB’s
• Return of Premium + LA (T-179)
• Maturity Value (T-149)
• More Risk Cover (150%)
• More Guaranteed Amount
• Loyalty Addition – Better Prospects
• S V in lieu of ‘Free Cover’ (T-149)
‘Swyam Siddha’
LIC’s Self Reliant Policy
Age 25; 179-20; Mode Yearly
• Premium
6991
• Tax Saving
20% 1398
30% 2097
• Net Premium
5593
4894
• 4 Yr Prem
22372
19576
• SB I
20000
20000
• Loss/Gain
2372 (-)
424 (+)
The example proves that after the premiums
are paid for First 4 Years and the SB is
received the policy can be financed from
the SB amount.
USP’s of ‘Bima Gold’
• NEW AVATAAR OF PLAN LAUNCHED BY
THE PRIME MINISTER
• EVEN LOWER COST – Janta Money Back
• BEST OF ALL – ‘Bima Kiran’, ‘Jeevan Saral’,
‘Money Back’ & ‘New Jana Raksha’
• NO CROSS SUBSIDY – No Exit Loading
• ATTRACTIVE HIGH SA REBATES – High
End Customer Benefited
• RETURN OF PREMIUM - Element of
Guarantee Increased
• PARTICIPATING LOYALTY ADDITIONS
USP’s of ‘Bima Gold’
• HIGHER AGE – Return of Premium Same
• FULL RISK COVER FOR FULL TERM & 50%
OF SA DURING EXTENDED TERM (FREE)
• COOLING OFF OPTION
• AUTO COVER FACILITY & MONEY BACK
IN TERM ASSURANCE PLAN
• FLEXI TERMS – 12, 16 & 20 Years
• EARLY SURVIVAL BENEFITS [4, 8, 12 & 16]
• OPTIONAL RIDERS – DAB, Disability
• POLICY LOAN AVAILABLE
Let’s give our
BEST
to the organisation

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