LIC's total investments touch Rs 14.8-lakh crore

LIC's total investments touch Rs 14.8-lakh crore

Source: Business Standard

India's largest insurer to invest Rs 2.25-lakh crore in FY14

 

The total investments of Life Insurance Corporation of India (LIC) at the end of FY13 stood at Rs 14.86 lakh crore. According to LIC's annual report for 2012-13, the country's largest insurer had Rs 14.84 lakh crore worth of investments in India and Rs 2,408.61 crore worth of investments abroad.

In FY14, LIC plans to invest Rs 2.25 lakh crore in government securities, bonds, infrastructure, debenture and equity, of which 15-20 per cent would be in equity.

The insurer had booked Rs 21,000 crore profit from sale of equities and churning of the  portfolio. According to an earlier presentation by LIC to a Parliament standing committee on finance, total investments at the end of March 31, 2012 was Rs 13.49 lakh crore.

Usha Sangwan, managing director of LIC, had recently said the insurer has planned to invest Rs 40,000 crore in equity this financial year. "We have already invested Rs 33,000 crore. We have also booked profits of Rs 14,000 crore, since there has been a continuous churn in the portfolio," she had said.

With respect to the investment in infrastructure and the social sector, LIC invested Rs 10,995.33 crore in power, Rs 4,121.74 crore in housing, Rs 35.72 crore in water supply and sewerage, and Rs 5,012.13 crore in other infrastructure in FY13.

The insurer plans to have 12 per cent growth in new business premium this financial year. LIC Chairman S K Roy had earlier said that although it had budgeted for 12 per cent in first premium growth, the insurer is hopeful of achieving more growth.

LIC’s New Jeevan Nidhi Plan No. 818

LIC’s New Jeevan Nidhi Plan No. 818

LIC’s New Jeevan Nidhi Plan - Table no. 818

A Compulsory Pension Plan from LIC

LIC’s New Jeevan Nidhi Plan is introduced with effect of 27th Jan 2014. This is conventional with profit Pension Plan from LIC.

Eligibility conditions and restrictions:

1)  Minimum Age at entry for Life Assured  : 20 years (nearest Birth day)

2) Maximum Age at entry for Life Assured  : 58 years (nearest Bday) in Regular Premium

: 60 years (nearest Bday) in Single Premium

3) Minimum Deferment Period                     : 5 years under Single Premium

: 7 years under Regular Premium

4) Maximum Deferment Period                    : 35 years

5) Minimum age at Maturity                         : 55 years (Nearest Birthday)

6) Maximum age at Maturity                        : 65 years (Nearest Birthday)

7) Premium payment mode                          : Yearly, Half-yearly, Quarterly, Monthly (SSS or Single Premium

8) Minimum Sum Assured                             : Rs 1,00,000/- for regular Premium

: Rs 1,50,000/- for Single Premium

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-

Benefits:

(A) Guaranteed Additions:

Provided the policy is in full force, Guaranteed Additions @ Rs. 50 per Thousand Basic Sum Assured will be added to the Basic Sum Assured for each completed year, for first five years.

In case of surrender of fully paid up policy or in case of death claim, the guaranteed additions for the policy year of death or surrender will be added fully

(B) Optional Benefit on LIC’s  Accidental Death and Disability Benefit Rider at extra premium

(C) Participation in Profits

The Policy shall participate in profits from the 6^th year onwards till the end of deferment period and at such rates as may be declared by the corporation provided the policy is kept in force for full sum assured.

Final Additional Bonus may also be declared under the policy depending on experience of LIC

(D) Benefit on Vesting:  -  

Provided this policy is in full in force, on vesting, an amount equal to Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Final Additional Bonus if any shall be made available to the life assured. The benefits available on vesting shall be payable as per details given below:

(E) Option available to the Life Assured for utilization of benefit amount:

The following options will be available to the life assured for the utilization of benefit amount on vesting/surrender

1) To Purchase in immediate annuity

The life assured will have a choice to commute the amount available on vesting/surrender to the extent allowed under Income tax act. The entire amount available on vesting/surrender or the balance amount after commutation as the case may be, shall be utilized to purchase immediate annuity at then prevailing annuity rates. Commutation will only be allowed provided that the balance is sufficient to purchase the minimum amount of annuity as per the provisions of sections of insurance Act. 1938.

In case the said is insufficient to purchase the minimum amount of annuity then the said amount shall be paid as a lump sum to the life assured.

The annuity shall only be purchased from Life Insurance Corporation of India.

2) To purchase a new Single premium deferred pension product from Life Insurance Corporation of India.

Under this option the entire proceeds available on vesting/ surrender shall be utilized to purchase a new single premium deferred pension product provided the policyholder satisfied the eligibility criteria for purchasing a single premium deferred pension product.

(F) Death Benefit:

Death during the first five policy years: Provided the full policy in force, basic sum assured along with accrued guaranteed addition bonus shall be paid as lump sum or in the form of annuity or partly in lump sum and balance in the form of annuity to the nominee/legal heir at then the prevailing immediate annuity rates.

Death after first five policy years: Provided the full policy in force, basic sum assured along with accrued guaranteed addition bonus, vested Simple Reversionery Bonuses and Final Additional Bonus, if any,  shall be paid as lump sum or in the form of annuity or partly in lump sum and balance in the form of annuity to the nominee/legal heir at then the prevailing immediate annuity rates.

In any case, provided all due premiums have been paid, the total death benefit at any time shall not be less than 105% of total premiums paid (excluding taxes, extra premium and rider premium, if any)

K.S.Palanisamy

93 600 80 622

kspgeetha@yahoo.co.in

Comparison Old Money Back 20 Years Plan 75 to New Money Back 20 Years Plan no 820

Comparison Old Money Back 20 Years Plan 75 to New Money Back 20 Years Plan no 820

LIC launches New Money Back plan for 20 Years Table No. 820

Call us on 93 600 80 622 

As per the rule of IRDA most of the LIC plans are revised.

Below are the list of changes done in new Money Back plan 820 compared to old Money Back plan 75. 

	Money Back Plan -20 years (Table No. 75)	New Money Back Plan – 20 years (Table No.820)
Maturity Benefit	40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.	No Change
Death Benefit	Basic Sum Assured(BSA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.	‘Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death .
Survival Benefit	20% of the sum assured in every 5th, 10th and 15th year	No Change
Paid-up value	Paid-up value per thousand Sum Assured	Paid –up value shall be equal to [(Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy.
Age at entry	13 to 50 years	13 to 50 years
Age at Maturity	Maximum  70 years	Maximum  70 years
Policy Term	20 Years	15 years
Premium mode	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured	50,000 and above	1,00,000 and above ( In multiples of 5000)
Rebate	3% of tabular Premium for Yearly premium 1.5% of tabular premium for Half-Yearly premium	2% of tabular premium for Yearly premium 1% of tabular premium for Half-Yearly premium
Loan	Available after payment of 3 full years premiums. Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value  in case of Paid-up policies. Foreclosure action shall be  initiated on default of 2 or more half-yearly  loan interest installments.	Available after payment of 3 full years premiums he maximum amount of loan that can be granted as a percentage of Surrender Value be  as under: For inforce and fully paid-up policies – upto  90% For paid-up policies – 80% Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)	Available after payment of 3 full years premiums Before Payment of Survival Benefit: GSV shall be equal to 30% of the total premiums paid less First Year Premium and  extra premium, if any. After Payment of Survival Benefit: GSV shall be 30% of the premiums paid after the due date on which last SB was paid less extra premium, if any.	Available after payment of 3 full years premiums. GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any survival Benefits already paid. Examples of GSV factors applicable for total  premiums paid Policy Year ~ GSV factor          3   =   30%          5   =   50%        t -1  =   80% (t=Policy Term)
Special Surrender Value (SSV)	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Main Changes	A  Policy may be revived within a period of 5 years from the date of first unpaid premium. Taxes, if any , were borne by the Corporation.	A  Policy may be revived within a period of 2 years from the date of first unpaid premium. Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
No Changes in	Back Dating Grace Period Assignment/Nomination	Back Dating Grace Period Assignment/Nomination

Why LIC's Single Premium Endowment plan you should take?

Why LIC's Single Premium Endowment plan you should take?

Why LIC's single premium endowment plan you should take?

1. Single premium – one time investment.
2. Protection -risk cover# for full sum assured.
3. excellent for meeting educational needs of young ones.
4. Children from the age of 90 days can be covered.
5. Ideal for investment planning-wide range of policy term.
6. Attractive – participates in profits.
7. Liquidity through loan.

Call us on 93 600 80 622 or kspgeetha@yahoo.co.in

LIC New Endowment Plan No 814

LIC New Endowment Plan No 814

LIC Launches New Endowment Plan  (Table No 814). As per the IRDA, LIC revised all the popular plans accordingly to the new rule.

Maturity Benefit - Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any.

Death Benefit - ‘Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death.

What is Sum Assured on Death?

Sum  Assured on Death shall be Higher of ~ Basic Sum Assured (BSA)

OR 10 times Annualised Premium.(10 x AP).

[*The premiums mentioned in death benefit are excluding taxes, extra premiums and premiums for riders, if any]

Eligibility Conditions and Restrictions

• Age at entry – 8 to 55 years
• Age at Maturity – Maximum 75 Years
• Policy Term – 12 to 35 years
• Premium mode – Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
• Basic Sum Assured – 100000 and above

Loan – Available after payment of 3 full years premiums.

The maximum amount of loan that can be granted as a percentage of Surrender Value shall  depend on the Policy Term.

Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.

Guaranteed Surrender Value (GSV) - Available after payment of 3 full years premiums.

GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders,if opted for.

Examples of GSV factors applicable for total  premiums paid

Policy Year ~ GSV factor

3   =   30%

5   =   50%

t -1  =   80% (t=Policy Term)

GSV factor applicable to vested bonus,if any. Examples of Vested bonus factors –

Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses.

Year of SV – Policy Term – Factor

3                  12                  18.60%

19                 25                  20.85%

29                 30                  30%

( In multiples of 5000)

Special Surrender Value (SSV) - The discount factors shall be surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.

Surrender Value payable – The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.

LIC’s  New Endowment Plan – Changes over  Table No.14

1. Sum Assured on Death’ has been defined separately
2. Age at entry has been reduced.
3. Percentage of Loan payable as a percentage of Surrender Value shall depend upon policy term.
4. GSV percentage shall also depend on policy term and year of Surrender
5. Rebates for high SA and premium mode modified.

Call us on 93 600 80 622 or kspgeetha@yahoo.co.in

Comparison of Old Money Back Plan 93 to New Money Back Plan 821

Friday, January 17, 2014

Comparison of Old Money Back Plan 93 to New Money Back Plan 821

LIC launches New Money Back plan for 25 Years - Table no 821. As per the rule of IRDA most of the LIC plans are revised.Call us on 93 600 80 622 or kspgeetha@yahoo.co.in for more details

Below are the list of changes done in new Money Back Plan 821 compared to old Money Back Plan 93.

	Money Back Plan -25 years (Plan No. 93)	New Money Back Plan – 25 years (Plan No. 821)
Maturity Benefit	40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any.	No Change
Death Benefit	Sum Assured(SA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.	Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death .
Survival Benefit	15 % every 5 years	No Chnage
Paid-up value	Paid-up value per thousand Sum Assured	Paid –up value shall be equal to [(Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy
Age at entry	13 to 45 years	13 to 45 years
Age at Maturity	Maximum  70 years	Maximum  70 years
Policy Term	25 Years	20 Years
Premium mode	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured	50,000 and above	1,00,000 and above ( In multiples of 5000)
Rebate	3% of tabular Premium for Yearly premium 1.5% of tabular premium for Half-Yearly premium	2% of tabular premium for Yearly premium 1% of tabular premium for Half-Yearly premium
Loan	Available after payment of 3 full years premiums. Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value  in case of Paid-up policies. Foreclosure action shall be  initiated on default of 2 or more half-yearly  loan interest installments.	Available after payment of 3 full years premiums The maximum amount of loan that can be granted as a percentage of Surrender Value be  as under: For inforce and fully paid-up policies – upto  90% For paid-up policies – 80% Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)	Available after payment of 3 full years premiums Before Payment of Survival Benefit: GSV shall be equal to 30% of the total premiums paid less First Year Premium and  extra premium, if any. After Payment of Survival Benefit: GSV shall be 30% of the premiums paid after the due date on which last SB was paid less extra premium, if any.	Available after payment of 3 full years premiums. GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any Survival Benefits already paid. Examples of GSV factors applicable for total  premiums paid Policy Year ~ GSV factor          3   =   30%          5   =   50%        t -1  =   80% (t=Policy Term)
Special Surrender Value (SSV)	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Main Changes	A  Policy may be revived within a period of 5 years from the date of first unpaid premium. Taxes, if any , were borne by the Corporation.	A  Policy may be revived within a period of 2 years from the date of first unpaid premium. Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
NO Changes in	Back Dating Grace Period Assignment/Nomination	Back Dating Grace Period Assignment/Nomination

LIC New Jeevan Anand Plan No 815

Friday, January 17, 2014

LIC New Jeevan Anand Plan No 815

LIC Launches New Jeevan Anand Plan  (Table No 815)

• A  Policy may be revived within a period of 2 years from the date of first unpaid premium.
• Accident Benefit as a rider.
• Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.

Maturity Benefit -Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any

Death Benefit -

During the policy term – ‘Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

After expiry of policy term – Basic Sum Assured

What is Sum Assured on Death?

Sum  Assured on Death shall be Higher of ~ 125% of Basic Sum Assured (1.25 x BSA) OR 10 times Annual Premium.(10 x AP).

The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death .

[*excluding taxes, extra premiums and premiums for riders, if any]

Eligibility Conditions and Restrictions

• Age at entry - 18 to 50 years
• Age at Maturity - Maximum 75 Years
• Policy Term - 15 to 35 years
• Premium mode – Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
• Basic Sum Assured - 100000 and above ( In multiples of 5000)

Loan – Available after payment of 3 full years premiums. The maximum amount of loan that can be granted as a percentage of Surrender Value shall  depend on the Policy Term, as given in the table below.

Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is a default of loan interest.

Policy Term	Upto 23	24 to 27	28 to 31	32 to 35
% for inforce policies	90%	80%	70%	60%
% for Paid-up policies	80%	70%	60%	50%

Guaranteed Surrender Value (GSV) -Available after payment of 3 full years premiums.

GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders,if opted for.

Examples of GSV factors applicable for total  premiums paid

Policy Year ~ GSV factor

3   =   30%

5   =   50%

t -1  =   80% (t=Policy Term)

GSV factor applicable to vested bonus,if any. Examples of Vested bonus factors –

Year of SV – Policy Term – Factor

3                  15                  17.66%

19                 25                  20.85%

29                 30                  30%

Special Surrender Value (SSV) -Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses.

The discount factors shall be Special surrender value factors as provided in Table-1A and 2A(Whole life) of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.

Surrender Value payable – The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.

Call us on 93 600 80 622 or kspgeetha@yahoo.co.in for more details

By

K.S.Palanisamy

LIC's claim settlement Better and Efficient than private insurers: BY IRDA

Friday, January 17, 2014

LIC's claim settlement Better and Efficient than private insurers: BY IRDA

Private insurance companies fared poorly in terms of settlement of death claims in 2012-13 as compared to state-owned LIC (Life Insurance Corporation), says sectoral regulator Irda. "The claim settlement ratio of LIC was better than that of the private life insurers," Insurance Regulatory and Development Authority said in its annual report.

Life Insurance Corporation posted claim settlement ratio of 97.73 per cent last fiscal, as compared to 97.42 per cent in 2011-12.

For private insurers, the settlement ratio had gone down to 88.65 per cent in 2012-13, as compared to 89.34 per cent during the previous year, Irda said.It further revealed that private sector insurance firms have been rejecting about 8 per cent of the claims as against 1.12 per cent by the LIC.

According to Irda, there were 3.47 per cent claims sought from private insurance companies were pending at the end of the year. The similar figure for LIC was 1.04 per cent.There are about two dozen private life insurance firms in India and the larger ones include ICICI Prudential Life, HDFC Standard Life and Reliance Life.

The life insurance industry recorded a premium income of over Rs 2.87 lakh crore during 2012-13, up 0.05 per cent over the previous fiscal.

While private sector insurers posted 6.87 per cent decline in premium income, LIC recorded 2.92 per cent growth in 2012-13 compared to the previous fiscal.