FORTUNE PLUS

Promoter : Life Insurance Corporation of India (LIC)

Type : Unit Linked Endowment Life Insurance Plan.

Some of the common questions answered

`How long I need to pay premium under the plan ?’

• 5 years, stopping in case of death, if it occurs earlier.

`How long the plan is valid’?

• Between 5 -20 with a condition that upper age limit for maturity does not exceed 65 years.

`What do I get under the plan, if I survive the policy term ?’

• Your fund value.

“What is the Fund value ?’

• Net Asset Value (NAV) of the Units in your account as on the day of encashment.

`What does my nominee get in case I am no more before completion of the policy term ?’

• Higher of the face value of your policy or Fund value.

`What if I meet with a fatal accident during the policy currency ?’

• Your nominee will get an additional amount equivalent to the face value of the policy not
exceeding Rs 50 Lakhs.

`Is there any provision for withdrawal during the currency of the policy?’

• Yes, Partial encashment of `units’ is allowed after third policy anniversay from the commencement.

`Can I avail some loan against the plan in case of emergency ?’

• No.

`Can I encash the policy itself instead of waiting for completion of the policy term’?

• Yes, after completion of the third policy anniversary from the commencement. Surrender value
payable will be fund value of all the units in your account as on the day of surrender.

`What is the premium payable under Fortune Plus ‘?

• Unlike other conventional life insurance plans, premium payable under Fortune plus is variable. First Year premium can be any amount exceeding Rs 20,000.

• Subsequent 4 years’ premium will be @25% of the first year premium.

• For example, if the first year premium you choose to pay is Rs 50,000/- , you need to pay only Rs 12,500/- per year for next 4 years.

`What are the various charges connected with the plan apart from the regular premium ?’

• Premium allocation charge ranging from 15 to 13.50% of the First Year Premium and 2.50% of the subsequent 4 years’ premium. This charge will not go for buying `units’ for you.

• Mortality Charge- cost of life insurance cover which is age specific, will be taken every month. Life Insurance cover is the difference between Sum Assured under Basic plan and the Fund value after deduction of all other charges.

• Accident Benefit Charge- cost of Accident Benefit Rider, will be levied every month at the rate of Re 0.50 per thousand Accident Benefit Sum Assured per policy year.

• Policy Administration Charge @ Rs. 60/- per month during the first policy year and Rs. 20/• per month thereafter, throughout the term of the policy subject to a maximum of Rs.150/- per month during the first policy year and Rs. 50/- per month thereafter.

• Fund Management Charge @ 0.75% p.a. of Unit Fund for “Bond” Fund, 1.00% p.a. of Unit Fund for “Secured” Fund, subject to a maximum of 20% P.A of Unit Fund, 1.25% p.a. of Unit Fund for “Balanced”Fund subject to a maximum of 2.5% P.A of Unit Fund and 1 .50% p.a. of Unit Fund for “Growth” Fund Bond Fund: 1.5% P.A. of Unit Fund, subject to a maximum of 3.0% p,a, of Unit Fund. Fund Management Charge shall be appropriated while computing NAV.

• Switching Charge : This is a charge levied on switching of monies from one fund to another not exceed Rs. 200/- per switch. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100/- per switch.

• Service Tax Charge - A service tax charge shall be levied on the Mortality Charges and Accident Benefit rider charges, if any, on a monthly basis. The level of this charge will be as per the rate of Service Tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an Educational cess at the rate of3% thereon and hence, effective rate is 12.36%

• Miscellaneous Charge - This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode, etc. An alteration may be allowed subject to a charge of Rs.50/- not exceeding Rs. 200/- per switch.
`What is the income-tax benefit under the plan ?’

• Premium paid under Fortune Plus enjoys I.T exemption upto Rs 1,00,000/- per annum along with certain other investments referred to under section 80C of the I.T Act 1961.
`Am I eligible to invest under Fortune Plus ‘?

• Yes, if you are in the age group of 12-60 years.

`Can I invest under Fortune Plus if I am staying in a foreign country ‘?

• Yes, under Mail order, provided you are a Non-Resident Indian Investor.

`How do I go about in case I want to invest under Fortune Plus ‘?

• You can write to me at mail@bimahelpline.com for application and other requirements