LIMITED PAYMENT WHOLE LIFE PLAN

Promotor : Life Insurance Corporation of India (LIC)

Type : Low Premium Permanent Life Insurance Plan.

Some of the common questions answered



`What do I get, if, I survive the policy term I have chosen ?’

• Nothing upto your age of 80 years. On completion of 80, you will receive insured amount + Bonus on the full insured amount upto your age of 80, in case you want.

‘What does my nominee get if I am no more before completion of the policy term I have chosen ‘?

• Insured amount +Bonus on the full insured amount for the period premium was paid before your death.

`How long bonus is paid under Limited Payment Whole Life Plan ?’

• Till you attain 80 years of age, if you have opted to receive your claim amont then or till you are alive, irrespective of when you have stopped payment of premium.`Is there any provision for funds in between to meet unforeseen contingencies ?’ • No such provision, except borrowal against the Surrender Value after 3 years’ premia have been paid at 9.00% per annum simple interest.

How long I need to pay premium under Limited Payment Whole Life Plan ?’

• Completion of the policy term chosen or death, should it occur earlier.

`What, if I meet with fatal accident during currency of Limited Payment Whole Life Plan?

• An additional amount equivalent to the basic insured amount not exceeding Rs 50,00,000 is payable along with the policy proceeds provided Accident rider has been included in the plan by payment of extra premium.

`What, if I meet with an accident and become Permanently Disabled ?’

• Further premium payable is waived.

• An additional amount equivalent to the basic insured amount not exceeding Rs 50,00,000 will be paid to you in monthly installments spread over next 10 years from the date of disablement, if you have Accident and Disability Rider included in your policy.

• All other benefits under the plan remain intact.

`Can I increase my life insurance coverage under Limited Payment Whole Life Plan?’

• No

Can I use This plan as Collateral Security for availing Housing Loan ? ‘

• Yes

Can I cover onset of some diseases in Limited Payment Whole Life Plan ?’

• No

‘What are the premium payment terms available under Limited Payment Whole Life Plan ?’

• 5 to 55 years with a condition that the upper age for premium ceasing shall not exceed 70.

`What are various premium payment options available to me under Limited Payment Whole Life Plan ?’

• Single (One-time payment), Yearly, Half-yearly, Quarterly and Monthly with 5% more.

`What is the effect of income-tax on the premium paid ?’

• Premium paid during currency of the policy along with other listed savings enjoys full exemption from income-tax upto Rs 1,00,000/- under section 80C of the Income-Tax Act 1961.

What is the effect of income-tax on the policy proceeds received on maturity/death ?’

• Policy proceeds received by way of maturity or death are free from income-tax under Section 10(10D) of the Income-Tax Act, whatever be the accumulated bonus.

`What is so special about Limited Payment Whole Life Plan ’?

• It is a Permanent Life Insurance Plan with very low premium and high returns. Bonus is calculated on the full insured amount as long as you are alive, at highest possible rate unlike other plans where it is limited to the policy term you have chosen.

`I am an NRI investor. Can I go for investment on Limited Payment Whole Life Plan’?

• Yes, you can invest through `Mail Order’.