LIC Smart Elite Savings Plan 262

The Smart Elite Savings Plan (No. 262) is a life cover that is designed keeping in mind the needs of High Net-Worth Individuals (HNIs). The policy lets you maximise your hard-earned savings with the benefit of assured returns and other equally utilitarian features. These features will empower you with more control over how your investment portfolio is managed.
The nature of the savings plan is non-linked, participating and endowment-oriented. The plan’s basic sum assured becomes active from the first day of the policy itself. This is payable as maturity or death benefits. The company declares the Basic Sum Assured bonus annually based on the profit generated by the company the preceding year. The declared bonus is attached to the policy and is guaranteed. However, the bonus is payable at the time of policy exit by way of the untimely death of the policyholder, maturity or even surrender of the policy.

Date of Risk Commencement

Risk Commencement Date for minors up to 17 years of age under the plan will be applicable from the anniversary of the policy upon completion from two years of the policy commencement date. For all other policy members, the risk commencement date shall become effective right away.

Benefits

The benefits available under the plan are as follows

1. Death benefit - If there is a death of the policyholder while the policy is still running but prior to the risk commencement, the premiums paid till the time of death leaving aside extra premiums and/ or rider premiums shall be transferred in payment to the declared beneficiary or nominee.

In the event of death of the assured life while the policy is active but after the risk commencement, the sum assured in addition to the accrued reversionary bonus as applicable on the death date shall be paid to the beneficiary. The policy will expire once the death benefit payment is completed.

2. Maturity benefit - The sum assured in addition to the accrued reversionary bonus will be available in a lump sum amount, payable to the policyholder on survival till the policy end term. The policy will deactivate once the maturity benefit is complete.

Product Features, Limitation and Applicability

Why You Should Consider Opting for Smart Elite Savings Plan (No.262)

Opting for a plan like this helps in the following ways:

• Helps you to meet your life goals more efficiently
• Offers flexibility
• Financial protection for your family members
• Aids in building a healthy financial discipline
• Gives you assured returns
• Transparent policy plan

Grace Period for Premium Payment

The grace period available to policyholders is 15 days for premiums fixed as monthly as and 30 days for premiums that are fixed on quarterly, half-yearly or yearly payments.

Paid-Up Value

The policy will assume a paid-up value once payment of two full policy years’ premiums is completed successfully. If two full years’ premiums are paid and the following premium is not paid within the fixed grace period the policy will turn into a reduced paid-up policy.

 Value for Surrender

The policy will get a surrender value once two full years of policy premium have been paid. If a two full years policy has not been done, then the policy will lapse or terminate without obtaining any surrender value.

Upon surrender, the special surrender value and the higher of minimum guaranteed surrender shall be duly payable.

Loan

If the policy has acquired surrender value, the life assured can get a loan of up to 80% of the surrender value which is subject to satisfactory production of title to the policy and assignment of the policy to the company. Factors like the rate of interest and other terms and conditions will be decided by the company at the time the loan is granted. The rate of interest currently charged is 8%, however, this is subject to change from time to time.

The policy will be closed if the loan exceeds the surrender value.

 Underwriting Requirements

This is subject to the underwriting policy of the company.

Insurance Levy/Other Taxes

Insurance levy, vat or any other taxes imposed by the Government will be additionally charged on the premiums.

 Conclusion

Purchasing a smart elite savings plan will help you to make the most of your savings, give better financial protection to your family and help you meet your goals faster.