LIC's Business Protection Plan: Special for Businessman
In the previous article on life insurance market, we have learned why LIC's Business Protection Plan is beneficial for businessmen. Today we will know the term and condition of this policy in detail.
Advantages of Planning:
Let us now understand the terms and conditions of the policy in detail. This information is very important for you. Because if you are a LIC Agent, then you will be able to guide your customers properly and if you are a customer, then you will be able to take the right decision by understanding the Rules of the Policy.
LIC's Business Protection Planning offers benefits in two ways. The businessman gets Insurance Cover during the Policy Term and if the Businessman survives till the Maturity of the Policy. So he gets the benefit of Maturity of the Policy.
Let us understand it in detail one by one:
Benefit on Death During the Policy Term:
LIC's Business Protection Plan provides Financial Security for the Life of a Businessman. In the condition of Death of the practitioner during the policy term, the Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. So it gets paid.
Death Claim of the Policy is admissible only when all the Premiums for the Policy are paid and the Policy is in full force. In case of Death, the taxes deposited along with the basic premium of the policy, extra premium and rider premium are not paid.
Maturity Benefit at the End of the Planning Term:
If the Businessman survives the Maturity of the Policy and has paid all the Premiums for his Policy. Then on maturity of the policy Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. So it gets paid.
Eligibility Conditions and Other Restrictions:
| Minimum Basic Sum Assured | ₹ 100000 |
| Maximum Basic Sum Assured | No Limit |
| Minimum Age at entry | 18 years (completed) |
| Maximum Age at entry | 55 years (Nearer Birthday) |
| Maximum Maturity Age | 75 years (Nearer Birthday) |
| Minimum Policy Term | 12 years |
| Maximum Policy Term | 35 years |
Age Certificate:
Class-01 Age Certificate is a must for LIC's Business Protection Planning. For example- It will be necessary to give a self-attested Photocopy of any one certificate from School Certificate, PAN Card, Aadhaar Card, Driving License, Passport etc.
Mode Rebate:
| Premium Payment Mode | Rebate |
|---|---|
| Yearly | 2% of Tabular Premium |
| Half-Yearly | 1% of Tabular Premium |
| Quarterly, Monthly | Nil |
Higher Sum Assured Rebate:
| Basic Sum Assured (B.S.A.) | Rebate (₹) |
|---|---|
| 1,00,000 to 1,95,000 | Nil |
| 2,00,000 to 4,95,000 | 2‰ of B.S.A. |
| 5,00,000 and 9,95,000 | 3‰ of B.S.A. |
Payment of Premium:
Premium for LIC's Business Protection Plan can be paid regularly through yearly, half-yearly, quarterly or monthly mode (through NACH only).
Grace Period:
If the Premium for LIC's Business Protection Plan is paid in yearly, half-yearly, quarterly mode, then LIC gives a Grace Period of 30 days for such policies. But if the premium is paid in monthly mode, then LIC gives a Grace Period of 15 days for such policies.
No additional Late Fee has to be paid if the premium is deposited within the Grace Period and the policy also provides the benefit of Risk Cover during this Grace Period.
If the premium is not paid before the end of the grace period, then the policy lapses and after lapsing it does not give the benefit of plan risk cover. If the premium is deposited after the end of the Grace Period, a Late Fee has to be paid along with the premium.
Revival of Policy:
If the premium is not paid within the Grace Period, the policy will Lapse. A Lapsed Policy can be revived within a period of 5 consecutive years from the date of first unpaid premium and before the date of maturity.
Surrender of Policy:
The Policy can be Surrendered at any time provided full two years' Premiums have been paid. On surrender of the Policy, the Corporation shall pay a Surrender Value equal to the higher of the Guaranteed Surrender Value or the Special Surrender Value.
Loan Facility:
Loan can be applied for under LIC's Business Protection Planning. Provided that at least two full years' premiums have been paid.
Example:
The Businessman should buy LIC's Business Protection Plan with insurance equal to the value of his business. However, as per the rules of the Policy, a Minimum Sum Assured of Rs. 01 lakh can be purchased. Now suppose if your total turnover is ₹10 lakh, then you should buy ₹10 lakh insurance.
Policy term should be chosen based on the difference between your present age and retirement age. Suppose you are 30 years old today and you want to retire at the age of 60. So you should choose this plan with a term of 30 years.
Now if you are 30 years old and you buy a Sum Assured of ₹ 10 lakh for 30 years. Then you need to pay the First Annual Premium of ₹35,023. From the second year till the date of maturity, an Annual Premium of ₹34,269 has to be paid.
Let us see what are the Benefits under this Scheme:
| Age | Protection | Loan Amount |
|---|---|---|
| 31 | 20,45,000 | 0 |
| 32 | 20,90,000 | 18,098 |
| 33 | 21,35,000 | 41,440 |
| 34 | 21,80,000 | 76,365 |
| 35 | 22,25,000 | 98,300 |
| 36 | 22,70,000 | 1,20,744 |
| 37 | 23,15,000 | 1,42,338 |
| 38 | 23,60,000 | 1,67,254 |
| 39 | 24,05,000 | 1,93,108 |
| 40 | 24,50,000 | 2,19,834 |
| 41 | 24,95,000 | 2,47,648 |
| 42 | 25,40,000 | 2,76,635 |
| 43 | 25,85,000 | 3,06,968 |
| 44 | 26,30,000 | 3,38,767 |
| 45 | 26,95,000 | 3,72,149 |
| 46 | 27,45,000 | 4,07,324 |
| 47 | 27,95,000 | 4,40,251 |
| 48 | 28,45,000 | 4,80,221 |
| 49 | 29,05,000 | 5,44,540 |
| 50 | 29,70,000 | 6,15,865 |
| 51 | 30,45,000 | 6,94,656 |
| 52 | 31,40,000 | 7,70,053 |
| 53 | 32,85,000 | 8,54,530 |
| 54 | 34,30,000 | 9,49,612 |
| 55 | 35,75,000 | 10,57,480 |
| 56 | 37,20,000 | 11,80,182 |
| 57 | 38,85,000 | 13,30,555 |
| 58 | 40,50,000 | 14,99,429 |
| 59 | 42,15,000 | 16,89,172 |
| 60 | 44,50,000 | 19,03,146 |
Maturity Amount:
On Maturity of the Policy, a payout of approximately ₹ 34,50,000 is received. Which you can use for your Retirement or you can invest for your children to start a New Business.
Download PDF file of this Plan:
PDF file is being provided for LIC agents who want to pass on the benefits of this plan to their customers. This PDF file can be printed and used. This PDF file has been created using the Inter font family.
Disclaimer:
This is a presentation designed for the purpose of training LIC Agents. So that the Agent of LIC can effectively present the basic Policy of LIC to its customers.
LIC's New Endowment Plan has been used in this presentation. A Term Rider Equal to the Basic Sum Assured has been added to this presentation.
The Premium, Risk Cover, Maturity and other Payouts of this plan of LIC are based on the terms and conditions of the LIC's New Endowment Plan. Therefore, before buying and selling this plan, do check the New Endowment Plan of LIC.
However, great care has been taken in preparing this presentation. But this presentation is prone to human errors. So take any decision with your discretion. We will not be responsible for any loss or profit.
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