Term Plan has become a part of life. We shall buy term insurance plan or life insurance plan at very early stage. It protects the family incase of earners untimely death. However, when critical diseases happen, no one comes to protect. Then you need a critical illness rider, which gives you a lump sum amount on detection of critical illness.
In this video, I have explained in detail about the critical illness rider, things to keep in mind while buying a critical illness plan.
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LIC Money Back Policy the most sold policy. These policies are more popular in rural areas than in urban due to payout at a regular interval during the policy term. Since the inception of the LIC of India, these policies are available for sale with different features. There are many money back policy still serviced by LIC of India. Although we do not have any exact plan wise data, they can be 20-30% of LIC total policies (All money back policy included). LIC of India settled 11660912 money-back cases of amount Rs. 25542 Crores money-back payment during the financial year 2019-2020 (see the data here).
Let us see more details about various money back policy of LIC of India. Besides that, know more about what is the procedure of Money-back claim settlement by LIC. Similarly, know what you should do if you have LIC money back policy.
What is a LIC Money Back Policy?
A LIC Money Back Policy is a policy that gives a fixed amount return between the policy term at a regular interval. Amount paid in money-back policies is basically a certain percentage of the Sum Assured. The Interval of money back is different in different policies. It can range from every 3 years to 5 years to every year in the last policy term in some money-back policies. For example, LIC’s Bima Diamond policies give money back return after every four years during the policy term. Similarly, LIC’s Bima Bachat, which is a single premium policy, gives money back a regular interval of 3 years.
LIC’s New Money Back – 20 Years (Plan No. 920)
Money-Back policies are also sold as child career plans because they give money back after a regular interval. Return at a regular interval helps in the education of the child, which requires continuous payments. Currently available LIC money back policy for children is LIC’s Children Money Back Policy and LIC’s Jeevan Tarun.
Difference LIC Money Back Policy
Though there are many money back policies being serviced by LIC of India, only a few are currently available for sale. Money Back Policies which are available for sale are:
LIC’s New Money Back – 20 Years (Plan No. 920)
LIC’s New Money Back – 25 Years (Plan No. 921)
LIC’s New Bima Bachat (Plan No. 916)
LIC’s New Childen’s Money Back Plan (Plan 932)
LIC’s New Jeevan Tarun (Plan No. 934)
LIC Jeevan Shiromani (Plan No. 947)
LIC’s Bima Shree (Plan No. 948)
What is the difference between Survival Benefit and Money Back in LIC policies?
If you have a money-back policy, then read the policy document and you will find an interesting fact. You will not find the word “Money Back” anywhere in the benefits. What you will see is “Survival Benefit”. Survival Benefit means, if the policyholder survives to the particular term, he will receive a certain percentage of Sum Assured. So, survival benefit and money back is basically the same thing. Although, payments in whole life plans with endowment elements are also called survival benefit, for example, LIC’s Jeevan Anand maturity proceeds.
Process of claim payment in LIC Money Back Policy
Every single month Life Insurance Corporation of India settles crores of Rupees of Survival Benefits/Money Back payments. Payment Process actually starts 3 months before the actual money back payment date. Lets see what is the the process of payment of money back in LIC Money back policy
LIC books the Survival Benefit/Money Back claims 3 months before the actual payment dates. Though is not done day by day. On the first of every month, LIC books due claim 3 months in advance. For example, for payment to be made in December, survival benefit/money back payment is booked on 01st September.
An intimation message is sent automatically to policyholders regarding future money back payment. The main purpose is to inform the policyholder and asking them to submit bank details to LIC of India, if not submitted earlier. Know more about How to register NEFT details in LIC online.
LIC claim department makes necessary corrections in the policy before making the actual payments.
After proper scrutiny, payment is made by LIC of India in money back policy. Though LIC makes payment well in advance, it only gets credited in policyholders account on or after the due date of claim. For example, suppose a claim in your policy is due on 28 December, but LIC has already made the payment on 15 Novemeber, however, it will be credited on 28 December only or after if 28 December is holiday.
This whole process is adopted by LIC to make payments on time to policyholders. If we see the last years data (see the data here), almost 87% of moneyback payments were settled on or before the due date. Rest
Do you have a LIC Money Back Policy? You must read this!
If you are reading this article, it is sure that you have a LIC money back policy or you are planning to buy one. So, here are some tips for you so that you can get your claim well on time:
Update your contact details in your policy, if not done already. It will help you get the information on time directly on your mobile.
Keep your bank account details updated in your LIC Money Back policy. It is really important because now LIC does not pay via cheques.
If your bank accounts details/NEFT details not updated in your policy, then you must read this: How to register NEFT details in LIC online.
Not comfortable with online stuff, don’t worry, you can give a request in any LIC branch. To update your NEFT details in LIC policy, just fill this LIC NEFT mandate form, attach a canceled cheque or attested copy of your bank passbook. Submit it to any nearest LIC office or LIC customer Zone.
Keep your policy in force. Here is the tip to know LIC Policy status without going to the LIC office.
If you have taken any loan in your LIC Money Back Policy, then loan interest and the loan amount will be deducted from the survival benefit/money back amount. If any amount left will be paid to you.
If you have any other questions related to LIC servicing then just mail us at [email protected]. You can also comment below. Share if you liked this information useful because Sharing is caring!
देश की सबसे बड़ी बीमा कंपनी भारतीय जीवन बीमा निगम द्वारा दिनांक 17/09/2020 को अपनी सभी लाभ में सहभागी पॉलिसियों (with profit policies) के लिए देय बोनस दरें घोषित कर दी गयी हैं। ये बोनस दरें अंतर-मूल्यांकन अवधि 01/04/2019 to 31/03/2020 के दौरान की गयी पॉलिसियों में देय होगा जो कि दिनांक 31/03/2019 को पूर्ण बीमाधन के लिए चालु स्थिति में होंगी। ये बोनस दरें वित्तीय वर्ष 2020-2021 में आने वाले सभी मृत्यु दावों या परिपक्वता दावों (एक वर्ष की अवधि के भीतर छूट वाले लोगों सहित) एवं 01/01/2021 को या उसके बाद समर्पण किए गए दावों के साथ देय होगा।
इसी के साथ भारतीय जीवन बीमा निगम द्वारा विभिन्न पॉलिसियों में मिलने वाले अंतिम अतिरिक्त बोनस [Final additional bonus (FAB)] एवं सहभागिता हितलाभ [ Loyalty addition (LA)] की दरें भी घोषित कर दी गयीं है। सभी बोनस दरें किसी भी पॉलिसी की शर्तों एवं बीमाधन पर निर्भर करती हैं।
बोनस के विभिन्न प्रकार
प्रत्यावर्ती बोनस यह एक प्रकार का बोनस है जो हर साल घोषित किया जाता है और इसे पॉलिसी में प्रतिवर्ष जोड़ दिया जाता है। पॉलिसीधारक/नॉमिनी को परिपक्वता या मृत्यु दावे के साथ पॉलिसी अवधि के दौरान अर्जित समस्त बोनस देय होता है। यदि बीमाधारक किसी कारणवश अपनी पॉलिसी को पॉलिसी अवधि के दौरान सरेंडर करता है तो उसे पॉलिसी के चुकता मूल के साथ अर्जित बोनस का रियायती मूल्य (discounted value) ही प्राप्त होता है।
अंतिम अतिरिक्त बोनस (FAB) फाइनल एडिशनल बोनस (एफएबी) एक बार का अतिरिक्त बोनस है, जो सहभागी पॉलिसियों की परिपक्वता के साथ भुगतान किया जाता है। यह पॉलिसी को घोषित साधारण प्रत्यावर्ती बोनस के अतिरिक्त भुगतान किया जाता है। कृपया ध्यान दें कि अंतिम अतिरिक्त बोनस (एफएबी) का भुगतान केवल एक बार परिपक्वता दावे के साथ ही किया जाता है, मृत्यु दावा एवं पॉलिसी को पॉलिसी अवधि के दौरान सरेंडर करने पर यह बोनस देय नहीं होता है।
सहभातिगा हितलाभ (LA) साधारण प्रत्यावर्ती बोनस के बदले कुछ पॉलिसियों में सहभागिता हितलाभ का प्रावधान होता है, यह बोनस संबंधित पॉलिसी में घोषित होने के उपरान्त केवल मृत्यु दावे एवं परिपक्वता दावे के साथ ही देय होता है।
अपनी पॉलिसी में बोनस (प्रत्यावर्ती बोनस) की गणना कैसे करें?
उदाहरण: यदि आपके पास एक नई जीवन आनंद पालिसी (तालिका संख्या 815) है, एवं उसकी बीमित राशि: रु.500000, पॉलिसी अवधि: 21 वर्ष,
बोनस गणना सूत्र: (बीमित राशि / 1000)Xबोनस दर, उपर्युक्त योजना में बोनस: (500000/1000)X49 = रु.24500.
एलआईसी की वर्तमान उपलब्ध पॉलिसियों में घोषित प्रत्यावर्ती बोनस (Simple reversionary bonus) दरें
भारतीय जीवन बीमा निगम की बिक्री के लिए मौजूद पॉलिसियों में घोषित प्रत्यावर्ती बोनस दरें निन्मानुसार हैं:
जीवन उमंग पॉलिसी में वित्तीय वर्ष 2020-21 के लिए घोषित बोनस दरें
एलआईसी की बिक्री के लिए बंद हो चुकी पॉलिसियों में घोषित प्रत्यावर्ती बोनस (Simple reversionary bonus) दरें
वित्तीय वर्ष 2019-20 के लिए भारतीय जीवन बीमा निगम द्वारा घोषित बोनस दरें (बिक्री के लिए बंद हो चुकी पॉलिसियों में)
अस्वीकरण: मैंने बोनस दरों में प्रवेश करते समय अत्यधिक सावधानी बरती है, लेकिन त्रुटि या किसी भी अस्पष्टता के मामले में कृपया अपनी एलआईसी शाखा से परामर्श करें।
Loyalty additions are paid as a one time benefit in some policies in lieu of a simple reversionary bonus (SRB). The main difference is that, unlike the simple reversionary bonus, which becomes a part of the policy benefits as and when it is declared, loyalty additions shall be available to the policyholder only at the time of exit from the policy. In other words, declared loyalty additions become applicable only to the policies getting exit, by way of death, surrender, or maturity, in the declared year (subject to the conditions of the plan).
Loyalty additions are paid as a one time benefit in some policies in lieu of a simple reversionary bonus (SRB). The main difference is that, unlike the simple reversionary bonus, which becomes a part of the policy benefits as and when it is declared, loyalty additions shall be available to the policyholder only at the time of exit from the policy. In other words, declared loyalty additions become applicable only to the policies getting exit, by way of death, surrender, or maturity, in the declared year (subject to the conditions of the plan).
Final Additional Bonus (FAB) is an additional bonus which is paid in LIC policies, other than the simple reversionary bonus. Final Additional Bonus is paid only once in the policies at the time of Maturity claim or discounted claim or death claim. The final additional bonus depends upon the sum assured in policy and term of the policy. In other words, the longer-term of the policy, the higher will be the FAB. Bonus rates for LIC of India policies are declared on 17/09/2020. To know about Loyalty Addition in Jeevan Saral please click on the link.
LIC of India’s plans are divided into groups as per the type of plans for declaring bonuses as per their conditions. All the plans of LIC in which the Final Additional Bonus (FAB) is payable are divided into different groups according to their eligibility for FAB. Though we have given FAB for some groups only.
Final Additional Bonus in Plans of Groups 1, 2, 11, 12 and 13
Plans in group 1 are Whole Life type (Plans 2, 5, 6, 8, 10, 28 (Before Conversion), 35, 36, 37, 38, 49,77,78, 85 & 86). Group 2 are Endowment type (Plans 14, 17, 27 (After Conversion), 28 (After Conversion), 34, 39 40, 41, 42, 50, 54, 79, 80, 81, 84, 87, 90, 91, 92, 95, 101, 102, 103, 109, 110 & 121). Next group 11 are Jeevan Mitra (Double Cover plan), Jeevan Saathi (Plans 88 & 89). Similarly, group 12 is Jeevan Mitra (Triple Cover Plan: Plan 133 ) and in group 13 is Limited Payment Endowment (Plan 48)
FAB in Plans of Groups 1, 2, 11, 12 and 13
(#) In the case of death claims under Single Premium / Fully Paid-up Limited Premium Payment policies, the number of years in the first column indicates the number of policy years elapsed inclusive of the policy year in which the death takes place.
FAB in Plans of Group 7 (Money Back)
Plans in group 7 are Money Back Assurances (Plans 75 & 93)
FAB in Plans of Group 5
** Duration = Policy anniversary following date of claim minus Date of commencement
FAB in Plans of Group 10 (Jeevan Surabhi)
Plans in group 10 are Jeevan Surabhi (Plans 106, 107 & 108)
FAB in Plans of Group 7
** Duration = Policy anniversary following date of claim minus Date of commencement
FAB in Plans of Group 19 (Jeevan Anand, Plan 149)
Plans in group 19 is Jeevan Anand (Plan 149)
Final Additional Bonus in Plans of Group 19 (Jeevan Anand, Plan No. 149)
FAB in Plans of Group 30 (Jeevan Bharti)
Plans in group 30 is Jeevan Bharti (Plan 160)
FAB in Plans of Group 24
Not all the policies are eligible for FAB, only policies which are participating in profit are eligible for FAB. The FAB totally depends upon the experience of LIC ie surplus made by LIC of India. Mostly the policies having more than 15 years of policy term are eligible for FAB. The Quantum of the Final additional bonus also depends upon the sum assured in policy, the higher the sum assured more the FAB.
Other Important conditions related to Final Additional Bonus (FAB)
Policies with the mode of payment of premiums other than yearly are deducted from maturity claim. In other words, this deduction is made to give full FAB benefits to the policyholders.
Multi-purpose policies in respect of death claims, the Final (Additional) Bonus will be paid only at the end of the original term along with the Reversionary Bonus. Though policy must fulfill all other terms and conditions.
Where a non-participating policy is altered to a participating policy. The final (Additional) Bonus is paid as per the date of alteration.
Convertible, Whole Life Policy converted to With Profit Endowment Policy after 5 years, the period for Final (Additional) Bonus will be taken from the date of conversion. In respect of Convertible Whole life With Profit Policy (Plan 28). The period will be taken from the date of commencement of the policy.
Marriage Endowment and Jeevan Chhaya policies, in respect of death claim, the final additional bonus will be paid at the end of the original term along with reversionary bonuses subject to other qualifying conditions mentioned above.
Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Final (Additional) Bonus provided other qualifying conditions are satisfied.
Visit the LIC of India website for detailed circular.
If you have any other questions related to LIC servicing then just mail us at [email protected]. You can also comment below. Share if you liked this information useful because Sharing is caring!
Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral. In the case of the partial surrender annual premium band must be calculated at a reduced premium.
This year loyalty addition declared in Jeevan Saral is more than the loyalty addition declared for policy maturing in year 15, 16, 17 & 18 for all premium bands. You can compare both the rates are given below. Increased bonus rates are marked green in below chart.
Jeevan Shanti (Plan No 850) is LIC’s most popular Single premium, Deferred Annuity plan. Annuity means fixed annual payments or pension. In a deferred annuity, payments start after the deferment period chosen by the investor.
In Jeevan Shanti deferment period can be chosen from one year to 20 years according to the wish of the policyholder. The greatest advantage of Jeevan Shanti is that the annuity rates fixed at the start of the policy are guaranteed throughout the life of the policyholder. In other words, your annuity rates are protected from interest rate fluctuations and market risks throughout the period of the policy.
We are here showing you the qualifying conditions for CM Club, ZM club, DM club, and BM club. Basic qualifying conditions for LIC club member agents have four criteria. These are 1. The minimum net number of lives, 2. The net number of lives or Total lives in force, 3. Renewal commission paid and 4. First-year commission paid. Read our post Terminology that every LIC club member agent must know to understand the terms better. See below these conditions in tabular format:
To become a club member agent, you have to qualify the conditions of the particular club for 3 years. In other words, to get the LIC club membership, an agent must qualify this condition in the qualifying financial year and in 2 financial years out of 3 previous financial years. To know the qualifying conditions of Galaxy club please visit our other post: Club Galaxy for LIC agents: All you need to know
If put this in the example, if an agent wants to become chairman club agent, then he/she must qualify all the mentioned conditions in the qualifying year. Suppose the qualifying year is 2020-2021, then the agent must qualify in the year 2020-2021 and 2 years from the year 2019-2020, 2018-2019, and 2017-2018. After qualifying as stated above, agent will get club membership for 1 year. The club membership year will be 1 September 2020 to 31 August 2021.
The agent must continuously qualify these conditions to maintain and continue the club membership.
You one the agent among the 12 lakh agent of LIC of India and maybe 1 of thousand of agents in your division or branch. How to get yourself recognized and stand out of the crowd. Getting a club membership will surely make you stand out of the crowd and give you recognition. So here is the reason you must become a LIC club member agent:
Recognition
Office allowance
House loan at subsidized rates
Interest-free car loan
Interest-free two-wheeler loan
Annual family vacation (conditional and club-specific)
Annual convention participation with air travel (conditional and club-specific)
Customized stationery with your name and address
These are some the benefits that a LIC club member agent enjoys.
Being a club member agent is not a one-time thing, you have to give continuous and consistent business to remain a club member.
Doing only new policies will not help you get club membership, you have to be good at servicing and keeping your customers.
Your first-year lapse ratio must not be greater than 15% at any cost.
Increasing your customer base is more important than increasing your number of policies.
Though you may feel this awkward, If you are trying to become a club member, keep yourself away from club agents who only do minimum qualifying business, you may end up with no club at all.
Doing seasonal business will not help you to get a club membership. To get the LIC club membership you must work throughout the year with consistency.
Always keep your self updated with all the information related to new insurance products and service related information. This will help you to give better service and retain the customers.
Grab the opportunities as and when come, like plan closures and various competitions.
Do not stick to limited plans. This will make you stereotype and you may not able to create a good customer base. Try to sell all the available insurance plans.
Create different segments for different insurance plans, this will give you a diversified customer base and consistent business every time.
Keep updating your prospecting list.
Do not hesitate to get references from your existing customers.
Use technology to it fullest to give better service.
If you have any other questions related to LIC servicing then just mail us at [email protected]. You can also comment below. Share if you liked this information useful because Sharing is caring!
