NEW BIMA GOLD [ Table 179 ] MONEY BACK PLAN WITH LOYALTY ADDITIONS A PRESENTATION BY AMRITSAR DIVISION

It has been decided to re-launch New Avatar of LIC ’s ‘Golden Jubilee Policy’ - Bima Gold (Close Ended Plan No. 174) i.e. ‘New Bima Gold’ (Open Ended Plan No. 179) ***** This is a money back type plan where total premiums paid under the policy shall be paid back to the policyholder in installments at the specified durations in case of survival and Sum Assured shall be paid in case of death during the term of the policy irrespective of whether or not any survival benefits have been paid earlier.

New Avatar Features OPEN ENDED PLAN Extended Term: The Extended Term will be half of the policy term and shall commence immediately on the expiry of the policy term. For example, for a 16 years policy term, the Extended Term will be 8 years with the result the total term will be 24 years. No premiums are payable during the Extended Term of the plan. Reduced Premium Rates & Rebates Revised Terms & Maturity Age

Benefits: Death Benefit: On death of the Life Assured during the term of the policy, an amount equal to Sum Assured and 50% of the Sum Assured during the extended term, provided the policy is in force. Maturity Benefit: Total amount of premiums (excluding extra/optional rider premiums, if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid earlier, shall be payable in case of Life Assured surviving to the end of the term provided the policy is in full force.

Benefits: Survival Benefit: In case the life assured is surviving to the end of the specified durations, the following benefits shall be payable provided the policy is in full force. For policy term 12 years : 15% of the Sum Assured under Basic Plan at the end of each 4th & 8th policy year For policy term 16 years : 15% of the Sum Assured under Basic Plan at the end of each 4th, 8th &12th policy year For policy term 20 years : 10% of the Sum Assured under Basic Plan at the end of each 4th, 8th, 12th & 16th policy year

Loyalty Additions: This is a with-profits Plan and the policy shall participate in the profits of the Corporation’s with-profits assurance business. The policy shall, however, be eligible to a share of profits in the form of Loyalty Addition (one time) only payable on maturity. On the Life Assured surviving the stipulated date of maturity, the policy may be eligible for payment of Loyalty Addition, if any, depending upon the experience of the Corporation at such rate and on such terms as may be declared by the Corporation.

Auto Cover Facility: If at least two full years’ premiums have been paid in respect of this policy, any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the date of First Unpaid Premium (FUP). This period of 2 years from FUP shall be called Auto-Cover period. During the Auto-Cover period, one or more installments of premiums can be paid along with interest without any revival requirements. On revival or payment of part/full arrears of premiums during Auto-Cover period, the date of FUP will shift and accordingly the Auto-Cover facility shall again be available for two years from the date of revised FUP.

Rider Options: Accident Benefit Rider shall be available as an optional benefit for a premium at the rate of Rs.1 per thousand Accident Benefit Rider Sum Assured. Accident Benefit Rider shall be available for an amount not exceeding the Sum Assured under the Basic Plan subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes including policies with in-built accident benefit taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration. NOT AVAILABLE DURING THE EXTENDED TERM.

Miscellaneous: LOAN Available after the policy acquires paid-up value (at least three full years’ premiums have been paid). SURRENDER VALUES (GSV,SSV) If at least three full years’ premiums have been paid, the GSV is equal to 30 per cent of the total amount of premiums paid excluding the premiums for the first policy year, all extra premiums paid, the premiums paid for Accident Benefit Rider and the amount of survival benefits paid earlier. Special Surrender Value will be calculated using the surrender value factors as applicable in the case of Endowment Plan and paid-up value as defined above. GRACE PERIOD FOR PAYMENT OF PREMIUM COOLING-OFF PERIOD BACK DATING INTEREST Back- dating interest will be charged at the prevailing rate at the time of completion of policy for dating back in excess of one month.

High Sum Assured Rebates: Rebates/Incentives: Mode Rebate / Extra: Rebates are available at the following rates: Yearly mode : 2% of tabular premium Half-yearly mode : 1% of tabular premium Quarterly and SSS : NIL Monthly mode :5% extra on tabular premium High Sum Assured Rebates: Less than Rs.1 Lac : NIL 1 Lac & Less than 2 Lac : Rs.5.00 per 000 SA Rs.2 Lac and above : Rs.7.50 per 000 SA CEIS REBATE: The rebate shall be @ 10% of the Tabular Premium for the basic plan.

Eligibility Conditions Entry Age: Minimum 14 Years LBD; Maximum 57 Yrs NBD (Term 12), 51 Yrs NBD (Term 16) & 45 Yrs NBD (Term 20) Max Age at Maturity : 75 years NBD Term : 12, 16 or 20 Yrs. Min Sum Assured : Rs.40,000 /- Max Sum Assured : No limit Sum Assured will be in multiples of Rs.5000 /- only.

Commission & Credit Agents, Corporate Agents: 1st Year 2nd & 3rd Year Renewal 15% 7.5% 5% Bonus Commission : 40% of 1st year commission. Brokers: 1st Year Renewal 20% 5% No Bonus Commission shall be paid to the Brokers. Development Officers’ Credit: For term 12 years : 60% For terms 16 and 20 years : 100%

GOLD – Low Cost Money Back [Comparative Cost of Insurance – Tabular Rates Rs.1000 SA] While making a comparison the fact regarding the VERY HIGH REBATES for the Sum Assured above 1 Lac MUST be kept in mind. PLAN >>> 75-20 174-20 179-20 Age 15 64.95 41.75 40.40 Age 20 65.15 42.25 41.20 Age 25 65.70 42.85 42.30 Age 30 66.80 44.00 44.20 Age 35 68.70 46.45 47.55 Age 40 71.85 50.40 52.75 Age 45 76.70 56.15 60.15 Age 50 83.90 64.25

Illustration I-Low Cost Money Back First among the Equals Illustration I-Low Cost Money Back Comparison with Popular 75-20 (Age 15, Std. Life) Items of Comparison 75-20 179-20 Sum Assured 2 Lac 2 Lac Yearly Premium 12200 6418 SB I 5 40000 4 20000 SB II 10 40000 8 20000 SB III 15 40000 12 20000 SB IV - 16 20000 Maturity 20 80000+Bonus+FAB 48360+LA 31.03.2005 [80000+164000+FAB] [68360+LA] Valuation G V V G V RISK COVER 2 Lac 2 Lac ‘G’–Guaranteed; ‘V’-Variable

Illustration II-More Value in Lesser Cost Other Point of View Illustration II-More Value in Lesser Cost Comparison with Popular 75-20 (Age 15, Std. Life) Items of Comparison 75-20 179-20 Sum Assured 2 Lac 4 Lac Yearly Premium 12200 12836 SB I 5 40000 4 40000 SB II 10 40000 8 40000 SB III 15 40000 12 40000 SB IV - 16 40000 Maturity 20 80000+Bonus+FAB 96720+LA 31.03.2005 [80000+164000+FAB] [136720+LA] Valuation G V V G V RISK COVER 2 Lac 4 Lac ‘G’–Guaranteed; ‘V’-Variable

Other Possibilities ‘GOLDEN ANAND’ Term Assurance Money Back with Return of Premium with Free Risk Cover After Maturity: Offer the Plan-179 for Equal SA under Plan-75 & Purchase an add on Plan-149 for Balance Amount of Premium ‘स्वयं सिद्ध’ – LIC’s Self Reliant Policy: Auto Financing of the Premium after 4 Years from the SB Payments

‘GOLDEN ANAND’ Illustration III COMBI PLAN 179+149 20 Yrs (Age 25, Std. Life) 75-20 179-20 149-20 SA 2 Lac 2 Lac 1 Lac Premium 12546 6991 5946 SB I 5 40000 4 20000 SB II 10 40000 8 20000 SB III 15 40000 12 20000 SB IV - 16 20000 Maturity 20 80000+B+F 79820+LA 1 Lac+B [80000+164000+F 59820+L 100000+86000] RISK 2 Lac [4] 2 Lac [4] 1 Lac [2] FREE - 1 Lac 1 Lac [2]

Benefits - Golden Anand Low Cost Free Life Risk Cover after Maturity (T-149 as well as T-179) Early Survival Benefits (T-179) More Number of the SB’s Return of Premium + LA (T-179) Maturity Value (T-149) More Risk Cover (150%) More Guaranteed Amount Loyalty Addition – Better Prospects S V in lieu of ‘Free Cover’ (T-149)

‘Swyam Siddha’ LIC’s Self Reliant Policy Age 25; 179-20; Mode Yearly Premium 6991 Tax Saving 20% 1398 30% 2097 Net Premium 5593 4894 4 Yr Prem 22372 19576 SB I 20000 20000 Loss/Gain 2372 (-) 424 (+) The example proves that after the premiums are paid for First 4 Years and the SB is received the policy can be financed from the SB amount.

USP’s of ‘Bima Gold’ NEW AVATAAR OF PLAN LAUNCHED BY THE PRIME MINISTER EVEN LOWER COST – Janta Money Back BEST OF ALL – ‘Bima Kiran’, ‘Jeevan Saral’, ‘Money Back’ & ‘New Jana Raksha’ NO CROSS SUBSIDY – No Exit Loading ATTRACTIVE HIGH SA REBATES – High End Customer Benefited RETURN OF PREMIUM - Element of Guarantee Increased PARTICIPATING LOYALTY ADDITIONS

USP’s of ‘Bima Gold’ HIGHER AGE – Return of Premium Same FULL RISK COVER FOR FULL TERM & 50% OF SA DURING EXTENDED TERM (FREE) COOLING OFF OPTION AUTO COVER FACILITY & MONEY BACK IN TERM ASSURANCE PLAN FLEXI TERMS – 12, 16 & 20 Years EARLY SURVIVAL BENEFITS [4, 8, 12 & 16] OPTIONAL RIDERS – DAB, Disability POLICY LOAN AVAILABLE

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