LIC Future Smart VII Plan 277

About LIC Future Smart VII Plan 277

LIC Future Smart VII Plan 277 is designed for people who want a fixed, guaranteed outcome over a short horizon rather than market-linked growth. It is a single-premium, guaranteed return, non-linked savings plan with a fixed policy term of 5 years, where no investment risk sits with the policyholder, since returns are fixed rather than tied to fund performance.

Key Features of LIC Future Smart VII Plan 277

The plan is built around a few defining features that separate it from a market-linked savings policy:

• Single premium, guaranteed return, non-linked savings plan with a fixed policy term of 5 years

• Financial protection against death during the policy term, alongside one year of additional guaranteed addition on death

• A lump sum guaranteed maturity payout on survival to the end of the term

• No investment risk sits with the policyholder, since returns are fixed rather than tied to fund performance

• Single premium payable in full at the start of the term, with no recurring payment required afterwards

Benefits of LIC Future Smart VII Plan 277

LIC Future Smart VII Plan 277 pays out under two circumstances: death of the life assured during the term, or survival to the end of the term. Both payouts are built from the Basic Sum Assured plus Guaranteed Additions.

Death Benefit

The Basic Sum Assured, plus accrued Guaranteed Additions, plus one additional year of Guaranteed Additions, is paid to the nominee. The policy ends on payment.

Maturity Benefit

The Basic Sum Assured plus accrued Guaranteed Additions is paid as a lump sum to the policyholder on survival to the end of the term.

Guaranteed Additions

Guaranteed Additions accrue at the end of every policy year at USD 35 per annum for every USD 1,000 of Basic Sum Assured.

Eligibility Criteria For LIC Future Smart VII Plan 277

Eligibility under Future Smart VII is set by the sum assured chosen and the entry age of the life assured, with a fixed five-year term applying to every policy. The table below sets these out:

The single premium is payable in full at the start of the term, with no recurring payment required afterwards.

LIC Future Smart VII Plan Details

LIC Future Smart VII Plan 277 has several features that shape how the policy is administered. Below are the policy details discussed briefly:

Surrender Value

Future Smart VII acquires a surrender value once the first full policy year is complete, and this value grows steadily as the policy moves closer to maturity. The rules and the year-by-year scale are as follows:

• The minimum Guaranteed Surrender Value is 90% of the Single Premium paid, excluding any extra premiums

• A Special Surrender Value, set out in the Policy Bond, may be paid instead if it works out higher for the policyholder

• On surrender, whichever of the two values is higher becomes payable

• The Special Surrender Value scale may change depending on the company's future experience

Loan Facility

Future Smart VII allows the policyholder to borrow against the policy once it has built up a surrender value, rather than surrendering it outright. The terms are as follows:

• A loan of up to 80% of the Surrender Value can be taken, subject to satisfactory title and assignment of the policy to the company

• The rate of interest and other loan conditions are set by the company at the time the loan is granted, and the rate can change over time

• The policy is foreclosed if the outstanding loan and interest exceed the Surrender Value

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