LIC Smart Elite Savings Plan 262

As a participating plan, it allows policyholders to share in the company's profits through reversionary bonuses declared from time to time.

About LIC Smart Elite Savings Plan 262

Smart Elite Savings Plan 262 is a savings-oriented life insurance policy that provides guaranteed life cover from the beginning of the policy along with assured maturity benefits. In addition to the Basic Sum Assured, the policy participates in the company's profits through annual reversionary bonuses. Once declared, these reversionary bonuses become guaranteed and are payable on death, maturity, or surrender of the policy.

Key Features of LIC Smart Elite Savings Plan 262

The plan provides assured benefits along with participating bonuses and various premium payment choices.

• Participating, non-linked endowment insurance plan

• Guaranteed Basic Sum Assured from the first day of the policy

• Annual reversionary bonuses are declared based on the company's profit experience

• Declared bonuses become guaranteed and are payable on maturity, death, or surrender

• Choice of full-term or limited premium payment options of 5 years or 7 years

• Policy terms ranging from 10 years to 25 years

• Optional Accident Death Benefit available

• Multiple premium payment modes including yearly, half-yearly, quarterly, and monthly

Eligibility Criteria for LIC Smart Elite Savings Plan 262

The plan offers flexible eligibility based on age, policy term, and sum assured. Given below are the eligibility criteria:

Benefits of LIC Smart Elite Savings Plan 262

LIC Smart Elite Savings Plan offers the following benefits:

Death Benefit

If the life assured's demise occurs before the commencement of risk during the policy term, all premiums paid up to the date of death, excluding extra premiums and rider premiums (if any), are paid to the nominee or beneficiary.

If the life assured dies after the commencement of risk during the policy term, the nominee receives the Basic Sum Assured along with the Accrued Reversionary Bonus. The policy terminates after the death benefit is paid.

Maturity Benefit

On surviving until the end of the policy term, the policyholder receives the Basic Sum Assured together with the Accrued Reversionary Bonus as a lump sum. The policy ends after the maturity benefit is paid.

Participating Plan

The policy participates in the company's profits through annual reversionary bonuses. Once declared, these bonuses become guaranteed and are payable on death, maturity, or surrender of the policy.

Risk Commencement for Minor Lives

For policies issued on the life of a minor up to 17 years of age, life risk does not begin immediately. Risk starts from the policy anniversary following the completion of two policy years from the policy commencement date.

LIC Smart Elite Savings Plan 262 Policy Details

The plan includes several servicing features that determine how the policy is managed throughout its term.

Risk Commencement Date

For minor lives up to the age of 17 years, the risk commences from the policy anniversary following the completion of two policy years from the policy commencement date. For all other lives, the risk commences immediately from the policy commencement date.

Grace Period

A grace period of 30 days (one calendar month but not less than 30 days) is allowed for yearly, half-yearly, and quarterly premium payments. For monthly premiums, the grace period is 15 days.

Paid-Up Value

The policy acquires a paid-up value after payment of two full policy years' premiums. If at least two full years' premiums have been paid and a subsequent premium is not paid within the grace period, the policy converts into a reduced paid-up policy.

Surrender Value

The policy acquires a surrender value after two full policy years' premiums have been paid. If fewer than two full years' premiums have been paid, the policy lapses without acquiring any surrender value.

On surrender, the policyholder receives the higher of:

• Minimum Guaranteed Surrender Value, or

• Special Surrender Value

Loan Facility

Once the policy has acquired a surrender value, a loan of up to 80% of the surrender value may be available, subject to satisfactory assignment of the policy.

The current loan interest rate is 8% per annum, although the company may revise this rate from time to time. If the outstanding loan together with accrued interest exceeds the surrender value, the policy will be foreclosed.

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