LIC New Single Premium Plan II 253

About LIC New Single Premium Plan II 253

The LIC New Single Premium Plan II 253 is designed for those looking for guaranteed savings with life insurance through a one-time premium payment. The insurance has a fixed 5-year term and provides guaranteed increments which are added every policy year, boosting both the death benefit and the maturity benefit. Because the plan is non-linked, market swings do not impact returns.

Key Features of LIC New Single Premium Plan II 253

The plan offers a combination of guaranteed savings and life insurance through simple policy features:

• Single premium, non-linked, non-participating savings and protection plan

• One-time premium payment with no future premium obligations

• Fixed policy term of 5 years

• Guaranteed additions accrue every policy year at USD 34 per USD 1,000 of Sum Assured

• Death benefit includes the Sum Assured and accrued Guaranteed Additions

• Lump sum maturity benefit payable on survival till the end of the policy term

• Surrender facility available after completion of one full policy year

• Loan facility available after the policy acquires surrender value

Eligibility Criteria for New Single Premium Plan II 253

The plan has specific eligibility conditions based on age, sum assured and policy term.

Benefits of New Single Premium Plan II 253

New Single Premium Plan II 253 provides both life insurance protection and guaranteed savings during the policy term.

Death Benefit

If the life assured passes away during the policy term, the nominee or beneficiary receives the following:

• Sum Assured

• Accrued Guaranteed Additions on the Sum Assured

In addition, if the life assured’s demise occurs during the last six months of a policy year, one additional year's Guaranteed Addition on the Sum Assured is also payable.

The policy terminates immediately after payment of the death benefit.

Maturity Benefit

If the life assured survives until the end of the five-year policy term, the policyholder receives the following as a lump sum:

• Sum Assured

• Accrued Guaranteed Additions on the Sum Assured

The policy terminates after the maturity benefit is paid.

Guaranteed Additions

Guaranteed Additions are credited on completion of every policy year at the rate of USD 34 per USD 1,000 of the Sum Assured. These additions accumulate throughout the policy term and increase both the death benefit and the maturity benefit payable under the policy.

Policy Details of New Single Premium Plan II 253

New Single Premium Plan II 253 includes several servicing features that determine how the policy operates throughout its term.

Surrender Value

The policy acquires a surrender value after completion of one full policy year.

The minimum guaranteed surrender value is 90% of the Basic Sum Assured plus accrued Guaranteed Additions. Any rider attached to the policy does not acquire a surrender value.

Loan Facility

A loan can be obtained after the policy acquires a surrender value.

The loan amount can be up to 90% of the surrender value, subject to the production of satisfactory title to the policy and satisfactory assignment of the policy to the company.

The applicable interest rate and other loan terms are determined by the company at the time the loan is granted. The interest rate may be revised by the company from time to time.

If the outstanding loan together with accrued interest exceeds the surrender value of the policy, the policy will be foreclosed.

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