LIC (Lanka) Money Back Plan

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Life Insurance Corporation (Lanka) happy to introduce new scheme "Money Back Plan"

LIC (Lanka) Ltd. introduces money back plan that assures periodic payment of the sum assured in installments on survival. This plan also provides an opportunity to share the profits of LICL with you in the form of bonus and terminal bonus.

GENERAL CONDITIONS:
The accident benefits as specified will be available only when the policy is in force by the payment of all the premiums due till date of the accident.

Details	Plan-trem 402 - 15	Plan-term 402-20	Plan-term 402-25
Premium	Rs.36,675	Rs.28,075	Rs.22,350
Survival benefit at the end of 5th year	Rs.125,000	Rs.100,000	Rs.75,000
Survival benefit at the end of 10th year	Rs.125,000	Rs.100,000	Rs.75,000
Survival benefit at the end of 15th year	Rs.250,000 + bonuses and terminal bonus	Rs.100,000	Rs.75,000
Survival benefit at the end of 20th year		Rs.200,000 + bonuses and terminal bonus	Rs.75,000
Survival benefit at the end of 25th year			Rs.200,000 + bonuses and terminal bonus
Death (natural causes)	Rs.500,000 + bonuses till date of death + terminal bonus (if any)	Rs.500,000 + bonuses till date of death + terminal bonus (if any)	Rs.500,000 + bonuses till date of death + terminal bonus (if any)

Death (by accident)	Rs.1,000,000 + bonuses till date of death + terminal bonus (if any)	Rs.1,000,000 + bonuses till date of death + terminal bonus (if any)	Rs.1,000,000 + bonuses till date of death + terminal bonus (if any)
Total permanent disability due to accident	Rs.4,167.00 per month for the next 10 years All future premiums waived and policy is kept in force Upon maturity all Survival Benefits as above + Bonuses / upon death Rs.500,000 + Bonuses till date of death.	Rs.4,167.00 per month for the next 10 years All future premiums waived and policy is kept in force Upon maturity all Survival Benefits as above + Bonuses / upon death Rs.500,000 + Bonuses till date of death.	Rs.4,167.00 per month for the next 10 years All future premiums waived and policy is kept in force Upon maturity all Survival Benefits as above + Bonuses / upon death Rs.500,000 + Bonuses till date of death.

BENEFITS ILLUSTRATION
For a person aged 30 years, preferring to pay annually for sum assured of Rs.500,000/-

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Insurance History and Rules

Insurance as one of the safety of wealth. Early days insurance helps to risk management. Early life of Technology and Global Business activities business activities are more risk full.

Primary Concept of Insurance

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.   

Risk which can be insured by private companies typically share seven common characteristics

1. Calculable loss: There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
2. Large number of similar exposure units:-  Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for insuring the life or health of actors, sports figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates.
3. Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.

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