Products. Limited Payment Life Plan (Installment) The Purpose. Conditions. Life Insurance

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1 Life Insurance The objectives of all Life Insurance plans are to make up for the financial loss to the family in the event of unfortunate death to the Assured and for old age provision. Farsighted, broad minded and unselfish people who really care for the dependents and family execute Life Insurance plans. The motive of Insurance if not to make profit out of ones death but to rescue the family from financial crises. Products Limited Payment Life Plan (Installment) Limited Payment Life Plan (Single Premium) Endowment Assurance Double Cover Endowment Assurance Double Endowment Plan Money Back Plans New Version Money Back Plans Aashi Nangsey Living Plan Millennium Education Plan Silver Jubilee Term Insurance Convertible Term Insurance Educational Annuity Plan Triple Benefit Plan Limited Payment Life Plan (Installment) This plan is the best form of life assurance for family provision, since it enables the Assured to pay all the premiums during the ordinarily vigorous and most productive years of life, relieving him from the burden of making payments later in life. Family provision 1. Premium payment completed during the vigorous and productive years of life Assured, which maybe a burden at the later part of life.

2 1. The Proposer should be minimum 18 years and the maximum age allowed for entry is 50 years. 2. The term of Assurance can be between 10 and 40 years but the aggregate of the term and age of the Proposer should not exceed 65 years. 3. One can Insure for sum assured ranging from Nu, 10,000/- to 500,000/- 1. The Proposer can pay the premium for a selected term of years during his lifetime and live the benefits to be reaped by the nominee. 2. Though premium is payable for a selected term, bonus payment is not limited to the policy term of Assurance but payable till claim is lodged. 3. Death claim is for full sum assured along with bonus. 4. The bonus rate is as high as Nu.55 per 1000 Sum Assured per annum. Limited Payment Life Plan (Single Premium) Like all Life Insurance plans, this particular plan also protects the financial loss to the family at the time of the Assured's absence by way of death. Farsighted, broad minded and unselfish people who really care for the dependents and family execute this plan. Once the plan is executed the assured is relieved of the thought about the well being of his loved ones. 1. Lump sum payment when earning is highest. 2. Pay less than the sum assured. 3. Tax exemption on the premium. 1. The Proposer should be minimum 18 years and the maximum age allowed for entry is 50 years. 2. This plan has no term. The term of Assurance is till claim is lodged by way of death. 3. One can insure for sum assured ranging from Nu, 10,000 to 500,000/-. 4. Premium is payable one time only.

3 1. This is a single premium payment plan, wherein the Proposer after the payment is assured of the well being of his dependent and loved ones. 2. Bonus payment is till claim is lodged. Benefits 1. The bonus rate is as high as Nu. 55/1000/annum. 2. Premium is as low as 50% of the sum assured at young age but the premium is always paid less than the sum assured. Endowment Assurance Policy (with profit) This is the most popular form of Life assurance since it not only makes provision for the family of the Assured in the event of early death, but also increases the income when the Assured attains an age when his earning capacities are likely to diminish. It is one of the most marketed plans in the world of insurance. If claim is not paid earlier by reasons of death, full sum assured with bonus is paid at the end of he endowment term. 1. Family Protection if death occurs to the Assured. 2. Provision for old age at the time of maturity. 1. The Proposer should be 18 years minimum and the maximum age allowed for entry is 55 years. 2. The term of Assurance can be between 5 and 50 years but the aggregate of the term and age of the Proposer should not exceed 65 years. 3. One can Insure for sum assured ranging from Nu, 1000 to 500,000/-. 1. The premium is cheap and has the choice to select the term, as the Proposer would best know his earning capacity and time. 2. Can avail loan against this policy.

4 3. Accident Benefit can also be availed by paying Nu.2/1000 for maximum of 100,000 sum assured. 4. If the Assured is not interested to continue the Policy, it can be surrendered for cash option after two years. 5. Further he can opt for a Paid-up value for full surrender value. Benefits 1. Bonus is payable till 2. Death claim amount payable is the sum assured with bonus for the number of years premiums paid. 3. Maturity payment would amount to sum assured and bonus for the full term of insurance. Double Cover Endowment (With profit) This Plan has all the features of an Endowment Plan, except that twice the sum assured is payable in the event of death during the term of the policy. 1. Double risk cover, as twice the sum assured is payable to the beneficery in the event of claim. 2. Old age provision, as the accumulated maturity amount along with bonus is an added income to the Assured at the advanced age. 1. The Proposer should be 18 years minimum and the maximum age allowed for entry is 50 years. 2. The term of Assurance should be between 15 to 30 years and the aggregate of the term and age of the Proposer should not exceed beyond 55 years of age. 3. One can insure for sum assured ranging from Nu. 10,000 to 500,000/-. 4. Age proof certificate of some nature to be produced by the Proposer to the Corporation. 5. Medical fitness to be examined to prove good health of the Proposer. 6. If the Assured is not interested to continue the Policy, the policy can be surrendered after three years. 7. Bonus is calculated for the original sum assured only.

5 Benefits 1. For a single sum assured premium rate, double the sum assured risk is covered and payable on death. 2. Death claim would amount to twice the sum assured plus bonus for the number of years premiums paid. 3. Maturity claim is the sum assured with bonus for the full term of insurance. Double Endowment Assurance (Without profit) This is also an Endowment Plan with all the features. But this Plan is so designed to meet the requirements of those Proposers who under normal circumstances for various reasons would not be acceptable under other Life Plans offered by the Corporation. 1. Old age provision similar to Endowment Assurance Plan. 2. Single sum assured risk at death. If there is an early claim, only the sum assured is paid. 3. Double the sum assured at maturity. 1. The Proposer should be of 18 years minimum and 40 years maximum. 2. The term of Assurance can be between 10 and 40 years but the aggregate of the term and age of the Proposer should not exceed 65 years. 3. One can Insure for sum assured ranging from Nu, 1000 to 500,000/-. Benefits 1. Maturity payment will be double the sum assured and death claim would be single sum assured only. No bonus is payable as it is a non-profit plan. Money Back Plans Money Back Plans have all the features of a Life Policy but besides the provision for old age and family protection, this plan provide lumpsum benefits at regular intervals. This is most suitable for the salaried

6 earning group. This plans are offered for terms of 12, 15, 20 and 25 years. Suitable 1. This is most suitable for the salaried earning group. 1. Family protection and old age provision. 2. Periodic payments at regular intervals. 1. Entry age of the Proposer must be above 18 years but less than 50 but the aggregate of term and age should not exceed 65 years. 2. Minimum sum assured offered id Nu. 10,000 and maximum if for 500,000/-. 3. Age proof certificate to be produced. 4. No loan is available under these Plans. 5. Can surrender after three years for cash option. 1. For a policy of 12 years term, 1/5th of the sum assured is payable on survivance of 4 years. Another 1/5th on survivance of 8 years and the balance 3/5th of sum assured on survivance of the 12th year along with the bonus. 2. For a policy of 15 years term, 1/4th of the sum assured is payable on survivance of 5 years. Another 1/4th on survivance of 10 years and the balance 1/2th of sum assured on survivance of the 15th year along with the bonus. 3. For a policy of 20 years term, 1/5th of the sum assured is payable on survivance of 5 years. Another 1/5th on survivance of 10 years and another 1/5th on survivance of the 15th year and the balance 2/5th of sum assured on survivance of the 20th year along with the bonus. 4. For a policy of 25 years term, 1/5th of the sum assured is payable on survivance of 10 years. Further 1/5th of sum assured on survivance of 15 years and another 1/5th on survivance of the 20th year and the balance 2/5th of sum assured on survivance of the 25th year along with the bonus.

7 5. In the event of death any time within the term, full sum assured is payable without any deductions of the survival payments that may have been paid earlier. 6. Bonus will be declared on the full sum assured and are payable at maturity or at death if earlier. 7. You get bonus as high as Nu. 45/1000/annum. for the full sum assured even after availing the survival payments. New Version Money Back Plans This is a Money Back Plan and has all the features of an Endowment Plan and Money Back Plans with added features and more benefits. Beside the periodical survival payments of a Money Back Plan, a free insurance coverage ranging from 3 to 7 years are granted for free of permium. The survival payments fall due every 4 years though the rates will vary. 1. Life Cover. 2. Free Insurance Cover. 3. Periodic Payment. 1. Proposers age to be above 18 years but less than 55 years. 2. The terms can be availed for 15, 20 and Sum assured should be within the range of 10,000 to 500,000/-. 4. No loan is availed under this plan. 5. Can surrender after 3 years of premium payment. 6. Accident benefit will be allowed after payment of Nu.2/ The survival benefits are available at uniform interval of 4 years irrespective of the term. 2. You get a free insurance cover of 3, 5 and 7 years for a 15, 20 and 25 years term respectively. During the free insurance cover period life risk is covered and bonus payable as usual but you do not pay premium during the free insurance period. 3. If a claim arises due to death, the survival payments already paid are not adjusted from the claim amount. 4. Besides the sum assured and bonus, that are payable under a death claim, all the premiums deposited till the time of claim are

8 returned along with the claim amount. In other words the claimant gets the sum assured + bonus + return of all premiums paid. (Under a normal Money Back Plan only the sum assured and bonus are payable and not the premiums.) Obviously the benefits are higher. 5. If accident benefit has been availed and should a claim arise due to accident, the claim amount would be double the sum assured with bonus and return of all premiums paid. Aashi Nangsey Living Plan (With Guaranteed Additions) From the statistic, it is observed that very few ladies go for life insurance. Though the working and earning powers of the ladies have increased and even leading in some fields, fewer of them buy life insurance plans. In order to encourage ladies to go for life insurance, a plan named after the mythological fairy queen Ashi Nangsey have been introduced. This Plan is known as Ashi Nangsey Living Plan. The plan is another version of a Money Back Plan with added features and benefits, so designed to suit the ladies of our Bhutanese society. Besides the normal benefits of an Endowment and Money Back Plans, this Plan offers free insurance cover for two years from last due date. Even for no premium payments, this Plan cover's life risk. If a lady is buying this Plan, she is making the wisest decision of her lifetime. 1. The insuring lady should with in the age range of 18 to 45 years. 2. Term is fixed for 20 years, which is neither too long nor too short in duration. 3. Sum Assured must be with in the range of 30,000 to 200,000/-. 4. The insuring lady must have some source of income to enable her to pay the premium. 5. No loan can be availed by pledging as Policy as security. 1. Even housewives can buy this Plan. Though many housewives may not have an income to pay the premium, they contribute to the family by way of their service and proper care to the

9 household items. This is an indirect income to the family. Therefore, the husband or the dependent can pay the premium. 2. The insured lady would get a free insurance cover for two years from the last due date. Claims during the free insurance cover will be settled for the full sum assured but the due premiums will be adjusted. 3. Guaranteed additions are much higher than the bonus rates declared by the Corporation. The guaranteed additions increases from Nu. 50 to 60 to 75 after every five years of premium payment % of the sum assured falls due every 5 years as survival payment. Three 20% of the sum assured is payable as survival payments. 5. The survival payments are not adjusted from the death claim payment. 6. The maturity payment would be 40% of the sum assured with guaranteed additions. Benefits 1. The insured enjoys the benefits of Money Back Plans and still leave the Endowment benefit to the loved ones at the time of early death. Millennium Education Plan Sorry, gone are those days when education was free for every citizens of the Land. A few decades ago the teachers begged the parents for their children to be admitted to schools and literally dragged children to schools. The parents in turn begged the teachers to spare their children from school. Today it is the other way round. Today parents beg the teachers and authorities to adjust a seat for their child in the school. The teachers and authorities in turn beg the parents to try next time. In the "begging" process education nowadays has become a costly affair. It calls for wise and serious planning for the children's education. Wise parents plan wisely. Millennium Education Plan is undoubtedly the best Scheme that would help you plan wisely to provide education to their children. Who can plan:

10 Both the parents and guardian of the child can propose for the scheme. Eligibility: Both boys and girls, age up-to 10 years nearer birthday are eligible to be proposed for insurance under this Plan. 1. To secure child's education. 2. Even if the Proposer dies during the term, the objective for the child's education will be fulfilled as the Corporation will be paying 1% of the sum assured till age 18 from the following month of the Proposer's death. From the 19th year of age, 20% of the sum assured will be paid, spread over a period of 5 years. This would help to complete his higher education. 3. Child's Life risk is covered. The life risk of the child would commence form the 8th year or after two years of premium paid which ever is later. 4. Future settlement. A lump-sum payment of guaranteed additions will be paid at the end of the 23 year which would help the Assured to settle down to life after graduation. 1. The parents or the guardians age to be with 18 to 50 years. 2. Children of age 10 and below are eligible for this scheme. 3. The sum assured allowed are with the range of 30,000 to 500,000/-. 4. Premium is payable till the child attains age 18 or till the assureds death during the term. 5. Age proof of both the Proposer and the Assured are required to be produced at the inception of the plan. 6. Loan cannot be availed as this Plan is purely for the benefit of the child's education. 1. In order to safe guard the child from depriving education in case of untimely death to the Proposer the Corporation will pay 1% of sum assured till age 18 and a further 20% of sum assured for 5 years for higher education. The allowances would support to continue the education.

11 2. A further lump-sum amount of guaranteed additions at the end of 23 years of age will be payable to settle down to life. 3. Though the premium is payable till age 18 years, risk is extended till end of age 23 which is a free insurance cover for 5 years. 4. Interim payments of 1% and 20% that may have been paid for education allowance will not be adjusted from the claim money. 5. Guaranteed addition of Nu. 70/1000 for every year premium paid, which is higher than our present bonus rate of Nu. 55/ The policy can be surrendered after 3 years of premium payment but surrender value will be higher after date of commencement. 7. Once this (Millennium Education Scheme) is effected, the main objective of the Proposer for the child's education is fulfilled even in his absence. Benefits 1. Two lives risks (Proposer and Assured) are covered under a single plan. Silver Jubilee Term Insurance (Without Profit) There is need for insurance for all walks of life and society. Even a beggar needs insurance. We sell insurance to all those individuals who can afford to pay premium. But the premiums payable are beyond the capacity of the people who needs insurance the most. As a result there has been a growing need for a low cost Insurance Policy. To meet this demand, our Silver Jubilee Term Insurance was born. This Plan offers low premium for high sum assured for the same life risks offered by any other life Plans. As the premium is by nature cheap under this plan, it is a non-profit Plan. This Plan would of great significance to the rural population. Our target group is the low-income group and the rural population. 1. Life risk cover only: This plan offers life risk only. Therefore, if there were claim by way of death, the amount would be the sum assured only.

12 2. Low cost insurance: As the premium is low, Insurance is made affordable for all the needy people. 3. Most suitable for rural population as the premium is cheap. 1. Entry age of the Proposer to be between 18 and 50 years. 2. Term of insurance to be between 5 and 25 years but the maturity age should not be over 65 years. 3. Medical check up is a must as the risk cover offered is high for low premium. 4. Maximum sum assured offered is for Nu. 100,000/-. 5. No Accident Benefit as the risk is very high for low premium. 1. The premium is very cheap, 8 times cheaper than an Endowment Plan and 9 times cheaper than a Money Back Plan. 2. An idle plan for very low-income group or rural people. 3. No bonus as the premium is very low and the return is almost negligible after meeting the management expenses. Convertible Term Insurance (Without Profit) If you are recently employed and unable to decide for the right Life Plans, yet you need insurance with immediate effect, then this is the plan for you. As the name suggests, this is a term insurance which allows one to convert the plan to any other Life Plans in future. Basically this plan allows for the decision and for a better choice of the plan to a later date. After conversion, the conditions and benefits will be of that Plan. 1. Suitable for fresh employees with low income. 2. Choice of Plan to be decided at a later date after better understanding about the different Plans offered by the Corporation. Benefits

13 1. Life risks cover only during the term. 2. The Proposer has the option to convert to any Life Plans during the term. At the time of conversion no additional information and documents are required. Benefits in case of Death: Sum Assured only Benefits in case of Maturity: 1. If not converted to any Life Plans, nothing is payable as it is a Pure Term Insurance. 2. If converted to a Life Plan, Sum Assured with Bonus is payable. Educational Annuity Plan (Without profit, table 9 & with profit, table 18) This is another Life Plan that would help to plan for the children's education. Unlike the Millennium Education Plan, this Plan does not allow 1% educational allowance. 1. Children's education. 1. This plan is also undoubtedly one of the best Policies, which enables the parents or guardians to provide education to their children. 2. In the event of death to the Proposer during the term, no further premiums are payable but he policy will be treated in force. The payment of the annuity will commence from end of the term, spread over a period of 5 years in half-yearly installments. 3. If death to the assured (child), the Proposer has the option to substitute the beneficiary or withdraw the premium paid. 4. Death to the Assured after the vesting date, the benefits paid are not adjusted from the claim money but paid in full. Benefits in case of Death to the Proposer: Premium payment stops.

14 Benefits in case of Maturity: Payment direct to the 20% of S.A. spread over 5 years period. Triple Benefit Plan (With Guaranteed Additions) This Plan would be of special interest to those who wish to avail the benefits for themselves and also for their loved ones after his death. This plans takes care of ones needs at old age and further protect the family in his absence. This plan has a guaranteed addition of Nu. 25/1000/annum which is twice lower then the bonus rates. 1. Entry age to be between 16 and 50 years. 2. Lowest sum assured allowed is for Nu. 10,000/- and maximum is Nu. 500,000/- Benefits At maturity, the Proposer has three option to deal with the benefits: 1. Option to with draw the sum assured at maturity and leave another sum assured amount for the family to draw after his death. 2. Option to leave twice of the sum assured (maturity and Paid up) amount for the family to draw after Assureds death. 3. Option to withdraw all the benefits for himself at Maturity and not leave any amount for the family.