LIC Jeevan Akshay - VII (Plan No. 857)

A Non-Linked, Non-Participating, Individual Immediate Annuity Plan

Introduction-

1. This is an Immediate Annuity plan wherein the Policyholder has an option to choose type of annuity from 10 available options on payment of a lump sum amount.
2. The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the lifetime of Annuitant(s).

Annuity Options-

The available annuity options under this plan are as under-

• Option A: Immediate Annuity for life.
• Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.
• Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
• Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
• Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
• Option F: Immediate Annuity for life with return of Purchase Price.
• Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.
• Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
• Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
• Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

Annuity option once chosen cannot be altered.

Benefits

Benefits payable under above options are

Option A-

• The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
• On death of Annuitant, nothing shall be payable and the annuity payment shall cease immediately.

Option B,C,D,E -

• The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
• On death of the Annuitant during the guaranteed period of 5/10/15/20 years, the annuity shall be payable to the nominee(s) till the end of the guaranteed period.
• On death of the Annuitant after the guaranteed period, nothing shall be payable and the annuity payment shall cease immediately.

Option F-

• The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
• On death of the annuitant, the annuity payment shall cease immediately and Purchase Price shall be payable to nominee(s) as per the option exercised by the Annuitant.

Option G-

• The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. The annuity payment will be increased by a simple rate of 3% per annum for each completed policy year.
• On death of annuitant nothing shall be payable and the annuity payment shall cease immediately.

Option H-

• The annuity payments shall be made in arrears for as long as the Primary Annuitant is alive, as per the chosen mode of annuity payment.
• On death of Primary Annuitant, 50% of the annuity amount shall be payable to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive. The annuity payments will cease on the subsequent death of the Secondary Annuitant.
• If the Secondary Annuitant predeceases the Primary Annuitant, the annuity payments shall continue to be paid and will cease upon the death of the Primary Annuitant.

Option I-

• 100% of the annuity amount shall be paid in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive, as per the chosen mode of annuity payment.
• On death of the last survivor, the annuity payments will cease immediately and nothing shall be payable.

Option J-

• 100% of the annuity amount shall be paid in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive, as per the chosen mode of annuity payment.
• On death of the last survivor, the annuity payments will cease immediately and Purchase Price shall be payable to the nominee(s) as per the option exercised by the Primary Annuitant.

Eligibility Criteria-

(i)- Minimum Purchase Price - ₹1,00,000/- subject to Minimum Annuity as specified below.

Note: The above mentioned minimum purchase price would be increased appropriately to meet minimum annuity criterion as specified below.

For Purchase Price less than ₹1,50,000/-, annuity rates given under this plan shall be reduced with Reduction Factors as given in Para 7 below.

(ii)- Maximum Purchase Price - No Limit

(iii)- Minimum Age at Entry - 30 years (completed)

(iv)- Maximum Age at Entry - 85 years (completed) except Option F / 100 years (completed) for Option F

(v)- Minimum Annuity -

Joint Life: The joint life annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings. yearly plus 300 basis points. The 10 year G-Sec rate shall be as at last trading date of previous financial year. The calculated interest rate shall be applicable for full term of Loan.

For the loan sanctioned during the 12 months period commencing from 1st May, 2020 to 30th April, 2021, the applicable interest rate is 9.50% p.a. effective for entire term of the loan.

Any change in basis of determination of interest rate for policy loan shall be subject to prior approval of IRDAI.

Options-

Options available for payment of Death Benefit-

Under the annuity options where the benefit is payable on death i.e. Option F and Option J, the Annuitant(s) will have to choose one of the following options for the payment of the death benefit to the nominee(s).The death claim amount shall then be paid to the nominee(s) as per the option exercised by the Annuitant(s) and no alteration whatsoever shall be allowed to be made by the nominee(s).

Lumpsum Death Benefit- Under this option the entire Purchase Price shall be payable to the nominee(s) in lumpsum. 

Annuitization of Death Benefit- Under this option the benefit amount payable on death i.e. Purchase Price shall be utilized for purchasing an Immediate Annuity from the Corporation for nominee(s). The annuity amount payable to the nominee(s) on the admission of death claim shall be based on the age of nominee(s) and immediate annuity rates prevailing as on the date of death of Annuitant (last survivor in case of Joint Life Annuity). This option can be opted for full or part of the benefit amount payable on death. However, the annuity payments for each nominee(s) shall be subject to the eligibility conditions of the annuity plan available at that time and then prevailing Regulatory provisions on the minimum limits for annuities.

In Instalment- Under this option the benefit amount payable on death i.e. Purchase Price can be received in instalments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount. This option can be exercised for full or part of the Death Benefit payable under the policy. The amount opted by the Annuitant(s) (i.e. net claim amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under:

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Annuitant(s), the claim proceed shall be paid in lumpsum only.

For all the instalment payment options commencing during the 12 months’ period from 1st May to 30th April, the interest rate applicable for arriving at the instalment amount shall be annual effective rate equal to the 10 year G-Sec rate p.a. compounding half-yearly minus 200 basis points; where, the 10 year G-Sec rate shall be as at last trading day of previous financial year.

Accordingly, for the 12 months’ period commencing from 1st May, 2020 to 30th April, 2021, the applicable interest rate for the calculation of instalment amount shall be 4.71% p.a. effective.

For example, if this option has been exercised for the Net Claim Amount of ₹10,00,000/-, the amount of each instalment payable in advance for instalment payment options commencing during the 12 months’ period beginning from 1st May, 2020 to 30th April, 2021, shall be as below:

Option to take Annuity by NPS subscriber-

The annuity options as allowed as per PFRDA Regulations shall be available to NPS subscribers.

If a Government Sector NPS subscriber purchases this plan as a Default Option, then Option J shall be available to the subscriber whose spouse is surviving on the date of purchase. Option F shall be available to the subscriber in the absence of his or her spouse. Thereafter on the death of subscriber and his or her spouse, the purchase price shall be used to purchase annuity Option F or J on the life of living dependant mother/father and shall be subject to the eligibility conditions of the annuity plan available at that time.

Subject to the specific Plan features, all other terms and condition including the Default Option applicable shall be as per the Rules, Regulations, Guidelines, and Circulars etc. issued by Pension Fund Regulatory and Development Authority (PFRDA) from time to time in this regard.

Option to take the plan for the benefit of dependent person with disability (Divyangjan)-

If the Proposer has a dependant person with disability (Divyangjan) , the plan can be purchased for the benefit of Divyangjan as Nominee/Secondary Annuitant, subject to minimum Purchase Price of ₹50,000/- without any limit on minimum annuity payment and minimum age at entry (for Divyangjan life), in following ways;

• The Proposer can purchase Immediate Annuity with Return of Purchase Price (Option F) on own life. In case of death of the Annuitant (Proposer), the Death Benefit shall compulsorily be utilized to purchase Immediate Annuity (as per option chosen by the Annuitant) on the life of the Divyangjan.
• The Proposer can purchase Joint Life Annuity (Option I or J) with Divyangjan as Secondary Annuitant.

Loan-

Loan facility shall be available at any time after three months from the completion of policy (i.e. 3 months from the date of issuance of policy) or after expiry of the free-look period, whichever is later, subject to terms and conditions as the Corporation may specify from time to time.

As per current provisions, policy loan shall be allowed under the following annuity options only

Option F: Immediate Annuity for life with return of Purchase Price.

Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount and shall be subject to maximum of 80% of Surrender Value. Loan interest will be recovered from annuity amount payable under the policy. The loan outstanding shall be recovered from the claim proceeds at the time of exit.

The loan interest rate for all the loans commencing during the 12 months’ period from 1st May to 30th April, shall be annual effective rate not exceeding 10 year G-Sec rate p.a. compounding half yearly plus 300 basis points. The 10 year G-Sec rate shall be as at last trading date of previous financial year. The calculated interest rate shall be applicable for full term of Loan.

For the loan sanctioned during the 12 months’ period commencing from 1st May, 2020 to 30th April, 2021, the applicable interest rate is 9.50% p.a. effective for entire term of the loan.

Any change in basis of determination of interest rate for policy loan shall be subject to prior approval of IRDAI.

 LIC Bima Jyoti Yojna

(A Non-Linked, Non-Participating, Individual, Life Assurance Savings Plan)

LIC’s Bima Jyoti is a Non-Linked, Non-Participating, Individual, Life Assurance Savings Plan which offers an attractive combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholders during the policy term and guaranteed lumpsum payment to the surviving policyholder at the time of maturity. This plan also takes care of liquidity needs through loan facility.

Death Benefit-

On death during the policy term before the date of commencement of risk-

Return of premiums paid excluding taxes, extra premium and rider premium(s), if any.

On death during the policy term after the date of commencement of risk-

“Sum Assured on Death” and Accrued Guaranteed Additions. Where “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 7 times of annualized premium

Death Benefit as mentioned in A(ii) above shall not be less than 105% of the total Premiums paid (excluding any extra premium, any rider premium(s) and taxes) up to the date of death.

Maturity Benefit-

On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Guaranteed Additions-

Provided the policy is in-force by payment of due premiums, Guaranteed Additions at the rate of Rs. 50 per thousand Basic Sum Assured will be added to the policy at the end of each policy year. In case of death under in-force policy, the Guaranteed Addition in the year of death shall be for full policy year. In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy.

In case of a paid-up policy or on surrender of a policy, the Guaranteed Addition for the policy year in which the last premium is received will be added on proportionate basis in proportion to the premium received for that year.

Eligibility Conditions and Other Restrictions-

Date of commencement of risk-

In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

Date of vesting-

If the policy is issued on the life of a minor, the policy shall automatically vest on the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Rider Benefits-

The following five optional riders are available under this plan by payment of additional premium. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider and/or the remaining three riders.

• Accidental Death and Disability Benefit Rider
• Accident Benefit Rider
• New Term Assurance Rider
• New Critical Illness Benefit Rider
• Premium Waiver Benefit Rider

Payment of Premiums-

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only) or through salary deductions.

Grace Period-

A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First Unpaid Premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.

The above grace period will also apply to rider premiums which are payable along with premium for Base Policy.

Rebates-

Revival-

If the premiums are not paid within the grace period, then the policy will lapse. A lapsed policy can be revived, but within a period of 5 consecutive years from the date of First Unpaid Premium but before the date of maturity. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.

The rate of interest applicable for revival under this plan for every 12 months period from 1st May to 30th April shall not exceed 10 year G-Sec Rate as p.a. compounding half-yearly as at the last trading day of previous financial year plus 300 basis points. For the 12 months’ period commencing from 1st May, 2020 to 30th April, 2021 the applicable interest rate shall be 9.5% p.a. compounding half-yearly.

Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and not in isolation.

Policy Loan-

Loan can be availed under the policy provided at least two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.

The maximum loan allowed under this policy as a percentage of surrender value shall be as under:

• For in-force policies- upto 90%
• For paid-up policies- upto 80%

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The rate of loan interest applicable for full loan term, for the loan to be availed under this product for every 12 months period from 1st May to 30th April shall not exceed 10 year G-Sec Rate p.a. compounding half-yearly as at the last trading date of previous financial year plus 300 basis points. For loan sanctioned during 12 months period commencing from 1st May, 2020 to 30th April, 2021 the applicable interest rate shall be 9.5% p.a. compounding half-yearly for entire term of the loan.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC Bachat Plus

LIC’s Bachat Plus is a Non-Linked, Participating, Individual, Life Assurance, Savings plan which offers a combination of protection and savings. This combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility. Proposer can choose to pay the premium either as Lumpsum (Single Premium) or for a Limited period of 5 years.

Death Benefit-

The proposer will have an option to choose “Sum Assured on Death” as per the two options available under each of Single Premium and Limited Premium payment.

The options should be chosen carefully depending on the individual’s specific needs as the premium and benefits under the plan shall vary as per the option chosen and the same shall not be altered later.

The availability of above Options shall be subject to eligibility conditions as mentioned in Para 2 below.

Note: In the above mentioned table

1. “Tabular Premium” shall be the premium as applicable for Single Premium or Limited Premium for the chosen option and Basic Sum Assured based on the age of the Life Assured before allowing for any rebate or extra loadings. It does not include any taxes and Rider Premium, if any.
2. “Basic Sum assured” is the guaranteed amount that is payable on maturity.
3. “Modal Loadings” is an addition to the tabular premium where the premiums are paid more frequently than annually (i.e half-yearly or quarterly or monthly).

Death benefit payable in case of death of the Life Assured during the policy term provided the policy is in-force (i.e. all due premiums have been paid) shall be as under-

On death during first five policy years-

Before the date of commencement of risk-

Refund of premium(s) paid without interest shall be payable. The premium(s) referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.

On or after the date of commencement of risk- 

“Sum Assured on Death” shall be payable.

On death after completion of five policy years but before the stipulated Date of Maturity-

“Sum Assured on Death” along with Loyalty Addition, if any, shall be payable.

“Sum Assured on Death” shall be as per the Option selected as detailed in the Table above.

The death benefit under Limited Premium payment shall not be less than 105% of all the premiums paid as on the date of death excluding taxes, extra premium and rider premium, if any.

Maturity Benefit-

On Life Assured surviving the stipulated Date of Maturity, provided the policy is in-force, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable, where“ Sum Assured on Maturity” is equal to Basic Sum Assured.

Loyalty Addition-

Provided the policy has completed five policy years and all due premiums have been paid, then depending upon the Corporation’s experience, the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation.

In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term, under both single premium policy and limited premium payment policy, provided the policy has completed five policy years and all premiums due under the policy have been paid.

Eligibility Conditions and Other Restrictions-

Date of commencement of risk-

In case the age at entry of the Life assured is less than 8 years, the risk under this plan will commence either 2 years from the date of commencement of the policy or from the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.

For those aged 8 years or more at entry, risk will commence immediately from the date of acceptance of the risk i.e. from the Date of issuance of policy.

Date of vesting under the plan-

If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Available Riders-

The following two optional riders are available under this plan by payment of additional premium at inception only.

• Accidental Death and Disability Benefit Rider
• New Term Assurance Rider

Payment of Premiums-

Premiums can be paid either in lumpsum or regularly during the Premium Paying Term at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deductions (SSS).

Grace Period-

Single Premium-

Not Applicable.

Limited Premium-

A grace period of 30 days shall be allowed for payment of yearly or half yearly or quarterly premiums and 15 days for monthly premiums from the date of First Unpaid Premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.

The above grace period will also apply to rider premiums which are payable along with premium for Base Policy.

Sample Illustrative Premium-

Single Premium-

The sample illustrative single premiums for Basic Sum Assured of ₹1 lakh for Standard lives are as under-

Limited Premium-

The sample illustrative annual premiums for Basic Sum Assured of ₹1 lakh for Standard lives are as under

Modal Loading under Limited Premium-

Following Modal loading is applicable for Limited Premium Payment

High Basic Sum Assured Rebate-

Revival-

If the premium is not paid before the expiry of the days of grace, then the policy will lapse. A lapsed policy can be revived during the lifetime of the Life Assured, but within a period of 5 consecutive years from the date of First Unpaid Premium and before the date of maturity, as the case may be. The revival shall be effected, on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.

The rate of interest applicable for revival under this plan for every 12 months period from 1st May to 30th April shall not exceed 10 year G-Sec Rate as p.a. compounding half-yearly as at the last trading day of previous financial year plus 300 basis points. For the 12 months’ period commencing from 1st May, 2020 to 30th April, 2021 the applicable interest rate shall be 9.5% p.a. compounding half-yearly.

Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and not in isolation.

Policy Loan-

Under Single Premium-

Loan can be availed under this plan at any time during the policy term after three months from completion of the policy (i.e. 3 months from the Date of issuance of policy) or after expiry of the free-look period, whichever is later subject to the terms and conditions as the Corporation may specify from time to time. The maximum loan that can be granted shall be 90% of the surrender value.

Under Limited Premium-

Loan shall be available under the policy provided, at least two full years premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.

The maximum loan allowed under the policy, as a percentage of Surrender Value shall be as under

• For in-force policies – 90%
• For paid up policies – 80%

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals.

The rate of loan interest applicable for full loan term, for the loan to be availed under this product for every 12 months period from 1st May to 30th April shall not exceed 10 year G-Sec Rate p.a. compounding half-yearly as at the last trading date of previous financial year plus 300 basis points. For loan sanctioned during 12 months period commencing from 1st May, 2020 to 30th April, 2021 the applicable interest rate shall be 9.5% p.a. compounding half-yearly for entire term of the loan.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC's New Endowment Plan (Plan No. 914) 

LIC's New Endowment Plan (Table No. 914) is a participating non-linked plan. Which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

Benefits Payable on Death-

In case of death during the policy term, if the policyholder has paid all the due premiums then the death benefit, defined as the sum of "Sum Assured on Death" and Vested Simple Reversionary Bonuses and Final Additional bonus,  if any. if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Benefits Payable on Maturity-

The "Sum Assured on Maturity" along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable on the Life Assured surviving the policy maturity date. Where "Sum Assured on Maturity" is equal to Basic Sum Assured. Provided that the policy is in-force till the date of maturity.

Participation in Profits-

The policy shall participate in the profits of the Corporation and shall be entitled to simple reversionary bonus declared as per the experience of the Corporation, provided the policy is in force.

The final (additional) bonus under the policy can also be declared in the year the death or maturity is claimed as a result of the policy. Final Additional Bonus will not be payable under paid-up policies.

Eligibility Conditions and Other Restrictions-

Riders Benefits For Policyholders-

In this LIC plan for the policyholder, the following five optional riders are available by paying additional premium. However, the policyholder can choose either LIC's Accidental Death and Disability Benefit Rider or LIC's Accident Benefit Rider. Hence, a maximum of four riders can be availed under one policy.

The optional riders available under LIC's New Endowment Plan (Plan No. 914) are as follows -

• Accidental Death and Disability Benefit Rider
• Accident Benefit Rider
• New Term Assurance Rider
• New Critical Illness Benefit Rider
• Premium Waiver Benefit Rider

Option to take Death Benefit in Installment-

The policy also offers policyholders an option to choose to receive the death benefit payouts in installments for their nominee. Death benefits can be paid over the period of 5,10 or 15 years instead of a lump-sum amount. It can be exercised by the policyholder during the minority of the life assured, or by the life assured during his/her life-time. The option of installment payment may be selected for part or full death benefits payable upon the death of the policyholder.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Payment of Premiums-

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deduction over the term of policy.

Grace Period-

In LIC's New Endowment Policy, if the policy has been chosen to pay premium in yearly, half yearly or quarterly mode. So in such a policy, a grace period of 30 days is given from the first unpaid premium. Whereas 15 days concession is given in the policy paying premium through monthly mode. The risk cover as per the terms of the policy remains in force during the grace period. If the premium of the policy is not paid before the expiry of grace period, the policy lapses.

The above exemption will also be applicable to the rider premium, which is payable along with the premium of the base policy.

Rebates-

Revival-

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium and before the date of maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and not in isolation.

Policy Loan-

Loan can be availed under the policy provided at least two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC New Jeevan Anand

LIC’s New Jeevan Anand Plan is a Non-linked, Participating, Individual, Life Assurance plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Death Benefit-

Provided all due premiums have been paid, the following death benefit shall be paid

On Death during the policy term i.e. before the stipulated Date of Maturity:

Death benefit, equal to “Sum Assured on Death” along with vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable; where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 7 times of annualized premium. This death benefit shall not be less than 105% of total premiums paid up to date of death.

The premium mentioned above exclude taxes, extra premium and rider premium(s), if any.

On death after expiry of the policy term i.e. from the stipulated Date of Maturity:

Basic Sum Assured shall be payable.

Benefits payable at the end of Policy Term -

On Life Assured surviving to the stipulated Date of Maturity, provided the policy is in-force, i.e. all due premiums have been paid “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable; where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Participation in Profits-

Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim by death during the policy term or due for the maturity benefit provided the policy is in force. Final Additional Bonus shall not be payable under paid-up policies.

The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with provisions in this regard under LIC Act, 1956.

Eligibility Conditions and Other Restriction-

Date of commencement of risk under the plan-

Risk will commence immediately on acceptance of the risk

Available Riders-

The following four optional riders are available under this plan by payment of additional premium. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders can be availed under a policy. Riders available in Jeevan Anand-

1.  Accidental Death and Disability Benefit Rider
2. Accident Benefit Rider
3. New Term Assurance Rider
4. New Critical Illness Benefit Rider

Payment of Premiums-

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (through NACH only) or through salary deductions over the Policy Term.

Grace Period -

A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.

The above grace period will also apply to rider premiums which are payable along with premium for base policy.

Rebates -

Mode Rebate:

High Sum Assured Rebate on Premium-

Revival-

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the end of policy term, as the case may be.

The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation reserves the right to accept at original terms, accept at modified at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.

Revival of rider(s), if opted for, will be considered along with revival of the basic policy and not in isolation.

Policy Loan -

Loan can be availed under the policy provided at least two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.

The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as under-

• For in-force policies – up to 90%
• For paid-up policies – up to 80%

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC New Bima Bachat

LIC’s New Bima Bachat is a participating, non-linked, life assurance savings cum protection plan, where premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.

Death Benefit-

Death benefit payable in case of death of the Life Assured during the policy term is as under:

On death during the first five policy years-

“Sum Assured on Death”

On death after completion of five policy years-

“Sum Assured on Death” along with Loyalty Addition, if any.

Where “Sum Assured on Death” is defined as higher of

• 1.25 times the single premium; or
• Basic Sum Assured.

Single Premium referred above shall not include taxes, extra premium and rider premium(s) if any.

Survival Benefits-

On the Life Assured surviving to the end of the specified durations during the policy term, a fixed percentage of Basic Sum Assured is payable. The fixed percentage for various policy terms is as below

For policy term 9 years- 

15% of the Basic Sum Assured at the end of each of 3rd & 6th policy year

For policy term 12 years- 

15% of the Basic Sum Assured at the end of each of 3rd, 6th & 9th policy year

For policy term 15 years-

15% of the Basic Sum Assured at the end of each of 3rd, 6th, 9th & 12th policy year

Maturity Benefit-

On Life Assured surviving to the end of the policy term, “Sum Assured on Maturity” along with Loyalty addition, if any, shall be payable.

Where “Sum Assured on Maturity” is equal to Single Premium paid excluding taxes, Rider premium(s) and extra premium, if any.

Loyalty Addition-

Depending upon the Corporation’s experience the policies shall participate in the profits of the Corporation and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, shall be payable on death after completion of five policy years or on policyholder surviving to maturity, at such rate and on such terms as may be declared by the Corporation.

Eligibility Conditions And Other Restrictions- 

Date of commencement of risk under the plan-

Risk will commence immediately on acceptance of the risk, including minor lives.

Date of vesting under the plan-

If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Rider Benefits-

The following two optional riders are available under this plan by payment of additional premium.

• Accidental Death and Disability Benefit Rider
• New Term Assurance Rider

High Sum Assured Rebates-

Rebate as a percentage of Tabular Premium is as under:

Policy Loan-

Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC Single Premium Endowment Plan

LIC’s Single Premium Endowment Plan is a Non linked, Participating, Individual, Life Assurance, savings plan which offers an attractive combination of savings and protection features. The premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Death Benefit-

On death during the policy term before the date of commencement of risk-

Return of single premium (excluding taxes, extra premium and rider premiums if any), without interest.

On death during the policy term after the date of commencement of risk-

Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).

Maturity Benefit -

On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable. Where “ Sum Assured on Maturity” is equal to Basic Sum Assured.

Participation in profits -

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with the provisions in this regard under LIC Act, 1956.

Eligibility Conditions and Other Restriction -

Date of Commencement of risk-

In case the age of Life Assured at entry is less than 8 years, risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

Rider Benefits-

Rebate For High Sum Assured -

Policy Loan- 

Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.