Académique Documents
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Sub Service Area wise mapping of Micro Insurance Agents for PMJDY
LICs Micro Insurance Plans are not plans but opportunities that knock on
your door once in a lifetime. These plans are a perfect blend of insurance,
investment and a lifetime of happiness!.
Policy Document
a. Maturity Benefit:
Provided the policy is inforce, on surviving to the date of maturity, Sum Assured
on Maturity shall be payable which is equal to the total amount of premiums paid
during the term of the contract (excluding the taxes and extra premium, if any)
b. Death Benefit:
Provided the policy is inforce, the death benefit shall be payable as under:Death due to any reason other than accident:
For regular premium policies : Sum Assured on Death shall be payable which is
defined as highest of 10 times of annualised premium or 105% of all the
premiums paid as on date of death or Sum assured on Maturity or absolute amount
assured to be paid on death where absolute amount assured to be paid on death is
Sum Assured.
The premiums mentioned above exclude taxes and extra premium, if any.
For single premium policies : Sum Assured on Death shall be payable which is
defined as higher of 125% of single premium (excluding the taxes and extra
premium, if any) or absolute amount assured to be paid on death where absolute
amount assured to be paid on death is Sum Assured.
Death due to accident :
An additional sum equal to Sum Assured shall also be payable.
An Accident for the purpose of this policy is defined as An Accident is a
sudden, unforeseen and involuntary event caused by external, violent and visible
means.
(yrs.)
10
15
20
58.85
36.85
30
60.15
38.15
40
66.45
43.60
50
83.60
56.15
Age
(yrs.)
4. Paid-up Value:
5
10
20
175.30
138.65
30
179.25
144.40
40
199.85
172.00
269.45
247.40
5. Revival:
Subject to production of satisfactory evidence of continued insurability, a lapsed
policy can be revived by paying arrears of premium together with interest within a
period of two years from the date of first unpaid premium but before maturity. The
rate of interest applicable will be as fixed by the Corporation from time to time.
6. Surrender Value:
The Guaranteed Surrender Value available under this plan is as under:
Single Premium policies : The policy may be surrendered for cash at any time
during the policy term. The Guaranteed Surrender Value shall be as under:
- Within three policy years from Date of Commencement of policy: 70% of the
Single premium excluding taxes and extra premium, if any.
- Thereafter: 90% of the Single premium excluding taxes and extra premium, if any.
Regular Premium policies : The policy may be surrendered for cash provided the
premiums have been paid for atleast three consecutive years. The Guaranteed
Surrender Value shall be equal to Guaranteed Surrender Value factor multiplied by
total premiums paid (excluding taxes and extras, if any). The Guaranteed Surrender
Value factor will depend on the policy term and policy year in which the policy is
surrendered and is as under:
Policy Year
Policy Term
2
Micro Insurance Plans - LIC's Bhagya Lakshmi (UIN: 512N292V01)
Policy Document
LIC's Bhagya Lakshmi - Salient Features
LIC's Bhagya Lakshmi - Premium Rates
LIC's Bhagya Lakshmi - Proposal Form
1. Introduction:
LICs Bhagya Lakshmi is a non-par limited payment protection oriented
plan with return of 110% of total amount of premiums payable on maturity
where the premium paying term is 2 years lesser than the policy term.
1. Benefits :
a. Maturity Benefit:
Provided the policy is inforce, on surviving to the date of maturity, Sum
Assured on Maturity shall be payable which is equal to 110% of total amount of
premiums payable during the term of the contract (excluding taxes and extra
premium, if any)
b. Death Benefit:
On Life Assured's death before the stipulated Date of Maturity, provided the
policy is in full force by paying up-to-date premiums, Sum Assured on Death
equal to Sum Assured under the policy shall be payable.
: Rs. 20,000/-
: Rs. 50,000/-
: 18 years (completed)
Policy Term
Payment of Premiums:
Following are some of the sample annual tabular premium rates (exclusive of
service
tax)
per
Rs.
1000/Sum
Assured:
AGE
In years
7(5)
10(8)
15(13)
20
127.45
64.35
37.20
30
129.30
65.80
38.55
40
138.30
72.80
44.25
50
164.10
91.40
57.15
55
179.90
103.05
Mode
Yearly mode
Half-yearly mode
Other modes
NIL
2% of Tabular
1% of Tabular
Rebate:
Premium
premium
Paid-up Value:
For policies with premium paying term less than 10 years if after at least two full
years' premiums have been paid and for policies with premium paying term 10
years or more if after at least three full years' premiums have been paid and any
subsequent premium be not duly paid, this policy shall not be wholly void, but shall
subsist as a paid-up policy.
The amount payable on death under a paid-up policy shall be reduced to such a
Sum, called Death Paid-up Sum Assured and shall bear the same ratio to the Sum
Assured on Death as the number of premiums paid bears to the total number of
premiums payable i.e. Death Paid-up Sum Assured = Sum Assured on Death *
(number of premiums paid/number of premiums payable during the policy term).
The amount payable at Maturity under a paid-up policy shall be reduced to such a
Sum, called Maturity Paid-up Sum Assured and shall bear the same ratio to the
Sum Assured on Maturity as the number of premiums paid bears to the total
number of premiums payable i.e. Maturity Paid-up Sum Assured = Sum Assured
on Maturity * (number of premiums paid/number of premiums payable during the
policy term).
The policy so reduced shall thereafter be free from all liabilities for payment of the
within mentioned 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 two consecutive years from the date of first
unpaid premium but before the date of maturity, as the case may be, on submission
of proof of continued insurability as per Board approved underwriting policy and
the payment of all the arrears of premium together with interest (compounding halfyearly) at such rate as fixed by the Corporation from time to time.
The Corporation reserves the right to accept at original terms, accept with modified
terms or decline the revival of a discontinued policy as per Board approved
underwriting 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.
Surrender Value:
The policy can be surrendered at any time during the policy term provided
premiums have been paid for atleast two consecutive years if premium paying term
is less than10 years and for atleast three consecutive years if premium paying term
is 10 years or more.
The Guaranteed Surrender Value is equal to Guaranteed Surrender Value factor
multiplied by total premiums paid (excluding taxes and extra premium, if any). The
Guaranteed Surrender Value factor will depend on the policy term and policy year
in which the policy is surrendered and is as under:
However, under this policy, Special Surrender Value will be payable to the
Policyholder if it is more favorable than Guaranteed Surrender Value. The Special
Surrender Value will be the discounted value of the Maturity Paid-up Sum Assured.
These discounting factors applicable to this policy may change from time to time
with prior approval of IRDA.
Loan:
Taxes:
Taxes including service tax, if any, shall be as per the Tax laws and the rate of tax
shall be as applicable from time to time.
The amount of tax as per the prevailing rates shall be payable by the policyholder
on the premium including extra premium and rider premium, if any. The amount of
Tax paid shall not be considered for the calculation of benefits payable under the
plan.
If the policyholder is not satisfied with the Terms and Conditions of the policy,
the policy may be returned to the Corporation within 15 days from the date of
receipt of the policy stating the reason of objections. On receipt of the same the
Corporation shall cancel the policy and return the amount of premium deposited
after deducting the proportionate risk premium for the period on cover and charges
for stamp duty.
Exclusions:
Suicide :
If the Life Assured (whether sane or insane) commits suicide at any time
within 12 months from the date of commencement of risk and the
Corporation will not entertain any claim under this policy except to the
extent of 80% of the premiums paid excluding any taxes and extra premium,
if any, provided the policy is inforce.
of any kind of risk relating to lives or property in India, any rebate of the whole or
part of the commission payable or any rebate of the premium shown on the policy,
nor shall any person taking out or renewing or continuing a policy accept any
rebate, except such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer: provided that acceptance by an insurance
agent of commission in connection with a policy of life insurance taken out by
himself on his own life shall not be deemed to be acceptance of a rebate of
premium within the meaning of this sub-section if at the time of such acceptance
the insurance agent satisfies the prescribed conditions establishing that he is a bona
fide insurance agent employed by the insurer.
(2) Any person making default in complying with the provisions of this section
shall be punishable with fine which may extend to five hundred rupees.
Note: Conditions apply for which please refer to the Policy document or contact
our nearest Branch Office.
BEWARE
OF
SPURIOUS
FICTITIOUS/FRAUDULENT OFFERS
PHONE
CALLS
AND
IRDA or its officials do not involve in activities like sale of any kind of
insurance or financial products nor invest premiums.
Public receiving such phone calls are requested to lodge a police compliant along
with details of phone call, number.
Corporation
Office,
Bima
-
of
Office:
India
Yogakshema,
Marg,
400021.
Policy Document
LICs e-TERM PLAN
Key Features :
1. Available through Online mode (www.licindia.in)
2. Pure Term plan
3. Differential premium rates for Smoker/Non-Smoker lives
4. Proposal on own life ONLY will be considered
Key Benefits :
o Death Benefit
Eligibility conditions :
o Minimum
Aggregate
Sum
Assured
Rs.50,00,000
: Rs.25,00,000 for
category
for
Non-smoker
category
: No limit
: 18 years (completed)
: 60 years (nearest
Maximum cover
birthday) ceasing age
: 75 years (nearest
: 10 years
Mode of payment
: 35 years
: Yearly
: No limit
: 18 years (completed)
: 60 years (nearest
: 75 years
: 10 years
: 35 years
Payment of Premiums:
Premium need to be paid annually during the policy term.
A grace period of one month but not less than 30 days from
due date of premium will be allowed for payment of
premiums.
Sample Premium Rates:
The sample premium rates (exclusive of taxes) are as under:
For Aggregate category
(yrs.)
10
15
20
25
30
20
0.92
0.92
0.93
1.00
1.11
30
1.10
1.20
1.39
1.66
1.97
40
2.02
2.48
3.00
3.56
4.19
50
4.86
5.72
6.73
7.90
15
20
25
30
20
0.63
0.63
0.65
0.70
0.79
30
0.77
0.85
1.00
1.21
1.46
40
1.48
1.84
2.25
2.69
3.18
50
3.67
4.34
5.13
6.06
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 2 consecutive years from the date of first unpaid
premium but before the expiry of policy term, by paying all
the arrears of premium together with interest (compounding
half-yearly) at such rate as may be prevailing at the time of the
payment, subject to submission of satisfactory evidence of
continued insurability.
The cost of the medical reports, including special reports, if
any, required for the purposes of revival of the policy, shall be
borne by the Life Assured.
The Corporation reserves the right to accept at original terms,
accept at revised terms or decline the revival of a discontinued
Section
45
of
Insurance
Act,
1938:
No policy of life insurance shall after the expiry of two years
from the date on which it was effected, be called in question
by an insurer on the ground that a statement made in the
proposal for insurance or in any report of a medical officer, or
referee, or friend of the insured, or in any other document
leading to the issue of the policy, was inaccurate or false,
unless the insurer shows that such statement was on a material
matter or suppressed facts which it was material to disclose
and that it was fraudulently made by the policyholder and that
the policyholder knew at the time of making it that the
statement was false or that it suppressed facts which it was
material to disclose.
Provided that nothing in this section shall prevent the insurer
from calling for proof of age at any time if he is entitled to do
so, and no policy shall be deemed to be called in question
merely because the terms of the policy are adjusted on
subsequent proof that the age of the life assured was
Today LIC launched new versions of its existing Term Insurance policies. Let see how they
are beneficial to you and what changes are done to the prior plans. From initial findings it
looks that they are cheaper. But I need to validate with the data which may take some time.
LIC launched its first online term plan. Review will be available here LICs online Term
Plan e-Term-Review and Benefit
1) Anmol Jeevan-II
Revival-A lapsed policy can be revived within 2 years from the first unpaid premium
but before the expiry of policy term. Medical report cost should be borne by Life
Assured.
Death Benefit-Policy Sum Assured will be payable to nominee.
Maturity Benefit-Nothing will be payable on survival of life assured till the end of
policy term.
If the death of Life Assured occurs within the grace period but before the payment of
premium due then, policy will still be considered as valid and benefit will be payable to
nominee (but after deducting the due premium+unpaid premiums due before the next
policy anniversary).
Agents Commission-
1.
For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
2.
For term of 10 to 14 years-1st Year 15%, 2nd and 3rd Years-7.5% and subsequent
years-5%.
3.
For term of 15 years and above-1st Year 25%, 2nd and 3rd Years-7.5% and
subsequent years-5%
Policy will be considered as void if life assured commits suicide within 12 months
from the date of commencement of risk or from the date of revival. An amount equal to
80% of premiums paid till date of death (excluding taxes and extra premiums) will be
payable if policy is in force.
2) Amulya Jeevan-II
Revival-A lapsed policy can be revived within 2 years from the first unpaid premium
but before the expiry of policy term. Medical report cost should be borne by Life
Assured.
Death Benefit-Policy Sum Assured will be payable to nominee.
Maturity Benefit-Nothing will be payable on survival of life assured till the end of
policy term.
If the death of Life Assured occurs within the grace period but before the payment of
premium due then, policy will still be considered as valid and benefit will be payable to
nominee (but after deducting the due premium+unpaid premiums due before the next
policy anniversary).
Agents Commission-
1.
For term of 5-9 years-1st Year 10%, 2nd and 3rd Years-5% and subsequent years-5%.
2.
For term of 10 to 14 years-1st Year 20%, 2nd and 3rd Years-7.5% and subsequent
years-5%.
3.
For term of 15 years and above-1st Year 25%, 2nd and 3rd Years-7.5% and
subsequent years-5%
Normal Requirements for claim-Claim form as prescribed by LIC with original policy
bond, NEFT mandate form to directly transfer the amount to nominee bank, proof of title,
proof of death, medical treatment prior to death and if age is not submitted during the time of
policy buying then age of life assured should be furnished.
Whether to buy LICs term plans or not?
Major drawback why lot of people stayed away from LIC term plans are their pricing. They
are costly when you compare with online or offline term plans available with other insurers in
India. But few still tried to buy term plans with LIC because of their faith in it and to
diversify their risk among insurers. Currently I dont have valid table to compare. But when I
considered the available resources I found that these new plans are cheaper than the older
(this is my assumption and will update on it shortly).
For example for the aged 30 years and SA Rs.1,00,00,000 and term 25 years was previously
cost us Rs.29,200 yearly. But now it is costing us Rs.22,028 (claiming to be inclusive of tax).
Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net
Pension Plans are Individual Plans that gaze into your future and foresee
financial stability during your old age. These policies are most suited for
senior citizens and those planning a secure future, so that you never give
up on the best things in life.
Jeevan Akshay-VI
LIC's New Jeevan Nidhi
Introduction:
Document
Policy
Available:
Type of Annuity:
o Annuity payable for life at a uniform rate.
o Annuity payable for 5, 10, 15 or 20 years certain and thereafter as
long as the annuitant is alive.
o Annuity for life with return of purchase price on death of the
annuitant.
Salient features:
Annuity
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1
lakh under different options is as under:
Age last
birthday
(i)
( ii ) (15 years
certain)
( iii )
( iv )
(v)
( vi )
(vii)
30
7190
7160
6890
5250
7080
6970
6860
40
7510
7440
6930
5610
7310
7120
6890
50
8140
7950
7000
6280
7760
7420
6930
60
9350
8790
7110
7530
8640
8030
7010
70
12080
9830
7260
10220
10560
9370
7130
80
17880
10440
7480
15890
14600
12340
7290
Incentives
for
high
purchase
price:
If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of
annuity due to available incentives. In addition of this, for policies sold online, a
rebate of 1% by way of increase in the annuity rate shall also be available.
Service
Tax:
Service tax, if any, shall be as per the Service Tax Laws and at the rate of service
tax
as
applicable
from
time
to
time.
The amount of service tax as per the prevailing rates shall be payable by the
policyholder
along
with
the
purchase
price.
Paid-up
The
value:
policy
does
not
acquire
Surrender
No
surrender
any
paid-up
value.
Value:
value
will
be
available
under
the
policy.
Loan:
No
loan
will
be
Cooling-off
available
under
the
policy.
period:
If you are not satisfied with the ?Terms and Conditions? of the policy, you may
return the policy to us within 15 days from the date of receipt of the Policy Bond.
On receipt of the policy we shall cancel the same and the amount of premium
deposited by you shall be refunded to you after deducting the charges for stamp
duty.
Section 45 Of Insurance Act 1938:
o No policy of life insurance shall after the expiry of two years from
the date on which it was effected, be called in question by an
insurer on the ground that a statement made in the proposal for
insurance or in any report of a medical officer, or referee, or friend
of the insured, or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such
statement was on a material matter or suppressed facts which it was
material to disclose and that it was fraudulently made by the
policyholder and that the policyholder knew at the time of making
it that the statement was false or that it suppressed facts which it
was material to disclose.
o Provided that nothing in this section shall prevent the insurer from
calling for proof of age at any time if he is entitled to do so, and no
policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof that the age of
the life assured was incorrectly stated in the proposal.
Section 41 of Insurance Act 1938:
o No person shall allow or offer to allow, either directly or indirectly,
as an inducement to any person to take out or renew or continue an
insurance in respect of any kind of risk relating to lives or property
in India, any rebate of the whole or part of the commission payable
or any rebate of the premium shown on the policy, nor shall any
person taking out or renewing or continuing a policy accept any
rebate, except such rebate as may be allowed in accordance with
the published prospectuses or tables of the insurer: provided that
acceptance by an insurance agent of commission in connection with
a policy of life insurance taken out by himself on his own life shall
not be deemed to be acceptance of a rebate of premium within the
meaning of this sub-section if at the time of such acceptance the
o Provided that nothing in this section shall prevent the insurer from
calling for proof of age at any time if he is entitled to do so, and no
policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof that the age of
the life assured was incorrectly stated in the proposal.
happens
if
the
annuitant
dies?
nominee after the death of the spouse. If the spouse predeceases the
annuitant, the annuity ceases and purchase price will be paid to the
nominee.
When
first
installment
of
annuity
payable:
First installment of annuity is payable after one month, three months, six months
or one year from the date of purchase of annuity depending on the mode chosen is
monthly, quarterly, half yearly or yearly respectively.
LIC's New Jeevan Nidhi Plan is a conventional with profits pension plan which
provides for death cover during the deferment period and offers annuity on
survival to the date of vesting.
1.
: No Limit
d)
e)
Policy Term
: 5 to 35 years
f)
g)
2.
Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly
(through ECS only) or through SSS mode over the term of policy.
Alternatively, a single premium can be paid.
A grace period of one calendar month but not less than 30 days will be
allowed for payment of yearly or half-yearly or quarterly premiums and 15
days for monthly premiums.
3.
Single Premiums
Annual Premiums
Policy term
Age at entry
Age at entry
Policy term
20
10
10
25
20
-
35
45
852.55
115.25
4.
30
-
25
35
45
30
435.80
32.75
612.00
53.60
632.80
57.15
456.15
34.80
-
Mode
and High
S.A. Rebates:
Mode Rebate:
Yearly
2% of tabular premium
Half-Yearly
1% of tabular premium
Quarterly
Nil
Rebate
1, 00,000 to 2, 95,000
3, 00,000 and above
Nil
2%o S.A.
5.
Sum Assured
Rebate
1, 50,000 to 2, 95,000
3, 00,000 and above
Nil
5%o S.A.
Revival:
If premiums are not paid within the grace period then the policy will lapse. A
lapsed policy can be revived from the date of first unpaid premium and before
the date of vesting by paying all the arrears of premium together with interest
within a period of five years, subject to submission of satisfactory evidence of
continued insurability.
The Corporation reserves the right to accept at original terms, accept 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 by the
Corporation and is specifically communicated to the life assured. Accident
Benefit Rider, if opted for, shall be revived along with the basic plan and not
in isolation.
6.
Policy Loan:
No loan facility will be available under this plan.
7.
Service Tax:
Service tax, if any, shall be as per the Service Tax laws and the rate of service
tax as applicable from time to time.
The amount of service tax as per the prevailing rates shall be payable by the
policyholder on premium(s) as and when the premiums are paid.
8.
Cooling-off period:
If the Life Assured is not satisfied with the 'Terms and Conditions' of the
policy, he/she may return the policy to the Corporation within 15 days from
the date of receipt of the policy stating the reason of objections. On receipt of
the same the Corporation shall cancel the policy and return the amount of
premium deposited after deducting the risk premium, expenses incurred on
medical examination and stamp duty.
9.
Exclusion:
Suicide: This policy shall be void if the Life Assured commits suicide
(whether sane or insane at that time) at any time within one year from the
date of commencement of risk and the Corporation will not entertain any
other claim by virtue of this policy except to the extent of a maximum of 90%
of single premium paid excluding any extra premium (in case of single
premium policies).
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27,087 Views
LIC New Jeevan Nidhi Plan is a deferred annuity plan with bonus. This is a non unit-linked
insurance pension plan. This plan is purchased to cover the risk of living too long and hence
has multiple pension options to cover that risk. The corpus that is created to provide pension
for old age is the Sum Assured + Accrued Guaranteed Additions + Simple Reversionary
Bonus + Terminal Bonus. The age where pension is payable is called Vesting Age and the
date when pension starts is called Vesting Date.
Death Benefit In case of death of the Life Insured before the vesting date, but
Within the first 5 years of the policy: provided all premiums have been paid, the nominee will
be provided the Basic Sum Assured + accrued Guaranteed Additions which can be paid in a
lumpsum or as annuity or a combination of the two.
After the first 5 years of the policy: provided all premiums have been paid, the nominee will
be provided the Basic Sum Assured + accrued Guaranteed Additions + Simple Reversionary
+ Final Additional Bonus, if any, which can be paid in a lumpsum or as annuity or a
combination of the two.
In case of death of the Life Insured after the vesting date, it entirely depends upon pension
option chosen.
Immediate Annuity Plan can be purchased only from LIC of India and the vesting option can
be chosen from the available options at that time and it cannot be ascertained now.
Income Tax Benefit Premiums paid under life insurance policy are exempted from tax
under Section 80 C and 1/3rd of the maturity proceeds are exempted from tax under Section
10(10A). Pension amount will be taxable.
Eligibility conditions and other restrictions in LIC New Jeevan Nidhi Plan
Minimum
Maximum
No Limit
35
5 for Single Premium
Single
Regular
20
55
65
No Limit
3000 for Regular
Payment modes
The below illustration is for a healthy Male of 35 years (non-tobacco user) opting for Sum
Assured of Rs 1,00,000 and Deferment Period of 20 and 30 years respectively.
You stop paying the premium If the premiums are not paid within the grace period, the
policy lapses and all benefits cease. However, there the policy can be revived within 2 years
from the date of first unpaid premium.
You want to surrender the policy There is a Guaranteed Surrender Value in this plan
Single Premium Policies: The policy can be surrendered at any time during the deferment
period and the Guaranteed Surrender Value would be:
Within 3 policy years would be 70% of the Single Premium Paid excluding taxes and extra
premium, if any and
After 3 policy years would be 90% of the Single Premium Paid excluding taxes and extra
premium, if any
Regular Premium Policies:
For deferment period less than 10 years: The policy can be surrendered provided the
premiums have been paid for at least two consecutive years.
For deferment period 10 years or more: The policy can be surrendered provided the
premiums have been paid for at least three consecutive years.
The Guaranteed Surrender Value is a percentage of total premiums paid excluding taxes,
extra premiums, if any and rider premium and it depends on the deferment period and the
policy year in which the policy is surrendered.
You want a loan against your policy Loan facility is not available under this policy
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LIC's New Jeevan Nidhi Plan is a conventional with profits pension plan which
provides for death cover during the deferment period and offers annuity on
survival to the date of vesting.
1.
Benefits:
a. Benefit on Vesting: On vesting an amount equal to the Basic Sum
Assured along with accrued Guaranteed Additions, vested Simple
Reversionary bonuses and Final Additional bonus, if any, shall be made
available to the Life Assured.
The following options shall be available to the Life Assured for utilization
of the benefit amount.
or
2.
The Life Assured will have to intimate his / her intention to go for a
particular option available on the date of vesting atleast six months prior to
the date of vesting.
b. Death Benefit:
Death during first five policy years: Basic Sum Assured along with
accrued Guaranteed Addition shall be paid as lump sum or in the form of
an annuity or partly in lump sum and balance in the form of an annuity to
the nominee.
Death after first five policy years: Basic Sum Assured along with accrued
Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if
any, shall be paid as lump sum or in the form of an annuity or partly in
lump sum and balance in the form of an annuity to the nominee.
The amount of annuity will depend on the payable lump sum and the then
prevailing immediate annuity rates.
Rs.50/- per thousand Sum assured for each completed year, for the first
five years.
2.
Optional Benefit:
The Accident Benefit Sum Assured may be opted for an amount upto the
Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50
lakh (including all policies with LIC of India and other insurers). This benefit
will be available only till the age nearer birthday of the Life assured is 65 yrs
or till the vesting age, whichever is earlier.
3.
Paid-up Value:
Under regular premium policies, if after atleast three full year's premiums
have been paid and any subsequent premium be not duly paid, this Policy shall
not be wholly void but the Sum Assured under basic plan shall be reduced to
such a sum, called the paid-up sum assured, as shall bear the same ratio to the
full Sum Assured as the number of premiums actually paid shall bear to the
total number of premiums originally stipulated for in the Policy. The policy so
reduced shall thereafter be free from all liability for payment of the withinmentioned premium but shall not be entitled to guaranteed additions and any
bonuses in future. The accrued guaranteed additions and vested bonus
additions, if any, will remain attached to the reduced paid-up policy.
This paid-up sum assured alongwith the accrued Guaranteed Additions and
vested Simple Reversionary Bonuses, if any, is payable on the date of vesting
or on Life Assured's prior death.
On the death of the Life Assured, the nominee shall have an option to take the
proceeds as lump sum or in the form of an annuity or partly in lump sum and
balance in the form of an annuity.
On vesting the proceeds shall be payable as per one of the options as specified
against para 1.a. above.
4.
Surrender Value:
The policy can be surrendered at any time after completion of at least 3 policy
years but before the date on which annuity vests.
ii)
The surrender value shall be the guaranteed surrender value along with
cash value of any accrued Guaranteed Additions and vested simple
reversionary bonuses, if any.
or
2.
Traditional Plans
Traditional plans in which the amount of payout is guaranteed. Here the investments are
usually made in safe and low yielding products. The returns will not be great but they will be
stable and predictable.
ULIPs
ULIPs - here the investments are more into equity markets and the chances of returns over a
longer period of time are much higher. The policyholder can even choose to invest in debt
instruments, in which case it becomes similar to the traditional plans investments. The
flexibility is completely in the hands of the investor and one can switch between the types of
funds also.