LIC’s Bima Shree plan in chandigarh. It offers a combina�on of protec�on and savings. This plan is
specially designed for High Net-worth Individuals. This plan provides financial
support for the family in case of unfortunate death of the policyholders during
the policy term. Periodic payments shall also be made on survival of the
policyholder at specified dura�ons during the policy term and a lump sum
payment to the surviving policyholder at the �me of maturity This plan also takes .
care of liquidity needs through loan facility.
a) Death Benefit:
On death during first five years: Death Benefit defined as sum of “Sum
Assured on Death” and accrued Guaranteed Addi�on shall be payable.
On death a�er comple�on of five policy years but before the date of
maturity: Death Benefit defined as sum of “Sum Assured on Death” and
accrued Guaranteed Addi�on and Loyalty Addi�on, if any, shall be payable.
Where “Sum Assured on Death” is defined as the higher of 125% of Basic
Sum Assured or 7 �mes of annualised premium.
This death benefit shall not be less than 105% of all the premiums paid upto
the date of death.
Premiums referred above excludes taxes, extra premium and rider
premium(s), if any.
b) Survival Benefit:
On the life assured surviving to each of the specified dura�ons during the
policy term, provided all due premiums have been paid, a fixed percentage of
Basic Sum Assured shall be payable. The fixed percentage for various policy
terms is as below:
For policy term 14 years:
30% of Basic Sum Assured on each of 10 and 12 policy anniversary. �� ��
For policy term 16 years:
35% of Basic Sum Assured on each of 12 and 14 policy anniversary. �� ��
For policy term 18 years:
40% of Basic Sum Assured on each of 14 and 16 policy anniversary. �� ��
For policy term 20 years:
45% of Basic Sum Assured on each of 16 and 18 policy anniversary. �� ��
c) Maturity Benefit:
On the life assured surviving to the end of the policy term, provided all due
premiums have been paid, “Sum Assured on Maturity” along with accrued
Guaranteed Addi�ons and Loyalty Addi�on, if any, shall be payable.
1.Benefits payable under an inforce policy (where all due premiums have been paid):

Where “Sum Assured on Maturity” is as under:
40% of Basic Sum Assured for policy term 14 years
30% of Basic Sum Assured for policy term 16 years
20% of Basic Sum assured for policy term 18 years
10% of Basic Sum assured for policy term 20 years
2. Par�cipa�on in profits:
Provided the policy has completed five policy years and atleast 5 full years’ premium
have been paid, then depending upon the Corpora�on’s experience the policies
under this plan shall be eligible for Loyalty Addi�on at the �me 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 Corpora�on. Under a paid-up policy, Loyalty Addi�on shall be
payable for the completed policyyears forwhich the policywasinforce.
In addi�on, Loyalty Addi�on, if any, shall also be considered in Special Surrender
Value calcula�on on surrender of policy during the policy term, provided the
policy has completed five policy years and atleast 5 full years’ premium have been
paid. In case of surrender of policy, Loyalty Addi�on shall be payable for the
completed policy year for which the policy was inforce.
The actual alloca�on to policyholders, out of the surplus emerging from the
actuarial inves�ga�on, shall be as approved by Central Government in
accordance with provisions in this regard under LIC Act, 1956.
3. Guaranteed Addi�ons:
Guaranteed Addi�ons shall accrue at the end of each policy year during the
Premium Paying Term (PPT), provided all due premiums have been paid �ll date.
The rate of Guaranteed Addi�ons shall be as follows:
• Rs. 50 per thousand Basic Sum Assured for first five years
• Rs. 55 per thousand Basic Sum Assured from 6th policy year �ll end of PPT
In case of a paid-up policy or on surrender of a policy the Guaranteed Addi�on for
the policy year in which the last premium is received will be added on
propor�onate basis in propor�on to the premium received for that year.
4. Eligibility Condi�ons and Other Restric�on :
a) Minimum Basic Sum Assured : Rs. 10,00,000
b) Maximum Basic Sum Assured : No limit (The Basic Sum Assured shall be in
mul�ples of Rs. 1,00,000/-)
c) Policy Term : 14, 16 , 18 and 20 years
d) Premium Paying Term : (Policy term – 4) years
e) Minimum Age at entry : 8 years (completed)
f) Maximum Age at entry : 55 years (nearer birthday) for policy term
14years
51 years (nearer birthday) for policy term
16 years
48 years (nearer birthday) for policy term
18 years
45 years (nearer birthday) for policy term
20 years
I. Rider Benefits:
The following five op�onal riders are available under this plan by payment of
addi�onal premium.
However, the policyholder can opt between either of the LIC’s Accidental
Death and Disability Benefit Rider or LIC’s Accident Benefit Rider.
a) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
This rider can be opted for at any �me under an inforce policy within the
premium paying term of the Base plan provided the outstanding premium
paying term of the Base plan is atleast 5 years. The benefit cover under this
rider shall be available during the policy term. If this rider is opted for, in case
of accidental death, the Accident Benefit Sum Assured will be payable in
lumpsum. In case of accidental disability arising due to accident (within 180
days from the date of accident), an amount equal to the Accident Benefit Sum
Assured will be paid in equal monthly instalments spread over 10 years and
future premiums for Accident Benefit Sum Assured as well as premiums for
the por�on of Basic Sum Assured under the Base Policy which is equal to
Accident Benefit Sum Assured under the policy, shall be waived.
b) LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any �me under an inforce policy within the
premium paying term of the Base plan provided the outstanding premium
paying term of the Base plan is atleast 5 years. The benefit cover under this
rider shall be available during the premium paying term. If this rider is opted
for, in case of accidental death, the Accident Benefit Sum Assured will be
payable in lumpsum.
c) LIC’s New Term Assurance Rider (UIN: 512B210V01)
This rider is available at incep�on of the policy only. The benefit cover under
this rider shall be available during the policy term. If this rider is opted for, an
amount equal to Term Assurance Rider Sum Assured shall be payable on
death of the Life Assured during the policy term.
d) LIC’s New Cri�cal Illness Benefit Rider (UIN: 512A212V01)
This rider is available at the incep�on of the policy only. The cover under this
rider shall be available during the policy term. If this rider is opted for, on first
5. Op�ons available:
g) Maximum Age atMaturity : 69years(nearerbirthday)forpolicyterm14years
: 67years(nearerbirthday)forpolicyterm16years
: 66years(nearerbirthday)forpolicyterm18years
: 65years(nearerbirthday)forpolicyterm20years
Date of commencement of risk under the plan:
Risk will commence immediately from the date of acceptance of the risk.
Date of ves�ng under the plan:
The policy shall automa�cally vest on the Life Assured on the policy anniversary
coinciding with or immediately following the comple�on of 18 years of age and
shall on such ves�ng be deemed to be a contract between the Corpora�on and
Life Assured.

II. Op�on to defer the Survival Benefit(s):
diagnosis of any one of the specified 15 Cri�cal Illnesses covered under this
rider, the Cri�cal Illness Sum Assured shall be payable.
e) LIC’s PremiumWaiver Benefit Rider (UIN: 512B204V03)
Under an in-force policy, this rider can be opted for on the life of Proposer of
the policy, at any �me coinciding with the policy anniversary but within the
premium paying term of the Base Policy provided the outstanding premium
paying term of the Base Policy and the rider is at least five years. Further, this
rider shall be allowed under the policy wherein the Life Assured is Minor at
the�me of op�ng this rider. The Rider term shall be outstanding premium paying
term of the base plan as on date of op�ng this rider or (25minus age of theminor
Life Assured at the �me of op�ng this rider), whichever is lower. If the rider
termplusproposer’sageismore than70years, the ridershallnotbeallowed.
If this rider is opted for, on death of proposer, payment of premiums in
respect of base policy falling due on and a�er the date of death �ll the expiry
of rider term shall be waived. However, in such case , if the premium paying
term of the base policy exceeds the rider term, all the further premiums due
under the base policy from the date of expiry of this Premium Waiver Benefit
Rider term shall be payable by the Life Assured. On non-payment of such
premiums the policy would become paid-up.
The premium for LIC’s Accident Benefit Rider or LIC’s Accidental Death and
Disability Benefit Rider and LIC’s New Cri�cal Illness Benefit Rider shall not
exceed 100% of premium under the base plan and the premiums under all
other life insurance riders put together shall not exceed 30% of premiums
under the base plan.
Each of above Rider Sum Assured cannot exceed the Basic Sum Assured
under the Base plan.
For more details on the above riders, refer to the rider brochure or contact
LIC’s nearest Branch Office.
The policyholder shall have an op�on to defer the Survival Benefit(s) and take
the increased Survival Benefits (i.e. deferred original Survival Benefit(s) along
with interest) at any �me on or a�er its due date but during the currency of
the policy. If the increased survival benefit(s) are not taken by the
policyholder during the currency of the policy the same shall be payable
along with benefit payable at the �me of termina�on of the policy in the form
of death or maturity or surrender. This op�on can be availed under an inforce
as well as paid-up policy.
The interest rate payable on each deferred Survival Benefit and as applicable
for the en�re dura�on of deferment of that Survival Benefit shall be
determined at periodic intervals. The applicable interest rates shall be as
declared by the Corpora�on based on the method approved by the IRDAI.
This op�on can be exercised for either or both of the Survival Benefits
separately and is to be in�mated in wri�ng to the servicing branch office of
the Corpora�on at least six months before the due date of the Survival
Benefit. Else the survival benefits would be paid on their due dates as per the
terms of Policy.
Se� lement Op�on is an op�on to receiveMaturity Benefit in instalments over the
chosen period of 5 or 10 or 15 years instead of lump sum amount under an inforce
as well as Paid-up policy. This op�on can be exercised by the Policyholder during
minority of the Life Assured or by the Life Assured aged 18 years or above, for full
or part of the maturity proceeds payable under the policy. The amount opted for
this op�on by the Policyholder/ Life Assured (ie. Net Claim Amount including the
payment of deferred Survival Benefit(s), if any) 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 as under:
III. Se� lement Op�on (for Maturity Benefit):
Mode of Instalment payment
Monthly
Quarterly
Half-Yearly
Yearly
Minimum instalment amount
Rs. 5,000/-
Rs. 15,000/-
Rs. 25,000/-
Rs. 50,000/-
If the net claim amount is less than the required amount to provide the minimum
instalment amount as per the op�on exercised by the Policyholder / Life Assured,
the claim proceed shall be paid in lump sum only.
The interest rates applicable for arriving at the instalment payments under
Se� lement Op�on shall be as fixed by the Corpora�on from �me to �me.
For exercising the se� lement op�on against Maturity Benefit, the Life Assured
shall be required to exercise op�on for payment of net claim amount in
instalments at least 3 months before the due date of maturity claim.
A�er the commencement of Instalment payments under Se� lement Op�on
against Maturity Benefit:
• If a Life Assured, who has exercised Se� lement Op�on against Maturity
Benefit, desires to withdraw this op�on and commute the outstanding
instalments, the same shall be allowed on receipt of wri� en request from the Life
Assured. In such case, the lumpsum amount, which is higher of the following shall
be paid and the policy shall terminate.
– discounted value of all the future instalments due; or
– (the original amount for which se� lement op�on was exercised) less
(sum of total instalments already paid);
• The interest rates applicable for discoun�ng the future instalment payments
shall be as fixed by the Corpora�on from �me to �me.
• A�er the Date of Maturity, in case of death of the Life Assured, who has
exercised Se� lement Op�on, the outstanding instalments will con�nue to be
paid to the nominee as per the op�on exercised by the Life Assured and no
altera�on whatsoever shall be allowed to be made by the nominee.

This is an op�on to receive Death Benefit in instalments over the chosen period of
5 or 10 or 15 years instead of lump sum amount under an inforce as well as paidup policy. This op�on can be exercised by the Policyholder during minority of the
Life Assured or by Life Assured aged 18 years or above, during his/her life �me; for
full or part of the Death benefits payable under the policy. The amount opted by
the Policyholder/Life Assured (ie. Net Claim Amount including the payment of
deferred Survival Benefit(s), if any) 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 as under:
IV. Op�on to take Death benefit in instalments:
If the net claim amount is less than the required amount to provide the minimum
instalment amount as per the op�on exercised by the Life Assured, the claim
proceed shall be paid in lump sum only.
The interest rates applicable for arriving at the instalment payments under this
op�on shall be as fixed by the Corpora�on from �me to �me.
For exercising op�on to take Death Benefit in instalments, the Policyholder during
minority of the Life Assured or the Life Assured, if major, can exercise this op�on
during his/her life�me while in currency of the policy, specifying the period of
Instalment payment and net claim amount for which the op�on is to be exercised.
The death claim amount shall then be paid to the nominee as per the op�on
exercised by the Life Assured and no altera�on whatsoever shall be allowed to be
made by the nominee.
Mode of Instalment payment
Monthly
Quarterly
Half-Yearly
Yearly
Minimum instalment amount
Rs. 5,000/-
Rs. 15,000/-
Rs. 25,000/-
Rs. 50,000/-
6. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly
intervals (monthly premiums through NACH only) or through salary deduc�ons
during the Premium Paying Term of the policy.
7. 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 inforce with
the risk cover without any interrup�on 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.
8. Sample Illustra�ve Premium:
The sample illustra�ve annual premiums for Basic Sum Assured of Rs 10 lakh for
Standard lives are as under:
The above premium is exclusive of taxes.
Age
(Nearer Birthday)
20
30
40
50
14(10)
1,08,045
1,08,584
1,10,887
1,17,306
Policy Term (Premium Paying Term)
16(12)
90,748
91,336
93,933
1,00,597
18(14)
78,106
78,841
81,683

20(16)
69,384
70,266
73,402

(Amount in Rs)
9. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly (NACH) & Salary deduc�on – NIL
High Basic Sum Assured Rebate:
Basic Sum Assured (BSA) Rebate on tabular premium (Rs.)
10, 00,000 to 19, 00,000 Nil
20, 00,000 to 49, 00,000 0.30 ‰ BSA
50, 00,000 and above 0.50 ‰ BSA
10. Revival:
If the premium is not paid before the expiry of the days of grace, then the policy
will lapses. The lapsed policy may be revived during the life�me of the Life
Assured, but within a period of 5 consecu�ve 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 fixed by the Corpora�on from �me to
�me and on sa�sfac�on of Con�nued Insurability of the Life Assured and/or
Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of
informa�on, documents and reports that are already available and any addi�onal
informa�on in this regard if and as may be required in accordance with the
Underwri�ng Policy of the Corpora�on at the �me of revival, being furnished by
the Policyholder/Life Assured/Proposer.
The Corpora�on reserves the right to accept at original terms, accept with
modified terms or decline the revival of a discon�nued policy. The revival of a
discon�nued policy shall take effect only a�er the same is approved, accepted
and revival receipt is issued by the Corpora�on.
If the revival period falls beyond the premium paying term and the policy is
revived a�er the due date of survival benefit, then the difference between full
Survival Benefit payable under inforce policy and Survival Benefit already paid
considering paid-up policy shall be paid to the policyholder.
Revival of rider(s), if opted for, will be considered along with revival of the Base
Policy, and not in isola�on.

If less than two years’ premiums have been paid and any subsequent premium be
not duly paid, all the benefits under the policy shall cease a�er the expiry of grace
period from the date of first unpaid premium and nothing shall be payable.
If, a�er atleast two full years’ premiums have been paid and any subsequent
premiums be not duly paid, the policy shall not be wholly void, but shall subsist as
a paid-up policy �ll the end of policy term.
The Sum Assured on Death under a paid-up policy shall be reduced to such a sum,
called ‘Death Paid-up Sum Assured’ and shall be equal to Sum Assured on Death
mul�plied by ra�o the of the total period for which premiums have already been
paid to the maximum period for which premiums were originally payable . bears
In addi�on to the Death Paid-up Sum Assured the Guaranteed Addi�ons accrued
upto the date of First Unpaid Premium along with Loyalty Addi�on, if any, shall
also be payable on death.
The Sum Assured on Maturity under a paid-up policy shall be reduced to such a
sum called ‘Maturity Paid-up Sum Assured’ and shall be equal to Sum Assured on
Maturity mul�plied ra�o by the of the total period for which premiums have
already been paid to the maximum period for which premiums were bears
originally payable. In addi�on to the Maturity Paid-up Sum Assured, the
Guaranteed Addi�ons accrued upto the date of First Unpaid Premium along with
Loyalty Addi�on, if any, shall also be payable on maturity.
The survival benefits payable under a paid-up policy shall be equal to (survival
benefit payable under inforce policy) * (total period for which premiums have
already been paid / the maximum period for which premiums were originally
payable) and shall be payable on Life Assured surviving to each of the specified
dura�ons during the policy term.
However, if op�on to defer the Survival Benefit(s) has been exercised and
payment of such Survival Benefit(s) have not yet been made, these increased
Survival Benefit(s) as specified in Para 5.II above shall be payable on termina�on
of policy in the form of death or maturity or surrender.
Under a Paid-up policy, Loyalty Addi�on, if any, shall be payable for the completed
policy years for which the policy was inforce, provided the premiums have been
paid for atleast 5 full years and a�er comple�on of 5 policy years.
Rider(s) shall not acquire any paid-up value and the rider benefit(s) cease to
apply, if policy is in lapsed condi�on.
11.Paid-up Policy:
12. Surrender :
The policy can be surrendered at any �me provided two full years’ premiums have
been paid. On surrender of the policy, the Corpora�on shall pay the Surrender
Value equal to higher of Guaranteed Surrender Value and Special Surrender
Value.
The Special Surrender Value is reviewable and shall be determined by the
Corpora�on from �me to �me subject to prior approval of IRDAI.
Guaranteed Surrender Value payable during the policy term shall be equal to the
total premiums paid (excluding extra premiums, taxes and premiums for riders, if
opted for) mul�plied by the Guaranteed Surrender Value factor applicable to total
premiums paid then reduced by any survival benefits already due and payable
under the policy. These Guaranteed Surrender Value factors expressed as
percentages will depend on the policy term and policy year in which the policy is
surrendered and are as specified below:
In addi�on, surrender value of accrued Guaranteed Addi�ons, shall also be
payable, which is equal to the accrued Guaranteed Addi�ons mul�plied by
Guaranteed Surrender Value factor applicable to accrued Guaranteed Addi�ons.
The Guaranteed Surrender Value factors applicable to accrued Guaranteed
Addi�ons expressed as percentages will depend on the policy term and policy
year in which the policy is surrendered and are as specified below:
Policy
Term
14
16
18
20
Guaranteed Surrender value factors applicable to total premium paid
1
0.00%
0.00%
0.00%
0.00%
2
30.00%
30.00%
30.00%
30.00%
3
35.00%
35.00%
35.00%
35.00%
4
50.00%
50.00%
50.00%
50.00%
5
50.00%
50.00%
50.00%
50.00%
6
50.00%
50.00%
50.00%
50.00%
7
50.00%
50.00%
50.00%
50.00%
8
55.00%
53.75%
53.00%
52.50%
9
60.00%
57.50%
56.00%
55.00%
Policy Year
10
65.00%
61.25%
59.00%
57.50%
11
70.00%
65.00%
62.00%
60.00%
12
75.00%
68.75%
65.00%
62.50%
13
90.00%
72.50%
68.00%
65.00%
14
90.00%
76.25%
71.00%
67.50%
15

90.00%
74.00%
70.00%
16

90.00%
77.00%
72.50%
17


90.00%
75.00%
18


90.00%
77.50%
19



90.00%
20



90.00%
10
23.38%
20.85%
19.18%
18.16%
11
25.05%
21.99%
19.93%
18.60%
12
27.06%
23.38%
20.85%
19.18%
13
30.00%
25.05%
21.99%
19.93%
14
35.00%
27.06%
23.38%
20.85%
15

30.00%
25.05%
21.99%
16

35.00%
27.06%
23.38%
17


30.00%
25.05%
18


35.00%
27.06%
19



30.00%
20



35.00%
Policy
Term
14
16
18
20
Guaranteed Surrender value factors applicable to accrued Guaranteed Addi�ons
2
8.85%
8.58%
8.03%
7.22%
3
17.85%
17.58%
17.03%
16.22%
4
18.16%
17.66%
17.58%
16.58%
5
18.60%
17.85%
17.58%
17.03%
6
19.18%
18.16%
17.66%
17.58%
7
19.93%
18.60%
17.85%
17.58%
8
20.85%
19.18%
18.16%
17.66%
9
21.99%
19.93%
18.60%
17.85%
Policy Year
1
0.00%
0.00%
0.00%
0.00%
15. Free look period:
If the Policyholder is not sa�sfied with the “Terms and Condi�ons” of the policy,
the policy may be returned to the Corpora�on within 15 days from the date of
receipt of the policy bond sta�ng the reasons of objec�ons. On receipt of the
same the Corpora�on shall cancel the policy and return the amount of premium
deposited a�er deduc�ng the propor�onate risk premium (for base plan and
rider(s), if any) for the period of cover, expenses incurred on medical
examina�on, special reports, if any and stamp duty charges.
14. Taxes:
Loan can be availed under the policy provided atleast two full years’ premiums
have been paid and subject to the terms and condi�ons as the Corpora�on may
specify from �me to �me.
The maximum loan as a percentage of surrender value shall be as under:
• For inforce policies- upto 90%
• For paid-up policies- upto 80%
The interest rate to be charged for policy loan and as applicable for en�re term of
the loan shall be determined at periodic intervals. The applicable interest rate shall
beas declared by the Corpora�on based on themethodapproved by theIRDAI.
Any loan outstanding along with interest shall be recovered from the survival
benefits or claim proceeds at the �me of exit.
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or
any other cons�tu�onal Tax Authority of India shall be as per the Tax laws and the
rate of tax as applicable from �me to �me.
The amount of applicable taxes, as per the prevailing rates shall be payable by the
policyholder on premiums (for Base Policy and Rider(s), if any) including extra
premiums, if any, which shall be collected separately over and above in addi�on
to the premiums payable by the policyholder. The amount of tax paid shall not be
considered for the calcula�on of benefits payable under the plan.
Regarding Income tax benefits/implica�ons on premium(s) paid and benefits
payable under this plan, please consult your tax advisor for details.
In addi�on to the payable Surrender Value, if the op�on to defer the Survival
Benefit(s) has been exercised and payment of such Survival Benefit(s) which
were due but have not yet been made, these increased Survival Benefit(s) as
specified in Para 5.II above, shall also be paid.
13. Policy Loan:
16. Exclusion:
Suicide: A policy shall be void
i. If the Life Assured (whether sane or insane) commits suicide at any �me
within 12 months from the date of commencement of risk , the Corpora�on
will not entertain any claim under the policy except for 80% of the total
premiums paid, provided the policy is inforce.

ii. If the Life Assured (whether sane or insane) commits suicide within 12
months from date of revival, an amount which is higher of 80% of the total
premiums paid �ll the date of death or the surrender value as available on the
date of death shall be payable. The Corpora�on will not entertain any other
claim under the policy.
This clause shall not be applicable for a policy lapsed without acquiring paid
– up value and nothing shall be payable under such policies.
Note: Premiums referred above shall not include any taxes, extra premiums and
any rider premium(s) other than Term Assurance Rider, if any.
BENEFIT ILLUSTRATION:
Age of life Assured (nearer birthday) 30 Years
Policy Term (Years) 14 Years
Premium Paying Term (Years) 10 Years
Premium payment mode Yearly
Basic Sum Assured ` 10,00,000
Premium (excluding Taxes) ` 1,08,584
Non Guaranteed Benefits
(Loyalty Addi�on)
Total Maturity Benefit
incl of Loyalty Addi�on,
in any
Scenario 1





1,05,000
1,55,000
2,15,000



9,25,000



11,40,000
15,00,000
17,75,000
17,75,000
17,75,000
15,00,000
18,80,000
19,30,000
19,90,000
Total Death Benefit incl of
Loyalty Addi�on, if any
(Amount in Rs)
Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2
End of
Year
Total
Premiums
paid �ll the
end of the
year
Guaranteed Benefits
Survival
Benefit
Sum Assured
on Maturity
Sum Assured
on Death
5
10
12
14
5,42,920
10,85,840
10,85,840
10,85,840

3,00,000
3,00,000




9,25,000
15,00,000
17,75,000
17,75,000
17,75,000
Illustra�on I

Age of life Assured (nearer birthday) 30 Years
Policy Term (Years) 20 Years
Premium Paying Term (Years) 16 Years
Premium payment mode Yearly
Basic Sum Assured ` 10,00,000
Premium (excluding Taxes) ` 70,266
Illustra�on II
End of
Year
Total
Premiums
paid �ll the
end of the
year
Guaranteed Benefits
Survival
Benefit
Sum Assured
on Maturity
Sum Assured
on Death
5
10
15
16
18
20
3,51,330
7,02,660
10,53,990
11,24,256
11,24,256
11,24,256



4,50,000
4,50,000






9,55,000
15,00,000
17,75,000
20,50,000
21,05,000
21,05,000
21,05,000
Non Guaranteed Benefits
(Loyalty Addi�on)
Total Maturity Benefit
incl of Loyalty Addi�on,
in any
Scenario 1







65,000
1,90,000
2,30,000
3,10,000
3,90,000





9,55,000





13,45,000
15,00,000
17,75,000
20,50,000
21,05,000
21,05,000
21,05,000
15,00,000
18,40,000
22,40,000
23,35,000
24,15,000
24,95,000
Total Death Benefit incl of
Loyalty Addi�on, if any
(Amount in Rs)
Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2
Disclaimer:
i) This illustra�on is applicable to a standard (from medical, life style and
occupa�on point of view) life wherein any riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed
benefits with returns based on the future performance are shown for two
different rates of assumed future investment returns.
The provision of Sec�on 45 of the Insurance Act, 1938 shall be as amended from
�me to �me. The simplified version of this provision is as under:
Provisions regarding policy not being called into ques�on in terms of Sec�on 45 of
the Insurance Act, 1938 are as follows:
1. No Policy of Life Insurance shall be called in ques�on on any ground
whatsoever a�er expiry of 3 yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may be called in ques�on
within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in wri�ng to the insured or legal
representa�ve or nominee or assignees of insured, as applicable, men�oning the
ground and materials on which such decision is based.
3. Fraud means any of the following acts commi� ed by insured or by his agent,
with the intent to deceive the insurer or to induce the insurer to issue a life
insurance policy:
a. The sugges�on, as a fact of that which is not true and which the insured
does not believe to be true;
b. The ac�ve concealment of a fact by the insured having knowledge or belief
of the fact;
c. Any other act fi� ed to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent.
4. Mere silence is not fraud unless, depending on circumstances of the case, it is
the duty of the insured or his agent keeping silence to speak or silence is in
itself equivalent to speak.
iii) The Non-Guaranteed benefits in above illustra�on are calculated so that they
are consistent with the Projected Investment Rate of Return assump�on of
4% p.a. (Scenario 1) and 8% p.a. (Scenario 2). In other words, in preparing this
benefit illustra�on, it is assumed that the Projected Investment Rate of Return
that LICI will be able to earn throughout the term of the policy will be 4% p.a.
or 8% p.a., as the case may be. The Projected Investment Rate of Return is not
guaranteed and they are not the upper or lower limits of what you might get
back, as the value of your policy is dependent on a number of factors including
actual future investment performance.
iv) The main objec�ve of the illustra�on is that the client is able to appreciate the
features of the product and the flow of benefits in different circumstances
with some level of qua�fica�on.
SECTION 45 OF THE INSURANCE ACT, 1938:
5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the
Insured / beneficiary can prove that the misstatement was true to the best of
his knowledge and there was no deliberate inten�on to suppress the fact or
that such mis-statement of or suppression of material fact are within the
knowledge of the insurer. Onus of disproving is upon the policyholder, if alive,
or beneficiaries.
6. Life insurance Policy can be called in ques�on within 3 years on the ground
that any statement of or suppression of a fact material to expectancy of life of
the insured was incorrectly made in the proposal or other document basis
which policy was issued or revived or rider issued. For this, the insurer should
communicate in wri�ng to the insured or legal representa�ve or nominee or
assignees of insured, as applicable, men�oning the ground and materials on
which decision to repudiate the policy of life insurance is based.
7. In case repudia�on is on ground of mis-statement and not on fraud, the
premium collected on policy �ll the date of repudia�on shall be paid to the
insured or legal representa�ve or nominee or assignees of insured, within a
period of 90 days from the date of repudia�on.
8. Fact shall not be considered material unless it has a direct bearing on the risk
undertaken by the insurer. The onus is on insurer to show that if the insurer
had been aware of the said fact, no life insurance policy would have been
issued to the insured.
9. The insurer can call for proof of age at any �me if he is en�tled to do so and no
policy shall be deemed to be called in ques�on merely because the terms of
the policy are adjusted on subsequent proof of age of life insured. So, this
Sec�on will not be applicable for ques�oning age or adjustment based on
proof of age submi� ed subsequently.
[Disclaimer: This is not a comprehensive list of Sec�on 45 of the Insurance Act,
1938 and only a simplified version prepared for general informa�on. Policy
Holders are advised to refer to Sec�on 45 of Insurance Act, 1938, for complete and
accurate details. ]
PROHIBITIONOF REBATES (SECTION 41OF THE INSURANCE ACT, 1938):
1. No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or con�nue an insurance in
respect of any kind of risk rela�ng 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
con�nuing a policy accept any rebate, except such rebate as may be allowed
in accordance with the published prospectuses or tables of the insurer.
2. Any person making default in complying with the provisions of this sec�on
shall be liable for a penalty which may extend to ten lakh rupees.