LIC’s Dhan Rekha In Chandigarh. It is a Non-Linked, Non-Participating, Individual,
Savings, Life Insurance 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 policyholder during
the policy term. Periodic payments will also be made on survival of
the policyholder at specified durations during the policy term and
guaranteed lumpsum payments to the surviving policyholder at the
time of maturity.This plan also takes care of liquidity needs through
loan facility.
This plan can be purchased Offline through agent /other
intermediaries as well as Online directly through website
www.licindia.in.
1. Benefits payable under an in-force policy :
A. Death Benefit:
Death Benefit payable on death during the policy term
after the date of commencement of risk shall be “Sum
Assured on Death” along with Accrued Guaranteed
Additions.
For Single premium payment, “Sum Assured on Death”
is defined as 125% of Basic Sum Assured.
For Limited premium payment, “Sum Assured on
Death” is defined as the higher of 125% of Basic Sum
Assured or 7 times of annualized premium.
The Death Benefit under Limited Premium payment
shall not be less than 105% of total premiums paid
excluding any extra premium, any rider premium(s), if
any, and taxes as on date of death.
However, in case of minor Life Assured, whose age at entry
is below 8 years, on death before the commencement of
Risk (as specified in Para 2 below), return of premium(s)
paid excluding taxes, any extra amount chargeable
under the policy due to underwriting decision and rider
premium(s), if any, shall be payable.
B. Survival Benefit:
On the life assured surviving to each of the specified duration
during the policy term, provided policy is in-force, a fixed
percentage of Basic Sum Assured shall be payable. The fixed
percentage for various policy terms is as below:
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Policy Term
(in years) Payment of Survival Benefit
20 10% of the Basic Sum Assured at the end of each of
10th and 15th policy year.
30 15% of the Basic Sum Assured at the end of each of
15th, 20th and 25th policy year.
40 20% of the Basic Sum Assured at the end of each of
20th , 25th ,30th and 35th policy year.
C. Maturity Benefit:
On Life Assured surviving the stipulated Date of Maturity
provided the policy is in-force, “Sum Assured on Maturity”
along with accrued Guaranteed Additions, shall be payable.
Where “Sum Assured on Maturity” is equal to Basic Sum
Assured.
D. Guaranteed Additions:
Guaranteed Additions shall be payable, provided the policy
is in-force by payment of due premiums.The Guaranteed
Additions shall accrue at the end of the Policy Year from
the 6th Policy Year to the end of the Policy Term. The rate
of Guaranteed Additions shall increase in steps with the
duration of the policy as specified below:
Policy Duration (in years) Guaranteed Additions
(per ` 1000 Basic Sum Assured)
From 6th to 20th ` 50
From 21st to 30th ` 55
From 31st to 40th ` 60
In case of death under in-force policy, the Guranteed Addition
in the year of death shall be for full policy year.
In case of limited premium policy, if 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.
2. Eligibility Conditions and Other Restrictions:
a) Minimum Basic Sum
Assured
: ` 2,00,000
b) Maximum Basic Sum
Assured
: No limit
(Basic Sum Assured shall be in multiples of ` 25,000/-)
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c) Policy Term : 20 years, 30 years and 40 years
(20 years in case of policies procured
through POSP-LI/CPSC- SPV l)
d) Premium Paying Term :
:
Single Premium: Not Applicable
Limited Premium
10 years for Policy Term 20 years
15 years for Policy Term 30 years
20 years for Policy term 40 years
e) Minimum Age at Entry :
:
:
8 years (Completed) for Policy Term
20 years
3 years (Completed) for Policy Term
30 years
90 days (Completed) for Policy Term
40 years
f) Maximum Age at
Entry
:
:
Single Premium
60 years (Age Nearer Birthday) for
Policy Term 20 years
50 years (Age Nearer Birthday) for
Policy Term 30 years
40 years (Age Nearer Birthday) for
Policy Term 40 years
Limited Premium
55 years (Age Nearer Birthday) for
Policy Term 20 years
45 years (Age Nearer Birthday) for
Policy Term 30 years
35 years (Age Nearer Birthday) for
Policy Term 40 years
(65 years (Age Nearer Birthday)
minus policy term in case of policies
procured through POSP-LI/CPSC-SPV )
g) Minimum Age at
Maturity
:
:
:
28 years (Completed) for Policy Term
20 years
33 years (Completed) for Policy Term
30 years
40 years (Completed) for Policy Term
40 years
h) Maximum Age at
Maturity
:
:
Single Premium: 80 years (Age Nearer
Birthday)
Limited Premium
75 years (Age Nearer Birthday)
(65 years (Age Nearer Birthday) in
case of policies procured through
POSP-LI/CPSC-SPV )
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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.
3. Options available:
I. Rider Benefits:
Riders are available under this plan as detailed below on
payment of additional premium:
i. Single Premium Payment:
Under Single Premium Payment, LIC’s Accidental Death
and Disability Benefit Rider (UIN: 512B209V02) and
LIC’s New Term Assurance Rider (UIN: 512B210V01)
shall be available under this plan and the policyholder
can opt for these riders at the inception only.
ii. Limited Premium Payment:
Under limited premium, the following five optional
riders shall be available under this plan. 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
subject to the eligibility as detailed below.
a) LIC’s Accidental Death and Disability Benefit
Rider (UIN: 512B209V02)
This rider can be opted for under an in-force policy
at any time within the premium paying term of
the Base plan provided the outstanding premium
paying term of the Base plan as well as the Rider
is atleast 5 years but before the policy anniversary
on which the age nearer birthday of the life assured
is 65 years. If this rider is opted for, in case of
accidental death, the Accident Benefit Sum Assured
will be payable in lumpsum along with the death
benefit under the base plan. 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
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equal monthly instalments spread over 10 years
and future premiums for Accident Benefit Sum
Assured as well as premiums for the portion of
Basic Sum Assured under the Base Policy which is
equal to Accident Benefit Sum Assured under the
policy, shall be waived. Under the policy on the life
of minors, this rider will be available from the policy
anniversary following completion of age 18 years
on receipt of specific request.
b) LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any time under an
in-force policy within the premium paying term of
the Base plan provided the outstanding premium
paying term of the Base plan as well as the Rider is
atleast 5 years but before the policy anniversary on
which the age nearer birthday of the life assured is
65 years. The benefit cover under this rider shall be
available only 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 along with the death benefit under the
base plan.
c) LIC’s New Term Assurance Rider (UIN:
512B210V01)
This rider is available at inception 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 Critical Illness Benefit Rider (UIN:
512A212V02)
This rider is available at the inception of the policy
only. The cover under this rider shall be available
during the policy term. If this rider is opted for, on
first diagnosis of any one of the specified 15 Critical
Illnesses covered under this rider, the Critical Illness
Sum Assured shall be payable.
e) LIC’s Premium Waiver 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 time
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 time of opting this
rider. The Rider term shall be outstanding premium
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paying term of the base plan as on date of opting
this rider or (25 minus age of the minor Life Assured
at the time of opting this rider), whichever is lower.
If the rider term plus proposer’s age is more than 70
years, the rider shall not be allowed.
If this rider is opted for, on death of proposer,
payment of premiums in respect of base policy
falling due on and after the date of death till 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 Critical Illness Benefit Rider as applicable
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.
No rider shall be available in case of the policies
procured through POSP-LI/CPSC-SPV .
II. Settlement Option (for Maturity Benefit):
Settlement Option is an option to receive Maturity Benefit
in instalments over a period of 5 years instead of lump sum
amount under an in-force as well as Paid-up policy. This option
can be exercised by the Policyholder during minority of the
Life Assured or by the Life Assured aged 18 years and above,
for full or part of the maturity proceeds payable under the
policy. The amount opted for this option by thePolicyholder/
Life Assured (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 halfyearly or quarterly or monthly intervals, as opted for, subject
to minimum instalment amount for different modes of
payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
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Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the net claim amount is less than the required amount to
provide the minimum instalment amount as per the option
exercised by the Policyholder / Life Assured, the claim
proceed shall be paid in lump sum only.
For all the instalment payment options commencing
during the 12 months’ period from 1st May to 30th April, the
interest rate used to arrive at the amount of each instalment
shall be annual effective rate not lower than 5 year Semiannual G-Sec rate minus 2%; where, the 5 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, 2021 to 30th April, 2022, the applicable interest rate for
the calculation of the instalment amount shall be 3.96% p.a.
effective.
For exercising the settlement option against Maturity Benefit,
the Policyholder /Life Assured shall be required to exercise
option for payment of net claim amount in instalments at
least 3 months before the due date of maturity.
The first payment will be made on the date of maturity and
thereafter, based on the mode of instalment payment opted
for by the policyholder, every month or three months or six
months or annually from the date of maturity, as the case
may be.
After the commencement of Instalment payments under
Settlement Option against Maturity Benefit:
a) If a Life Assured, who has exercised Settlement Option
against Maturity Benefit, desires to withdraw this option
and commute the outstanding instalments, the same
shall be allowed on receipt of written 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 settlement option
was exercised) less (sum of total instalments already
paid);
b) The applicable interest rate that will be used to discount
the future instalment payments shall be annual effective
rate not exceeding 5 year Semi-annual G-Sec rate;
where, the 5 year Semi-annual G-Sec rate shall be as at
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last trading day of previous financial year during which
Settlement Option was commenced.
Accordingly, for the 12 months’ period commencing
from 1st May, 2021 to 30th April, 2022, the maximum
applicable interest rate used for discounting the future
instalments shall be 5.96% p.a. effective.
c) After the Date of Maturity, in case of death of the Life
Assured, who has exercised Settlement Option, the
outstanding instalments will continue to be paid to the
nominee as per the option exercised by the Life Assured
and no alteration whatsoever shall be allowed to be
made by the nominee.
III. Option to take Death Benefit in instalments:
This is an option to receive Death Benefit in instalments over
a chosen period of 5 years instead of lump sum amount
under an in-force as well as paid-up policy. This option can
be exercised by the Policyholder during minority of the Life
Assured or by Life Assured aged 18 years and above, during
his/her life time; for full or part of the Death benefits payable
under the policy. The amount opted by the Policyholder/Life
Assured (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 halfyearly or quarterly or monthly intervals, as opted for, subject
to minimum instalment amount for different modes of
payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the net claim amount is less than the required amount
to provide the minimum instalment amount as per the
option exercised by the Policyholder /Life Assured, the claim
proceed shall be paid in lump sum only.
For all the instalment payment options commencing during
the 12 months’ period from 1st May to 30th April, the interest
rate used to arrive at the amount of each instalment shall be
annual effective rate not lower than the 5 year Semi-annual
G-Sec rate minus 2%; where, the 5 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, 2021 to 30th April, 2022, the applicable interest rate for
the calculation of the instalment amount shall be 3.96% p.a.
effective.
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For exercising option to take Death Benefit in instalments,
the Policyholder during minority of the Life Assured or the
Life Assured, if major, can exercise this option during his/her
lifetime while in currency of the policy, specifying the period
of Instalment payment and net claim amount for which the
option is to be exercised. The death claim amount shall then
be paid to the nominee as per the option exercised by the
Policyholder/Life Assured and no alteration whatsoever shall
be allowed to be made by the nominee.
4. Payment of Premiums:(Applicable in case of Limited Premium
payment policies only)
Premiums can be paid regularly at yearly, half-yearly, quarterly
or monthly intervals (monthly premiums through NACH only) or
through salary deductions.
5. Grace Period 🙁 Applicable in case of Limited Premium payment
policies only)
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.
6. Sample Illustrative Premium:
a) Single Premium: The sample illustrative annual premiums
for Basic Sum Assured of ` 10 lakhs for Standard male lives
(except online) are as under:
(Amount in `)
Age (Nearer Birthday) Single Premium Term
20 30 40
20 717,350 662,150 612,250
30 720,550 670,650 627,000
40 733,050 692,250 659,450
50 761,400 736,600 –
b) Limited Premium: The sample illustrative annual premiums
for Basic Sum Assured of ` 10 lakhs for Standard male lives
(except online) are as under:
(Amount in `)
Age (Nearer Birthday)
Limited Premium
Policy Term (Premium Paying Term)
20 (10) 30 (15) 40 (20)
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20 102,693 72,264 56,290
30 103,232 73,342 57,858
40 105,633 76,527 –
50 112,101 – –
The above premiums are exclusive of taxes.
Premium rates for female lives will be arrived by offsetting
the premium rates applicable for male lives by 2 years.
7. Rebates:
Mode Rebate
Mode Rebate
Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular premium
Quarterly, Monthly (NACH) & Salary
deduction
NIL
High Basic Sum Assured Rebate under Single Premium
Basic Sum Assured (BSA) Rebate on tabular premium
per ` 1000 BSA (`)
2, 00,000 to 4, 75,000 Nil
5, 00,000 to 7, 25,000 5.00
7,50,000 to 9 ,75,000 10.00
10,00,000 and above 15.00
High Basic Sum Assured Rebate under Limited Premium
Basic Sum Assured (BSA) Rebate on tabular premium
per ` 1000 BSA (`)
2, 00,000 to 4,75,000 Nil
5,00,000 to 7,25,000 1.00
7,50,000 to 9,75,000 2.00
10,00,000 and above 3.00
Proposal to be completed under online sales without any
assistance of Agent / intermediary shall be eligible for rebate on
tabular premium at the following rates:
Rebate under Online Sale
Premium Paying Term Rate of rebate (as a percentage
of tabular premium)
Single Premium 2%
Limited Premium – 10 years 7.5%
Limited Premium – 15 years & 20
years
10%
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8. Revival: (Applicable in case of Limited Premium payment
policies only)
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 3% or the yield earned
on the Corporation’s Non-Linked fund plus 1% whichever is
higher. For the 12 months period commencing from 1st May, 2021
to 30th April, 2022, 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.
9. Plan purchased through Point of Sales Person – Life Insurance
(POSP-LI)and CPSC- SPV:
This plan can be purchased through Point of Sales Persons-Life
Insurance (POSP-LI).The eligibility conditions and other terms
and conditions shall be as per the Guidelines, Circulars and
Regulations etc. issued by the IRDAI applicable to POS Plans and
POSP-LI.
Currently, the parameters / Eligibility conditions are as follows:
Maximum Age at Entry: 65 years (Age Nearer Birthday) minus
Policy Term
Maximum Age at Maturity: 65 Years (Age Nearer Birthday)
The maximum allowable Death Sum Assured to each individual
will be decided as per the non-medical limits in accordance with
the Underwriting policy of the Corporation in respect of this plan.
Further, the maximum allowable Death Sum Assured to each
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individual under all policies under Non-Linked, Non-Participating
Endowment category of POS-Life products completed under
both POSP-LI and CPSC-SPV shall be Rs. 25 Lakhs.
No rider shall be available in case of the policies procured
through POSP-LI/CPSC-SPV.
10. Paid-up value:(Applicable in case of Limited Premium payment
policies only)
If less than two full years’ premiums have been paid in respect
of this policy and any subsequent premium be not duly paid, all
the benefits under this policy shall cease after the expiry of grace
period from the date of First Unpaid Premium and nothing shall
be payable.
If, after atleast two full years’ premiums have been paid and any
subsequent premiums be not duly paid, this policy shall not be
wholly void, but shall subsist as a paid-up policy till 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 multiplied by the
ratio of the total period for which premiums have already been
paid bears to the maximum period for which premiums were
originally payable. In addition to the Death Paid-up Sum Assured,
Guaranteed Additions accrued up to the date of First Unpaid
Premium, 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 plus total
amount of Survival Benefits payable under the policy) multiplied
by the ratio of the total period for which premiums have already
been paid bears to the maximum period for which premiums
were originally payable] less total amount of Survival Benefits
already paid under the policy. In addition to the Maturity Paid-up
Sum Assured, the Guaranteed Additions accrued up to the date of
First Unpaid Premium shall also be payable on maturity.
Under a Paid-up policy, accrued Guaranteed shall be payable for
the duration for which the policy was in-force, i.e. for the duration
for which all the premiums have been paid. Hence, under a paidup 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.
11. Surrender:
Under Single Premium payment, the policy can be surrendered
by the Policyholder at any time during the policy term. Under
Limited Premium payment, the policy can be surrendered by the
policyholder at any time during the policy term provided two full
years’ premiums have been paid.
On surrender of the policy, the Corporation shall pay the
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Surrender Value equal to higher of Guaranteed Surrender Value
or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined
by the Corporation from time to time subject to prior approval of
IRDAI.
The Guaranteed Surrender Value payable under the policy shall
be:
Under Single Premium Payment policies:
· During the policy term within the first three policy years: 75%
of the Single Premium
· During the policy term after the third policy year: 90% of the
Single Premium
Single Premium for Base policy referred above shall not include
taxes, rider premium(s) and extra premium, if any
In addition, the surrender value of accrued Guaranteed
Additions, if any, i.e. accrued Guaranteed Additions multiplied
by GSV factor applicable to the accrued Guaranteed Additions
shall also be payable
Under Limited Premium Payment policies:
The Guaranteed Surrender Value payable during the policy term
shall be equal to the total premiums paid (excluding any extra
premium, any premiums for rider(s), if opted for and taxes),
multiplied by the Guaranteed Surrender Value factor applicable
to total premiums paid plus accrued Guaranteed Additions
multiplied by GSV factor applicable to accrued Guaranteed
Additions less survival benefits already paid if any.
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 given below:
Annexure –4 Annexure –5
Guaranteed Surrender Value
factors applicable to total
premiums paid
Guaranteed Surrender
Value factors applicable to
Guaranteed Addition
Policy
Year
Policy Term → Policy
Year
Policy Term →
20 30 40 20 30 40
1 0.00% 0.00% 0.00% 1 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 2 0.00% 0.00% 0.00%
3 35.00% 35.00% 35.00% 3 0.00% 0.00% 0.00%
4 50.00% 50.00% 50.00% 4 0.00% 0.00% 0.00%
5 50.00% 50.00% 50.00% 5 0.00% 0.00% 0.00%
6 50.00% 50.00% 50.00% 6 17.58% 14.94% 1.60%
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7 50.00% 50.00% 50.00% 7 17.58% 15.13% 1.80%
8 52.50% 51.36% 50.94% 8 17.66% 15.28% 2.00%
9 55.00% 52.73% 51.88% 9 17.85% 15.42% 3.06%
10 57.50% 54.09% 52.81% 10 18.16% 15.55% 6.01%
11 60.00% 55.45% 53.75% 11 18.60% 15.72% 6.01%
12 62.50% 56.82% 54.69% 12 19.18% 15.93% 10.61%
13 65.00% 58.18% 55.63% 13 19.93% 16.22% 12.06%
14 67.50% 59.55% 56.56% 14 20.85% 16.58% 13.20%
15 70.00% 60.91% 57.50% 15 21.99% 17.03% 14.13%
16 72.50% 62.27% 58.44% 16 23.38% 17.58% 14.94%
17 75.00% 63.64% 59.38% 17 25.05% 17.58% 15.13%
18 77.50% 65.00% 60.31% 18 27.06% 17.66% 15.28%
19 90.00% 66.36% 61.25% 19 30.00% 17.85% 15.42%
20 90.00% 67.73% 62.19% 20 35.00% 18.16% 15.55%
21 69.09% 63.13% 21 18.60% 15.72%
22 70.45% 64.06% 22 19.18% 15.93%
23 71.82% 65.00% 23 19.93% 16.22%
24 73.18% 65.94% 24 20.85% 16.58%
25 74.55% 66.88% 25 21.99% 17.03%
26 75.91% 67.81% 26 23.38% 17.58%
27 77.27% 68.75% 27 25.05% 17.58%
28 78.64% 69.69% 28 27.06% 17.66%
29 90.00% 70.63% 29 30.00% 17.85%
30 90.00% 71.56% 30 35.00% 18.16%
31 72.50% 31 18.60%
32 73.44% 32 19.18%
33 74.38% 33 19.93%
34 75.31% 34 20.85%
35 76.25% 35 21.99%
36 77.19% 36 23.38%
37 78.13% 37 25.05%
38 79.06% 38 27.06%
39 90.00% 39 30.00%
40 90.00% 40 35.00%
No surrender value will be available on Rider(s), if any.
12. Policy Loan:
Loan can be available under the Policy subject to the following
terms and conditions, within the surrender value of the policy for
16
such amounts and on such further terms and conditions as the
Corporation may fix from time to time:
i. Under Single Premium Payment policies, loan can be availed
at any time during the policy term after three months from
the completion of the policy (i.e. three months from the Date
of issuance of policy) or after expiry of the free-look period,
whichever is later.
Under Limited Premium Payment policies, loan can be
availed provided at least two full years’ premiums have been
paid.
ii. The maximum Loan that can be granted shall be as under :
Under Single Premium payment policies: 75 % of Surrender Value.
Under Limited Premium payment policies:
a. For in-force policies : upto 90% of Surrender Value
b. For paid-up policies : upto 80% of Surrender Value
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 3% (inclusive of a spread
of 2% over G-Sec Rate and loan servicing charge of 1% ) or
the yield earned on the Corporation’s Non-Linked fund plus
100 basis points, whichever is higher. For loan sanctioned
during the 12 months’ period commencing from 1st May,
2021 to 30th April, 2022, the applicable interest rate shall be
9.5% p.a. compounding half-yearly.
Any loan outstanding along with interest shall be recovered
from the claim proceeds at the time of exit.
13. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the
Government of India or any other constitutional Tax Authority of
India shall be as per the Tax laws and the rate of tax as applicable
from time to time.
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 to the premiums payable by
the policyholder. The amount of tax paid shall not be considered
for the calculation of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid
and benefits payable under this plan, please consult your tax
advisor for details.
17
14. Free Look period:
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 (30 days in case of online sale) from the date of receipt of
the policy bond stating the reasons 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 Base Policy and Rider(s), if any) for the period of
cover, charges for medical examination, special reports, if any and
stamp duty charges.
15. Suicide Exclusion:
a) Under Single Premium Payment Policy:
If the Life Assured (whether sane or insane) commits suicide at
any time within 12 months from the date of commencement
of risk, the nominee or beneficiary of the Life Assured shall
be entitled to 80% of the Single Premium paid excluding any
taxes, extra premium and rider premiums other than Term
Assurance Rider, if any. This clause shall not be applicable in
case age at entry of the Life Assured is below 8 years.
b) Under Limited Premium Payment Policy:
i. If the Life Assured (whether sane or insane) commits
suicide at any time within 12 months from the date of
commencement of risk, the nominee or beneficiary of
the Life Assured shall be entitled to 80% of the total
premiums paid excluding any taxes, extra premium
and rider premiums other than Term Assurance Rider, if
any, provided the policy is in-force. This clause shall not
be applicable in case age at entry of the Life Assured is
below 8 years.
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 till the
date of death (excluding any taxes, extra premium and
rider premiums other than term assurance rider, if any),
or the surrender value available as on the date of death,
shall be payable. The nominee or beneficiary of the Life
Assured shall not be entitled to any other claim under
this policy.
This clause shall not be applicable:
• In case the age of the life assured is below 8 years at
the time of revival; or
• For a policy lapsed without acquiring paid-up value
and nothing shall be payable under such policies.
16. Waiting Period:
In case the Plan is purchased through Point of Sales Persons-Life
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Insurance (POSP-LI), on death of the Life Assured within the first
90 days from the date of commencement of risk, the Corporation
shall refund the total premiums paid, provided death is not on
account of an accident. However, in case of death due to accident
during waiting period “Sum Assured on Death” shall be payable.
This clause shall not be applicable in case age at entry of the Life
Assured is below 8 years.
BENEFIT ILLUSTRATION:
Single Premium:
Age 30 GST Rate (1st Year): 4.50%
Policy Term 30 GST Rate (2nd Year
onwards):
Not
Applicable
Premium Payment
Term — Basic Sum Assured ` 10,00,000
Amount of Single
Premium 6,70,650 Sum Assured on
Death ` 12,50,000
Mode of payment
of premium Single Gender Male
Policy Year
(End of
the year)
Single*
Premium
Guaranteed Benefits
Survival
Benefit
Guaranteed
Additions
Maturity
Benefit
Death
Benefit
Minimum**
Guaranteed
Surrender
Benefit
1 670,650 0 0 0 1,250,000 502,988
2 0 0 0 0 1,250,000 502,988
3 0 0 0 0 1,250,000 502,988
4 0 0 0 0 1,250,000 603,585
5 0 0 0 0 1,250,000 603,585
6 0 0 50,000 0 1,300,000 611,055
7 0 0 100,000 0 1,350,000 618,715
8 0 0 150,000 0 1,400,000 626,505
9 0 0 200,000 0 1,450,000 634,425
10 0 0 250,000 0 1,500,000 642,460
11 0 0 300,000 0 1,550,000 650,745
12 0 0 350,000 0 1,600,000 659,340
13 0 0 400,000 0 1,650,000 668,465
14 0 0 450,000 0 1,700,000 678,195
15 0 150,000 500,000 0 1,750,000 688,735
16 0 0 550,000 0 1,800,000 550,275
17 0 0 600,000 0 1,850,000 559,065
18 0 0 650,000 0 1,900,000 568,375
19 0 0 700,000 0 1,950,000 578,535
20 0 150,000 750,000 0 2,000,000 589,785
21 0 0 805,000 0 2,055,000 453,315
22 0 0 860,000 0 2,110,000 468,533
23 0 0 915,000 0 2,165,000 485,945
24 0 0 970,000 0 2,220,000 505,830
25 0 150,000 1,025,000 0 2,275,000 528,983
26 0 0 1,080,000 0 2,330,000 406,089
19
27 0 0 1,135,000 0 2,385,000 437,903
28 0 0 1,190,000 0 2,440,000 475,599
29 0 0 1,245,000 0 2,495,000 527,085
30 0 0 1,300,000 2,300,000 2,550,000 608,585
Notes:
1. The main objective of the illustration is that the client is able to
appreciate the features of the product and the flow of the benefit
with some level of quantification.
2. This illustration is applicable to a standard (from medical, life style
and occupation point of view) life and wherein Rider is not opted
for.
3. In any case the total death benefit at any time shall not be less
than 125% of the Single Premium paid (excluding GST, extra
premium and rider premiums, if any).
4. The above illustration is applicable for policies procured through
any of the distribution channels other than Online sale.
*Single Premium excludes underwriting extra premium, the
premiums paid towards the riders, if any, and Goods & Service
Tax. Refer Sales literature for explanation of terms used in this
illustration.
**Special surrender value may however be payable, if it is more
favorable to the Policyholder. Special Surrender Value is subject
to revision from time to time only after prior approval of the
Regulator.
Limited Premium:
Age 30 GST Rate (1st Year): 4.50%
Policy Term 30 GST Rate (2nd Year
onwards): 2.25%
Premium Payment
Term 15 Basic Sum Assured ` 10,00,000
Amount of
Instalment
Premium
73,342 Sum Assured on
Death ` 12,50,000
Mode of payment
of premium Yearly Gender Male
Policy Year
(End of
the year)
Annualized*
Premium
(Cumulative)
Guaranteed Benefits
Survival
Benefit
Guaranteed
Additions
Maturity
Benefit
Death
Benefit
Minimum**
Guaranteed
Surrender
Benefit
1 73,342 0 0 0 1,250,000 0
2 146,684 0 0 0 1,250,000 44,005
3 220,026 0 0 0 1,250,000 77,009
20
4 293,368 0 0 0 1,250,000 146,684
5 366,710 0 0 0 1,250,000 183,355
6 440,052 0 50,000 0 1,300,000 227,496
7 513,394 0 100,000 0 1,350,000 271,827
8 586,736 0 150,000 0 1,400,000 324,268
9 660,078 0 200,000 0 1,450,000 378,899
10 733,420 0 250,000 0 1,500,000 435,582
11 806,762 0 300,000 0 1,550,000 494,510
12 880,104 0 350,000 0 1,600,000 555,830
13 953,446 0 400,000 0 1,650,000 619,595
14 1,026,788 0 450,000 0 1,700,000 686,062
15 1,100,130 150,000 500,000 0 1,750,000 755,239
16 1,100,130 0 550,000 0 1,800,000 631,741
17 1,100,130 0 600,000 0 1,850,000 655,603
18 1,100,130 0 650,000 0 1,900,000 679,875
19 1,100,130 0 700,000 0 1,950,000 704,996
20 1,100,130 150,000 750,000 0 2,000,000 731,318
21 1,100,130 0 805,000 0 2,055,000 609,810
22 1,100,130 0 860,000 0 2,110,000 639,990
23 1,100,130 0 915,000 0 2,165,000 672,473
24 1,100,130 0 970,000 0 2,220,000 707,320
25 1,100,130 150,000 1,025,000 0 2,275,000 745,544
26 1,100,130 0 1,080,000 0 2,330,000 637,613
27 1,100,130 0 1,135,000 0 2,385,000 684,388
28 1,100,130 0 1,190,000 0 2,440,000 737,156
29 1,100,130 0 1,245,000 0 2,495,000 913,617
30 1,100,130 0 1,300,000 2,300,000 2,550,000 995,117
Notes:
1. The main objective of the illustration is that the client is able to
appreciate the features of the product and the flow of the benefit
with some level of quantification.
2. This illustration is applicable to a standard (from medical, life style
and occupation point of view) life and wherein Rider is not opted
for.3.In any case the total death benefit at any time shall not be
less than 105% of the total premiums paid (excluding GST, extra
premium and rider premiums, if any).
3. In any case the total death benefit at any time shall not be less
than 105% of the total premiums paid (excluding GST, extra
premium and rider premiums, if any).
4. The above illustration is applicable for policies procured through
any of the distribution channels other than Online sale.
*Annualized Premium excludes underwriting extra premium,
frequency loadings on premiums, the premiums paid towards
the riders, if any, and Goods & Service Tax. Refer Sales literature
for explanation of terms used in this illustration.
**Special surrender value may however be payable, if it is more
favorable to the Policyholder. Special Surrender Value is subject
to revision from time to time only after prior approval of the
Regulator.
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SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 shall be as
amended from time to time. The simplified version of this provision
is as under:
Provisions regarding policy not being called into question in terms of
Section 45 of the Insurance Act, 1938 are as follows:
1. No Policy of Life Insurance shall be called in question on any
ground whatsoever after expiry of 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.
2. On the ground of fraud, a policy of Life Insurance may be called in
question 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 writing to the insured
or legal representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on which such
decision is based.
3. Fraud means any of the following acts committed 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 suggestion, as a fact of that which is not true and which
the insured does not believe to be true;
b. The active concealment of a fact by the insured having
knowledge or belief of the fact;
c. Any other act fitted 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.
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
intention to suppress the fact or that such mis-statement of or
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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 question 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 writing to the insured or legal representative or nominee
or assignees of insured, as applicable, mentioning the ground
and materials on which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and not on
fraud, the premium collected on policy till the date of repudiation
shall be paid to the insured or legal representative or nominee or
assignees of insured, within a period of 90 days from the date of
repudiation.
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 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
of age of life insured. So, this Section will not be applicable for
questioning age or adjustment based on proof of age submitted
subsequently.
[Disclaimer: This is not a comprehensive list of Section 45 of the
Insurance Act, 1938 and only a simplified version prepared for
general information. Policy Holders are advised to refer to Section
45 of Insurance Act, 1938, for complete and accurate details. ]
PROHIBITION OF REBATES (SECTION 41 OF 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 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.
2. Any person making default in complying with the provisions of
this section shall be liable for a penalty which may extend to ten
lakh rupees.