LIC’s JEEVAN TARUN IN CHANDIGARH. It is a Non-linked, Participating, Individual,
Life Assurance savings plan for children which offers an attractive
combination of protection and saving features. This plan is specially
designed to meet the educational and other needs of growing children
through annual Survival Benefit payments from ages 20 to 24 years and
Maturity Benefit at the age of 25 years. It is a flexible plan wherein at
proposal stage the proposer can choose the proportion of Survival
Benefits to be availed during the term of the policy as per the following
four options:
Option Survival Benefit Maturity
Benefit
Option 1 No survival benefit 100% of Sum
Assured
Option 2 5% of Sum Assured every year for 5
years
75% of Sum
Assured
Option 3 10% of Sum Assured every year for
5 years
50% of Sum
Assured
Option 4 15% of Sum Assured every year for
5 years
25% of Sum
Assured
Where, Survival Benefit is the annual payment of a fixed percentage of
Sum Assured (as defined in the table above) every year starting from
policy anniversary coinciding with or following the completion of 20
years of age and thereafter on each of the next 4 policy anniversaries
and Maturity Benefit is a fixed percentage of Sum Assured (as defined
in the table above) along with vested Simple Reversionary Bonuses and
Final Additional Bonus, if any, payable on maturity.
The chosen option shall become a part of the policy contract and no
further change in option shall be allowed. In addition, this plan also takes
care of liquidity needs through its loan facility.
The plan can be purchased by any of the parent or grand parent for a
child aged 0 to 12 years.
1. Benefits:
A. Death Benefit:
On death of the Life Assured during the policy term provided
the policy is in-force i. e. all due premiums have been paid shall
be as under:
On death before the date of commencement of risk:
Refund of premium(s) paid excluding taxes, extra premium and
rider premium, if any, without interest shall be payable.
On death after the date of commencement of risk:
Death Benefit, defined as sum of “Sum Assured on Death”
and vested Simple Reversionary Bonuses and Final Additional
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Bonus, if any, shall be payable.
Where “Sum Assured on Death” is defined as Higher of 7
times of annualized premium or 125% of Sum Assured.
This Death Benefit shall not be less than 105% of the total
premiums paid upto date of death. The premiums mentioned
above exclude taxes, extra premium and rider premium, if any.
B. Survival Benefit:
A fixed percentage of Sum Assured shall be payable on each
policy anniversary coinciding with or immediately following the
completion of 20 years of age and thereafter on each of next
four policy anniversaries. These fixed percentages shall depend
on the Option chosen at the proposal stage and for various
Options the percentages are as given below:
Policy Anniversary
coinciding with/
following completion
of ages
Percentage of Sum Assured to be paid as
Survival Benefit
Option 1 Option 2 Option 3 Option 4
20 to 24 years Nil 5%
each year
10%
each year
15%
each year
Policyholder has to opt for any one of the options above
at the proposal stage only.
C. Maturity Benefit:
On Life Assured surviving the policy term, provided the policy
is in-force, “Sum Assured on Maturity” along with vested Simple
Reversionary Bonuses and Final Additional Bonus, if any, shall be
payable. Where Sum Assured on Maturity as a fixed percentage
of Sum Assured for various Options is as below:
Maturity Age Option 1 Option 2 Option 3 Option 4
25 year 100% 75% 50% 25%
D. Participation in Profits:
The policy shall participate in profits of the Corporation and
shall be entitled to receive Simple Reversionary Bonuses
declared as per the experience of the Corporation, provided
the policy is in-force.
Final Additional Bonus may also be declared under the policy
in the year when the policy results into a claim either by death
or maturity. Final Additional Bonus shall not be payable under
paid-up policies.
The actual allocation to policyholders, out of the surplus
emerging from the actuarial investigation, shall be as approved
by Central Government in accordance with provisions in this
regard under LIC Act, 1956.
2. Eligibility Conditions and Other Restrictions:
a) Minimum Sum Assured : ` 75,000
b) Maximum Sum Assured : No Limit
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(The Sum Assured shall be in multiples of ` 5,000 from
Sum Assured ` 75,000 to ` 100,000 and ` 10,000/- for Sum Assured
above ` 100,000)
c) Minimum Age at entry : [90] days (last birthday)
d) Maximum Age at entry : [12] years (last birthday)
e) Minimum/ Maximum Maturity Age : [25] years (last birthday)
f) Policy Term : [25 – Age at entry] years
g) Premium Paying Term (PPT) : [20 – Age at entry] years
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 one day before the
completion of 2 years from the date commencement of policy or
one day before the policy anniversary coinciding with or immediately
following the completion of 8 years of age, whichever is earlier. For
those aged 8 years or more, risk will commence immediately from
the date of issuance of policy.
Date of vesting:
If the policy is issued on the life of a minor, the policy shall
automatically vest in the Life Assured on the policy anniversary
coinciding with or immediately following the completion of 18 years
of age and shall on such vesting be deemed to be a contract
between the Corporation and the Life Assured.
3. Options available:
I. Rider Benefits:
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 either outstanding Premium Paying Term of the
Base plan 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 after the date of
death till the expiry of rider term shall be waived.
The premium for LIC’s Premium Waiver Benefit Rider shall not
exceed 30% of premiums under the base plan.
For more details on the above rider, refer to the rider brochure
or contact LIC’s nearest Branch Office.
II. Option to take Death Benefit in instalments:
This is an option to receive death benefit in instalments over
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the chosen period of 5 or 10 or 15 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 Death benefits payable
under the policy. The amount opted for by the Policyholder/
Life Assured (ie. Net Claim Amount) can be either in absolute
value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for, subject to
minimum instalment amount for different modes of payments
being as under:
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 proceeds
shall be paid in lumpsum only.
The interest rates applicable for arriving at the instalment
payments under this option shall be as fixed by the
Corporation from time to time.
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.
III. Settlement Option (for Maturity Benefit):
Settlement Option is an option to receive Maturity Benefit in
instalments over the chosen period of 5 or 10 or 15 years
instead of lumpsum amount under an in-force as well as paidup policy. This option can be exercised by the Policyholder
during minority of the Life Assured or by Life Assured aged 18
years and above, for full or part of Maturity proceeds payable
under the policy. The amount opted for by the Policyholder/
Life Assured (ie. Net Claim Amount) can be either in absolute
value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for subject to
minimum instalment amount for different mode of payments
being as under:
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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 proceeds
shall be paid in lumpsum only.
The interest rates applicable for arriving at the instalment
payments under Settlement Option shall be as fixed by the
Corporation from time to time.
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 claim.
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:
i. 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 lump sum amount which
is higher of the following shall be paid and 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).
ii. The interest rate applicable for discounting the future
instalment payments shall be as fixed by the Corporation
from time to time.
iii. 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.
4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or
monthly mode (through NACH or through salary deductions (SSS)
only) over the premium paying term of the policy.
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5. Grace Period
A grace period of 30 days shall be allowed for payment of yearly
or half-yearly or quarterly premiums and 15 days for monthly
premiums from the date of first unpaid premium. During this period,
the policy shall be considered in-force with the risk cover without
any interruption as per the terms of the policy. If the premium is not
paid before the expiry of the days of grace, the Policy lapses.
The above grace period will also apply to rider premiums which are
payable along with premium for base policy.
6. Sample Illustrative Premium :
The sample illustrative annual premiums (in `) under different
Options for Sum Assured of ` 1 lakh for standard lives are as under:
AGE/OPTION 1 2 3 4
0 4390 4488 4586 4684
4 5483 5635 5782 5934
8 7414 7644 7879 8109
12 11045 11432 11819 12211
The above premium is exclusive of taxes.
7. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly mode – NIL
High Sum Assured Rebate (on Premium):
Sum Assured (SA) Rebate (`)
75,000 to 1,90,000 – Nil
2,00,000 to 4,90,000 – 2 per thousand SA
5,00,000 and above – 3 per thousand SA
8. Revival:
If premiums are not paid within the grace period then the
policy will lapse. A lapsed policy can be revived within a period
of 5 consecutive years from the date of first unpaid premium.
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.
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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 discontinued policy shall take effect only after
the same is approved, accepted and revival receipt is issued by the
Corporation.
Revival of rider, if opted for, will be considered along with revival of
the Base Policy and not in isolation.
9. Paid-up Policy :
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 after the expiry of grace period from the date of first unpaid
premium and nothing shall be payable.
If after at least two full years’ premiums have been paid and any
subsequent premiums be not duly paid, the policy shall not be
wholly void, but shall continue as a paid-up policy till the end of the
policy term.
The Sum Assured on Death under the 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, the
vested Simple Reversionary Bonus, if any, shall also be payable on
Life Assured’s death.
The Sum Assured on Maturity under 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 the premiums are
originally payable] less total amount of Survival Benefits already
paid under the policy.
In addition to the Maturity Paid-Up Sum Assured vested Simple
Reversionary Bonuses, if any, shall be payable on the expiry of the
policy term.
The policy so reduced shall thereafter be free from all liabilities for
payment of the premiums, but shall not be entitled to participate in
future profits. However, the vested Simple Reversionary Bonuses
shall remain attached to the reduced paid up policy.
In the case of a paid up policy, no future survival benefits shall be
payable.
Rider shall not acquire any paid-up value and the rider benefit ceases
to apply, if policy is in lapsed condition.
10. Surrender :
The policy can be surrendered at any time provided two full years’
premiums have been paid.
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On surrender of the policy, the Corporation shall pay the 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 during the policy term
shall be equal to the total premiums paid (excluding taxes, extra
premiums and rider premium, if opted for) multiplied by the
Guaranteed Surrender Value factor applicable to total premiums
paid and then reduced by any Survival Benefits already paid 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 specified as below:
Guaranteed Surrender Value factors applicable to Total Premiums Paid
Policy
year Policy Term in years —>
13 14 15 16 17 18 19 20 21 22 23 24 25
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 56.00% 55.00% 54.29% 53.75% 53.33% 53.00% 52.73% 52.50% 52.31% 52.14% 52.00% 51.88% 51.76%
9 62.00% 60.00% 58.57% 57.50% 56.67% 56.00% 55.45% 55.00% 54.62% 54.29% 54.00% 53.75% 53.53%
10 68.00% 65.00% 62.86% 61.25% 60.00% 59.00% 58.18% 57.50% 56.92% 56.43% 56.00% 55.63% 55.29%
11 74.00% 70.00% 67.14% 65.00% 63.33% 62.00% 60.91% 60.00% 59.23% 58.57% 58.00% 57.50% 57.06%
12 90.00% 75.00% 71.43% 68.75% 66.67% 65.00% 63.64% 62.50% 61.54% 60.71% 60.00% 59.38% 58.82%
13 90.00% 90.00% 75.71% 72.50% 70.00% 68.00% 66.36% 65.00% 63.85% 62.86% 62.00% 61.25% 60.59%
14 90.00% 90.00% 76.25% 73.33% 71.00% 69.09% 67.50% 66.15% 65.00% 64.00% 63.13% 62.35%
15 90.00% 90.00% 76.67% 74.00% 71.82% 70.00% 68.46% 67.14% 66.00% 65.00% 64.12%
16 90.00% 90.00% 77.00% 74.55% 72.50% 70.77% 69.29% 68.00% 66.88% 65.88%
17 90.00% 90.00% 77.27% 75.00% 73.08% 71.43% 70.00% 68.75% 67.65%
18 90.00% 90.00% 77.50% 75.38% 73.57% 72.00% 70.63% 69.41%
19 90.00% 90.00% 77.69% 75.71% 74.00% 72.50% 71.18%
20 90.00% 90.00% 77.86% 76.00% 74.38% 72.94%
21 90.00% 90.00% 78.00% 76.25% 74.71%
22 90.00% 90.00% 78.13% 76.47%
23 90.00% 90.00% 78.24%
24 90.00% 90.00%
25 90.00%
In addition, the surrender value of any vested Simple Reversionary
Bonuses, if any, shall also be payable, which is equal to vested
bonuses multiplied by the Guaranteed Surrender Value factor
applicable to vested bonuses. These factors will depend on the
policy term and policy year in which the policy is surrendered and
are as specified below:
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Guaranteed Surrender Value factors applicable to Vested Bonuses
Policy
year Policy Term in years —>
13 14 15 16 17 18 19 20 21 22 23 24 25
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
3 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28%
4 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42%
5 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55%
6 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72%
7 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93%
8 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22%
9 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03% 16.58%
10 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58% 17.03%
11 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58% 17.58%
12 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66% 17.58%
13 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85% 17.66%
14 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85%
15 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16%
16 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60%
17 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18%
18 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93%
19 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85%
20 35.00% 30.00% 27.06% 25.05% 23.38% 21.99%
21 35.00% 30.00% 27.06% 25.05% 23.38%
22 35.00% 30.00% 27.06% 25.05%
23 35.00% 30.00% 27.06%
24 35.00% 30.00%
25 35.00%
11. Policy Loan:
Loan can be availed under the policy provided atleast two full years’
premiums have been paid and subject to the terms and conditions
as the Corporation may specify from time to time.
The maximum loan as a percentage of Surrender Value shall be as
under:
• For in-force policies – upto 90%
• For paid-up policies – upto 80%
The interest rate to be charged for policy loan and as applicable for
entire term of the loan shall be determined at periodic intervals.
The applicable interest rate shall be as declared by the Corporation
based on the method approved by the IRDAI. Any loan outstanding
along with interest shall be recovered from the claim proceeds at
the time of exit.
12. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the
Govt. 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.
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The amount of applicable taxes, as per the prevailing rates, shall be
payable by the policyholder on premium(s) (for Base plan and Rider,
if any) including extra premium, if any which shall be collected
separately over and above in addition to the premium(s) 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.
13. 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 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 plan and
rider, if any) for the period of cover, expenses incurred on medical
examination, special reports, if any, and stamp duty charges.
14. Exclusion: Suicide:
A policy shall be void
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 Corporation will not entertain any claim under the
policy except for 80% of the total premiums paid, 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
or the surrender value available as on the date of death, shall be
payable. The Corporation will not entertain any other claim
under the policy. This clause shall not be applicable:
a) in case the age of the Life Assured is below 8 years at the
time of revival; or
b) 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
premium and any rider premium, if any.
BENEFIT ILLUSTRATION:
Age of Life Assured (nearer birthday) 5
Option 4
Policy Term (years) 20
Premium payment term (years) 15
Premium payment mode yearly
Sum Assured (`) 1,00,000
Premium (excluding Taxes) (`) 6,375
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Benefits available under different scenarios:
(Amount in `)
End of
Year
Total
Premium
Paid till the
end of the
year (`)
Guaranteed Benefit Non Guaranteed
Benefit Total Maturity Benefit
inclusive of Final
Additional Bonus,
if any
Total Death Benefit
inclusive of Final
Additional Bonus,
Survival if any
Benefit
Sum
Assured on
Maturity
Sum
Assured on
Death
(Simple Reversionary
Bonus)
Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2
5 31,875 0 0 1,25,000 2,500 16,000 0 0 1,27,500 1,41,000
10 63,750 0 0 1,25,000 5,000 32,000 0 0 1,30,000 1,57,000
15 95,625 15,000 0 1,25,000 7,500 48,000 0 0 1,32,500 1,73,500
16 95,625 15,000 0 1,25,000 8,000 51,200 0 0 1,33,000 1,76,700
17 95,625 15,000 0 1,25,000 8,500 54,400 0 0 1,33,500 1,80,400
18 95,625 15,000 0 1,25,000 9,000 57,600 0 0 1,34,000 1,84,100
19 95,625 15,000 0 1,25,000 9,500 60,800 0 0 1,34,500 1,87,800
20 95,625 0 25,000 1,25,000 10,000 64,000 35,000 91,500 1,35,000 1,91,500
Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and
occupation point of view) life and wherein rider is 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.
iii) The Non-guaranteed benefits in above illustration are calculated so
that they are consistent with the Projected Investment Rate of Return
assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2). In
other words, in preparing this benefit illustration, 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 objective of the illustration 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 quantification.
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 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.
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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
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.
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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. Policyholders are advised to refer to Section
45 of the 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.