LIC’s New Children’s Money Back Plan In Chandigarh. It is a Non-linked ,Participating,
Individual, Life Assurance money back plan. This plan is specially designed
to meet the educational, marriage and other needs of growing children
through Survival Benefits. In addition, it provides for the risk cover on
the life of child during the policy term and for number of survival benefits
on surviving to the end of the specified durations.
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:
An amount equal to the total amount of premium/s paid
excluding taxes, extra premium and rider premium, if any, shall
be payable
On death after the date of commencement of risk:
Death Benefit, defined as sum of “Sum Assured on Death”
along with vested Simple Reversionary Bonuses and Final
Additional Bonus, if any, shall be payable.
Where “Sum Assured on Death” is defined as Higher of
Basic Sum Assured or 7 times of annualized premium.
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:
On the Life Assured surviving on each of the policy anniversary
coinciding with or immediately following the completion of
ages 18 years, 20 years and 22 years, 20% of the Basic Sum
Assured on each occasion shall be payable, provided the policy
is in -force.
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 is equal to
40% of the Basic Sum Assured.
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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 Restriction:
a) Minimum Basic Sum Assured : ` 100,000
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of ` 10,000/-)
c) Minimum Age at entry for Life Assured : [0] years
(last birthday)
d) Maximum Age at entry for Life Assured : [12] years
(last birthday)
e) Minimum/ Maximum Maturity Age for : [25] years
Life Assured (last birthday)
f) Policy Term/Premium Paying Term : [25 – Age at entry]
years
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than 8 years (last
birthday), the risk under this plan will commence either one day
before the completion of 2 years from the date of 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 under the plan:
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:
a) Option to defer the Survival Benefit(s):
The policyholder will have option to take the Survival Benefit(s)
at any time on or after its due date but during the currency of
the policy. In case of deferment of a due Survival Benefit (s)
opted by the policyholder, the Corporation will pay increased
Survival Benefit (s) equal to
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Survival Benefits % * Sum Assured * (Factor applicable to
Survival Benefit (s))
These factors are enclosed as Annexure I.
This option shall be required to be intimated in writing by the
policyholder six months before the due date of the Survival
Benefit to the servicing branch of policy.
b) 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
(25 minus age of the minor Life Assured) at the time of opting
this rider. 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 or 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.
Benefits arising under this Rider shall not exceed the Basic Sum
Assured under the Base Plan.
For more details on the above rider, refer to the rider brochure
or contact LIC’s nearest Branch Office.
c) Option to take Death Benefit in instalments:
This is an option to receive death benefit in instalments over
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/-
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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.
d) 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 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 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
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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:
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 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).
b. The interest rates applicable for discounting the future
instalment payments shall be as fixed by the Corporation from
time to time.
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.
4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or
monthly mode (through NACH or through salary deduction (SSS)
only) over the premium paying term of the policy
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 under different options for
Sum Assured of ` 1 Lakh for Standard lives are as under:
Age (in years) Premium (in `)
0 4327.00
5 5586.00
10 7899.00
12 9202.00
The above premium is exclusive of taxes.
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7. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly (NACH or SSS) mode – NIL
High Sum Assured Rebate (on Premium):
Sum Assured (S.A) Rebate (`)
1,00,000 to 1,90,000 Nil
2,00,000 to 4,90,000 2 per thousand S.A.
5,00,000 and above 3 per thousand S.A.
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.
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.
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The Sum Assured on Maturity under the 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 were originally
payable] then duly reduced by total amount of survival benefits
already paid under the policy (including Survival Benefit which were
deferred)
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 Survival Benefits having already been incorporated in the
calculation of Maturity Paid-up Sum Assured, future Survival
Benefits shall not be payable separately. However, if the option 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 3a above shall also be payable on
termination of policy in the form of death or maturity or surrender.
A paid-up policy shall not be entitled to participate in future profits.
However, the vested Simple Reversionary Bonuses shall remain
attached to the paid up policy.
In case of a paid-up policy, no survival benefit shall be payable.
Rider shall not acquire any paid-up value and the rider benefits
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.
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 any extra
premiums, taxes and premium for rider, if opted for), multiplied
by the Guaranteed Surrender Value factor applicable to total
premiums paid and then reduced by any Survival Benefits already
paid (including Survival Benefits already deferred) 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:
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Guaranteed Surrender Value factors applicable to Total Premiums Paid (in percentage)
Duration
(in years) Policy Term
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 Guaranteed Surrender factors wwill depend on the policy
term and policy year in which policy is surrendered and are as specified below:
Guaranteed Surrender Value factors applicable to Vested Bonuses (in percentage)
Duration
(in years) Policy Term
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%
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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 allowed under the policy, as a percentage of
Surrender Value, shall be as under:
· For in-force policies – upto 90%
· For paid-up policies – upto 80%
The interest rate to be charged for policy loan and as applicable for
entire term of the loan shall be determined at periodic intervals.
The 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
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 premium(s) for Base Plan and Rider,
if any, including extra premiums, 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
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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 rider premium, if any.
BENEFIT ILLUSTRATION:
Age of Life Assured 12 Years (Last birthday)
Policy term 13
Premium Payment Mode Yearly
Basic Sum Assured (`) 100000.00
Premium (Excluding Taxes) ` 9202.00
(Amount in `)
End of
year
Total
Premiums
paid till
the end of
the year
Guaranteed Benefits
Non Guaranteed
Benefits (Simple
Reversionary Bonus)
Total Maturity Benefit
incl of Final Additional
Bonus, if any
Total Death Benefit
incl of Final Additional
Bonus, if any
Survival
Benefit
Sum
Assured
on Death
Sum
Assured
on
Maturity
Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 9202 0 100000 0 800 2700 0 0 100800 102700
2 18404 0 100000 0 1600 5400 0 0 101600 105400
3 27606 0 100000 0 2400 8100 0 0 102400 108100
4 36808 0 100000 0 3200 10800 0 0 103200 110800
5 46010 0 100000 0 4000 13500 0 0 104000 113500
6 55212 20000 100000 0 4800 16200 0 0 104800 116200
7 64414 0 100000 0 5600 18900 0 0 105600 118900
8 73616 20000 100000 0 6400 21600 0 0 106400 121600
9 82818 0 100000 0 7200 24300 0 0 107200 124300
10 92020 20000 100000 0 8000 27000 0 0 108000 127000
11 101222 0 100000 0 8800 29700 0 0 108800 129700
12 110424 0 100000 0 9600 32400 0 0 115945 132400
13 119626 0 100000 40000 10400 35100 50400 75100 125607 135100
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Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and
occupation point of view) life. and wherein any 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.
v) The amount shown under Survival Benefit and Sum Assured on Maturity
are payable on Survival at the end of the Specified year.
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.
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.
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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.
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.]
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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.
This product brochure gives only salient features of the plan.
For further details please refer to the Policy document on our
website www.licindia.in or contact our nearest Branch Office.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS /
FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance policies,
announcing bonus or investment of premiums. Public receiving such
phone calls are requested to lodge a police complaint.
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Factor to be applied to deferred Survival Benefit Amount
n Factor n Factor
1 1.00450 43 1.19350
2 1.00900 44 1.19800
3 1.01350 45 1.20250
4 1.01800 46 1.20700
5 1.02250 47 1.21150
6 1.02700 48 1.21600
7 1.03150 49 1.22050
8 1.03600 50 1.22500
9 1.04050 51 1.22950
10 1.04500 52 1.23400
11 1.04950 53 1.23850
12 1.05400 54 1.24300
13 1.05850 55 1.24750
14 1.06300 56 1.25200
15 1.06750 57 1.25650
16 1.07200 58 1.26100
17 1.07650 59 1.26550
18 1.08100 60 1.27000
19 1.08550 61 1.27450
20 1.09000 62 1.27900
21 1.09450 63 1.28350
22 1.09900 64 1.28800
23 1.10350 65 1.29250
24 1.10800 66 1.29700
25 1.11250 67 1.30150
26 1.11700 68 1.30600
27 1.12150 69 1.31050
28 1.12600 70 1.31500
29 1.13050 71 1.31950
30 1.13500 72 1.32400
31 1.13950 73 1.32850
32 1.14400 74 1.33300
33 1.14850 75 1.33750
34 1.15300 76 1.34200
35 1.15750 77 1.34650
36 1.16200 78 1.35100
37 1.16650 79 1.35550
38 1.17100 80 1.36000
39 1.17550 81 1.36450
40 1.18000 82 1.36900
41 1.18450 83 1.37350
42 1.18900 84 1.37800
Where n = Number of completed months from the due date of
Survival Benefit to the Actual Date of Survival Benefit payment on or
before the Date of Maturity