Introduction:
LIC’s New Endowment Plan In Chandigarh. It is a Non-linked, Participating, Individual, Life Assurance plan which
offers an attractive combination of protection and saving features. This combination
provides financial support for the family of the deceased policyholder any time
before maturity and good lump sum amount at the time of maturity for the surviving
policyholders. This plan also takes care of liquidity needs through its loan facility.
1. Benefits:
A. Death Benefit:
Death benefit payable in case of death of the Life assured during the policy term
provided the policy is in-force shall be “Sum Assured on Death” along with vested
Simple Reversionary Bonuses and Final Additional bonus, if any. 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 total premiums paid upto the
date of death. Premiums referred above exclude taxes, extra premium and rider
premium(s) if any.
B. 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 Basic
Sum Assured.
C. 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.
2. Eligibility Conditions and Other Restriction :
a) Minimum Basic Sum Assured ` 100000
b) Maximum Basic Sum Assured No Limit
(The Basic Sum Assured shall be in multiples of ` 5000/-)
c) Minimum Age at entry 8 years (completed)
d) Maximum Age at entry 55 years (nearer birthday)
e) Maximum Maturity Age 75 years (nearer birthday)
f) Minimum Policy Term 12 years
g) Maximum Policy Term 35 years
Date of commencement of risk under the plan:
Risk will commence immediately on acceptance of the risk
Date of vesting under the plan:
The policy shall automatically vest in the Life Assured on the policy anniversary coinciding
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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:
The following five optional riders are available under this plan by payment of additional
premium. However, the policyholder can opt between either of the LIC’s Accidental
Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum
of four riders can be availed under a policy.
a. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
This rider can be opted for at any time within the policy term of the Base plan
provided the outstanding policy term of the base plan is atleast 5 years, but
before the policy anniversary on which the age nearer birthday of the life
assured is 70 years. The benefit cover under this rider shall be available during the
policy term or before the policy anniversary on which the age nearer birthday of
the lifeassured is 70 years, whichever is earlier. If this rider is opted for, in case of
accidental death, the Accident Benefit Rider Sum Assured will be payable as 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 equal monthly instalments spread over 10
years and future premiums for Accident Benefit Sum Assured as well as premiums for
the portion of Sum Assured on Death under the base policy which is equal to Accident
Benefit Sum Assured, shall be waived.
b LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any time within the policy term of the Base plan
provided the outstanding policy term of the base plan is atleast 5 years, but
before the policy anniversary on which the age nearer birthday of the life
assured is 70 years. The benefit cover under this rider shall be available during the
policy term or before the policy anniversary on which the age nearer birthday of
the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of
accidental death, the Accident Benefit Rider Sum Assured will be payable as 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 additional 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: 512A212V01)
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 (as
the Life assured is minor), 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
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the policy wherein the Life Assured is Minor at the time of opting this rider. The Rider term
shall not exceed (25 minus age of the minor Life Assured at the time of opting this rider).
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. 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/LIC’s Accidental Death and Disability
Benefit Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium
under the base plan and the premiums under all other life insurance riders put together
shall not exceed 30% of premiums under the base plan.
Each of above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
For more details on the above riders, refer to the rider brochure or contact LIC’s nearest
Branch Office.
II. 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/-
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 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.
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4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly
mode (through NACH only) or through salary deductions over the term of 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 for Basic Sum Assured of `1 Lakh for Standard lives
are as under:
Amount in (`)
Age / Policy Term
15 25 35
20 6,978/- 3,930/- 2,754/-
30 7,007/- 3,994/- 2,881/-
40 7,139/- 4,239/- 3,249/-
7. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly mode & Salary Deduction – NIL
High Sum Assured Rebate: Basic Sum Assured (B.S.A) Rebate (`)
1, 00,000 to 1, 95,000 – Nil
2, 00,000 to 4, 95,000 – 2%o B.S.A.
5, 00,000 and 9, 95,000 -3%o B.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
and before the date of maturity, as the case may be. The revival shall be effected on payment
of all the arrears of premium(s) together with interest (compounding half yearly) at such
rate as 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 by the Corporation and is specifically communicated
in writing to the Life Assured.
Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and
not in isolation.
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9. Paid-up Value:
If less than two years’ premiums have been paid, 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’ premium 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 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, vested Simple Reversionary Bonuses if any, shall also be payable on Life Assured’s
prior death.
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
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
Maturity Paid-Up Sum Assured, vested simple reversionary bonuses if any, shall also be
payable on the expiry of the policy term.
A paid-up policy shall not be entitled to participate in future profits. However, the
vested simple reversionary bonuses shall remain attached to the reduced paid up policy.
Rider(s) do not acquire any paid-up value and the rider benefits cease 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.
Guaranteed Surrender value payable during the policy term shall be equal to the total
premiums paid (excluding extra premiums, taxes and premiums for riders, if opted for)
multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid.
These Guaranteed Surrender Value factors expressed as percentages will depend on the
policy term and policy year in which the policy is surrendered and are as specified below:
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Guaranteed Surrender Value factor applicable to total premiums paid
Policy Term
Policy
Year
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
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% 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% 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% 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% 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% 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% 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% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 57.50% 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% 51.67% 51.58% 51.50% 51.43% 51.36% 51.30% 51.25% 51.20% 51.15% 51.11%
9 65.00% 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% 53.33% 53.16% 53.00% 52.86% 52.73% 52.61% 52.50% 52.40% 52.31% 52.22%
10 72.50% 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% 55.00% 54.74% 54.50% 54.29% 54.09% 53.91% 53.75% 53.60% 53.46% 53.33%
11 90.00% 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% 56.67% 56.32% 56.00% 55.71% 55.45% 55.22% 55.00% 54.80% 54.62% 54.44%
12 90.00% 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% 58.33% 57.89% 57.50% 57.14% 56.82% 56.52% 56.25% 56.00% 55.77% 55.56%
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% 60.00% 59.47% 59.00% 58.57% 58.18% 57.83% 57.50% 57.20% 56.92% 56.67%
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% 61.67% 61.05% 60.50% 60.00% 59.55% 59.13% 58.75% 58.40% 58.08% 57.78%
15 90.00% 90.00% 76.67% 74.00% 71.82% 70.00% 68.46% 67.14% 66.00% 65.00% 64.12% 63.33% 62.63% 62.00% 61.43% 60.91% 60.43% 60.00% 59.60% 59.23% 58.89%
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16 90.00% 90.00% 77.00% 74.55% 72.50% 70.77% 69.29% 68.00% 66.88% 65.88% 65.00% 64.21% 63.50% 62.86% 62.27% 61.74% 61.25% 60.80% 60.38% 60.00%
17 90.00% 90.00% 77.27% 75.00% 73.08% 71.43% 70.00% 68.75% 67.65% 66.67% 65.79% 65.00% 64.29% 63.64% 63.04% 62.50% 62.00% 61.54% 61.11%
18 90.00% 90.00% 77.50% 75.38% 73.57% 72.00% 70.63% 69.41% 68.33% 67.37% 66.50% 65.71% 65.00% 64.35% 63.75% 63.20% 62.69% 62.22%
19 90.00% 90.00% 77.69% 75.71% 74.00% 72.50% 71.18% 70.00% 68.95% 68.00% 67.14% 66.36% 65.65% 65.00% 64.40% 63.85% 63.33%
20 90.00% 90.00% 77.86% 76.00% 74.38% 72.94% 71.67% 70.53% 69.50% 68.57% 67.73% 66.96% 66.25% 65.60% 65.00% 64.44%
21 90.00% 90.00% 78.00% 76.25% 74.71% 73.33% 72.11% 71.00% 70.00% 69.09% 68.26% 67.50% 66.80% 66.15% 65.56%
22 90.00% 90.00% 78.13% 76.47% 75.00% 73.68% 72.50% 71.43% 70.45% 69.57% 68.75% 68.00% 67.31% 66.67%
23 90.00% 90.00% 78.24% 76.67% 75.26% 74.00% 72.86% 71.82% 70.87% 70.00% 69.20% 68.46% 67.78%
24 90.00% 90.00% 78.33% 76.84% 75.50% 74.29% 73.18% 72.17% 71.25% 70.40% 69.62% 68.89%
25 90.00% 90.00% 78.42% 77.00% 75.71% 74.55% 73.48% 72.50% 71.60% 70.77% 70.00%
26 90.00% 90.00% 78.50% 77.14% 75.91% 74.78% 73.75% 72.80% 71.92% 71.11%
27 90.00% 90.00% 78.57% 77.27% 76.09% 75.00% 74.00% 73.08% 72.22%
28 90.00% 90.00% 78.64% 77.39% 76.25% 75.20% 74.23% 73.33%
29 90.00% 90.00% 78.70% 77.50% 76.40% 75.38% 74.44%
30 90.00% 90.00% 78.75% 77.60% 76.54% 75.56%
31 90.00% 90.00% 78.80% 77.69% 76.67%
32 90.00% 90.00% 78.85% 77.78%
33 90.00% 90.00% 78.89%
34 90.00% 90.00%
35 90.00%
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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:
Guaranteed Surrender Value factors applicable to vested bonuses
Policy Term
Policy
Year
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
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% 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% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
3 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% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06% 10.61% 6.01% 6.01% 3.06% 2.00%
4 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% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06% 10.61% 6.01% 6.01% 3.06%
5 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% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06% 10.61% 6.01% 6.01%
6 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% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06% 10.61% 6.01%
7 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% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06% 10.61%
8 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% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20% 12.06%
9 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% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13% 13.20%
10 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% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94% 14.13%
11 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% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13% 14.94%
12 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% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28% 15.13%
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% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42% 15.28%
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% 17.66% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55% 15.42%
15 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% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72% 15.55%
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16 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% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93% 15.72%
17 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% 17.58% 17.58% 17.03% 16.58% 16.22% 15.93%
18 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% 17.58% 17.58% 17.03% 16.58% 16.22%
19 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% 17.58% 17.58% 17.03% 16.58%
20 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% 17.58% 17.58% 17.03%
21 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% 17.58% 17.58%
22 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% 17.58%
23 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%
24 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16% 17.85%
25 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60% 18.16%
26 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18% 18.60%
27 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93% 19.18%
28 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85% 19.93%
29 35.00% 30.00% 27.06% 25.05% 23.38% 21.99% 20.85%
30 35.00% 30.00% 27.06% 25.05% 23.38% 21.99%
31 35.00% 30.00% 27.06% 25.05% 23.38%
32 35.00% 30.00% 27.06% 25.05%
33 35.00% 30.00% 27.06%
34 35.00% 30.00%
35 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 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.
The amount of applicable taxes as per the prevailing rates, shall be payable by the policyholder
on premiums (for base policy and rider(s), if any) including extra premiums,if any, which
shall be collected separately over and above in addition 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.
13. Free-look period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy
may be returned to 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 basic plan and rider(s), if any) for the period of cover, expenses incurred on
medical examination, special reports, if any and stamp duty charge.
14. Exclusion:
Suicide: – This 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 this policy except for 80% of the total premiums paid, provided the policy
is inforce.
ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from
date of revival, an amount which is higher of 80% of the total premiums paid 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 this policy.
This clause shall not be applicable for a policy lapsed without acquiring paid-up value
and nothing shall be payable under such policies
Note: Premiums referred above shall not include any taxes, extra premiums and any rider
premium(s) other than Term Assurance rider, if any.
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BENEFIT ILLUSTRATION:
Age of the life assured (Nearer Birthday) 30 Years
Policy Term (Years) 35 Years
Premium Payment Mode Yearly
Basic Sum Assured ` 1,00,000
Premium (excluding Taxes) ` 2,881
Benefits available under different scenarios:
(Amount in `)
End
of
Year
Total
Premiums
paid till the
end of the
year
Gauranteed
Benefits
Non
-Gauranteed Benefits
(Simple Reversionary
Bonus)
Total Maturity Benefit
incl of Final Additional
Bonus, if any
Total Death Benefit
incl of Final Additional
Bonus, if any
Sum
Assured
on
Maturity
Sum
Assured
on
Death
Scenario
1
Scenario
2
Scenario
1
Scenario
2
Scenario
1
Scenario
2
5 14,405 – 1,00,000 5,750 15,000 – – 1,05,750 1,15,000
10 28,810 – 1,00,000 11,500 30,000 – – 1,11,500 1,30,000
15 43,215 – 1,00,000 17,250 45,000 – – 1,17,250 1,45,500
20 57,620 – 1,00,000 23,000 60,000 – – 1,23,000 1,62,500
25 72,025 – 1,00,000 28,750 75,000 – – 1,28,750 1,85,000
30 86,430 – 1,00,000 34,500 90,000 – – 1,34,500 2,14,000
35 1,00,835 1,00,000 1,00,000 40,250 1,05,000 1,40,250 2,49,000 1,40,250 2,49,000
Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and occupation
point of view) life wherein any riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed benefits
with returns based on the future performance show two different rates of assumed
future investment returns.
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iii) The Non Guaranteed benefits in above illustration has been given assuming that the death
occurs during the policy year and has been 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 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.
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;
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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
anystatement 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.