Introduction:
LIC’s New Jeevan Anand Plan In Chandigarh. Itis a Non-linked, Participating, Individual, Life Assurance
plan which offers an attractive combination of protection and savings. This combination
provides financial protection against death throughout the lifetime of the policyholder
with the provision of payment of lumpsum at the end of the selected policy term
in case of his/her survival. This plan also takes care of liquidity needs through its
loan facility.
1. Benefits:
A. Death Benefit:
Provided all due premiums have been paid, the following death benefit shall be paid:
• On Death during the policy term i.e. before the stipulated Date of Maturity:
Death benefit, equal to “Sum Assured on Death” alongwith vested
Simple Reversionary Bonuses and Final Additional bonus, if any, shall be
payable; where, “Sum Assured on Death” is defined as higher of 125% of
Basic Sum Assured or 7 times of annualised premium. This death benefit
shall not be less than 105% of total premiums paid upto date of death.
The premiums mentioned above exclude taxes, extra premium and rider
premium(s), if any.
• On death after expiry of the policy term i.e. from the stipulated Date of Maturity:
Basic Sum Assured shall be payable.
B. Benefits payable at the end of Policy Term (i.e. On Maturity):
On Life Assured surviving to the stipulated Date of Maturity, provided the policy
is in-force, i.e. all due premiums have been paid “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 de clared as per the
experience of the Corporation during policy term 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 by death during the policy term or due for the maturity
benefit provided the policy is in force. 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.
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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 18 years (completed)
d) Maximum Age at entry 50 years (nearer birthday)
e) Maximum Maturity Age 75 years (nearer birthday)
f) Minimum Policy Term 15 years
g) Maximum Policy Term 35 years
Date of commencement of risk under the plan:
Risk will commence immediately on acceptance of the risk
3. Options Available :
I. Rider Benefits:
The following four 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 three 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 under an in-force policy within the policy term
of the Base plan provided the outstanding premium paying term of the base plan as
well as the rider is atleast 5 years, but before the policy anniversary on which the age
nearer birthday of the life assured is 65 years. The benefit cover under this rider shall be
available 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 Sum Assured will be payable in
lumpsum. In case of accidental disability arising due to accident (within 180 days from
the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid
in equal monthly instalments spread over 10 years and future premiums for Accident
Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured 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 under an in-force policy within the policy term
of the Base plan provided the outstanding premium paying term of the base plan as
well as the rider is atleast 5 years, but before the policy anniversary on which the age
nearer birthday of the life assured is 65 years. The benefit cover under this rider shall be
available 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 Sum Assured will be payable in lumpsum.
c. LIC’s New Term Assurance Rider (UIN: 512B210V01)
This rider is available at inception of the policy only. The benefit cover under this rider
shall be available during the policy term. If this rider is opted for, an amount equal to
Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during
the policy term.
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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.
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 Life Assured during his/her life time; for full or part of Death benefits
payable under the policy. The amount opted for by the 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 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 Life Assured 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
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 paid-up policy.
This option can be exercised by the Life Assured, for full or part of Maturity proceeds payable
under the policy. The amount opted for by the 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:
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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 Life Assured, the claim proceeds shall be paid inlumpsum 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 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 Life Assured, 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 Bernefit,
desireto withdraw this option and commute the outstanding instalments, the same
shall be allowed on receipt of ritten 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 totalin
stalments already paid).
b. The interest rates applicable for discounting the future instalment payments shall be as
fixed bythe 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 intervals (through
NACH only) or through salary deductions over the Policy Term.
5. Grace Period

A grace period of 30 days shall be allowed for payment of yearly or halfyearly or quarterly
premiums and 15 days for monthly premiums from the date of First unpaid premium.
During this period, the policy shall be considered inforce with the risk cover without any
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.
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6. Sample Illustrative Premium:
The sample illustrative annual premiums in ` for Basic Sum Assured of `1 Lakh for Standard
lives are as under:
Age Policy Term
15 25 35
20 7,747/- 4,341/- 2,935/-
30 8,080/- 4,581/- 3,165/-
40 8,644/- 5,037/- 3,636/-
50 9,575/- 5,846/-
The above premiumis exclusive of taxes.
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 on Permium:
Basic Sum Assured (B.S.A) Rebate (`)
1, 00,000 to 1, 95,000 – Nil
2, 00,000 to 4, 95,000 – 1.50%o B.S.A.
5, 00,000 and 9, 95,000 – 2.50%o B.S.A.
10, 00,000 and above -3.00%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 but before the end of policy term, 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 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 at modified at revised
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(s), if opted for, will be considered along with revival of the basic 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 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.
During 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 total period for which premiums have already been paid bears to the
maximum period for which premium were originally payable. In addition to the Death PaidUp Sum Assured, vested Simple Reversionary Bonuses, if any, shall also be payable on Life
Assured’s death.
This “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 total period for which premiums have already been paid bears
to the maximum period for which premium 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.
After the expiry of Policy Term:
On death of the Life Assured after expiry of the policy term, Paid-up Sum Assured equal
to Basic Sum Assured 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
shall be paid.
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.
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 factors applicable to total premiums paid (in percentage)
Policy Term
Policy
Year
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%
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%
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%
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%
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%
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%
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%
8 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 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 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 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 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 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% 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:
Guarnteed Surrender Value factors applicable to vested bonuses (in percentage)
Policy Term
Policy
Year
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%
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%
3 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 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 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 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 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 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 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 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 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 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 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 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%
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%
11
12
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 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 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 Base plan and rider(s), if any) for the period on cover, expenses incurred on medical
examination, special reports, if any and stamp duty charge.
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 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 the policy.
This clause shall not be applicable for a policy lapsed without acquiring paid-up value
and nothing shall be payable under such policies.
Note: Premiums referred above shall not include any taxes, extra premiums and any rider
premium(s) other than Term Assurance rider, if any.
13
BENEFIT ILLUSTRATION:
Age of the life assured (Nearer Birthday) 30 Years
Policy Term 35 Years
Premium Payment Mode Yearly
Basic Sum Assured ` 1,00,000
Premium (Excluding Taxes) ` 3,165
Benefits available under different scenarios:
(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
Sum
Assured
on
Maturity
Sum
Assured
on Death
Scenario
1
Scenario
2
Scenario
1
Scenario
2
Scenario
1
Scenario
2
5 15,825 0 1,25,000 2,000 16,000 0 0 1,27,000 1,41,000
10 31,650 0 1,25,000 4,000 32,000 0 0 1,29,000 1,57,000
15 47,475 0 1,25,000 6,000 48,000 0 0 1,31,000 1,73,500
20 63,300 0 1,25,000 8,000 64,000 0 0 1,33,000 1,91,500
25 79,125 0 1,25,000 10,000 80,000 0 0 1,35,000 2,15,000
30 94,950 0 1,25,000 12,000 96,000 0 0 1,37,000 2,45,000
35 1,10,775 1,00,000 1,25,000 14,000 1,12000 114000 256000 1,39,000 2,81,000
36
onwards
1,10,775 0 1,00,000 0 0 0 0 1,00,000 1,00,000
Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and occupation
point of view) life and wherein any riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed
benefits with returns based on the future performance are shown for two different rates of
assumed future investment returns.
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.
14
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;
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
15
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.]