Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

by Ramsharan Kumar | Jun 25, 2020 | Life Insurance

LIC’s New Jeevan Anand Plan

Post Views: 5,205

LIC New Jeevan Anand Plan No. 915 – is a participating, non-linked, traditional savings cum insurance cover scheme. LIC New Jeevan Anand policy has an average premium, high bonus rate, and great features. The scheme presents an attractive combination of security and savings. This combination provides financial protection against death for the life of the policyholder, with the provision of Lumpsum payment at the end of the selected policy term in the event of survival. Risk coverage under LIC New Jeevan Anand Plan continues even after the policy term and the death benefit is paid even if the insured dies after the completion of the policy term. The scheme also takes care of liquidity needs through its loan facility. LIC New Jeevan Anand Plan is also a whole life plan with guaranteed returns and protection as it is not a market-based plan. LIC New Jeevan Anand is a Double Death Benefit Plan if the life insured survives until the end of the policy term. Here is everything you want to know.

Plan No.	915
Launch Dated	1 Feb 2020

Why we need such a Jeevan Anand policy?

You must be aware of the slogan “Jeendgi ke saath bhi aur Jeendgi ke baad bhi” what does it mean? Have you ever think of it? I am sure your answer is NO. Don’t worry; we just try to bring out some salient features.

No doubt, this is LIC’s New Jeevan Anand is an Endowment cum Whole Life Policy. The main attraction of this policy is:

DAB — Double Accident Benefit
Average Premium with High Return
High Bonus — Being public sector LIC is known for its brand, reliability, and credibility. You may check its settlement ratio as per the IRDAI report.
High Liquidity — This is the best of its kind plan that you can avail loan facility during and after policy term.
Death Benefit after Policy Maturity is only Sum Assured.
Death Benefit before Policy Maturity is Sum Assured+Bonus.
Rebates in premiums are also available for high sum assured and premium paying mode.
Tax exemption on the premium paid under Section 80C and the claim amounts under Section 10(10D) of the Income Tax Act, 1961.

In this plan, the Life Insured receives the Sum Assured + Bonus as Maturity Benefit but the life cover chosen continues till his death. Again an additional Sum Assured is paid whenever the Life Insured dies. Thus, this plan is both an endowment plan and a whole life plan.

However, if the life insured dies before the completion of premium paying term, i.e. within the policy tenure, the entire Sum Assured along with accrued bonus is paid to the nominee and the policy would terminate.

There is also an additional Accidental Death and Disability Benefit is payable till 70 years of age of the life insured.

What is the greatness of this Jeevan Anand plan?

This plan is an endowment cum whole life plan
Maturity Benefit is Sum Assured + accrued Bonus and the Life Cover continues till death
Death Benefit after Policy Maturity is only Sum Assured
Death Benefit before Policy Maturity is Sum Assured + accrued Bonus
Simple Revisionary Bonus is payable on maturity or earlier death.
Accidental Death and Disability Benefit is an inbuilt feature in this plan
Optional higher cover through 1 additional rider of Critical Illness Benefit.
This plan can be provided to people with hazardous occupations with an additional premium.
Large Sum Assured rebate is also provided

What we would get if we go for Jeevan Anand plan?

Tax Deduction Benefit — One can take benefit of Tax Deduction for the premium paid under u/s 80(C).
Maturity Benefit — If one survives till the policy term then he/she deserves for maturity benefit. For example, the maturity amount is calculated as (Sum Assured + Accrued Bonus + Final Addition Bonus)
Income Tax Benefit — Premiums paid under the life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under section 10 (10D).
Death Benefit — In case of death of the Life Insured
Before the end of the Policy Term, the Sum Assured + accrued Bonus is paid
After the Policy Term, Sum Assured is paid as Death Benefit whenever the Life Insured dies.
Peace of Mind — If you have taken this policy then you can do whatever you wish throughout the policy term and after the term too. No fear, what will happen in your absence? How things will be managed in your absence?

What are the Benefits of this Jeevan Anand plan?

Death Benefit:

If the insured dies within the policy term, the Sum Assured and accumulated bonuses are paid to the nominee.

125% of the Basic Sum Assured as per policy terms, or
10 times of the annualized premium, or
Minimum 105% of the total premiums payable as on the date of death, whichever is higher.

If the policyholder dies after the completion of the policy term while Maturity Benefit has already been paid, the Basic Sum Assured is then paid to the nominee and the plan terminates.

Maturity Benefit: In case the policyholder survives the entire policy tenure then, Basic Sum Assured + Accumulated Bonuses is paid to the insured as a maturity benefit after the completion of the policy term.

Rebate:

50%-3% if the Sum Assured is Rs. 2 lakhs and above.
2% for yearly mode.
1% for half-yearly mode.
None for quarterly mode.

Loans: After 3 years policyholders can avail loan facilities. It depends upon the Surrender Value acquired by the policy.

Revival: Lapsed policy can be revived within 2 years from the date of 1st unpaid premium by paying the entire premium with interest and other expenses.

Surrender Value: Policyholder can surrender the policy at any time after 3 years and avail the Surrender Value which is calculated as:

Guaranteed Surrender Value=30% of Total Premiums Paid–Premium of the 1st Year.
The corporation can also fix a particular Surrender Value based on its future performance.

Premium Payment Flexibility: Policyholders can pay the premium monthly/quarterly/bi-annually/annually.

Additional Riders Benefit:

Accidental Death Benefit Rider
Disability Benefit Rider

Premium Discounts: In case of higher Sum Assured and yearly or half-yearly premium paying mode.

Income Tax Benefit:

Premiums: The premiums paid for the plan are exempt from taxation under Section 80C up to 1.5 lakhs.

Claim Amount: Maturity or Death Claim is also tax-free under Section 10(10D) with no limit.

How this plan does works?

The policyholder selects a Sum Assured and Tenure as per the age that will determine the premium of the plan. In this plan, the policyholder has to pay premiums until the policy term.

If the policyholder survives till the policy term then he/she is eligible for Maturity Benefit that is calculated as:

Maturity benefit=Sum Assured + Bonus + if any Final Addition Bonus is declared

If the policyholder dies after the policy term, the nominee will get an additional Sum Assured amount as the Death Benefit.
If the policyholder dies within the policy term then the Death Benefit is calculated as:

Death Benefit = Sum Assured + Vested Bonus + if any Final Additional Bonus is declared

The Sum Assured on Death will be higher — 125% of the Basic Sum Assured or 10 times the annual premiums paid subject to a minimum of 105% of total premiums paid till death.

What are the Eligibility conditions and restrictions in this Jeevan Anand plan?


	Minimum	Maximum
Sum Assured (in Rs.)	1,00,000	No Limit
Policy Term (in years)	15	35
Premium Payment Term (in years)	5	57
Entry Age of Policyholder (last birthday)	18 years	50 years
Age at Maturity (last birthday)	-	75
Payment Modes	Yearly, Half-yearly, Quarterly, Monthly

What are the Paid-up Value and Surrender Value in this plan?

Paid-up Value — If the policyholder has paid the 1^st 3 years’ premiums and does not pay future premiums then the policy becomes a paid-up policy. Consequently, the Basic Sum Assured is reduced in proportion. Future bonuses are not added and on death or maturity, the reduced Sum Assured along with the vested bonuses is paid.

Surrender Value — If the policyholder wants to surrender the policy and avail the Surrender Value then the policy acquires a Surrender Value only if the 1st 3 years’ premiums have been paid.

Higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is paid. GSV and SSV are calculated as:

GSV = (total premiums paid* GSV Factor) + (vested bonus * GSV factor of Bonus)
SSV is declared by the company based on its performance.

Free-look Period — If the policyholder is not happy with the policy then he/she can cancel the policy within 15 days of the issuance. This period is called the free-look period. Upon cancellation, the premium paid after the deduction of expenses.

What are the Exclusions in this Jeevan Anand plan?

If the policyholder commits suicide within 12 months of policy inception then only 80% of the premium paid is returned.
If the policyholder commits suicide within 12 months of policy revival then higher of 80% of the premium paid or the Surrender Value is paid.

What is the document’s requirement to buy this New Jeevan Anand plan?

The plan is an offline plan which can be bought only through the agents or brokers. The following documents are required to buy this plan:

Proposal/Application Form duly filled and signed with the required information
Cheque or Cash for the 1st Premium Amount
Identity Proof — PAN Card/Aadhaar Card/Passport/Voter ID Card/Driving License
Address Proof — Aadhaar Card/Passport/Voter ID card/Driving License/Bank Account Statement/Electricity Bill/Telephone Bill/Passport
Age Proof: Birth Certificate/ School Certificate/ Passport /Driving License etc
Income Proof: Salary Slip/Certificate/IT Return
Medical Reports, if needed

Additional Details

Simple Revisionary Bonuses

This is a participating plan. LIC declares bonus as per thousand Sum Assured annually. Once declared, it forms a part of the guaranteed benefits. Bonuses and Final (Additional) Bonus will be added during the term when the policy is in force or till death if it occurs earlier.

Grace Period

The policyholder gets a grace period of 30 days to pay the due premium. In case of non-payment, the policy can lapse.

Cancellation

The policyholder gets an option of free cancellation under which he can cancel his plan within 15 days of commencement.

Surrender Value

After 3 years, the policyholder can surrender the policy.

How to make a maturity or surrender claim?

The policyholder has to fill and sign the claim discharge form and submit it to the insurer.

In case of surrender, the policyholder has to intimate the LIC in writing to get the surrender value.

How to make a death claim?

The nominee has to fill up the claim discharge form and submit it to LIC with the following documents:

Original Policy Bond
NEFT Mandate Form
Nominee’s Identity Proof
Death Certificate
Medical Report
FIR, Newspaper cutting indicating the accident, copy of driving license in case of a road accident, postmortem report, etc.

Read to know more about this – LIC New Jeevan Anand: रोजाना 80 रुपये के निवेश पर पा सकते हैं 50 लाख, जानें क्या है ये पूरी पॉलिसी।

Also, read this – Why is LIC’s New Endowment Plan the Best Choice for Young People?

Plan Illustration

New Jeevan Anand Plan Illustration (1)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQs on LIC’s Jeevan Anand Plan

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How much bonus is declared under the plan?

It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.

Is it possible to date back the policy?

Yes, it can be dated back within the same financial year with additional charges.

What type of bonus is declared under the policy?

The plan pays simple reversionary bonuses for every year till the policy is in force. In case of death during the policy term or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.

Does the plan provide a loan facility?

Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.

Are there any rebates on the premium?

Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?

Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.

Why is LIC’s New Children’s Money Back Plan Boon for Children?

by Ramsharan Kumar | Jun 10, 2020 | Children Plan

LIC New Children’s Money Back Plan

Post Views: 5,055

LIC New Children’s Money Back Plan is an individual, participating, non-linked, life insurance savings plan. Especially, parents and grandparents take this New Children’s Money Back Plan for their growing children due to two characteristics such as security provided until the age of 25 and then offering maturity with a lump sum to meet important objectives. In this New Children’s Money Back Plan, children’s lives are insured since life insurance coverage can be used for education and marriage. New Children’s Money Back Plan provides three cash backs at 18, 20, and 25 years of age and maturity of the child policyholder at 25 years of age of the child policyholder. The Premium Waiver Benefit (PWB) clause makes this New Children’s Money Back Plan more attractive. Here is everything you want to know.

Plan No.	932
Launch Dated	1 Feb 2020

Why should we buy this New Children’s Money Back Plan?

Children Money Back Plan Nowadays when the costs of products and services are increasing day by day, children’s future must not suffer due to financial problems. Many children cannot fulfill their passions or dreams and some even cannot get higher studies due to financial problems.
To eliminate these problems and to give financial assurance to them, LIC has come up with a lucrative affordable insurance policy i.e. LIC’s New Children’s Money Back Plan.

Features Highlight:

This is a participating, non-linked, money back plan, therefore, earns simple reversionary bonuses.
It is designed to cater to the needs of a child at the age when he/she needs it the most such as higher studies, marriage, etc.
The minimum annual premium is as low as Rs.24000.
The policyholder can take a loan from this plan.
Various optional riders are there to choose which can create some additional coverage with the maturity value.
The policy can be availed of during the age of 0-12 of the child.
The insured gets 20% of the Basic Sum Assured at each anniversary of 18,20 and 22 age.

Does this plan provide Risk Cover?

It provides the risk coverage on the life of the child during the policy term and the number of survival benefits when surviving until the end of the specified term.

Who can buy this Child Money Back Plan?

It can be purchased by either parent or grandparent for a child from 0 to 12 years old.

What are the benefits of this New Children’s Money Back Plan?

Maturity Benefit

When the policyholder survives and attains 25 years of age, the policy’s period comes to an end. The insured gets 40% of the Basic Sum assured with vested Simple Reversionary Bonuses and Final Additional bonus (if any). If any rider is opted for, it will be paid likewise.
The policy participates in profits, hence earns Simple Reversionary Bonuses based on the experience of the corporation. The Final Additional Bonus will not be entertained by a paid-up policy.

Survival Benefit

In case of the survival of the insured person, he/she receives 60% of the total sum assured by splitting it into three equal amounts before the maturity date.

Attaining 18 years of age, the insured gets 20% of the Basic Sum Assured.
Attaining 20 years of age, the insured gets 20% of the Basic Sum Assured.
Attaining 22 years of age, the insured gets 20% of the Basic Sum Assured.

There is also an option to defer the survival benefit. The policyholder may take the benefit at any time on or after its due date but during the currency of the policy.

Death Benefit

Unfortunately, if the death of the life assured happens during the term of the policy, benefits will be provided to the nominee are as follows:-

Death before the date of commencement of risk: Total premiums paid till death excluding taxes, is to be paid.
Death after the date of commencement of risk: Total amount i.e. the sum of Sum Assured on Death with Simple Reversionary Bonus and Additional bonus (if any) is to be paid.

Sum Assured on Death is higher of:

Absolute Basic Sum Assured
10 times of the annual premium
105% of the total premium paid till the death of the policyholder.

What are the Eligibility Conditions and Other Restrictions?

Minimum Basic Sum Assured	Rs. 100,000
Maximum Basic Sum Assured	In multiples of Rs. 10,000
Minimum Age at entry for Life Assured	0 years (last birthday)
Maximum Age at entry for Life Assured	12 years (last birthday)
Minimum/ Maximum Maturity Age for	25 years (last birthday)
Policy Term/Premium Paying Term	[25 – Age at entry] years

What would be the date of commencement of risk if I buy this plan?

In the event that the entry age of the Life Insured is less than 8 years (last birthday), the risk under this plan will begin either one day before the end of 2 years from the date of commencement of the policy or one day before the policy anniversary coincides. with or immediately after reaching 8 years of age, whichever occurs first. For those over 8 years old, the risk will begin immediately from the date of issue of the policy.

What would be the date of vesting under the Plan?

The policy will be automatically awarded to the Life Insured on the policy anniversary coinciding with or immediately after the end of the age of 18 and, in such case, it will be considered to be a contract between the Corporation and the Life Insured.

What are the options available for this New Children’s Money Back Plan?

Child Money Back Plan

Option to defer the Survival Benefit(s):

The policyholder can avail of this option to take the Survival Benefit(s) at any time on or after its due date. The corporation will pay increased Survival Benefit (s) equal to:
Survival Benefits % * Sum Assured * Applicable Factor
The policyholder will be required to disclose this option in writing six months prior to the maturity date of the Survival Benefit to the policy branch of service.

Rider Benefits:

LIC’s Premium Waiver Benefit Rider can be opted for on the life of Proposer of the policy subject to the life assured under this policy is a minor while opting for the rider, LIC’s Premium Waiver Benefit Rider can be opted for on the life of Proposer of the policy.
The premium of this rider will not exceed the base premium. The term of this rider will be calculated from the age while opting for this rider up to 25 years of age of the policyholder.
Death Benefit can be taken by installments over a period of 5 or 10 or 15 years, provided the policy is in force as well as a paid-up policy. It can be of yearly, half-yearly, quarterly or monthly installment (through NACH or Salary Deduction only).

Mode of Installment Payment	Minimum Installment Amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/-
Half-Yearly	Rs. 25,000/-
Yearly	Rs. 50,000/-

The interest rates will be fixed by the corporation.

Maturity Benefit in installment:

There is a Settlement Option under this policy which allows the policyholder to take the Maturity Benefit in installments. The installments will be paid yearly or half-yearly or quarterly or monthly basis provided the policy is in force and must be a paid-up policy.

Mode of Installment Payment	Minimum Installment Amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/-
Half-Yearly	Rs. 25,000/-
Yearly	Rs. 50,000/-

The interest rates will be fixed by the corporation.
If the death of the life-assured, who has exercised Settlement Option, occurs after the maturity date, in such case the nominee will get the outstanding installments.

What is the various Payment of Premiums mode is available?

You can pay premiums regularly at yearly, half-yearly, quarterly or monthly mode (through NACH or through salary deduction (SSS) only).

What is the Grace Period and How many days are provided?

Here when the policyholder cannot pay the premium on time, a grace period of 30 days for every yearly, half-yearly and quarterly premium and a 15 days grace period for every monthly premium is there within which the policyholder has to pay the premium. If he/she cannot pay within the grace period, then the policy will lapse.

How can I avail Rebates under the policy?

Policyholders can avail of various rebates in the premium payment under this policy.

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):

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.

What is Revival and How can I revive my policy if lapsed?

In case the policyholder cannot pay the premium before the expiry of the grace period, the policy lapses. Here comes the Revival Period of 5 consecutive years from the date of the first unpaid premium within which the lapsed policy can be revived. The revival will come into effect after all the arrears are paid with an interest rate as fixed by the corporation.

What is Paid-up Policy?

If premiums have been paid for less than two years and any subsequent premiums are not duly paid, all the benefits will be ceased after the grace period, wherefore nothing will be payable to the policyholder.

After at least two full years of premiums have been paid, if any subsequent premiums are not duly paid, the policy will not be fully ceased. Hence, the policy will continue as a paid-up policy until the end of the policy term.

Here the sum assured on death under the paid-up policy will be reduced to a sum namely “Death Paid-Up Sum Assured”. In addition to it, vested Simple Reversionary Bonus will also be payable. Survival benefit is unavailable in case of a paid-up policy.

Can I surrender my Child Money Back policy?

The policy can be surrendered any time only after two full year’s premiums have been paid. The surrender value will be equal to the higher of the Guaranteed Surrender Value or Special Surrender Value.

The guaranteed surrender value depends on the policy term and the policy year in which the policy is surrendered. It is equal to the total premiums paid (excluding any extra premium, taxes, and premiums for a rider, if opted for), multiplied by the guaranteed surrender value factor applicable to total premiums paid and then reduced to any survival benefits already paid (including survival benefits already deferred) under the policy.

Furthermore, the surrender value of any Simple Reversionary Bonuses, if any, is also payable.

How can I avail Policy Loans under this plan?

A loan can be availed under the policy, provided at least two full years of premiums have been paid and subject to the terms and conditions as the corporation may specify time to time.

The maximum loan allowed under the policy, as a percentage of surrender value, will be as under:

For in-force policy – up to 90%
For paid-up policy – up to 80%

The interest rates to be charged for the policy loan and as applicable for the entire term of the loan will be determined at periodic intervals. The applicable interest rates will be as declared by the corporation based on the method approved by IRDAI.

Any loan outstanding along with interest will be recovered from the claim proceeds at the time of exit.

What are the implications of Taxes?

Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional Tax Authority of India will be as per the prevailing rates will be payable by the policyholder on the premiums for Base Plan and Rider, if any, including extra premiums if any which will be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid will not be considered for the calculation of benefits payable under the plan.

How many days are provided in the Free Look Period?

If the Policy Term and Conditions cannot satisfy the policyholder, he/she may return it to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons for the objection. The corporation will then cancel the policy and return the amount of the deposited premium after deducting the proportional risk premium (for the basic plan rider, if applicable) for the coverage period, the expenses incurred in the special reports of medical examinations, if applicable, and charges for stamp duty.

What is Suicide Exclusion?

The policy will be declared as void, if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. The nominee will be paid only 80% of the total premiums paid provided the policy is in force. This clause will not be applicable in case of age at entry of the Life Assured is below 8 years.

In case the Life Assured (whether sane or insane) commits suicide within 12 months from the date of revival, an amount that is higher of

80% of the total premiums paid till the date of death or
The surrender value available on the date of death will be payable.

The Corporation will not entertain any other claim under the policy.

Read to know more about this:

LIC न्यू चिल्ड्रन मनी बैक प्लान में प्रतिदिन 148 रुपये का निवेश, आपको मिलेंगे 19 लाख, और भी कई फायदें।

Also, read this – Why should We Buy LIC’s Jeevan Lakshya Plan?

Plan Illustration

FAQs

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Which is the best policy for girl child in LIC?

No doubt, New Children’s Money Back policy with Premium Waiver Benefit (PWB) is the best.

What is LIC new children's Money Back Plan?

LIC’s new children’s money back plan/policy is an insurance cum investment plan which is used for securing the financial future needs of a child as they turn 25 years old. It is a participating plan and hence it is eligible for a bonus depending on the performance of the LIC plan.

What is the difference between cash value and surrender value?

The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. … In most cases, the difference between your policy’s cash value and surrender value are the charges associated with early termination.

Can we withdraw LIC amount?

After 3 years you can surrender your policy provided the policy is in force for a period of at least. The surrender value provided by LIC is normally 30% of the premiums you have been paid.

Is the money back from LIC taxable?

Any sum received from a life insurance policy whether it is a money-back amount or matured LIC receipt is 100% tax-free under section 10 (10D) but you have to disclose it in your income tax return under exempt income.

What is the maturity amount in LIC?

The maturity amount is normally calculated with the basic sum assured and the accrued bonus added every year. In money back type of policies, the Survival Benefit is paid every 4th or 5th year. Survival Benefit is a prefixed percentage of the Sum Assured.

Which is better Sukanya Samriddhi or LIC?

In the case of mishappening, LIC compensates with immediate death claim amount and pays 10% of sum assured every year till maturity. At maturity, the sum assured + bonus. You can be benefited from Sukanya Samriddhi only if the deposit is paid till maturity. There is no life cover under Sukanya Samruddhi.

Is LIC better than FD?

If we compare both with respect to financial return, it is clear that a fixed deposit is more valuable than LIC policies because money doubles in approximately 8 years for an FD, while LIC does not have any plan below 10 years but covers the risk.

Why is LIC’s Aadhaar Shila Plan So Important for Women?

by Ramsharan Kumar | Jun 10, 2020 | Life Insurance

LIC’s Aadhaar Shila Plan

Post Views: 4,561

LIC’s Aadhaar Shila Plan No. 944 – is a non-linked, with profits and regular premium paying, participating, endowment plan. The Aadhaar Shila plan is an exclusive insurance plan for women who have a valid Aadhaar card issued by the Government of India. This plan is a combination of savings and protection. This is a Loyalty Addition based plan. The plan is available to standard healthy women without having to undergo any medical testing requirements. Under the Aadhaar Shila plan, the family of the policyholder receives financial support in the event of her sudden death before the end of the policy term. If the policyholder survives the term of the policy, the policyholder will receive a Lumpsum as a maturity benefit. The policy also offers a loan facility and automatic coverage to meet liquidity requirements. Here is everything you want to know.

Plan No.	944
Launch Dated	1 Feb 2020

Why we need such a Aadhaar Shila policy?

LIC’s Aadhaar Shila is a plan designed exclusively for female lives, which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder.

In addition, this plan also takes care of liquidity needs through its Auto Cover as well as loan facility.

What are the other benefits of this Aadhaar Shila plan?

Death Benefit Payable:

On the death of the Life Assured during the policy term provided the policy is in force:

On death during the first five years: “Sum Assured on Death” shall be payable.

On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” and Loyalty Addition, if any, shall be payable.

Where “Sum Assured on Death” is defined as the higher of

7 times of annualized premium; or
110% of Basic Sum

The death benefit shall not be less than 105% of total premiums paid up to the date of death. Premiums referred above shall not include any taxes, extra premium and rider premium, if any.

Maturity Benefit:

On Life assured surviving to the end of the policy term, provided the policy is in force, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable.

Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Loyalty Addition:

Provided the policy has completed five policy years and at least 5 full years’ premium have been paid, then depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate, and on such terms, as may be declared by the Corporation. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was in force.

In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of the policy during the policy term, provided the policy has completed five policy years and at least 5 full years’ premium have been paid.

What are the Eligibility Conditions and Other Restrictions?

(This plan is only available for standard healthy lives without undergoing any medical examination)

Minimum Basic Sum Assured per life*: Rs. 75,000

Maximum Basic Sum Assured per life*: Rs. 300,000

The Basic Sum Assured shall be in multiples of Rs.5,000/- from Basic Sum Assured Rs. 75,000 to Rs. 1,50,000/- and Rs.10,000/- for Basic Sum Assured above Rs.1,50,000/-.

Minimum Age at entry: 8 years (completed)

Maximum Age at entry: 55 years (nearest birthday)

Policy Term: 10 to 20 years

Premium Paying Term: Same as Policy Term

Maximum Age at Maturity: 70 years (nearest birthday)

* The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed Rs. 3 lakh.

What would be the Date of Commencement of risk?

Under this plan, the risk will commence immediately from the date of acceptance of the risk including minor lives.

What is the Date of Vesting under the Aadhaar Shila 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.

What are the Death Benefit Options available for this Aadhaar Shila plan?

The policyholder has the option of availing LIC’s Accident Benefit Rider under this plan at any time within the policy term of the Base plan provided the outstanding policy term of the base plan is at least 5 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.

The 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.

Option to take Death Benefit in installments:

This is an option to receive a death benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lump-sum amount under an in-force as well as paid-up policy. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; 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 installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:


Mode of Installment Payment	Minimum Installment Amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/-
Half-Yearly	Rs. 25,000/-
Yearly	Rs. 50,000/-

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall be paid in lump-sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising the option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the currency of the policy, specifying the period of Installment 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.

What is the Payment of Premium Mode available?

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only) or through salary deductions over the term of the policy.

How many days are available for Grace Period?

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of the 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 premium which is payable along with a premium for the base policy.

How can I understand through Sample Illustrative Premium?

The sample illustrative annual premiums for Basic Sum Assured of Rs 1 Lakh for Standard lives are as under:


AGE/ POLICY TERM	10	15	20
10	8732	5248	3562
20	8761	5282	3597
30	8781	5312	3641
40	8874	5444	3817
50	9197	5841	4283

Rebates:

High Basic Sum Assured Rebate:


Basic Sum Assured (BSA)	Rebate (Rs.)
75,000 to 1,90,000	Nil
2,00,000 to 2,90,000	1.50% of BSA
3,00,000	2.00% of BSA

Mode Rebate:


Yearly mode	2% of Tabular Premium
Half-yearly mode	1% of Tabular premium
Quarterly, Monthly (through NACH) & Salary deduction	NIL

What is the Revival of Policy, how can I revive my policy?

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 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 the satisfaction of Continued Insurability of the Life Assured on the basis of the 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.

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 by the Corporation and is specifically communicated in writing to the Life Assured.

The revival of rider, if opted for, will be considered along with the revival of the Base Policy, and not in isolation.

The Revival Period and Auto Cover Period (as mentioned in para 8 below) shall run concurrently

i.e. Auto Cover period does not extend the period of revival.

What is Paid-up Value?

If less than two years’ premiums have been paid and any subsequent premium is 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 are not duly paid, the policy shall not be void but shall continue as a paid-up policy till the end of the policy term. However, if at least three full year’s premiums have been and any subsequent premiums are not duly paid, under such policies Auto Cover Period as mentioned below shall be applicable.

What is Auto Cover Period?

“Auto Cover Period” under a paid-up policy shall be the period from the due date of the first unpaid premium (FUP). The duration of the Auto Cover Period shall be as under:

If at least three full years’ but less than five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of six months shall be
If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: the Auto Cover Period of two years shall be available.

What are the benefits payable under a paid-up policy during the Auto Cover Period?

On Death:

The death benefit, as payable under an in-force policy, shall be paid after deduction of (a) the unpaid premium(s) in respect of the base policy with interest thereon up to the date of death, and (b) the balance premium(s) for the base policy falling due from the date of death and before the next policy anniversary, if any.

On maturity:

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity 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 i.e. [(Number of premiums paid / Total Number of premiums payable ) x (Sum Assured on Maturity)]. In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on maturity.

What are the benefits payable under a paid-up policy after the expiry of the Auto Cover Period?

On death: Sum Assured on Death under a paid-up policy shall be reduced to such a sum, called “Death Paid-up Sum Assured” and shall be equal to Sum Assured on Death multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable .i.e. [Sum Assured on Death * (Number of premiums paid / Total number of premiums payable)]. In addition to the Death Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on death after the expiry of Auto Cover Period.

On maturity: The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity 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 i.e.. [(Number of premiums paid / Total Number of premiums payable) x (Sum Assured on Maturity)].In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on maturity.

Under a Paid-up policy, Loyalty Addition, if any, shall be payable for the completed policy years for which the policy was in force, provided the premium has been paid for at least 5 full years and after completion of 5 policy years.

Rider shall not acquire any paid-up value and rider benefit cease to apply if the policy is in lapsed condition.

What is Surrender and how can I surrender my Aadhaar Shila policy?

The policy can be surrendered at any time provided premiums have been paid for at least two consecutive years. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and 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 extra premiums, taxes, and premiums for the rider, if opted for) multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid under the policy.

These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered.

What is a policy loan and how can I avail policy loans?

The loan can be availed during the policy term provided the policy has acquired a surrender value 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 the 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.

The maximum loan as a percentage of surrender value shall be as under:

For in-force policies – up to 90%
For paid-up policies – up to 80%

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

What is Tax implication?

Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of applicable taxes as per the prevailing rates shall be payable by the policyholder on premiums payable (for base policy and rider if any including extra premiums, 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 the premium(s) paid and benefits payable under this plan, please consult your tax advisor for details.

What is 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 for 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 and stamp duty charges.

What are the Exclusions in this Aadhaar Shila plan?

Suicide: – This policy shall be void

If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except for 80% of the total premiums paid, provided the policy is in force.
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 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

This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.

Read to know more about this – महिलाओं के लिए खास है LIC’s Aadhaar Shila Plan, जानें पॉलिसी से जुड़ी सारी बातें।

Also, read this – Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Plan Illustration

Aadhaar Shila Plan Illustration (1)

FAQs on LIC’s Aadhaar Shila Plan

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Invisible

How much bonus is declared under the plan?

It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.

Is it possible to date back the policy?

Yes, it can be dated back within the same financial year with additional charges.

What type of bonus is declared under the policy?

Does the plan provide a loan facility?

Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.

Are there any rebates on the premium?

Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?

Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.

Why is LIC’s New Endowment Plan the Best Choice for Young People?

by Ramsharan Kumar | May 25, 2020 | Young Plan

LIC New Endowment Plan

Post Views: 5,433

LIC New Endowment Plan is a non-linked, participating plan that offers an attractive combination of security and savings features. Offers guaranteed returns and bonuses. This is a traditional life insurance plan. You can take this endowment plan with the many benefits in mind. With its expert customer service, the LIC of India helps you get the best insurance policy according to your needs and suitability. You can choose the policy term from 12 to 35 years. Anyone between the ages of 8 and 55 can take this policy and it can continue for up to 75 years. You pay a premium for the entire term of the policy. This plan is included in the basic LIC plans that provide death and maturity benefits. The maturity benefit is equal to the Sum Assured plus the Simple Reversionary Bonus acquired + the Final Addition Bonus. Here you have everything you want to know.

Plan No.	932
Launch Dated	1 Feb 2020

Why we should buy this New Endowment Plan?

The New Endowment Plan is one of the best plans of LIC that offers both protection and saving features. The following are the key features that make it a perfect plan for young people.

LIC New Endowment Plan

It assures you good returns and bonuses.
It is one of the traditional plans of LIC.
If the insured person dies before the maturity period, the nominee will get the death benefit and the policy will be terminated.
It pays a good lump sum amount to the surviving policyholder at the end of the maturity period and then the policy terminates.
It allows a flexible entry age from a minimum of 8 years to a maximum of 55 years.
The policy premium can be paid through annually, half-yearly, quarterly or monthly installments.
It provides to the policyholder through its loan facility in case of liquidity needs.

What are the benefits available for this New Endowment Plan?

Death Benefit

This plan offers the death benefit (sum assured) too, in terms of Simple Reversionary Bonus acquired and the Final Additional Bonus to the family of the insured in the event of the death of the insured during the term of the policy. Thereafter, the policy ends.

Provided that the policy includes “Sum insured in case of death”, where the given term is defined as greater than the basic sum insured or 10 times the annual premium with a minimum of 105% of the total premium paid.

Maturity Benefit

On survival of insured person till the maturity date, he/she will get the Basic Sum Assured with vested Simple Reversionary Bonus and Final Additional Bonus( if any) and the policy will then terminate.

Income Tax Benefit

The policyholder of this plan entertains a tax exemption up to Rs 1,50,000 under Section 80(C) of Income Tax act on the annual insurance premium to be paid and also the maturity amount is exempted from tax, terms, and conditions are there.

Participation in Profit

This New Endowment Plan of LIC also includes a share of the profit of the company. It gives Simple Reversionary Bonuses with Final Additional bonus, calculated on the basis of experience of the company, terms and conditions are there.

What are the Provisions and restrictions of this New Endowment Plan?

Entry Age

Minimum	8 years
Maximum	55 years

Basic Sum Assured (in Rs.)

Minimum	1,00,000
Maximum	No Limit (multiple of 5000)

Policy Term

Minimum	12 years
Maximum	35 years

Maturity Age

Maximum

75 years

Monthly Premium (in Rs.)

Minimum	250
Maximum	10000

What will be the date of commencement of risk under the New Endowment Plan?

The risk will commence immediately on acceptance of the risk

What are the options available for this New Endowment Plan?

This plan has five optional riders when you pay an additional premium. A maximum of four riders one can avail of whereas the policyholder has to choose either LIC’s Accidental Death and Disability Benefit Rider or LIC’s accidental benefit rider.

The five riders are:

Accidental Death and Disability Rider
Accidental Benefit Rider
New Critical Illness Benefit Rider
New Term Assurance Rider
Premium Waiver Benefit Rider

Sum assured under each rider cannot exceed the Basic Sum Assured under the policy.

For more details, please refer to the Rider Brochure on the LIC’s official website or contact the nearest branch of LIC.

What is the option to take Death Benefit in installments?

Yes, instead of taking the lump sum amount you can split it into a number of installments over a period of 5 or 10 or 15 years. The insured person will be paid the installments in advance at monthly or quarterly or half-yearly or yearly intervals.

The minimum installment amount for different intervals are:

Mode of installment payment	Minimum Instalment Amount (in Rs.)
Yearly	50000
Half-yearly	25000
Quarterly	15000
Monthly	5000

What is the Payment of Premiums mode available for this New Endowment Plan?

Premiums are to be paid at regular intervals such as monthly, quarterly, half-yearly, or yearly (through NACH only) or through salary deductions.

What is Grace Period for this New Endowment Plan?

In case the policyholder cannot pay the premium on time, a grace period of 30 days is available for yearly, half-yearly and quarterly payments whereas a 15 days grace period for monthly payments is available. If the premium is not paid before the expiry date of the grace period, the policy lapses.

Such grace period also covers the rider’s premiums along with the base policy premium.

What are the Rebates available for this plan?

Mode Rebate

Yearly mode	2% of Tabular Premium
Half-yearly mode	1% of Tabular Premium
Quarterly, monthly and Salary Deduction	NIL

Basic Sum Assured (B.S.A.) Rebate (in Rs.)

100000-195000	NIL
200000-495000	2% of B.S.A.
500000 and above	3% of B.S.A.

What is Revival?

If the policyholder fails to pay the premium within the grace period and the policy lapses, then a revival period is also there. The revival period is of 5 consecutive years from the due date of first unpaid premium but before the date of maturity, as the case may be.

The revival of policy will come into effect only after the submission of all the due premiums with its interests compounding half-yearly at the rate fixed by the corporation from time to time and on the satisfaction of Continued Insurability of the life assured and/or proposer (if Premium Waiver Benefit Rider is opted for).

What is Paid-up Value?

If the premiums are paid regularly on time for at least two full policy years, and after that, any subsequent premium is not paid within the grace period, then the policy will not become wholly void but will subsist as a paid-up policy till the end of the policy term.

Such paid-up policy cannot participate in future profits but bonus remains attached to the reduced paid-up policy.

What is the Surrender Value?

After the payment of premiums without any lapse for at least two years, the policy can be surrendered with the interest of the policyholder and the corporation will pay the surrender value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

If there is any bonus or rider opted for, it will be calculated on the basis of the ratio of Surrender Value.

What is Policy Loan?

After at least two full years premium have been paid, the loan can be granted under the policy subject to the terms and conditions of the corporation.

What is the Free Look Period?

In case the Policyholder has some personal problems or he is not satisfied with the terms and conditions of the policy, there is a Free Look Period of 15 days from the date of accepting the bond within which he/she has to return the policy to the corporation by citing the reason. Then the policy will be canceled and after deducting the processing charges, the premium will be returned.

What are the Exclusions?

By the way, if the insured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk. As a result, the corporation will not accept any claim on the policy. Only 80% of the total premium paid would be returned provided the policy is in force.
Similarly, if the insured (whether sane or insane) commits suicide within 12 months from the date of revival then an amount that 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 on this.

This clause will not be applicable for a lapsed policy without acquiring paid-up value and nothing will be paid under said policy.

Read to know more about this:

LIC की बहुत ही जबरदस्त स्कीम, 27 रुपये रोजाना करें निवेश, मिलेगा एकमुश्त 10.62 लाख।

Also, read this – Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Plan Illustration

FAQs on LIC’s New Endowment Plan

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Invisible

How much bonus is declared under the plan?

It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.

Is it possible to date back the policy?

Yes, it can be dated back within the same financial year with additional charges.

What type of bonus is declared under the policy?

Does the plan provide a loan facility?

Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.

Are there any rebates on the premium?

Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?

Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.

LIC's Market Share 75.9%, Growth in NB Premium 39.46%, Growth in 1st Year Premium 25.17%, Growth in Total Premium 12.42%, Growth in Gross Total Income 9.83%, Growth in Total Asset Value 2.71%, Growth in Digital Transaction 36% in FY 2019-20.

It also has a Claim Settlement ratio of 98.33%.

It is the most trusted Life Insurance Company in the country. It has a Sovereign Guarantee which other Companies don't have.

WHY GO SOMEWHERE ELSE?

Why should We Buy LIC’s Jeevan Labh Plan?

by Ramsharan Kumar | Apr 25, 2020 | Life Insurance

LIC’s Jeevan Labh Plan

Post Views: 3,944

LIC Jeevan Labh Plan No. 936 – is a traditional, non-linked (not dependent on equity and money/stock market funds), limited premium payment with profit plan. The Jeevan Labh Plan is one of the effective life insurance plans offered by the Life Insurance Corporation of India. It provides savings and protection to policyholders. It means that you will stay protected and be able to save your money efficiently. It offers death and maturity benefits along with profit-sharing bonuses. If the insurance company makes a profit in a financial year, those profits are distributed to the insured as a bonus. Participating endowment plans become eligible for bonus declarations made by the insurance company. People in the age group of 8-59 years can take this Jeevan Labh Plan. In this Jeevan Labh Plan, you do not have to pay the premiums during the entire period of the policy, and at the end of the policy term; you will get the benefits of maturity. In the event of the death of the policyholder at any time during the term of the policy, the nominee will receive the Death Benefit in the form of Sum Insured and Bonuses. The Jeevan Labh Plan also addresses liquidity needs through its loan facility. Here is everything you want to know.

Plan No.	936
Launch Dated	1 Feb 2020

Why should we buy this Jeevan Labh Plan?

LIC’s Jeevan Labh is a limited premium paying, Non-Linked, Participating, Individual, Life Assurance saving plan which offers an attractive combination of protection and savings features. This combination provides financial support for the family of the deceased policyholder in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.

What does this Jeevan Labh Plan offer as Benefits?

Death benefit:

The 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 the 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 up to the date of death. Premiums referred above exclude taxes, extra premiums, and rider premium(s) if any.

Maturity Benefit:

On Life Assured surviving to the end of 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.

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.

What are the Eligibility Conditions and Other Restrictions?

Minimum Basic Sum Assured: Rs. 2,00,000
Maximum Basic Sum Assured: No Limit

(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)

Policy Term/Premium Paying Term : (16/10), (21/15) & (25/16) years
Minimum Age at entry : [8] years (completed)
Maximum Age at entry : [59] years (nearest birthday) for Policy Term 16 years

[54] years (nearest birthday) for Policy Term 21 years &

[50] years (nearest birthday) for Policy Term 25 years

Maximum Maturity Age : [75] years (nearest birthday)

What is the date of commencement of risk under the Jeevan Labh Plan?

The risk will commence immediately on acceptance of the risk.

What is the date of vesting under the Jeevan Labh Plan?

What are Options available in this Jeevan Labh Plan?

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.

LIC’s Accidental Death and Disability Benefit Rider

This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the base plan is at least 5 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. 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 installments 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 under the policy, shall be waived.

LIC’s Accident Benefit Rider

This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the base plan is at least 5 years. The benefit cover under this rider shall be available only during the premium paying term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan.

LIC’s New Term Assurance Rider

This rider is available at the 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 the death of the Life Assured during the policy term.

LIC’s New Critical Illness Benefit Rider

This rider is available at the inception of the policy only. The cover under this rider shall available during the policy term. If this rider is opted for, on the first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable.

LIC’s Premium Waiver Benefit Rider

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 5 years. Further, this rider shall be allowed under the policy wherein the Life Assured is Minor at the time of opting for 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 the death of the proposer, payment of premiums in respect of base policy falling due after the date of death till the expiry of the rider term shall be waived. However, in such a case, if the premium paying term of the base policy exceeds the rider term, all the future premiums due under the base policy from the date of expiry of this Premium Waiver Benefit Rider term shall be payable by the Life Assured. On non- payment of such premiums the policy would become paid- up.

The premium for LIC’s Accident Benefit Rider or LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider 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 the 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.

Option to take Death Benefit in installments:


Age (in years)	Policy Term/Premium Paying Term (in Years)
	16 (10)	21 (15)	25 (16)
20	16,699	10,682	9,006
30	16,758	10,770	9,134
40	17,013	11,133	9,584
50	17,826	12,123	10,741

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising an option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the 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.

What is the Payment of Premiums mode available for this Jeevan Labh Plan?

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through SSS mode during the Premium Paying Term of the policy.

What is Grace Period for this Jeevan Labh Plan?

A grace period of 30 days will be allowed for payment of yearly, half-yearly, quarterly mode, and 15 days for monthly mode of premium payment from the date of the 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 a premium for the base policy.

How can I understand Sample Illustrative Premium?

The sample illustrative annual premiums for Basic Sum Assured of Rs. 2lakh/ for standard lives are as under:


Yearly mode	2% of Tabular Premium
Half-yearly mode	1% of Tabular premium
Quarterly, Monthly & SSS	NIL

Mode Rebate:


Basic Sum Assured (B.S.A)	Rebate (Rs.)
2,00,000 to 4,90,000	Nil
5,00,000 to 9,90,000	1.25% of B.S.A.
10,00,000 to 14,90,000	1.50% of B.S.A.
15,00,000 to and above	1.75% of B.S.A.

High Sum Assured Rebate:


Mode of Instalment payment	Minimum installment amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/-
Half-Yearly	Rs. 25,000/-
Yearly	Rs. 50,000/-

What is Revival for this plan?

If the premium is not paid before the expiry of the days of grace, the policy lapses. A lapsed policy can be revived within a period of 5 consecutive years from the date of the 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 the 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 the 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 revival of rider(s), if any, will only be considered along with a revival of the Base Policy, and not in isolation.

What is Paid-up Value for this plan?

If less than two years’ premiums have been paid and any subsequent premium is 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 at least two full years’ premiums have been paid and any subsequent premiums are 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 a paid-up policy shall be reduced to such a sum called ‘Death Paid-up Sum Assured’ and shall be equal to Sum Assured on Death multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable. In addition to the Death Paid-Up Sum Assured, vested simple reversionary bonuses if any shall also be payable on Life Assured’s prior death.

The Sum Assured on Maturity under a paid-up policy shall be reduced to such a sum called ‘Maturity Paid-up Sum Assured’ and shall be equal to Sum Assured on Maturity 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, if any, 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 the policy is in lapsed condition.

What is Surrender and how I can surrender my policy?

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 during the policy term shall be equal to 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 specified as below:

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 specified as below:

What is Policy Loan?

A loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions that the Corporation may specify from time to time.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

What are the tax benefits available for this plan?

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

The amount of applicable taxes, as per the prevailing rates, shall be payable by the policyholder on the premium(s) ( for base policy and rider(s), if any) including extra premium 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 the premium(s) paid and benefits payable under this plan, please consult your tax advisor for

What is Free-Look Period for this plan?

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 for 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 of cover, expenses incurred on medical examination, special reports, if any and stamp duty charges.

What are the Exclusions for this plan?

Suicide:

This policy shall be void

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 in force.
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

This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.