LIC, Health, Motor, Travel Insurance Delhi/Noida/Greater Noida

Thursday, December 24, 2015

LIC Of INDIA

80C for FY 2014-15 for FY 2015-16

Income Tax Guide - Section 80 Deductions (For FY 2014-15 (with changes listed for FY 2015-16))
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Deductions on Section 80C, 80CCC & 80CCD

Section 80C
 The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or a HUF. The deduction is allowed for various investments, expenses and payments.
 Total Deduction under section 80C, 80CCC and 80CCD (1) together cannot exceed Rs 1, 50,000 for the financial year 2014-15 (assessment year 2015-16). The limit for financial year 2015-16 is also Rs 1, 50,000.

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Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer

This section provides deduction to an Individual for any amount paid or deposited in any annuity plan of LIC or any other insurer for receiving pension from a fund referred to in Section 10(23AAB).
 In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.

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Section 80CCD: Deduction in respect of Contribution to Pension Account

For FY 2014-15 (assessment year 2015-16)
 Total Deduction under Section 80C, 80CCC and 80CCD (1) cannot exceed Rs 1, 50,000.
 For FY 2015-16 (assessment year 2016-17)
 A new section 80CCD (1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.
 Therefore for financial year 2015-16, Total Deduction under Section 80C, 80CCC, 80CCD (1) and 80 CCD (1B) cannot exceed Rs 2, 00,000.
 From assessment year 2012-13, employer's contribution under section 80CCD (2) towards NPS is outside the monetary ceiling mentioned above.

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Deductions on Savings Bank Account

Section 80 TTA: Deduction from gross total income with respect to any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office. Section 80TTA deduction is not available on interest income from fixed deposits.

Section 80GG: Deduction with respect to House Rent Paid
 • This deduction is available for rent paid when HRA is not received. Assesses or his spouse or minor child should not own residential accommodation at the place of employment.
 • Assesses should not be in receipt of house rent allowance.
 • He should not have self occupied residential premises in any other place.
 Deduction available is the least of
 1. Rent paid minus 10% of total income
 2. Rs. 2000/- per month
 3. 25% of total income

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Section 80E: Deduction with respect to Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education. This loan is taken for higher education for the assesses, spouse or children or for a student for whom the assesses is a legal guardian.

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Section 80EE: Deductions on Home Loan Interest for First Time Home Owners

This section provided deduction on the Home Loan Interest paid and is valid for financial years 2013-14 & 2014-15 (Assessment year 2014-15 and 2015-16) only. The deduction under this section is available only to Individuals for first house purchased where the value of the house is Rs 40lakhs or less and loan taken for the house is Rs 25lakhs or less. And the Loan has been sanctioned between 01.04.2013 to 31.03.2014. The total deduction allowed under this section is Rs 1, 00,000.

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Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose gross total income is less than Rs. 12 lakhs can invest in this scheme. Upon fulfillment of conditions laid down in the section, the deduction is lower of - 50% of amount invested in equity shares or Rs 25,000.

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Section 80D: Deduction in respect of Medical Insurance

For financial year 2014-15 - Deduction is available up to Rs. 15,000/- to an assesses for insurance of self, spouse and dependent children. If individual or spouse is more than 60 years old the deduction available is Rs 20,000. An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 15,000/- if less than 60 years old and Rs 20,000 if parents are more than 60 years old. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. (From AY 2013-14, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available).
 For financial year 2015-16 – Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30,000.

....................................................

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative
 Deduction is available on:
 1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
 2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
 Where disability is 40% or more but less than 80% - fixed deduction of Rs 50,000. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1, 00,000.A certificate of disability is required from prescribed medical authority.
 Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.
 For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.

....................................................

Deductions on Medical Expenditure on Self or Dependent Relative

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative
 A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assesses on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assesses from any Registered Doctor.
 In case of senior citizen the deduction can be claimed up to Rs 60,000 or amount actually paid, whichever is less.
 For financial year 2015-16 – for very senior citizens Rs 80,000 is the maximum deduction that can be claimed.

....................................................

Section 80U: Deduction with respect to Person suffering from Physical Disability

Deduction of Rs. 50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.
 For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1, 25,000.

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Section 80G: Deduction for donations towards Social Causes

The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.
 Donations with 100% deduction without any qualifying limit:
 • National Defense Fund set up by the Central Government
 • Prime Minister's National Relief Fund
 • National Foundation for Communal Harmony
 • An approved university/educational institution of National eminence
 • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
 • Fund set up by a State Government for the medical relief to the poor
 • National Illness Assistance Fund
 • National Blood Transfusion Council or to any State Blood Transfusion Council
 • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
 • National Sports Fund
 • National Cultural Fund
 • Fund for Technology Development and Application
 • National Children's Fund
 • Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund with respect to any State or Union Territory
 • the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996
 • The Maharashtra Chief Minister's Relief Fund during October 1, 1993 and October 6,1993
 • Chief Minister's Earthquake Relief Fund, Maharashtra
 • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
 • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
 • Prime Minister's Armenia Earthquake Relief Fund
 • Africa (Public Contributions — India) Fund
 • Swachh Bharat Kosh (applicable from financial year 2014-15)
 • Clean Ganga Fund (applicable from financial year 2014-15)
 • National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
 Donations with 50% deduction without any qualifying limit.
 • Jawaharlal Nehru Memorial Fund
 • Prime Minister's Drought Relief Fund
 • Indira Gandhi Memorial Trust
 • The Rajiv Gandhi Foundation
 Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
 • Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
 • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

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Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

• Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
 • Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
 • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
 • Any corporation referred in Section 10(26BB) for promoting interest of minority community
 • For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.

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Section 80GGB: Deduction in respect of contributions given by companies to Political Parties

Deduction is allowed to an Indian company for amount contributed by it to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.
 Political party means any political party registered under section 29A of the Representation of the People Act. Contribution is defined as per section 293A of the Companies Act, 1956.

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Section 80GGC: Deduction in respect of contributions given by any person to Political Parties

Deduction is allowed to an assesses for any amount contributed to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.
 Political party means any political party registered under section 29A of the Representation of the People Act.

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Section 80RRB: Deduction with respect to any Income by way of Royalty of a Patent

Deduction in respect of any income by way of royalty is respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available up to Rs. 3 lacs or the income received, whichever is less. The assesses must be an individual resident of India who is a patentee. The assesses must furnish a certificate in the prescribed form duly signed by the prescribed authority.

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In the Finance Budget 2015 have some changes , but the Tax Slab is Same as previous Financial Year. The Major Changes is Raised the some Tax Section which is given below :-

1 U/s 80 U :- Max Limit Rs. 75,000/- for General from 40% to 80% for Phy.Disable Person and Rs. 1,25000/- for more than 80%.

2. U/s 10 Transport/Traveling Allowance :- Max Limit Rs. 1600 P.M. for general and Rs. 3200/- P.M. for Phy.Disable persons.

3. U/s 80D Medical Health Insurance :- Max Limit Rs. 25,000/- for below 60 years age and Rs. 30,000/- for above 60 years age.

4. U/s 80CCC Pension Scheme :- Max Limit Rs. 1,50,000/-

5. U/s 80 DDB Sever Medical Treatment :- Max Limit Rs. 80,000/- instead of 40,000/-

6. U/s 80C :- One New deduction has incorporated as Sukanya Samriddhi Account for minor girl child who's age below 10 Years, and Max Limit Rs. 15000/-

7. U/s 80TTA relief from Savings Bank Interest is also entitled in this financial year up to Rs. 10,000/- who's taxable Income below Rs. 5 Lakh.

8. U/s 87A :- Tax Rebate Rs. 2,000/- is also entitled in this financial year as before.


Tuesday, November 17, 2015

LIC Of INDIA

LIC Pension Plans - Jeevan Akshay VI Table No 189

LIC Pension Plans - Jeevan Akshay VI Table No 189




LIC Pension Plan-Jeevan Akshay VI Table No 189 Chart











LIC Pension Plans - Jeevan Akshay VI Table No 189

LIC Pension Plans - Jeevan Akshay VI Table No 189 Comparison with SBI






























Pension Plans - Jeevan Akshay VI Table No 189


Introduction:                                                                                    

It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.


Options Available:


The following options are available under the plan
·  Type of Annuity:
o Annuity payable for life at a uniform rate.
o Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
o Annuity for life with return of purchase price on death of the annuitant.
o Annuity payable for life increasing at a simple rate of 3% p.a.
o Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
o Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
o Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.

You may choose any one. Once chosen, the option cannot be altered.


Mode:

·  Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity...


Salient features:

o Premium is to be paid in a lump sum.
o Minimum purchase price :
§ Rs.100, 000/- for all distribution channels except online.
§ Rs.150, 000/- for on line sale.
o No medical examination is required under the plan.
o No maximum limits for purchase price, annuity etc.
o Minimum allowed age at entry is 30 years (completed) and Maximum allowed age at entry is 85 years (completed).
o Age proof necessary.

Annuity Rate:


Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:

Age last birthday Yearly annuity amount under option
( i ) ( ii ) (15 years certain) ( iii ) ( iv ) ( v ) ( vi ) (vii)
30 6750 6730 6430 4870 6640 6530 6410
40 7080 7020 6470 5230 6870 6680 6430
50 7710 7530 6520 5900 7330 6990 6470
60 8930 8390 6600 7140 8220 7620 6530
70 11650 9460 6730 9820 10130 8970 6620
80 17410 10080 6920 15440 14170 11940 6760

Incentives for high purchase price:


If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives. In addition of this, for policies sold online, a rebate of 1% by way of increase in the annuity rate shall also be available.


Service Tax:


Service tax, if any, shall be as per the Service Tax Laws and at the rate of service tax as applicable from time to time.
The amount of service tax as per the prevailing rates shall be payable by the policyholder along with the purchase price.

Incentives for high purchase price:


For purchase price of Rs. 2.50 lakh or more, higher amount of annuity/ pension due to available incentives shall be paid.


Paid-up value:

The policy does not acquire any paid-up value.


Surrender Value:



No surrender value will be available under the policy.

Loan:


No loan will be available under the policy.

Cooling-off period:


If you are not satisfied with the? Terms and Conditions? Of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond. On receipt of the policy we shall cancel the same and the amount of premium deposited by you shall be refunded to you after deducting the charges for stamp duty.

Section 45 of Insurance Act 1938:
o No policy of life insurance shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

o Provided that nothing in this section shall prevent the insurer from calling 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 that the age of the life assured was incorrectly stated in the proposal.
Section 41 of Insurance Act 1938:
o No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer: provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.

o Provided that nothing in this section shall prevent the insurer from calling 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 that the age of the life assured was incorrectly stated in the proposal.
The amount of annuity is assured throughout life of the annuitant.

What happens if the annuitant dies?

If the annuitant dies:
1.    Under option (i) annuity ceases.
2.    Under option (ii)
On death during the guaranteed period - annuity is paid to the nominee till the end of the guaranteed period after which the same ceases.
On death after the guaranteed period - annuity ceases.
3.    Under option (iii) annuity ceases and the purchase price is paid to the nominee.
4.    Under option (iv) annuity ceases.
5.    Under option (v) annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
6.    Under option (vi) annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
7.    Under option (vii) annuity ceases. Full annuity is payable to the surviving named spouse during his/ her life time and purchase price is paid to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price will be paid to the nominee.

When first installment of annuity payable:

First installment of annuity is payable after one month, three months, six months or one year from the date of purchase of annuity depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.

TAX Benefit:
The Central Government have approved Jeevan Akshay-VI Plan of the Life Insurance Corporation of India as an annuity plan eligible for deduction under clause (xii) of sub-section (2) of section 80C of the Income Tax Act, 1961.

Persons who have invested in this plan during the financial year 2007-08 or subsequently (relevant assessment year being 2008-09 and subsequent assessment years till now) will be eligible for deduction of the amount invested from their total income chargeable to income tax. The benefit will, however, be limited to the overall ceiling of Rs.1, 50,000 available for deductions under section 80C.

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Jeevan Akshay VI Table No 189 Return Rate





Jeevan Akshay Proposal Form number 440:


Saturday, September 5, 2015

LIC Of INDIA

How to Become LIC Agent In Delhi NCR

Looking for Insurance Advisor Agent.

Marketing / Sell of Insurance policies.

Retired persons, Housewives, Freshers, Doctors,IT Employee, CA and Lawyers can join.

Unlimited Income + Foreign Trips + Monthly Contests.

No Investment, No Fees. Limited Period Offer,

Candidate must be a 12th Pass.

Call me on 9811362697.

Sunday, August 9, 2015

LIC Of INDIA

LIC ULIP Plan No. 835 ENDOWMENT PLUS Details

LIC’s New Endowment Plus 835  is a unit linked assurance plan, which offers investment-cum-insurance during the term of the policy. The Policyholder can choose the amount of premium he/she desires to pay, depending on which Policyholder will get the equivalent level of cover. Each premium paid by the Policyholder shall be subject to Premium Allocation charge as per details specified in Para 3.I) of this circular. The allocated premium will be utilized to purchase units as per the selected fund type. The Policyholder’s Fund Value will be subject to deduction of charges specified in Para 3 of this circular. Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund applicable to the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to NAV). The NAV will be computed on daily basis and will be based on the investment performance and Fund Management Charges (FMC) of each fund type. Other details of this plan are as follows.



LIC NEW ENDOWMENT PLUS ULIP Plan No. 835 Chart

INVESTMENT FUND TYPES:

Unit Fund:


The allocated premiums will be utilized to buy units as per the fund type opted by the Policyholder out of the four fund types options available. Various types of fund options and broadly their investment patterns are as under:
Fund Type Investment in Government / Government Guaranteed Securities / Corporate Debt Short-term investments such as money market instruments Investment in Listed Equity Shares Details and objective of the fund for risk /return SFIN No.
Bond Fund Not less than 60% Not more than 40% Nil Low risk ULIF001201114LICNED+BND512
Secured Fund Not less than 45% Not more than 40% Not less than 15% &
Not more than 55%
Steady Income –Lower to Medium risk ULIF002201114LICNED+SEC 512
Balanced Fund Not less than 30% Not more than 40% Not less than 30% &
Not more than 70%
Balanced Income and growth – Medium risk ULIF003201114LICNED+BAL 512
Growth Fund Not less than 20% Not more than 40% Not less than 40% &
Not more than 80%
Long term Capital growth – High risk ULIF004201114LICNED+GRW512

The Policyholder will have the option to choose any ONE of the above 4 funds to invest his premiums initially and at the time of switching.

Discontinued Policy Fund:

The investment pattern of the Discontinued Policy Fund shall have the following asset mix:
Money market instruments: 0% to 40%
Government securities: 60% to 100%

Computation of NAV: 

The NAV of all the five segregated funds i.e. Bond Fund, Secured Fund, Balanced Fund, Growth Fund and Discontinued Policy Fund will be computed on daily basis and will be based on investment performance, Fund Management Charge of each fund type and shall be computed as under:
Market value of investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any


Number of Units existing on Valuation Date (before creation / redemption of Units)

Where, Valuation Date is the date of calculation of NAV.

On the date of launch the NAV under all funds shall be Rs.10/-

CHARGES AND FREQUENCY OF CHARGES:

Premium Allocation Charge:

This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase units for the policy.

The allocation charges are as below:

Premium Allocation Charge
1st Year 7.50%
2nd  to 5th  Year 5.00%
thereafter 3.00%

Mortality Charge:

Mortality Charge is the cost of Life Insurance cover and this will be taken at the beginning of each policy month by cancelling the Policyholder’s Fund Value proportionately. The monthly charges will be one twelfth of the annual Mortality Charges.

This charge shall depend upon the Sum at Risk i.e. the difference between the Basic Sum Assured in case of in force policies or Paid-up Sum Assured in case of policy is paid-up and Policyholder’s Fund Value as on the date of deduction of charge, after deduction of all other charges, and shall be deducted only if, the Basic Sum Assured/Paid-up Sum Assured, whichever is applicable, is more than the Policyholder’s Fund Value as on the date of deduction.

Where, Basic Sum Assured is (10 * Annualized Premium) or (105% of total premiums paid), whichever is higher. The total premiums paid shall be reckoned as on date of deduction of Mortality Charge.

In case where the Policyholder converts the policy into paid-up policy, the Mortality Charge in respect of Sum at Risk under a paid-up policy shall be deducted from the following policy month.

Mortality Charges, during a policy year, will be based on the age nearer birthday of the Life Assured as on the policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. Further, this charge shall also depend on health, occupation and lifestyle of the Policyholder.

The annual Mortality Charge per Rs. 1,000/- Sum at Risk for standard lives is given in Annexure I.

The Class I extra charge for Life Cover shall be 25% of the Mortality charge for standard lives. Charge for higher EMR shall be multiples of the Class I extra charge as applicable in other plans. This extra charge will be included in the Mortality charges.


Accident Benefit Charge:

This is the charge to cover the cost of LIC’s Linked Accidental Death Benefit Rider (UIN:512A211V01), if opted for, levied at the beginning of each policy month by cancelling appropriate number of units out of the Policyholder’s Fund Value. A level annual charge shall be at the rate of Rs. 0.40 per thousand Accident Benefit Sum Assured per policy year. If the Life Assured is engaged in police duty in any police organization other than paramilitary forces and opted for this cover while engaged in police duty, then the level annual charge shall be at the rate of Rs 0.80 per thousand Accident Benefit Sum Assured per policy year.

The monthly charges will be one twelfth of the annual Accident Benefit Charge.


Other Charges:


POLICY ADMINISTRATION CHARGE- This charge shall be deducted at the beginning of each policy month by cancelling appropriate number of units out of Policyholder’s Fund. The Policy Administration Charge per month, while the policy is inforce shall be as follows:
 
    Policy Year           Policy Administration Charge (per month)
        1st Year                      (0.35% * Instalment Premium* K) OR (Rs.100/-), whichever is lower
       2nd Year                     (0.25% * Instalment Premium* K) OR (Rs.70/-), whichever is lower
         3rd Year                               2nd Year charge * 1.03
         4th Year                                3rd Year charge * 1.03
         5th Year                                4th Year charge * 1.03
         6th Year & Thereafter    Rs. 52.17 in 6th year escalating at 3% p.a. thereafter

     Where, K is taken as in Table given below:

Mode of premium Payment Factor “K”
Yearly 1
Half-Yearly 1.6
Quarterly 2.6
Monthly 7


FUND MANAGEMENT CHARGE Fund Management Charge (FMC) shall be as under:
  • 0.70% p.a. of Unit Fund for all the four fund types  available under an inforce policy i.e. Bond Fund, Secured Fund, Balanced Fund and Growth Fund
  • 0.50% p.a. of Unit Fund for “Discontinued Policy Fund”

This is a charge levied at the time of computation of NAV, which will be done on daily basis. The NAV, thus declared, will be net of FMC.

SWITCHING CHARGE– This is a charge levied on switching of monies from one fund to another and will be levied at the time of effecting a switch. Within a given policy year, 4 switches shall be allowed free of charge. Subsequent switches, if any, shall be subject to a Switching Charge of Rs. 100 per switch.

BID/OFFER SPREAD– Nil.

DISCONTINUANCE CHARGES–This charge will be levied by cancelling appropriate no. of units out of Policyholder’s Fund as on the date of surrender/date of discontinuance of policy. The discontinuance charge applicable is as under:


Where the policy is discontinued during the policy year Discontinuance charges for the policies having annualised premium up to Rs. 25,000/- Discontinuance charges for the policies having annualised premium above Rs. 25,000/-
1 Lower of 15% * (AP or FV) subject           to a maximum of Rs. 2500/- Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-
2 Lower of 7.5% * (AP or FV) subject to a maximum of Rs. 1750/- Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-
3 Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/- Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-
4 Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/- Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-
5 and on wards NIL NIL

AP – Annualised Premium
FV – Policyholder’s Fund Value as on the date of discontinuance

“Date of discontinuance of the policy” shall be the date on which the insurer receives the intimation from the insured or policyholder about discontinuance of the policy or surrender of the policy or on the expiry of the notice period of 30 days, whichever is earlier.’


PARTIAL WITHDRAWAL CHARGE– This is a charge levied on partial withdrawal and shall be a flat amount of Rs. 100/- which will be deducted by cancelling appropriate number of units out of Policyholder’s Fund and the deduction shall be made on the date on which partial withdrawal takes place.


SERVICE TAX CHARGE– Service tax charge, if any, will be as per the prevailing service tax laws and rate of service tax as applicable from time to time.

Service Tax Charge shall be levied on all or any of the charges applicable to this plan as per the prevailing Service Tax laws/notification etc. as issued by Government of India from time to time in this regard.

The instructions regarding service tax will be issued by Finance & Accounts Department, Central Office, separately.


MISCELLANEOUS CHARGE– This is a charge levied for an alteration within the contract, such as change in premium mode and Grant of Accident Benefit Rider after the issue of the policy, and shall be a flat amount of Rs. 50/- which will be deducted by cancelling appropriate number of units out of Policyholder’s Fund and the deduction shall be made on the date of alteration in the policy.

The Corporation reserves the right to accept or decline an alteration in the policy. The alteration shall take effect from the policy anniversary coincident with or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the policyholder.

Non-negative claw-back Additions At various durations starting from 5th policy anniversary till the end of the policy term, Reduction in Yield (RIY) will be calculated as the difference between Gross Yield and Net Yield. Where Gross Yield shall be computed based on the actual accrual of all income elements i.e. premiums, income from investments as an when received and all actual debits i.e. partial withdrawals to the Policyholders Fund Value as an when debited and net yield shall be computed based on the projection of Policyholder’s Fund at the gross yield calculated above by considering all charges excluding the following charges:
  • Mortality charge including underwriting extra charges, if any;
  • AB rider charge, if any;
  • Service tax charge and
  • All charges deducted in respect of any options availed by the Policyholder i.e. Miscellaneous Charge, Switching Charge and Partial Withdrawal Charge, if any.

Above calculated RIY will then be compared with the maximum RIY requirement table below:

Maximum Reduction in Yield (difference between Gross and Net Yield)
No. of years elapsed since inception 5 6 7 8 9 10 11 12 13 14 15 and  there after
For continuing policies 4.00% 3.75% 3.50% 3.30% 3.15% 3.00% 2.75% 2.75% 2.50% 2.50% 2.25%
For maturing policies - - - - - 3.00% 2.25% 2.25% 2.25% 2.25% 2.25%

If the difference between calculated RIY and Maximum RIY required is positive then an equivalent number of units shall be added to the Policyholders’ Fund in such a way that the calculated RIY shall be equal to the maximum RIY. The same shall be called as Non-negative claw-back addition. The units of the Non-negative claw-back shall be based on the NAV declared as on the date of Non-negative claw-back addition.


Right to revise charges:

The Corporation reserves the right to revise all or any of the above charges except Premium Allocation charge, Mortality Charge and Accident Benefit Charge. The modification in charges will be done with prospective effect with the prior approval of IRDA and after giving the policyholders a notice of 3 months.

In case the policyholder does not agree with the revision of charges the Policyholder shall have the option to withdraw the Policyholder’s fund value.

APPLICABILITY OF NET ASSET VALUE (NAV):


Units are allocated at NAV of the date of allocation. The Units will also be cancelled based on NAV of the date of such cancellation. For the premiums received up to a particular time (presently 3 p.m. as per IRDAI guidelines) by any branch of the Corporation or other authorized office for premium collection, through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. In case premiums received after such time, the closing NAV of the next business day shall be applicable.

The outstation cheque / Demand draft shall not be accepted.

In respect of the valid applications received for surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc. up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc. after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable.

In case of revival, NAV as on the date of revival shall be applicable. Where date of revival is the date of adjustment of all due premiums after underwriting acceptance has been received.

In case of discontinuance, wherein the Policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.

In respect of maturity claim, NAV as on the date of maturity shall be applicable.

The timing given (presently 3 p.m.) is as per the existing IRDAI guidelines and changes in this regard shall be as per the instructions from IRDAI.

Each premium paid by the Policyholder shall be subject to Premium Allocation Charge as per details given in Para 3. (I) above. The allocated premiums will be utilized to buy units as per the Fund type opted by the Policyholder out of the Four Fund types options available. Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.

BENEFITS:


Benefits payable on death: On death of the Life Assured before the stipulated Date of Maturity provided policy is inforce, then,
On death before the Date of Commencement of Risk:
An amount equal to the Policyholder’s Fund Value shall be payable.

On death after the Date of Commencement of Risk:
An amount equal to the higher of Basic Sum Assured or Policyholder’s Fund Value shall be payable. Where, Basic Sum Assured is (10 * Annualized Premium) or (105% of the total premiums paid), whichever is higher.

The liability shall be booked immediately on the date of receipt of intimation of death with death certificate. Policy Administration charge, Mortality charge, Accident Benefit charge, and service Tax their on recovered subsequently to the date of death shall be paid back to the nominee or beneficiary along with death benefit.


Benefits payable on maturity: On Life Assured surviving the stipulated date of maturity, an amount equal to the Policyholder’s Fund Value is payable. The maturity benefit can be payable either as an lump sum amount on maturity or in equal instalments if settlement option is opted for as mentioned in Para 12(D) below.

Optional Benefit:

LIC’s Linked Accidental Death Benefit Rider (UIN:512A211V01):

 LIC’s Linked Accidental Death Benefit Rider can be opted for at any time within the policy term subject to minimum outstanding policy term of 5 years. Wherever this rider has been opted for under this plan, the Accident Benefit cover will be available till the date of Maturity, provided the Policy is inforce as on date of accident.

This rider will not be available under the policy on the life of minors, during minority. However, this rider will be available from the policy anniversary following completion of age 18 years on receipt of specific request, if found eligible as per the underwriting rules of the Corporation.

Subject to as stated above, under an inforce policy, the LIC’s Linked Accidental Death Benefit Rider can be opted for at any policy anniversary within the policy term subject to minimum outstanding policy term of 5 years.

If this benefit is opted for, an additional amount equal to Accident Benefit Sum Assured is payable on death due to accident, provided the rider is inforce at the time of accident.

If there be more policies than one and if the total Accident Benefit Sum Assured exceeds Rs.100 lakhs, the benefit shall apply to the first Rs.100 lakhs Accident Benefit Sum Assured in order of date of policies issued.

Whenever this Rider is opted for, the Accident Benefit Charges, as specified in Para 3.(III) will be deducted at the beginning of each policy month during the policy term.

Under an inforce basic policy, the Policyholder has the option to cancel this rider at any time during the policy term. However, once the rider is cancelled, it can’t be re-opted during the policy term.

In case the basic policy is not inforce, this Accident Benefit cover shall terminate and no further charges for this Rider shall be deducted. However, the Rider may be revived along with the basic policy during the revival period but not in isolation.

Beyond the specific details as mentioned in this circular in respect of this Rider, additional details, i.e. exclusions, requirements of claim etc. may be referred from the Rider circular Ref: CO/PD/73 dated 08/08/2015.

DISCONTINUANCE OF PREMIUMS:

If premiums under the policy have not been paid within the Grace Period, a notice shall be sent to the Policyholder within a period of 15 days from the date of expiry of Grace Period to exercise one of the options as per Para (I) or (II) below as the case may be, within a period of 30 days of receipt of such notice.

Up to the expiry of 30 days of receipt of notice, the policy shall be treated as inforce and the charges for Mortality and Accident Benefit cover, if any, shall be taken, as usual, in addition to other charges as specified in Para 3.(IV), by cancelling appropriate number of units out of the Policyholder’s Fund. Insurance cover shall continue till the date of discontinuance of the policy (i.e. the date on which the insurer receives the intimation from the insured or policyholder about discontinuance of the policy or surrender of the policy or on the expiry of the notice period of 30 days, whichever is earlier).

The benefits payable under the policy up to the expiry of 30 days of receipt of notice shall be same as that under an inforce policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.

The treatment of policy under different options available during the notice period shall be as under:

If the policy is discontinued on or before the expiry of the 5 years’ lock-in-period

Policyholder has to exercise one of the following options within a period of thirty days of receipt of such notice.

Option Description
1 Pay the due premium(s) during the notice period
2 Revive the policy at any time within a revival period of two years from the date of discontinuance
3 Complete withdrawal from the policy without any insurance cover, or
No option selected Payout the proceeds at the end of lock-in-period or 2 years’ revival period, whichever is later

If Policyholder exercises Option (1) i.e. pays the due premium(s) during the notice period, then the policy shall continue as inforce policy.
If Policyholder exercises Option (2), then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.(IV).e) shall be converted into monetary amount as specified in Para 7.a) below. This monetary amount shall be transferred to the Discontinued Policy Fund as specified in Para 7.b) below.
In case the Policyholder revives the policy during the revival period of 2 years, the policy shall be revived as specified in Para 19. (i) below.

In case the Policyholder does not revive the policy during the revival period of 2 years, then the policy shall be terminated on the expiry of the revival period or on the completion of 5 years’ lock-in-period, whichever is later and the proceeds of the Discontinued Policy Fund, as specified in Para 7.c) below, shall be payable.

However, if Policyholder subsequently opts for surrender though within the revival period but
¾      before the expiry of 5 years’ lock-in-period, the proceeds of the Discontinued Policy Fund shall be payable on completion of 5 years’ lock-in-period.
¾      after the expiry of 5 years’ lock-in-period, the proceeds of the Discontinued Policy Fund shall be payable immediately.

If Policyholder exercises Option (3), then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.(IV).e) shall be converted into monetary terms as specified in Para 7.a) below. This monetary amount shall be transferred to the Discontinued Policy Fund as specified in Para 7.b) below. The Proceeds of the Discontinued Policy Fund, as specified in Para 7.c) below, shall be payable on completion of 5 years’ lock-in-period. However, if revival request is received while the policy is revivable or within 5 years’ lock-in-period, whichever is earlier, then the policy shall be revived.

If Policyholder does not exercise any option within the period of 30 days of receipt of notice, then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.(IV).e) shall be converted into monetary terms as specified in Para 7.a) below. This monetary amount shall be transferred to the Discontinued Policy Fund as specified in Para 7.b) below. The Proceeds of the Discontinued Policy Fund, as specified in Para 7.c) below, shall be payable on completion of 5 years’ lock-in-period or at the end of the revival period, whichever is later. However, the policyholder may revive the policy at any time during the revival period.
While the policy is in Discontinued Policy Fund and Policyholder asks for surrender
¾      before the expiry of 5 years’ lock-in-period, the proceeds of the Discontinued Policy Fund shall be payable on completion of 5 years’ lock-in-period.
¾      after the expiry of 5 years’ lock-in-period but before the end of revival period then the proceeds of the Discontinued Policy Fund shall be payable immediately.

Irrespective of what is stated above, in case of death of the Policyholder during the Revival Period or 5 years’ lock-in-period, as the case may be, the Proceeds of the Discontinued Policy Fund, as specified in Para 7.c) below, shall be payable immediately.

If the policy is discontinued after the expiry of 5 years’ lock-in- period

Policyholder has to exercise one of the following options available within a period of thirty days of receipt of such notice.


Option Description
1 Pay the due premium(s) within the notice period
2 Revive the policy at any time within a revival period of two years from the date of discontinuance or up to the date of maturity, whichever is earlier
3 Complete withdrawal from the policy without any insurance cover
4 Convert the policy into paid-up policy, or
No option selected Treatment will be as if Option 3 were selected

If Policyholder exercises Option (1) i.e. pays the due premium(s) during the notice period, then the policy shall continue as inforce policy. If Policyholder exercises Option (2), then during the revival period the policy shall be treated as inforce and charges as specified in Para 3 shall continue to be deducted.
In case the Policyholder revives the policy during the revival period then the policy shall be revived as specified in Para 19. (ii) below.

In case the Policyholder does not revive the policy during the revival period, then the policy shall be terminated on the completion of revival period or date or maturity whichever earlier and the balance amount in the Policyholder’s Fund shall be refunded to the Policyholder.

If Policyholder exercises Option (3), then the policy shall be terminated on the date of intimation for complete withdrawal and the balance amount in the Policyholder’s Fund shall be refunded to the Policyholder.

If Policyholder exercises the option (4), then in such case the policy shall subsist as a paid-up policy and the treatment of such policy shall be as specified in Para 9 below.
If Policyholder does not exercise any of the options within the period of 30 days of receipt of notice, then the policy shall be terminated on the date of expiry of the notice period and the balance amount in the Policyholder’s Fund shall be refunded to the Policyholder.

METHOD OF CALCULATION OF MONETARY AMOUNT AND PROCEEDS OF THE DISCONTINUED POLICY:


The conversion to monetary amount shall be as under: The NAV as on the date of application for surrender or as on the date of discontinuance of the policy (in case of discontinuance of the policy before the 5 years’ lock-in-period), as the case may be, multiplied by the number of units in the Policyholder’s Fund (i.e. after deduction of Discontinuance Charge, if any) as on that date, will be the monetary amount.

Transferring the monetary amount into the Discontinued Policy Fund The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund by converting the monetary amount into the units. The number of units transferred to the Discontinued Policy Fund shall be the monetary amount divided by the NAV of the Discontinued Policy Fund as on the date of transfer.

The Proceeds of the Discontinued Policy shall be calculated as under: The Proceeds of the Discontinued Policy Fund shall be higher of Discontinued Policy Fund Value or the Guaranteed Monetary Amount. The Guaranteed Monetary Amount is the accumulation of monetary amount transferred into the Discontinued Policy Fund at the guaranteed interest rate. The guaranteed interest rate shall accrue from the date when the monetary amount is transferred to the Discontinued Policy Fund to the date when the policy exits from the Discontinued Policy Fund either by death, surrender, revival, complete withdrawal, or at the end of 5 years’ lock-in-period, or on completion of 2 year revival period (if revival period extend beyond the 5 years’ lock-in-period), whichever is applicable.

Currently this guaranteed interest rate is 4% p.a. and shall be subject to change from time to time as declared by IRDAI.


SURRENDER VALUE AND SURRENDER CHARGE:

If all due premium have been paid and the policy is surrendered, the surrender value, if any, is payable as under:

If the policy is surrendered on or before the expiry of the 5 years’ lock-in-period

If a Policyholder applies for surrender of the policy on or before the expiry of the 5 years’ lock-in-period, then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.(IV).e) shall be converted into monetary terms as specified in Para 7.a) above. This monetary amount shall be transferred to the Discontinued Policy Fund as specified in Para 7.b) above. The Proceeds of the Discontinued Policy Fund, as specified in Para 7.c) above, shall be payable on completion of 5 years’ lock-in-period. However, if Policyholder subsequently requests for revival of the policy while the policy is revivable or within 5 years’ lock-in-period, whichever is earlier, then the policy shall be revived.

In case of death of the Life Assured after the date of surrender but on or before the expiry of the 5 years’ lock-in-period, the Proceeds of the Discontinued Policy Fund shall be payable to the nominee/ legal heir immediately.

If the policy is surrendered after the expiry of 5 years’ lock-in-period

If a Policyholder applies for surrender of the policy after the expiry of 5 years’ lock-in-period, then the Policyholder’s Fund Value as on the date of surrender shall be payable.

Convert the policy into Paid-up policy:

If the Policyholder exercises the option to convert the policy into the paid-up policy, then in such case the policy shall subsist as a paid-up policy and no premiums shall be payable thereafter. The Basic Sum Assured shall be reduced to such a sum called Paid-up Sum Assured and shall bear the same ratio to the Basic Sum Assured as the number of premiums paid bears to the total number of premiums payable i.e. Basic Sum Assured * (no. of premiums paid / no. of premiums payable). The reduced risk cover and hence the Mortality Charges in respect of the Paid-up Sum Assured shall be applicable from the next policy month following the date of intimation regarding conversion of policy into paid-up policy. Further, all other charges as specified in Para 3 shall also continue to be deducted.
Under a paid-up policy, in case of death of the Policyholder, higher of Paid-up Sum Assured or Policyholder’s Fund value shall be payable and in case of surrender of the policy or on maturity, balance amount in the Policyholder’s Fund Value as on the date of surrender / date of maturity, as the case may be, shall be payable.

If the balance in the Policyholder’s Fund Value, at any time is not sufficient to recover the relevant charges then the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, shall be refunded to the Policyholder.

No Accident Benefit cover shall be available under paid-up policy.

Compulsory termination

If the policy has run for at least 5 years provided 5 full years’ premiums have been paid and the balance in the Policyholder’s Fund is not sufficient to recover the relevant charges, the policy shall be compulsorily terminated and the balance amount in the Policyholder’s Fund, if any, shall be refunded to the Policyholder. This shall be applicable irrespective of whether the policy is inforce or paid-up or during the revival period.

ELIGIBILITY CONDITIONS AND FEATURES:

For Basic Plan





  • Basic Sum Assured:
  • (10* Annualized Premium) or (105% of the total premiums paid), whichever is higher.




  • b)Minimum Premium:  
  • Mode                            Amount
    Yearly                           Rs. [20,000]
    Half-Yearly                    Rs. [13,000]
    Quarterly                       Rs. [8,000] 
     Monthly (ECS)              Rs. [3,000]




  • Maximum Premium:  No limit
  • Annualized Premiums shall be payable in multiple of Rs. 1,000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-





  • Minimum Entry Age:                    [90] Days (completed)
  • Maximum Entry Age:                   [50] years (nearest birthday)
  • Policy Term:                              [10 to 20] years
  • Premium Paying Term:                Same as Policy Term
  • Minimum Maturity Age:                [18] years (completed)
  • Maximum Maturity Age:              [60] years (nearest birthday)


  • Age at entry for the policyholder is to be taken as age nearest birthday except for the minimum age at entry i.e. 90 days.

    For LIC’s Linked Accident Benefit Rider





  • Minimum Entry Age:                    [18] years(completed)
  • Maximum Entry Age:                   [55] years (nearest birthday)
  • Maximum Maturity Age:               [60] years (nearest birthday)
  • Minimum Accident Benefit Sum Assured: Rs.10, 000/-
  • Maximum Accident Benefit Sum Assured: 10 times of Annualized Premium subject to the maximum aggregate limit of Accident Benefit Sum Assured under all policies including policies with in-built Accident Benefit taken with Life Insurance Corporation of India under individual policies as well as group policies on the same life shall not in any event exceed Rs.100 lakhs of Accident Benefit Sum Assured
  • Accident Benefit Sum Assured shall be in multiples of Rs. 5000/- only

  • Date of Commencement of Risk
    In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.
    In case the age at entry of Life Assured is 8 years or more, risk will commence immediately.

    Date of Vesting (Applicable only if the Life Assured is below 18 years on the date of commencement of policy)

    If the policy is in force and the Life Assured is alive on the vesting date and if a request in writing for surrendering the policy has not been received by Corporation before such vesting date from the person entitled to the policy moneys, this policy shall automatically vest in the Life Assured on such vesting date i.e. 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..

    ADDITIONAL FEATURES:


    Switching

    The Policyholder can switch between any fund types during the policy term.  On switching the entire amount is switched to the new Fund opted for. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a Switching Charge of Rs.100 per switch.
    On receipt of the Policyholder’s valid application for a switch from one fund type to another, the Policyholder’s Fund Value after deducting Switching Charge, if applicable, shall be transferred to the New Fund type opted for by the Policyholder and shall be utilized to allocate Fund Units at the NAV under the new Fund type on the said date of switch. If a valid application is received up to a particular time (presently 3 p.m.) by the servicing branch the closing NAV of the same day shall be applicable and in respect of the applications received after such time by the servicing branch the closing NAV of the next business day shall be applicable.

    The timing given is as per the existing guidelines and changes in this regard shall be as per the instruction from IRDAI from time to time.
              

    Top-up

    No Top-up premiums shall be allowed under the plan.

    Increase / Decrease in Benefits

    No increase/decrease of benefits will be allowed under the plan. Under an in force policy, the policyholder can, however, cancel the LIC’s Linked Accidental Benefit Rider at any time during the policy term.  However, once the rider is cancelled, the same cannot be subsequently restored.

    Settlement Option

    The Policyholder may exercise “Settlement Option” at least one month prior to the date of maturity.

    In case this option is exercised, the maturity claim under the policy shall not be paid in lump sum. The Policyholder, in that case, shall encash the amounts from the Policyholder’s Fund in regular (half-yearly / yearly instalments) spread over a period of not more than five years from the date of maturity. He/she shall be required to inform how he/she shall receive the maturity proceeds. The instalment shall be the total number of units as on the date of maturity divided by total number of instalments (i.e. 5 and 10 for yearly and half-yearly instalments in 5 year period respectively). The Policyholder’s Fund will continue to be invested as per the fund type existing as on the Date of Maturity. The number of units arrived at in respect of each instalment will be multiplied by the NAV of the applicable fund type as on the date of instalment payment. The first payment will be made corresponding to the date of maturity and thereafter based on the mode opted by the Policyholder i.e. every six months or annual from the date of maturity, as the case may be. However, at any time during the settlement period the Policyholder can completely withdraw the outstanding amount in the Policyholder’s Fund.

    During the Settlement Period no charges other than the Fund Management Charge shall be deducted. There shall not be any insurance cover during this period. The value of instalment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

    On death of Life Assured after the commencement of Settlement Period, the value of outstanding units held in Policyholder’s Fund shall become payable to the nominee / legal heir in lump sum.

    No partial withdrawal or switching of fund shall be allowed after commencement of Settlement Period.

    Partial Withdrawals:

    A Policyholder can partially withdraw the units at any time after the fifth policy anniversary and provided all due premiums till date of partial withdrawal have been paid, subject to the following:





  • In case of minors, partial withdrawals shall be allowed only after Life Assured is aged 18 years or above. 
  • Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.






  • Partial withdrawal will be allowed subject to a minimum balance of:

    • From 6thto 10th policy year: 3 annualized premiums or 50% of Policyholders’ Fund value as on the date of withdrawal, whichever is higher
    • From 11thto 20th policy year: 3 annualized premiums or 25% of Policyholders’ Fund value as on the date of withdrawal, whichever is higher

    If partial withdrawal has been made then for two years’ period immediately from the date of withdrawal, the Basic Sum Assured or Paid-up Sum Assured, whichever is applicable, shall be reduced to the extent of the amount of partial withdrawals made. On completion of two years’ period from the date of withdrawal the original Basic Sum Assured/Paid-up Sum Assured shall be restored.

    MODES OF PREMIUM PAYMENT:

    Regular premium can be paid throughout the Policy Term either in yearly, half yearly, quarterly or monthly installments. Monthly installments will be allowed through ECS only.

    There will be no mode specific charges.

    CEIS REBATE:

    Policy completed under Corporation’s Employee Insurance Scheme (CEIS) is eligible for the CEIS rebate provided policy is not taken through any intermediary. No rebate on premium is allowed to Corporation Employees.

    However, for direct business in respect of Corporation Employees there will not be Premium Allocation Charge.

    LOANS: 

    No loan facility shall be available under this plan.

    UNDERWRITING:

    Instructions will be issued separately by Underwriting and Reinsurance Department.

    DAYS OF GRACE:

    A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums. If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will still be valid and the death benefits shall be paid after deduction of all the relevant charges, if not recovered.

    If the premium is not paid within the days of grace, the benefits shall be paid as per details given in Para 6 under Discontinuance of premiums.

    REVIVALS:

    If due premium is not paid within the Grace Period then a notice shall be sent to the Policyholder as specified in Para 6 above.

    In case the Policyholder opts to revive the policy during the revival period i.e. the period of two consecutive years from the date of discontinuance of the policy:

    If premium is discontinued before the expiry of 5 years’ lock-in-period:
    If the Policyholder exercises the option to revive the policy at any time during the Revival Period of two years, then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.(IV).e), shall be converted into monetary terms as specified in Para 7.a) above. This monetary amount shall be transferred to the Discontinued Policy Fund.

    If the Policyholder revives the policy within the Revival Period then the policy shall be revived subject to the following:
    • The revival shall be allowed on submission of proof of continued insurability on payment of all the arrears of premium without interest.
    • The Discontinuance Charge deducted from the Policyholder’s Fund, if any, along with the proceeds of the Discontinued Policy Fund shall be added back to the Policyholder’s Fund.
    • All outstanding applicable Policy Administration Charges, Premium Allocation Charges and Service Tax Charges due since the date of discontinuance shall be deducted from the Policyholder’s Fund.
    • Units of the segregated fund originally chosen by the Policyholder or as chosen in the last switch, or the fund chosen at the time of revival, as the case may be, shall be allotted based on the NAV as on the date of revival.
    In case the Policyholder does not revive the policy during the Revival Period then the policy shall be terminated on the expiry of the Revival Period or on the completion of 5 years’ lock-in-period, whichever is later and the proceeds of the Discontinued Policy Fund shall be payable.

    The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder.

    If premium is discontinued after the expiry of the 5 years’ lock-in-period:

    If the Policyholder exercises the option to revive the policy during the Revival Period (i.e. two years from the date of discontinuance or up to the date of maturity, whichever is earlier), then the policy shall be treated as inforce with insurance cover as per original terms and conditions of the policy and charges as specified in Para 3 shall continue to be deducted.

    If the Policyholder revives the policy, then the policy shall be revived subject to the following:
    The revival shall be allowed on payment of all the arrears of premium without interest. All outstanding Premium Allocation Charges and Service Tax Charges on Premium Allocation Charges since the date of discontinuance shall be deducted. Units shall be allotted based on the NAV as on the date of revival.
    In case the Policyholder does not revive the policy during the Revival Period, then the policy shall be terminated on the completion of the Revival Period and the balance amount in the Policyholder’s Fund shall be refunded to the Policyholder.

    Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice/revival period, the policy shall terminate and thereafter revival will not be allowed.

    LIC’s Linked Accidental Death Benefit Rider, if opted for, can be revived along with the Basic Policy and not in isolation.

    Reinstatement of surrendered policy shall not be allowed.

    SUICIDE:  

    In case of death due to suicide, within 12 months from the date of commencement of policy or from the date of revival of the policy, the nominee or beneficiary of the policyholder shall be entitled to the Policyholder’s Fund Value, as available on the date of death. The Corporation will not entertain any other claim by virtue of this policy and the policy shall terminate.
    This clause shall not be applicable in case age at entry of the Life Assured or at the time of revival is below 8 years.

    TAX: Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.

    COOLING-OFF PERIOD:

    If the Policyholder is not satisfied with the “Terms or Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. The amount to be refunded in case the policy is returned within Free Look Period shall be determined as under:
    Value of units in the Policyholder’s Fund
         Plus Unallocated premium
         Plus Policy Administration Charge deducted
         Plus Service Tax Charge deducted
    Plus proportionate Mortality and Accident Benefit charge, if any, for the balance period from the date of cooling off to the end of policy month for which the respective charges have been deducted
    Less Stamp Duty @ Rs.0.20 per thousand Basic Sum Assured and Accident Benefit Sum Assured, if any
         Less Actual cost of medical examination and special reports, if any.

    In case the policy is returned during the cooling-off period, Commission shall be recovered from the concerned Agent and the Development Officer’s credit allowed shall be withdrawn.

    BACK DATING:

    Back dating of policy will not be allowed.

    POLICY STAMPING:

    Policy Stamping will be at the rate of Rs.0.20 per thousand Basic Sum Assured and Accident Benefit Sum Assured, if LIC’s Linked Accidental Death Benefit Rider, is opted for.

    Any updates in this regard shall be issued by Legal Department, Central Office.

    ASSIGNMENTS / NOMINATION:

    Assignments:  

    Assignment is allowed under this plan as per Section 38 of the Insurance Laws (Amendment) Act, 2015, as amended from time to time. The notice of assignment should be submitted for registration to the office of the Corporation, where the policy is serviced.

    Nominations: 

    Nomination by the holder of a policy of life assurance is required as per Section 39 of the Insurance Laws (Amendment) Act, 2015, as amended from time to time.

    The notice of nomination or change of nomination should be submitted for registration to the office of the Corporation, where the policy is serviced. In registering nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

    NORMAL REQUIREMENTS FOR CLAIM:

    The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured shall be claim forms, as prescribed by the Corporation, accompanied with original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account, proof of title, proof of death, medical treatment prior to the death, school/ college/ employer's certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.

    Where the policy results into a maturity claim or the policyholder exercises settlement option or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account besides proof of age, if the age is not admitted earlier.

    In case the age is found to be higher than the age under the policy, then the difference in the charges for the correct age shall be deducted with interest at such rate as determined by the Corporation from time to time.

    Where policy results into an accidental death claim the applicable statements from the following list may be called to ascertain circumstances under which death took place:-
    1)     A certified copy of first information report (FIR).
    2)     A certified copy of police inquest report.
    3)     Copy of panchanama.
    4)     Post mortem report to know the probable cause of death. If viscera is preserved in post mortem, then chemical analyzer report to know the contents i.e. whether Life Assured has consumed liquor, drugs, narcotics or poison.
    5)     Newspaper cuttings where accident is reported.
    6)     If death is due to vehicle accident, then copy of driving license, if Life Assured was driving the vehicle.
    7)     Sub-divisional magistrate final verdict about death- this will give classification of death as ‘natural/suicide/accidental’
    8)     When accident is not reported to police authorities, like death due to dog or snake bite, then alternate proofs such as statement of eye witness, affidavit of gramsevak or govt. officials, our own enquiry report, attending physician or hospital reports may be sufficient.
    9)     Hospital treatment records.

    REINSURANCE:

    For reinsurance purposes, the retention limits will be those applicable to Term Assurance Plans for the Sum at Risk (i.e. the difference between Basic Sum Assured and Policyholder’s Fund Value in case of inforce policies and the difference between Paid-up Sum Assured and Policyholder’s Fund Value in case of Paid-up policies).

    UNIT STATEMENT:

    At the time of sale, a client specific benefit illustration shall be provided to the Policyholder. Such benefit illustration shall be signed by both the prospective Policyholder and intermediary and shall form the part of the policy document.

    Further, Unit statement has to be issued on yearly basis and also as and when a transaction takes place.

    Thursday, July 30, 2015

    LIC Of INDIA

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    Eligibility:

    ·         This policy covers persons in the age group 91 days to 65 years. The maximum entry age is restricted up to 65 years. The Minimum entry age for Adult is 18 years and maximum is 65 years. The minimum entry age for child is 91 days and the maximum is 25 years.

    ·         No maximum cover ceasing age

    ·         An individual and/or his family members namely spouse, dependent children and parents are eligible for buying this cover.

    ·         This cover will be offered on individual Sum Insured basis only.

    ·         This is an annual policy.

    ·         The premium for the policy will remain the same for the policy period as mentioned in the policy schedule

    ·         A maximum of 6 members can be added in a single policy. A maximum of 4 adults and a maximum of 5 children can be included in a single policy.


    Benefits
    Sum Insured – Rs 50,000; 100,000
    In-patient Treatment
    Upto Sum Insured
    Room Rent
    Single Private A/c Room
    Shared Accommodation Benefit
    Covered
    Pre-hospitalization 
    15 Days
    Post-hospitalization
    15 Days
    Outpatient Treatment
    ·         Pharmacy
    ·         Diagnostic tests
    ·         Outpatient Consultation
    ·         Home nursing


    Rs. 10,000

    Contact us in case if you want to buy this product.