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LIC JEEVAN VARSHA (PLAN No. 196)

 

It has been decided to introduce LIC’s Jeevan Varsha (Plan No. 196) a close ended plan which would be open for sale from 16th February, 2009 to 31st March, 2009.  

 1. Introduction: LIC’s Jeevan Varsha is a money back plan with Guaranteed Additions and Loyalty Additions, if any. The benefits and other details of this plan are given below.

 2. Benefits: 

a) Death Benefit: On death during the policy term excluding last policy year: Sum Assured with accrued Guaranteed Additions.

• On death during last policy year: Sum Assured with accrued Guaranteed Additions along with Loyalty Addition, if any. 

b) Survival Benefits: Survival benefits will be payable as given below:

Survival to end of                

   9-year plan                   

12-year plan

3 years

15%

10%

6 years

25%

20%

9 years

60% of the Sum Assured (+) Guaranteed Additions, (+) Loyalty Addition, if any, at the end of 9 years.

30%

12 Years

NA

40% of the Sum Assured (+) Guaranteed Additions, (+) Loyalty Addition, if any, at the end of 12 years.

 d) Guaranteed Addition:

The Guaranteed Addition will accrue for each policy year at the following rates:

- Rs. 65 per thousand Sum Assured per year for a policy of 9 years term.

- Rs. 70 per thousand Sum Assured per year for a policy of 12 years term.

In case of a death claim or surrender of fully paid up policy (applicable for policy term of 12 years), the Guaranteed Additions for the policy year of death or surrender will be added fully.

In case of surrenders and paid-up policies, the Guaranteed Additions for the policy year in which the last premium is received will be added on proportionate basis. For example, if two months’ premiums have been received for the policy year, then 2/12th of the Guaranteed Additions for that policy year shall be added. 

e) Loyalty Addition:

Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the Corporation. 

3. Eligibility Conditions and Restrictions

a) Minimum Sum Assured: Rs.75,000/- for ECS monthly mode

Rs 50,000/- for other modes

b) Maximum Sum Assured: No limit

c) Minimum age at entry: 15 years completed. 

d) Maximum age at entry: 66 years (nearest birthday) for policy of term 9 years

63 years (nearest birthday) for policy of term 12 years 

e) Maximum age at maturity: 75 years nearest birthday 

f) Policy Term: 9 & 12 years 

g) Premium Paying Term: 9 years 

The Sum Assured shall be in multiples of Rs. 5,000. 

Age at entry for the life assured is to be taken as age nearest birthday except for the minimum age at entry i.e. 15 years.

4. Mode of Premium Payment:

Yearly, Half yearly, Quarterly and Monthly (through ECS only)

5. Premium Rates:

Tabular Annual Premium per 1000 SA

AGE/TERM

9

12

20

161.85

165.00

25

161.90

165.10

30

162.05

165.30

35

162.45

165.85

40

163.20

166.90

45

164.60

168.65

50

166.95

171.50

 

 

 

 

 

 

  

 

 

6. Grace Period for Payment of Premium:

A grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. 

If death occurs within this period and before the payment of the premium then due, the policy will still be valid and the Sum Assured shall be paid after deduction of the said premium as also unpaid premiums falling due before the next Policy anniversary.

If premium is not paid before the expiry of the days of grace, the Policy lapses. 

7. Paid-Up Value:

If after at least 3 full years’ premiums have been paid in respect of this policy and any subsequent premium be not duly paid, this policy shall not be wholly void, but shall subsist as a paid-up policy for a reduced sum. 

The Sum Assured of the policy shall be reduced to such a sum (called paid-up value), and shall bear the same proportion to the full Sum Assured as the number of premiums actually paid bears to the total number of premiums stipulated for in the policy, less any survival benefit paid. 

The policy so reduced shall, thereafter be free from all liability for payment of the premiums, but shall not be entitled to the Guaranteed Additions from the due date of first unpaid premium. However, the accrued Guaranteed Additions will remain attached to the reduced paid-up policy.

Notwithstanding the benefits available under a fully in force policy, in the case of a reduced paid up policy, no survival benefits shall be payable and the paid-up value along with the accrued Guaranteed Additions, if any, shall be payable only in lump-sum on the expiry of policy term or death of life assured, if earlier.

8.      EXCLUSIONS:

Suicide: This policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time on or after the date on which the risk under the policy has commenced but before the expiry of one year from the date of commencement of risk under the policy. In case of death due to suicide during this period the Corporation will not entertain any claim by virtue of this poli

cy except to the extent of a third party’s bonafide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the branch where the Policy is being presently serviced (where the policy records are kept), at least one calendar month prior to death.

9.      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.

Provided the policy is in force during the term of the contract the following benefits are payable. 

BENEFIT ILLUSTRATION

Statutory warning :

“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.”

 Notes :

  •  This illustration is applicable to a standard (from medical, life style and occupation point of view) life.

  • The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.

  • The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

 

Age of LA (Yrs.)

35

Term (Yrs.)

12

Premium Paying Term

9




 

  

Annual Premium (Rs.)

16053

Sum Assured (Rs.)

100000

Guaranteed Addition (Rs.)

per year per 1000 Sum Assured



 

 

 

End of year

Premiums Paid during the year

Benefit payable on death during the year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

16053

107000

0

0

107000

107000

2

16053

114000

0

0

114000

114000

3

16053

121000

0

0

121000

121000

4

16053

128000

0

0

128000

128000

5

16053

135000

0

0

135000

135000

6

16053

142000

0

0

142000

142000

8

16053

156000

0

0

156000

156000

9

16053

163000

0

0

163000

163000

10

0

170000

0

0

170000

170000

11

0

177000

0

0

177000

177000

12

0

184000

0

40000

184000

224000












 

 

 

 

 

 

  

 

 

Age of LA (Yrs.)

35

Term (Yrs.)

9

Premium Paying Term

9





 

 

 

 

Annual Premium (Rs.)

15720

Sum Assured (Rs.)

100000

Guaranteed Addition (Rs.)

65 per year per 1000 Sum Assured

  

 

 

  

 

End of year

Premiums Paid during the year

Benefit payable on death during the year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

15720

106500

0

0

106500

106500

2

15720

113000

0

0

113000

113000

3

15720

119500

0

0

119500

119500

4

15720

126000

0

0

126000

126000

5

15720

132500

0

0

132500

132500

6

15720

139000

0

0

139000

139000

7

15720

145500

0

0

145500

145500

8

15720

152000

0

0

152000

152000

9

15720

158500

0

20000

158500

178500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

End of year

Premiums Paid during the year

Benefit on Survival / Maturity at the end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario2

1

15918

0

0

0

0

0

2

15918

0

0

0

0

0

3

15918

15000

0

0

15000

15000

4

15918

0

0

0

0

0

5

15918

0

0

0

0

0

6

15918

25000

0

0

25000

25000

7

15918

0

0

0

0

0

8

15918

0

0

0

0

0

9

15918

118500

0

20000

118500

138500

 

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