Insurance Topic

LIC's New Jeevan Anand Plan is Par, Non-linked, life Individual, Savings plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lump sum at the end of the selected policy term in case of his/her survival. This Plan can be purchased Offline through Licensed agents, corporate Agents, Brokers and Insurance Marketing Firms. Key Features • the plan provides for protection and savings. • Life insurance cover throughout your lifetime • Lump sum payment on survival to the end of policy term. • Flexibility to - Choose the premium payment frequency as per convenience. - Choose the period for which protection is required. - Opt for payment of benefit in instalments. • Option to enhance protection with Optional Riders. • Benefit of attractive High Sum Assured Rebate. • Takes care of liquidity needs through loan facility. 1. Eligibility Conditions and Other Restrictions: a) Minimum Age at entry b) Maximum Age at entry c) Maximum Maturity Age d) Minimum Policy Term e) Maximum Policy Term f) Minimum Basic Sum Assured g) Maximum Basic Sum Assured : 18 years (completed) : :50 years (nearer birthday) : 75 years (nearer birthday) : 15 years : 35 years : ` 200,000 : No Limit The Basic Sum Assured shall be in multiples of amounts specified below: Basic Sum Assured Range Sum Assured Multiple From ` 2,00,000/- to ` 4,50,000/- ` 5,000/- Above ` 4,50,000/- to ` 9,00,000/- ` 50,000/- Above ` 9,00,000/- ` 1,00,000/- Date of commencement of risk under the plan: Risk will commence immediately on acceptance of the risk. 2. Benefits: A. Death Benefit: Provided all due premiums have been paid, the following death benefit shall be paid: 2 3 • On Death during the policy term, before the stipulated Date of Maturity Death benefit, equal to “Sum Assured on Death” along with vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 7 times of annualised premium. This death benefit shall not be less than 105% of total premiums paid up to date of death. Where, i. "Annualized Premium” shall be the premium payable in a year, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums ii. “Total Premiums Paid” means total of all the premiums paid under the base product, excluding any extra premium, and taxes, if collected explicitly. • On death after expiry of the policy term i.e. from the stipulated Date of Maturity: Basic Sum Assured shall be payable. B. Benefits payable at the end of Policy Term (i.e. On Maturity): On Life Assured surviving to the stipulated Date of Maturity, provided the policy is in-force i.e. all due premiums have been paid, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable where Sum Assured on Maturity is equal to Basic Sum Assured. C. Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during policy term provided the policy is in- force. In case the premiums are not duly paid, the policy shall cease to participate in future profits irrespective of whether or not the policy has acquired paid-up value. Simple Reversionary Bonuses shall be declared annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan on such terms and conditions as declared by the Corporation. In the event of policy being surrendered, the surrender value of vested bonuses, if any, as applicable on the date of surrender shall be payable. Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim by death during the policy term or due for the maturity benefit at such rates and on such terms as may be declared by the Corporation. Final Additional Bonus shall not be payable under paid-up policies. The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be in accordance with provisions in this regard under LIC Act, 1956. 4 3. Options available: I. Rider Benefits: The following three optional riders (or amended version of these) shall be 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 two riders can be availed under a policy. a) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02) This rider can be opted for at any time under an in-force policy within the policy term of the Base plan provided the outstanding premium paying term of the base plan as well as the rider is @least 5 years, but before the policy anniversary on which the age nearer birthday of the life assured is 65years. The benefit cover under this rider shall be available during the policy term or before the policy anniversary on which the age nearer birthday of the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured under the base policy which is equal to Accident Benefit Sum Assured, shall be waived. b) LIC’s Accident Benefit Rider (UIN: 512B203V03) This rider can be opted for at any time under an in-force policy within the policy term of the Base plan provided the outstanding premium paying term of the base plan as well as the rider is a @least 5 years, but before the policy anniversary on which the age nearer birthday of the life assured is 65years. The benefit cover under this rider shall be available during the policy term or before the policy anniversary on which the age nearer birthday of the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lump sum. c) LIC’s New Term Assurance Rider (UIN: 512B210V02) This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an amount equal to 'Term Rider Sum Assured on Death’ shall be payable on death of the Life Assured during the policy term. The premiums under all the life insurance riders put together shall not exceed 30% of premiums under the base plan. The Rider Sum Assured in respect of LIC’s Accident Benefit Rider shall not exceed three times of Basic Sum Assured under the Base product. Any benefits arising under each of all other riders shall not exceed Basic Sum Assured under the Base product. For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office. II. Option to take Death Benefit in instalments: This is an option to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an in-force as well as paid-up policy. This option can be exercised by the Life Assured, during his/her life time; for full or part of Death benefits payable under the policy. The amount opted for by the Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable. The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under: Mode of Instalment payment Minimum instalment amount Monthly ` 5,000/- Quarterly ` 15,000/- Half-Yearly ` 25,000/- Yearly ` 50,000/- If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option exercised by the Life Assured, the claim proceeds shall be paid in Lump sum only. For all the instalment payment options commencing during the 12 months’ period from 1st May to 30th April, the interest rate used to arrive at the amount of each instalment shall be annual effective rate not lower than the 10 year semi-annual G- Sec yield p.a. minus 2%; where, the 10 year semi-annual G-Sec yield shall be as at last trading day of previous financial year. Accordingly, for the 12 months period commencing from 1st May, 2024 to 30th April, 2025, the applicable interest rate for the calculation of the instalment amount shall be 5.07% p.a. effective. For exercising option to take Death Benefit in instalments, the Life Assured can exercise this option during his/her lifetime while in currency of the policy, specifying the period of Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee e. III. Settlement Option for Maturity Benefit: Settlement Option is an option to receive Maturity Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an in-force as well as paid-up policy. This option can be exercised by the Life Assured, for full or part of Maturity proceeds payable under the policy. The amount opted for by the Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable. The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under: Mode of Instalment payment Minimum instalment amount Monthly ` 5,000/- Quarterly ` 15,000/- Half-Yearly ` 25,000/- Yearly ` 50,000/- If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option exercised by the Life Assured, the claim proceeds shall be paid in lump sum only. For all the instalment payment options commencing during the 12 months’ period from 1st May to 30th April, the interest rate used to arrive at the amount of each instalment shall be annual effective rate not lower than the 10 year semi-annual G- Sec yield p.a. minus 2%; where, the 10 year semi-annual G-Sec yield shall be as at last trading day of previous financial year. Accordingly, for the 12 months period commencing from 1st May, 2024 to 30th April, 2025, the applicable interest rate for the calculation of the instalment amount shall be 5.07% p.a. effective. For exercising the Settlement Option against Maturity Benefit, the Life Assured shall be required to exercise option for payment of net claim amount in instalments at least 3 months before the due date of maturity. The first payment will be made on the date of maturity and thereafter, based 5 6 on the mode of instalment payment opted for by the Life Assured, every month or three months or six months or annually from the date of maturity, as the case may be. After the commencement of Instalment payments under Settlement Option: a. If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to withdraw this option and commute the outstanding instalments, the same shall be allowed on receipt of written request from the Life Assured. In such case, the lump sum amount which is higher of the following shall be paid and policy shall terminate, • discounted value of all the future instalments due; or • (the original amount for which settlement option was exercised) less (sum of total instalments already paid). b. The applicable interest rate that will be used to discount the future instalment payments shall be annual effective rate not exceeding 10 year semi-annual G-Sec yield p.a.; where, the 10 year semi-annual G-Sec yield shall be as at last trading day of previous financial year during which Settlement Option was commenced. Accordingly, in respect of all the Settlement Options commenced during the 12 months’ period beginning from 1st May, 2024 to 30th April, 2025, the maximum applicable interest rate used for discounting the future instalments shall be 7.07% p.a. effective. c. After the Date of Maturity, in case of death of the Life Assured, who has exercised Settlement Option, the outstanding instalments will continue to be paid to the nominee as per the option exercised by the Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee. 4. Payment of Premiums: Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (through NACH only)or through salary deductions over the Policy Term. 5. Grace Period A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium during this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses. The above grace period will also apply to rider premiums which are payable along with premium for base policy. 6. Sample Illustrative Premium: The sample illustrative annual premiums for Basic Sum Assured of ` 2 lakh for Standard lives are as under (Amount in `) POLICY TERM AGE 15 25 35 20 16,229 9,339 6,517 30 16,885 9,810 6,968 40 18,012 10,711 7,918 50 19,914 12,397 - The above premium is exclusive of taxes. 7 7. Rebates: Mode Rebate: Yearly mode - 2% of Tabular Premium Half-yearly mode - 1% of Tabular premium Quarterly Monthly mode & - - NIL Salary deduction High Sum Assured Rebate (on Premium): Basic Sum Assured (B.S.A.) Rebate 2,00,000 to less than 5,00,000 Nil ` 5,00,000 to less than ` 10,00,000 2.50%o B.S.A. `Rs.10,00,000 and above 4.00%o B.S.A. 8. Revival: If premium is not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive complete years from the date of first unpaid premium but before the end of policy term, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer. The Corporation reserves the right to accept at original terms, accept at modified terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation. The rate of interest applicable for revival under this product for every 12 months’ period from 1st May to 30th April shall not exceed 10 year G-Sec yield p.a. compounding half yearly as at the last trading day of previous financial year plus 3% or the yield earned on the Corporation’s Non-Linked, Participating Fund plus 1%, whichever is higher. For the 12 month’s period commencing from 1st May, 2024 to 30th April, 2025, the applicable interest rate shall be 9.50% p.a. compounding half yearly. The basis for determination of interest rate for policy revival is subject to change. Revival of rider(s), if opted for, will be considered along with revival of the basic policy and not in isolation. 9. Paid-up Policy: If less than one year’s premium(s) has been paid, and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable. If @least one full year’s premium(s)has been paid and any subsequent premiums be not duly paid, on completion of first policy year the policy shall not be wholly void, but shall continue as a paid-up policy. 8 During the Policy Term: The “Sum Assured on Death” under the paid-up policy shall be reduced to such a sum, called “Death Paid-up Sum Assured” and shall be equal to Sum Assured on Death multiplied by the ratio of total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. The Death Benefit payable under the paid-up policy, on death of the Life Assured during the Policy Term, shall be Death Paid-Up Sum Assured along with vested Simple Reversionary Bonuses, if any. This Death benefit, shall not be less than 105% of total premiums paid up to the date of death. This “Sum Assured on Maturity” under the paid-up policy shall be reduced to such a sum called “Maturity Paid –Up Sum Assured” and shall be equal to Sum Assured on Maturity multiplied by the ratio of total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. The Maturity Benefit payable under the paid-up policy, on expiry of the policy term, shall be Maturity Paid-Up Sum Assured along with vested simple reversionary bonuses, if any. After the expiry of Policy Term: On death of the Life Assured after expiry of the policy term, Paid-up Sum Assured equal to Basic Sum Assured multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable shall be paid. A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses, if any, shall remain attached to the paid-up policy. Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition. 10. Surrender: The policy can be surrendered after completion of first policy year provided one full year’s premium(s) has been paid. However, the policy shall acquire Guaranteed Surrender Value on payment of @least two full years’ premiums and Special Surrender Value after completion of first policy year provided one full year’s premium(s) has been paid. On surrender of an in-force or paid-up policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value. Guaranteed Surrender value payable during the policy term shall be equal to the total premiums paid (excluding extra premiums, taxes if collected explicitly 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.