Jeevan Tarang Plan (Table No. 178) – Certain Modifications

LIC’s Jeevan Tarang Plan (Table No. 178) – Certain Modifications

1. Introduction:

1.1 LIC’s Jeevan Tarang Plan (Plan No. 178) was introduced w.e.f 17th March 2006 vide circular Ref:Actl/PD/2058/4 dated 7th March 2006. Premium under the policy is payable either in lump sum or at regular intervals during the accumulation period with yearly, half-yearly, quarterly, monthly or through salary deductions. Further the plan provides for Accident Benefit Rider, Critical Illness Rider and Term Assurance Rider as optional benefits.

1.2 We have been receiving requests from various sources for certain modifications under this plan. In view of this, it has been decided to allow the following under the plan:

- Premium paying term of 6 years.
- Premium Waiver Benefit Rider for minor lives.

2. Premium Paying Term of 6 years:

2.1 It has been decided to allow a premium paying term of 6 years for all accumulation periods i.e. 10, 15 and 20 years under this plan.

2.2 The Optional riders i.e. Accident Benefit Rider, Critical Illness Rider and Term Assurance Rider shall be allowed only at the proposal stage and shall be available during the accumulation period only. All terms and conditions applicable for these riders shall also apply.

2.3 CEIS Rebate:
An employee of the Corporation shall be eligible for a rebate in tabular premium under Corporation’s Employee Insurance Scheme (CEIS) at 5% of Premium for all Accumulation Periods.

2.4 Commission rates (as percentage of premium) payable to Agents, Corporate Agents and Brokers during the premium paying term of 6 years are as under:

Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
6 years 10% 5% 5%

Bonus Commission: 40% of 1st year commission.

No Bonus commission is payable to brokers.

2.5 Development Officer’s credit, for 6 years premium paying term policies, will be 30% of first year premium.

2.6 For the six year premium paying term, the tabular premium rates for the basic plan and Accident Benefit Rider are given in Annexure I and for Term Assurance Rider in Annexure II. Premium Rates for Critical Illness Rider and PWB option under Critical Insurance Rider are given in Annexure III.

2.7 Class - I extra rates for the basic plan and Class – I extra for Term Assurance Rider for six year premium paying term are enclosed as Annexure IV.

3. Premium Waiver Benefit (PWB) Rider for minor lives:

3.1 Premium Waiver Benefit under this plan shall be available as an optional rider where a proposal is received on a minor life.

3.2 Eligibility conditions for children and proposer:

For Child:
(a) Minimum Entry Age : 0 years (Last birthday)
(b) Maximum Entry Age : 17 years (Nearer birthday)
(c) Maximum Sum Assured : Rs. 1,00,00,000/-

For Proposer
(a) Minimum Entry Age : 18 years (completed)
(b) Maximum Entry Age : 55 years (Nearer birthday)
(c) Maximum Age at the end of premium paying term: 70 years (Nearer birthday)

3.3 Other terms and conditions: The proposer can avail the premium waiver benefit, on the payment of an additional premium for this rider during the premium paying term or till death of the proposer, whichever occurs earlier.
On availing this benefit:
1. The payment of premiums, for the Basic Plan only, falling due after the date of death of the proposer shall be waived;
2. The Premium Waiver Benefit as stated in (a) shall be granted on the basis of satisfactory, personal declaration of health and other requirements;
3. The Premium Waiver Benefit described in (a) shall not operate in the event of the death of the proposer by his own hands, whether sane or insane, within one year from the date of issuance of First Premium Receipt;
4. The additional premium for the rider shall not be taken into account in arriving at the amount to be refunded in the event of death of the life assured before the date of commencement of risk and in calculating the surrender value of the policy;
5. Premium waiver benefit shall cease to apply if the policy is in lapsed / paid-up condition.

3.4 Commission Rates and D.O. credit: Commission rates (as percentage of premium) payable to Agents, Corporate Agents, Brokers and Incentive to Development Officer’s will be at the same rate as those payable under the Basic plan.

3.5 A table of premium rates and extra premium rates for Premium Waiver Benefit is enclosed as Annexure V.

3.6 An endorsement to be attached along with the policy bond of LIC’s Jeevan Tarang plan, if PWB is opted for, is enclosed as Annexure VI.

3.7 Underwriting, Age proof and Medical Requirements: Sum Under Consideration (SUC) will be calculated as per the existing rules on the life of the proposer. The actual SA for PWB will be the sum of all the future outstanding premiums (future instalment premiums excluding first premium) under the basic plan.

3.7.1 Special reports will be called for as per the existing chart of special reports. The cost of all medical and special reports shall be borne by the proposer.

3.7.2 PWB on the life of parent (females under Category I & II and males) is allowed under non-medical (special) scheme and non-medical (general) scheme to professionals.

3.7.3 This benefit can be granted to standard, sub-standard and physically handicapped lives subject to normal underwriting requirements.

3.7.4 Only standard age proof will be accepted.

3.8 Revival: If a lapsed policy is revived during the premium paying term where PWB rider has been opted for, in addition to the conditions under the para "Revival or reinstatement of lapsed policy" of the introductory circular Ref:Actl/PD/2058/4 dated 7th March 2006, evidence of health and habits of the proposer (including a medical and other reports on his life at his own expense from the Corporation's appointed Medical Examiner, wherever required by the Corporation) to the satisfaction of the Corporation shall be required for revival of this Rider.

3.9 Allowing PWB Rider as an alteration: As PWB rider is being offered now as a modification to the plan, some policies on minor lives have been issued without Premium Waiver Benefit. There may be requests from those policyholders to allow them this optional Benefit. It has, therefore been decided to allow this Rider on policies of minor lives as an alteration subject to underwriting and other conditions mentioned in para 3.2, 3.3 and 3.7 to 3.7.4 above being satisfied. This will be subject to following conditions:

1. Alteration fees of Rs.50/- will be charged.
2. Alteration will take effect from the policy anniversary coinciding with or the next policy anniversary following the receipt of application alongwith the necessary premium.
3. The age applicable for calculation of premium will be age nearer birthday and term applicable will be the outstanding premium paying term on the effective date of alteration i.e. on the policy anniversary coinciding with or the next policy anniversary following the date of receipt of application. SUC will be the sum of all the future outstanding premiums (i.e. future instalment premiums excluding the instalment on policy anniversary on which alteration is being effected).

4. All other terms and conditions of the plan shall remain unaltered.
5. These modifications will come into force with immediate effect.