New Jeevan Nidhi from LIC - Plan no 812

LIC’s New Pension Plan NEW JEEVAN NIDHI is expected to launch on 24th December 2012. It is a deferred pension plan from LIC.

Age at Entry : 20 to 60 Years
Vesting age: 55 to 65
Minimum Sum Assured: 1,50,000 INR in Single and 1,00,000 INR for Non Single

Life Cover in New Jeevan Nidhi : There will be life insurance cover in this plan up to the vesting date of the policy.

Guaranteed Addition for New Jeevan Nidhi : Bonus is guaranteed Rs 50 per 1000 of basic sum assured for first five years and then reversionary bonus every year after fifth year.

Mode allowed in New Jeevan Nidhi: Single premium, Yearly, Half yearly, Quarterly and Monthly (ECS/SSS)

Death Benefits of New Jeevan Nidhi:

1) If Death occurs with in first 5 years of starting LIC JEEVAN NIDHI, Sum assured along with guaranteed accrued bonus will be paid

2) If Death occurs after 5 years, Sum assured, Guaranteed bonus and vested reversionary bonus*1 and final additional bonus*2.

Maturity Benefit of New Jeevan Nidhi:
1) Pension: Option to purchase pension on maturity
2) Reinvest: Maturity proceed can be reinvested into single premium deferred pension plan.

Back  dating – Allowed within same Financial year.

Revival of New Jeevan Nidhi – A policy may be revived within a period of 5 years from the date of First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.

Surrender-The policy can be surrendered at any time on payment of     at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable shall be the higher of Guaranteed Surrendered Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.

*1: Reversionary Bonus shall be added from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation.

*2:Final Additional Bonus shall be payable either on vesting or on earlier death at the rates declared by the Corporation.

New Jeevan Nidhi

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Lic's New Jeevan Nidhi Table No. 812

LIC’s New Pension Plan NEW JEEVAN NIDHI is expected to launch on 24th December 2012. It is a deferred pension plan from LIC.

Age at Entry : 20 to 60 Years
Vesting age: 55 to 65
Minimum Sum Assured: 1,50,000 INR in Single and 1,00,000 INR for Non Single

Life Cover in New Jeevan Nidhi : There will be life insurance cover in this plan up to the vesting date of the policy.

Guaranteed Addition for New Jeevan Nidhi : Bonus is guaranteed Rs 50 per 1000 of basic sum assured for first five years and then reversionary bonus every year after fifth year.

Mode allowed in New Jeevan Nidhi: Single premium, Yearly, Half yearly, Quarterly and Monthly (ECS/SSS)

Death Benefits of New Jeevan Nidhi:

1) If Death occurs with in first 5 years of starting LIC JEEVAN NIDHI, Sum assured along with guaranteed accrued bonus will be paid

2) If Death occurs after 5 years, Sum assured, Guaranteed bonus and vested reversionary bonus*1 and final additional bonus*2.


Maturity Benefit of New Jeevan Nidhi:
1) Pension: Option to purchase pension on maturity
2) Reinvest: Maturity proceed can be reinvested into single premium deferred pension plan.

Back  dating – Allowed within same Financial year.

Revival of New Jeevan Nidhi - A policy may be revived within a period of 5 years from the date of First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.

Surrender-The policy can be surrendered at any time on payment of     at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable shall be the higher of Guaranteed Surrendered Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.

*1: Reversionary Bonus shall be added from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation.

*2:Final Additional Bonus shall be payable either on vesting or on earlier death at the rates declared by the Corporation.

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Benefits from Jeevan Akshay VI Plan no 810

Benefits from Jeevan Akshay VI Plan 810

1. Death Benefit – In case of death of the Life Insured it entirely depends upon pension option chosen
   • Annuity for Life- Pension stops when Annuitant dies and nothing further would be payable to nominee.
   • Annuity Guaranteed for Certain Periods-
     • During the Guaranteed Period - Pension is paid to the nominee till the end of the guaranteed period after which it stops.
     • After the Guaranteed Period- Pension stops when Annuitant dies and nothing further would be payable to nominee.
   • Annuity with Return of Purchase Price on Death- Pension stops when Annuitant dies and the remaining amount is paid to nominee.
   • Increasing Annuity- Pension stops when Annuitant dies. Nothing further would be payable to nominee.
   • Joint Life Last Survivor Annuity with 50% pension for spouse- When Annuitant dies and Spouse survives, 50% of the Pension continues as long as spouse is alive and stops thereafter. Nothing further would be payable to nominee.
   • Joint Life Last Survivor Annuity with 100% pension for spouse- When Annuitant dies and Spouse survives, 100% of the Pension continues as long as spouse is alive and stops thereafter. Nothing further would be payable to nominee.
2. Maturity Benefit – There is no maturity benefit since this is a plan to protect the risk of living too long. Pension is provided immediately according to the option selected.
3. Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C. Pension that is received is taxable.

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Jeevan Akshay VI (Plan No. 810)

Modification of LIC’s Jeevan Akshay- VI (Plan No. 810)

1. The plan shall also be sold online in addition to other existing distribution channels.
2. Annuity option- “Joint-life and 100% of annuity to spouse on death of the annuitant with return of purchase price on death of last survivor” shall also be available in addition to the existing six options.
3. Reduction in the minimum age at entry and increase in maximum age at entry.
4. Minimum premium amount for online sale shall be Rs. 1.5 lacs and for other distribution channels it shall be Rs. 1 lac.
5. Slabs of incentive for higher purchase price have been modified.
6. Service tax to be collected from the policyholder along with the purchase price.

Introduction of LIC’s Jeevan Akshay- VI (Plan No. 810):
In view of the demand from various offices it has been decided to modify LIC’s Jeevan Akshay – VI plan.

Type of annuities available: Various annuity options available under the Plan are as under:
i) Annuity for life
ii) Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
iii) Annuity for life with return of purchase price on death
iv) Annuity for life increasing at a simple rate of 3% p.a.
v) Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant.
vi) Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant.
vii) Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant with return of purchase price on the death of last survivor.

Benefits of LIC’s Jeevan Akshay- VI (Plan No. 810): The first installment of annuity shall be paid one year, six months, three months or one month after the date of purchase of the annuity depending on whether the mode of annuity payment is yearly, half-yearly, quarterly or monthly respectively. Further, annuity shall be paid during the life time of the annuitant with following provisions on death of the annuitant for different options:
(a) Under option (i) – payment of annuity ceases.
(b) Under option (ii)
i. On death during the guarantee period – annuity is paid to the nominee till the end of the guaranteed period after which the same ceases.
ii. On death after the guarantee period – payment of annuity ceases.
(c) Under option (iii) – payment of annuity ceases and the purchase price is returned to the nominee.
(d) Under option (iv) – payment of annuity ceases.
(e) Under option (v) – payment of annuity ceases and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.
(f) Under option (vi) – payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.
(g) Under option (vii) – payment of annuity ceases. 100% of the annuity is paid to the surviving named spouse during his/her life time and purchase price is returned to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price is paid to the nominee.
The amount of annuity shall be assured throughout the period for which it is payable.

Eligibility Conditions and Features of LIC’s Jeevan Akshay- VI (Plan No. 810):
(a) Minimum Age at entry: 30 years last Birthday
(b) Maximum Age at entry: 85 years last Birthday
(c) Minimum Purchase Price: Rs.1,00,000/- for all distribution channel except online sale. Rs. 1,50,000/- for online sale.

Surrender value: No surrender value shall be available under this plan.

Loan: No loan shall be given by the Corporation to the policyholders under this plan.

Assignment / Nominations:
No assignment is allowed under this policy.
Notice of change of nomination should be submitted for registration to the office of the corporation, where this policy is serviced if the type of annuity opted is either for a guaranteed period and for life thereafter or with return of purchase price. In registering a nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

Normal requirements for claim:
On death of the annuitant: The normal documents which the claimant shall submit while lodging the claim in case of death of the Annuitant shall be the claim form, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, whichever is
applicable, to the satisfaction of the Corporation.

It will apply in case the option exercised is for:
a) Annuity option ii) and death of the annuitant takes place before expiry of the guarantee period
b) option iii) i.e. Annuity for life with return of purchase price on death of annuitant
c) option v) or vi) i.e. Annuity for life with a provision of 50% / 100% of the annuity to spouse for life on death of the annuitant
d) option vii) i.e. Annuity for life with a provision of 100% of the annuity to spouse for life on death of the annuitant with return of purchase price on death of last survivor.

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LIC's JEEVAN VAIBHAV PLAN No. 809

Introduction: LIC’s Jeevan Vaibhav is a single premium non-linked endowment assurance plan which provides for payment of Sum Assured on maturity or on death. Loyalty addition, if any, is also payable on death during the last policy year or on maturity. The benefits and other details of this plan are given below.

Benefits:
Death Benefit:
On death during the policy term, excluding last policy year: Sum Assured shall be payable.
On death during the last policy year: Sum Assured along with Loyalty Addition, if any, shall be payable.

Maturity Benefit:
On maturity, the Sum Assured along with Loyalty Addition, if any, shall be payable.
Loyalty Additions: 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.

Eligibility Conditions and Restrictions

1. Minimum Entry Age                     : 8 years (completed)
2. Maximum Entry Age                    : 65 years (nearest birthday)
3. Mode of Premium Payment          : Single premium
4. Minimum  Sum Assured               : Rs.2,00,000/-
5. Maximum Sum Assured               : No Limit

The sum assured shall be in multiple of Rs.10, 000/-
Policy Term                                   : 10 years
Age at entry of the Policyholder is to taken as age nearest birthday except for minimum age at entry i.e. 8 years.

Rebates: Large Sum Assured Rebate on tabular premium per thousand Sum Assured is as under:

Sum Assured	Rebate (Rs.)
Upto Rs.3,90,000	Nil
Rs.4,00,000 to Rs.5,90,000	2.00
Rs.6,00,000 and above	3.00

Corporate Employees Insurance Scheme (CEIS) Rebate: The rebate for eligible employees of the Corporation shall be @ 2% of the Tabular premium provided policy is not taken through any Agent/ Corporate Agent/ Broker.
 Commission For Agents / Corporate Agents / Brokers And D.O. Credit: Commission to Agents, Corporate Agents and brokers is payable @ 2% of the Single Premium received. Credit to Development Officers will be @ 5% of the Single premium.

Guaranteed Surrender Value: The Guaranteed Surrender Value will be available after expiry of one policy year. The Guaranteed Surrender Value shall be 90% of the Single premium paid excluding extra premium, if any.

Special Surrender Value: Special surrender value will be payable, if it is more favorable to the policyholder.The Special Surrender Value will be the discounted value of the Sum Assured. The discount factors shall be the special surrender value factors used for LIC’s Endowment Assurance plan, which will depend on the policy term and the duration elapsed since commencement of the policy.
The Special Surrender Value factors per Rs. 100 Basic Sum Assured for duration 1 and 1.5 years are 44.52 and 45.97 respectively.

Loans: Loan facility is available under this plan after completion of one policy year subject to following conditions:

• Loan can be granted after completion of one policy year subject to a maximum of 70% of Surrender Value.
• The rate of interest to be charged on loans granted under this plan will be 10.25% p.a. compounding half-yearly and the same would be subject to review from time to time by the Corporation.
• No foreclosure action should be taken under this plan even if there is a default in payment of loan interest.

Underwriting, Age proof and Medical Requirements: U & R Department will issue instructions.

Suicide Clause: The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within one year from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of a maximum of (i) 90% of the single premium paid excluding any extra premium paid or (ii) third party’s bonafide beneficial interest acquired in the policy for valuable consideration (but limited to applicable death benefit of this policy) 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.

Service Tax: Under this plan, the amount of service tax as per the prevailing rates shall be payable by the policyholder on single premium including extra premium, if any. Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time. The instructions regarding issues related to service tax will be issued by Finance & Accounts Department, Central office, separately.

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 the claim forms accompanied with original policy document, proof of title, proof of death, medical treatment prior to 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.
On maturity or on earlier surrender, the Life Assured shall submit the discharge form along with the original policy document besides proof of age, if the age is not admitted earlier.
 Cooling-off period: If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy. 
The refund of single premium to the policyholder subject to following deductions:

1. Stamp duty on policy;
2. Actual cost of medical examination and special reports, if any;
3. Mortality charges as per c.o. circular ref: Actl/1819/4 dated 23.08.2002. For substandard lives, the mortality charge shall be increased by multiplying with the factor given in above said circular.

Back-dating interest: The policies can be dated back within the financial year, as usual. Back-dating interest will be charged at the rate of 10% p.a., at the time of completion of policy, for dating back in excess of one month. The interest shall be charged even where the policy is back dated to a lean month.

Policy stamping : Policy stamping charges will be 20 paisa per thousand Sum Assured under this Plan.

Reinsurance: Normal procedure for Reinsurance will apply.

Assignments/Nominations: It should be ensured that a nomination is made in the policy at the proposal stage necessarily. However, on a subsequent assignment or change of nomination, the notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where the policy is serviced. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

Proposal Form : Proposal Form No. 300 or 340, as the case may be, shall be used under this plan

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