Jeevan Akshay- V (Plan No. 183)

Introduction of LIC’s Jeevan Akshay- V (Plan No. 183)

1. Introduction :
It has been decided to withdraw the Immediate annuity Plan, LIC’s Jeevan Akshay- IV (Plan No.176) with effect from 20th September, 2006 and introduce a New Plan - LIC’s Jeevan Akshay – V in its place. The new plan will come into force with effect from 20th September, 2006.

2. Type of annuities available:
Various annuity options available under the Plan are as under:
1.Annuity for life
2.Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
3.Annuity with return of purchase price
4.Annuity for life increasing at a simple rate of 3% p.a.
5. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant.
6. Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant.

3. Modes of Annuity Payments:
Annuity can be paid in yearly, half-yearly, quarterly or monthly instalments, subject to a minimum annuity of Rs.3,000/- per annum. Thus the minimum amount of annuity for monthly, quarterly, half-yearly and yearly mode will be Rs.250/-, Rs.750/-, Rs.1,500/- and Rs.3,000/- respectively.

4. Benefits:
The first instalment 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 as follows:


(a) Under option (1) - payment of annuity ceases.
(b) Under option (2)
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 (3) - payment of annuity ceases and the purchase price is returned to the nominee.
(d) Under option (4) - payment of annuity ceases.
(e) Under option (5) - 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 (6) - 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.

The amount of annuity shall be assured throughout the period for which it is payable.

5. Annuity Rates:
Annuity rates for different types of annuities are enclosed in Annexures 1 to 9.
The policy can be purchased by payment of single premium which can be worked out by applying annuity rates for the type and mode of annuity opted by the policyholder. The annuity rates may also be used to work out the amount of annuity for a given single premium.
These rates will be applicable for the New Business introduced under the plan as well as under deferred annuity policies (where annuity rates are not guaranteed) which vest on or after 20.09.2006.

6. Rebates:

(a) Incentives for high purchase price
Under the policies where purchase price is high, incentive by way of increase in the tabular annuity rate will be given to the annuitant.
Scale of absolute amount of incentive under high purchase price policies as an addition to the annuity rates per annum per rupees one thousand purchase price is as below.

Mode of Annuity
Purchase price (in Rs.)
150,000 to 299,999
300,000 & above
Yearly
2.50
3.00
Half Yearly
3.00
3.75
Quarterly
3.50
4.50
Monthly
4.00
5.25

(b) Rebate for Corporation Employees:
A Rebate of 2% of the purchase price will be available to eligible Corporation employees under CEIS.




7. Eligibility Conditions and Features:
(a) Minimum Age at entry: 40 years last Birthday
(b) Maximum Age at entry: 79 years last Birthday
(c) Minimum Purchase Price: Rs.50,000/= or such amount which may secure a minimum annuity of Rs.3,000/- p.a.
(d) Minimum Annuity Instalment: Rs.250/= per month
Rs.750/= per quarter
Rs.1,500/= per half-year
Rs.3,000/= per year.

8. Commission & D.O. Credit:
Agents Commission shall be payable @ 2% of purchase price. No bonus commission shall be paid.
D.O. credit shall be @ 5% on the purchase price.
No agents commission or D.O.’s credit shall be given on vesting of deferred annuity policies.

9. Underwriting:
No medical examination is required under this plan.
Standard age proof will be required under all the annuity options except the option “Annuity with return of purchase price”.

10. Policy stamping:
(a) Under the annuity option (2) where certain period is 15 or 20 years, the amount of stamp duty will be based on the total annuity amount payable during the certain period i.e. the annuity per annum multiplied by 15 or 20 respectively.

(b) Under the annuity option (4), the amount of stamp duty will be based on the annuity amount payable for 12 years i.e. 13.98 multiplied by the annuity per annum for first year.

(c) Under all the other annuity options, the amount of stamp duty will be based on the total annuity amount payable for a period of 12 years i.e. 12 multiplied by the annuity per annum.

11. Cooling-off period:
If a policy holder 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.

12. Surrender value:
No surrender value will be available under this plan.

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

14. 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.

15. Normal requirements for claim:
For annuities in payment: The Existence Certificate is to be submitted by the annuitant once in a year before the policy anniversary and before the release of annuity cheques under all the annuity options except in the following cases:
(a) Under option (2) during the guaranteed period
(b) Under option (3)

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.
This condition applies in case the option exercised is for:
(i) A guarantee period and death of the annuitant takes place before expiry of the guarantee period
(ii) Annuity for life with return of purchase price on death of annuitant
(iii) Annuity for life with a provision of 50% / 100% of the annuity to spouse for life on death of the annuitant
In other cases the annuity shall stop.
Further, if age is not admitted under the policy, the proof of age of the Annuitant shall also be submitted.