Introduction of LIC’s Jeevan Amrit (Plan No. 186)
It has been decided to introduce LIC’s Jeevan Amrit Plan (Table no.186) with effect from 28th May, 2007.
1. INTRODUCTION:
It is a plan where the premium payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the premiums payable in subsequent years.
2. PREMIUMS:
The policy is available for terms 10 to 30 years. Premiums may be paid yearly or half-yearly during the premium paying term of 3 or 4 or 5 years.
3. BENEFITS:
Death Benefit: An amount equal to Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus (if any) is payable in lump sum immediately on death of the Life Assured during the term of the policy.
Maturity Benefit: Payment of total amount of premiums (excluding extra premiums, if any) paid along with vested Reversionary Bonuses and Final (Additional) Bonus, if any, in case of Life Assured surviving to the end of the term.
4. PARTICIPATION IN PROFITS OF THE CORPORATION:
Depending upon the Corporation’s experience with regard to policies issued under this plan, this policy will be eligible for Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.
The Simple Reversionary Bonuses shall be declared annually at the end of each financial year at the rate per thousand total amount of premiums paid (excluding any extra premium) as on the date of valuation. Paid-up policies (whether partially or fully paid-up) shall also participate in the profits of the Corporation.
Final (Additional) Bonus may also be declared under the policy which will be payable on the expiry of policy term or on earlier death provided the policy has run for certain minimum term.
Final (Additional) Bonus shall not be payable under partially paid-up policies.
5. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
(a) Minimum Entry Age : 12 years (last birthday)
(b) Maximum Entry Age : 60 years (nearest birthday)
(c) Maximum Maturity Age : 70 years (nearest birthday)
(d) Minimum Sum Assured : Rs. 1,00,000
(e) Maximum Sum Assured : No limit
(f) Premium Paying term : 3 to 5 years
(g) Policy term : 10 to 30 years
6. REBATES / INCENTIVES FOR MODE AND HIGH SUM ASSURED :
Rebates are available at the following rates under the plan :
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - Nil
7. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 5% of the Tabular Premium provided policy is not taken through any Agent/ Corporate Agent/ Broker.
8. COMMISSION FOR AGENTS / CORPORATE AGENTS / BROKERS AND D.O. CREDIT:
Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the premium paying term are as under:
Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 4.0% 2.25% ----
4 years 4.0% 2.25% 2.25% 5 years 7.5% 5.00% 5.00%
Bonus Commission: 40% of 1st year commission.
Commission rates (as percentage of premium) payable to Brokers during the premium paying term are as under:
Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 5.5% 2.25% ----
4 years 5.5% 2.25% 2.25% 5 years 10.0% 5.00% 5.00%
No Bonus Commission shall be paid to the Brokers.
Development Officer's Credit:
For premium paying term 3 & 4 years: 5% of first year premium
For premium paying term 5 years : 15% of first year premium.
9. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
Same as for Endowment Plan.
10. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one calendar month but not less than 30 days will be allowed for payment of premiums. If death of the life assured occurs within the grace period but before the payment of premium then due, the policy will still be valid and the benefits allowed after deduction of the said unpaid premium as also the unpaid premium/s falling due before the next anniversary of the policy.
11. PAID-UP & SURRENDER VALUES (GSV,SSV):
If at least one full year’s premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void, but the Sum Assured shall be reduced to such a sum, called the Paid-up Sum Assured, and will be equal to the total amount of premiums paid (excluding any extra premium). The policy so reduced shall thereafter be free from all liabilities for payment of the within mentioned premium, but shall participate in the future profits of the Corporation declared in the form of simple reversionary bonuses payable at the rate of per thousand total amount of premiums paid (excluding any extra premium). The existing vested reversionary bonuses, if any, shall also remain attached to the reduced paid-up policy.
In the event of death of Life Assured during the policy term, the reduced Paid-up Sum Assured as defined above, along with vested reversionary bonuses, if any, shall be payable. Provided the Life Assured is then alive, the vested bonuses and the reduced Paid-up Sum Assured as defined above shall be payable at the end of the policy term.
If after at least one full year’s premiums have been paid in respect of this policy any subsequent premium be not duly paid, in the event of death of the Life Assured within six months from the due date of first unpaid premium, the benefits will be paid as if the Policy had remained in full force after deduction of (a) the premium or premiums unpaid with interest thereon until the date of death, and (b) the unpaid premiums falling due before the next Policy anniversary.
The Guaranteed Surrender Value shall be available after completion of at least one policy year provided premiums for one full year have been paid. The Guaranteed Surrender Value is equal to 30% of the total amount of premiums paid excluding extra premiums, if any.
The cash value of any existing vested bonuses, if any, will also be paid.
Special Surrender Value will be calculated using the surrender value factors as applicable in the case of limited payment Endowment Plan and paid-up value as defined above.
12. REVIVALS OR REINSTATEMENTS OF LAPSED POLICIES:
If the due premium is not paid within the days of grace, the policy will lapse. If the Policy has lapsed, it may be revived during the lifetime of the life assured, but within a period of 5 years from the date of first unpaid premium and before the date of maturity, as the case may be, on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be prevailing at the time of the payment. The Corporation reserves the right to accept or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the life assured.
13. LOAN:
Loan facility is available under this plan after the policy acquires paid-up value. The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.
14. SUICIDE CLAUSE:
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 this Policy and the Corporation will not entertain any claim by virtue of this Policy 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.
15. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age of life assured is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.
Where the policy results into a maturity claim or in case of surrender of the policy, 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.
16. 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.
17. BACK DATING INTEREST:
The policies can be dated back within the financial year, as usual. Back-dating interest will be charged at the prevailing rate 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. The policy can commence even from a date prior to the date of introduction of the plan.
18. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Death Benefit Sum Assured.
19. REINSURANCE:
Normal procedure for reinsurance will apply.
20. 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.
21. PREMIUM RATES: Premium Rates per Rs. 1000/- Sum Assured and Class-I extra premium rates are given in Annexure I & II respectively.
22. PROPOSAL FORM:
Proposal Form No. 300 or 340 shall be used for the plan.
It has been decided to introduce LIC’s Jeevan Amrit Plan (Table no.186) with effect from 28th May, 2007.
1. INTRODUCTION:
It is a plan where the premium payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the premiums payable in subsequent years.
2. PREMIUMS:
The policy is available for terms 10 to 30 years. Premiums may be paid yearly or half-yearly during the premium paying term of 3 or 4 or 5 years.
3. BENEFITS:
Death Benefit: An amount equal to Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus (if any) is payable in lump sum immediately on death of the Life Assured during the term of the policy.
Maturity Benefit: Payment of total amount of premiums (excluding extra premiums, if any) paid along with vested Reversionary Bonuses and Final (Additional) Bonus, if any, in case of Life Assured surviving to the end of the term.
4. PARTICIPATION IN PROFITS OF THE CORPORATION:
Depending upon the Corporation’s experience with regard to policies issued under this plan, this policy will be eligible for Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.
The Simple Reversionary Bonuses shall be declared annually at the end of each financial year at the rate per thousand total amount of premiums paid (excluding any extra premium) as on the date of valuation. Paid-up policies (whether partially or fully paid-up) shall also participate in the profits of the Corporation.
Final (Additional) Bonus may also be declared under the policy which will be payable on the expiry of policy term or on earlier death provided the policy has run for certain minimum term.
Final (Additional) Bonus shall not be payable under partially paid-up policies.
5. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
(a) Minimum Entry Age : 12 years (last birthday)
(b) Maximum Entry Age : 60 years (nearest birthday)
(c) Maximum Maturity Age : 70 years (nearest birthday)
(d) Minimum Sum Assured : Rs. 1,00,000
(e) Maximum Sum Assured : No limit
(f) Premium Paying term : 3 to 5 years
(g) Policy term : 10 to 30 years
6. REBATES / INCENTIVES FOR MODE AND HIGH SUM ASSURED :
Rebates are available at the following rates under the plan :
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - Nil
7. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 5% of the Tabular Premium provided policy is not taken through any Agent/ Corporate Agent/ Broker.
8. COMMISSION FOR AGENTS / CORPORATE AGENTS / BROKERS AND D.O. CREDIT:
Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the premium paying term are as under:
Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 4.0% 2.25% ----
4 years 4.0% 2.25% 2.25% 5 years 7.5% 5.00% 5.00%
Bonus Commission: 40% of 1st year commission.
Commission rates (as percentage of premium) payable to Brokers during the premium paying term are as under:
Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 5.5% 2.25% ----
4 years 5.5% 2.25% 2.25% 5 years 10.0% 5.00% 5.00%
No Bonus Commission shall be paid to the Brokers.
Development Officer's Credit:
For premium paying term 3 & 4 years: 5% of first year premium
For premium paying term 5 years : 15% of first year premium.
9. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
Same as for Endowment Plan.
10. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one calendar month but not less than 30 days will be allowed for payment of premiums. If death of the life assured occurs within the grace period but before the payment of premium then due, the policy will still be valid and the benefits allowed after deduction of the said unpaid premium as also the unpaid premium/s falling due before the next anniversary of the policy.
11. PAID-UP & SURRENDER VALUES (GSV,SSV):
If at least one full year’s premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void, but the Sum Assured shall be reduced to such a sum, called the Paid-up Sum Assured, and will be equal to the total amount of premiums paid (excluding any extra premium). The policy so reduced shall thereafter be free from all liabilities for payment of the within mentioned premium, but shall participate in the future profits of the Corporation declared in the form of simple reversionary bonuses payable at the rate of per thousand total amount of premiums paid (excluding any extra premium). The existing vested reversionary bonuses, if any, shall also remain attached to the reduced paid-up policy.
In the event of death of Life Assured during the policy term, the reduced Paid-up Sum Assured as defined above, along with vested reversionary bonuses, if any, shall be payable. Provided the Life Assured is then alive, the vested bonuses and the reduced Paid-up Sum Assured as defined above shall be payable at the end of the policy term.
If after at least one full year’s premiums have been paid in respect of this policy any subsequent premium be not duly paid, in the event of death of the Life Assured within six months from the due date of first unpaid premium, the benefits will be paid as if the Policy had remained in full force after deduction of (a) the premium or premiums unpaid with interest thereon until the date of death, and (b) the unpaid premiums falling due before the next Policy anniversary.
The Guaranteed Surrender Value shall be available after completion of at least one policy year provided premiums for one full year have been paid. The Guaranteed Surrender Value is equal to 30% of the total amount of premiums paid excluding extra premiums, if any.
The cash value of any existing vested bonuses, if any, will also be paid.
Special Surrender Value will be calculated using the surrender value factors as applicable in the case of limited payment Endowment Plan and paid-up value as defined above.
12. REVIVALS OR REINSTATEMENTS OF LAPSED POLICIES:
If the due premium is not paid within the days of grace, the policy will lapse. If the Policy has lapsed, it may be revived during the lifetime of the life assured, but within a period of 5 years from the date of first unpaid premium and before the date of maturity, as the case may be, on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be prevailing at the time of the payment. The Corporation reserves the right to accept or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the life assured.
13. LOAN:
Loan facility is available under this plan after the policy acquires paid-up value. The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.
14. SUICIDE CLAUSE:
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 this Policy and the Corporation will not entertain any claim by virtue of this Policy 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.
15. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age of life assured is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.
Where the policy results into a maturity claim or in case of surrender of the policy, 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.
16. 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.
17. BACK DATING INTEREST:
The policies can be dated back within the financial year, as usual. Back-dating interest will be charged at the prevailing rate 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. The policy can commence even from a date prior to the date of introduction of the plan.
18. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Death Benefit Sum Assured.
19. REINSURANCE:
Normal procedure for reinsurance will apply.
20. 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.
21. PREMIUM RATES: Premium Rates per Rs. 1000/- Sum Assured and Class-I extra premium rates are given in Annexure I & II respectively.
22. PROPOSAL FORM:
Proposal Form No. 300 or 340 shall be used for the plan.
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