JEEVAN ANURAG PLAN ( PLAN No. 168)

INTRODUCTION OF LIC’S JEEVAN ANURAG PLAN ( PLAN No. 168)


It has been decided to introduce a new plan – LIC’s Jeevan Anurag ( Plan No.168) w.e.f. 13th November, 2004. The details of the plan are as under :


Introduction :
LIC’s Jeevan Anurag Plan is a with profits plan under which benefits are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. In addition, the plan provides for an immediate payment of Sum Assured under the Basic Plan on death of the Life Assured during the term of the policy. This plan is therefore suitable to take care of the educational and other needs of children.


Benefits :
A. Death Benefit : An amount equal to the Sum Assured under the Basic plan shall be payable immediately on the death of the life assured during the term of the policy, provided the policy is in full force.

B. Assured Benefits : Provided policy is in full force, an amount equal to 20% of the Sum Assured under the Basic Plan at the start of every year during last 3 policy years before maturity shall be payable. At maturity, 40% of the Sum Assured under the Basic Plan along with Reversionary Bonuses declared from time to time for the full term and the Terminal Bonus, if any, shall be payable.

This amount is payable both in case of life assured surviving to the end of policy term provided policy is kept in force by payment of premiums or dying during the policy term when policy was in force.

For example, if term of the policy is 20 years, 20% of the Sum Assured under the Basic Plan will be payable at the end each of the 17th,18th and 19th policy year and the balance 40% of the Sum Assured under the Basic Plan along with the vested Reversionary Bonus and the Terminal Bonus, if any, at the end of the 20th year.


Participation in profits :
The policy shall participate in profits of the “With Profit Assurance Policies” at such rates as may be declared by the Corporation provided the policy is kept in force for full Sum Assured

In case of death of the policyholder when the policy is in full force, the policy shall participate in profits for the balance of the term after payment of death claim of Sum Assured under the Basic Plan.

Terminal Bonuses, if any, may also be declared under the policy depending upon the experience of the Corporation and shall be payable at maturity.


Options :
The plan offers the following optional riders by payment of additional premium -

A. Accident Benefit Option :
Accident Benefit as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Accident Benefit Sum Assured, the maximum limit of which shall be Rs.25 lakh for all policies of the Life Assured with the Corporation taken together. An amount equal to the Accident Benefit Sum Assured shall be payable on death if the same occurs as a result of accident provided the policy is in full force. This benefit will be available for the full term of the policy or till the policy anniversary on which the age nearer birthday of the Life Assured is 70 years, whichever is earlier.

B. Term Assurance Rider Option :
Term assurance as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Term Assurance Rider Sum Assured, the maximum limit of which shall be Rs.25 lakh for all policies of the Life Assured with the Corporation taken together. An amount equal to the Term Assurance Rider Sum Assured shall be payable on death during the policy term provided the policy is in full force.

C. Critical Illness Rider Option :
Critical Illness as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Critical Illness Rider Sum Assured, the maximum limit of which shall be Rs. 5 lakh for all polices of the Life Assured with the Corporation taken together. An amount equal to the Critical Illness Rider Sum Assured shall be payable in case of diagnosis of a defined categories of critical illness during the term of the plan subject to the terms and conditions of Critical Illness Rider provided the policy is in full force.

D. Premium Waiver Benefit Option :
This is an optional benefit which may be opted in case of following:
i) If critical illness rider has been opted for ; and
ii) The Sum Assured under the Basic Plan is equal to the Critical Illness Rider Sum Assured.


In case, the Life Assured is diagnosed with any of the critical illnesses covered under the policy, the total future premiums (i.e. premium for Sum Assured under the Basic Plan and the premiums for the Riders opted for) in respect of the policy shall be waived provided the policy is in full force.


Loan
Loan is permissible subject to the usual terms and conditions. The rate of interest on loan shall be charged at the rate of 10.5% p.a. payable half-yearly. The Corporation may revise the rate of interest in future.

Rebates

For Basic Plan :
Mode rebate /extra :
Yearly … 2% of tabular premium
Half-Yearly … 1% of tabular premium
Quarterly/SSS … Nil
Monthly … 5% extra of tabular premium

Large Sum Assured Rebate :

For both Single and Regular Premium Policies :

Sum Assured Rebate (Rs)
50,000 to 1,00,000 Nil
1,05,000 and above 2 %o S.A.

For Term Assurance Rider :
No rebate (either for mode or for larger SA) is available on the rider.

For Critical Illness Rider :
Mode rebate /extra :
Yearly … 2% of tabular premium
Half-Yearly … 1% of tabular premium
Quarterly/SSS … Nil
Monthly … 5% extra of tabular premium

Large Sum Assured Rebate :

For Regular Premium Policies : Nil.

For Single Premium Policies:
Sum Assured Rebate (Rs)
Less than 1,00,000 Nil
1,00,000 to 1,90,000 0.25 %o S.A.
2,00,000 and above 0.50 %o S.A.


CEIS Rebate :
The rebate for eligible employees of the Corporation will be @ 2% of the Tabular Premium in case of Single Premium policies and @ 10% of the Tabular Premium in case of Regular Premium policies for the basic plan as well as the riders, if opted for.


Modes of premium Payments :
Premiums are payable either by Single Premium or regularly during the premium paying term with modes of premium payment Yearly, Half-Yearly, Quarterly, Monthly or through Salary deductions.


Premium Paying Term ( PPT ) :
Following premium paying terms are available :

Premium Paying Term (PPT) may be equal to the policy term or
PPT = Policy Term - 3.
Premiums may also be paid as a Single Premium.


9. Eligibility Conditions and Features :

A. FOR BASIC PLAN:

(a) Minimum age at entry : 20 years (age nearest birthday)
(b) Maximum age at entry : 60 years (age nearest birthday)
(c) Maximum age at maturity: 70 years (age nearest birthday)
(d) Minimum term : 5 years for Single Premium & 10 years for Regular Premium.
(e) Maximum term : 25 years
(f) Minimum sum assured : Rs. 50,000 /-
(g) Maximum sum assured : No limit

The Sum Assured under the Basic Plan shall be in multiples of Rs. 5,000/-


B. FOR TERM ASSURANCE RIDER OPTION :

(a) Minimum age at entry : 20 years (age nearest birthday)
(b) Maximum age at entry : 50 years (age nearest birthday)
(c) Maximum age at maturity: 60 years (age nearest birthday)
(d) Minimum term : 5 years for single premium & 10 years for others.
(e) Maximum term : 25 years.
(f) Minimum sum assured : Rs. 1,00,000 /-
(g) Maximum sum assured : An amount not exceeding the Sum Assured under the Basic Plan subject to the maximum of Rs.25 lakh overall limit taking all Term Assurance Riders availed under all existing policies of the life
assured with the Corporation and the Term Assurance Rider under the new proposal into consideration.

The Term Assurance Rider Sum Assured shall be in multiples of Rs. 25,000/-




C. FOR CRITICAL ILLNESS RIDER OPTION :

(a) Minimum age at entry : 20 years (completed)
(b) Maximum age at entry : 50 years (age nearest birthday)
(c) Maximum age at maturity : 60 years (age nearest birthday)
(d) Minimum Term : 10 years.
(e) Maximum Term : 25 years.
(f) Minimum Sum Assured : Rs. 50,000 /-
(g) Maximum Sum assured : An amount not exceeding the sum assured under the Basic Plan subject to the maximum of Rs.5 lakh overall limit taking all Critical Illness Riders availed under all existing policies of the life assured with the Corporation and the Critical Illness Rider under the new proposal into consideration.

The Critical Illness Rider Sum Assured shall be in multiples of Rs. 10,000/-


10. Premium rates :
(A) Tabular Premium Rates for Basic Plan – as per Annexure I
(B) Tabular Premium Rates for Accident Benefit Rider ( For Single and Limited Payment) – as per Annexure II
(C) Tabular Premium Rates for Term Assurance Rider Benefit – as per
Annexure III.
(D) Tabular Premium Rates for Critical Illness Rider Benefit – as per
Annexure IV.
(E) Tabular Premium Rates for Premium Waiver Benefit - as per Annexure V.
(F) Extra Premium Rates for the Basic Plan – as per Annexure VI.
(G) Extra Premium Rates for Term Assurance Rider Benefit – as per
Annexure VII.


11. Commission payable to Agents / Corporate Agents / Brokers & D.O.Credit :
A. 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
Single Premium 2% Nil Nil
7 to 9 years 10% 5% 5%
10 to 14 years 20% 7.5% 5%
15 years & above 25% 7.5% 5%

Bonus Commission 40% of 1st year commission excluding single premium policy.

B. 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
Single Premium 2% Nil Nil
7 to 9 years 10% 5% 5%
10 to 14 years 25% 5% 5%
15 years & above 30% 5% 5%

C. Credit to Development Officers :
Premium paying Term Credit
Single Premium 5%
7 to 9 years 30%
10 to 14 years 60%
15 years & above 100%


12. Underwriting, age proof and medical requirements :
Underwriting rules for the Basic Plan will be as under :
a) Plan is allowed upto EMR Class III.
b) Plan may be allowed to EMR Class IV to VI with reinsurance provided minimum Sum Assured is Rs. 2 Lakh.
c) Only Standard age proof is allowed .
d) Plan is not allowed to pregnant ladies.
e) Plan is allowed to only Group A deformity with loss of one limb at Standard Rates.
f) Plan is not allowed when occupational extra is chargeable.

Plan is allowed under Non-Medical Scheme both General and Special subject to its terms and conditions if Term Assurance Rider and/or Critical Illness Rider is not opted for.

For the purpose of SUC and underwriting (Special Reports, Financial underwriting etc.) one and half times the Sum Assured under the Basic plan and Term Assurance Rider Sum Assured and Critical Illness Rider Sum Assured together shall be considered. Cost of medical examination will be borne by the Corporation subject to a limit of Rs.4%o Sum Assured under the Basic Plan.

The Term Assurance Rider benefit will be available to Standard and Sub-standard lives (upto Class III EMR). In case of female lives, this benefit will be available only to category I and II lives.

The Critical Illness Rider benefit will be available to Standard lives only. In case of female lives, this benefit will be available only to category I and II lives.

Other terms and conditions for underwriting in case of Term Assurance Rider and Critical Illness Rider shall also apply.


13. Paid-up value
If, after at least three full years’ premiums have been paid in respect of this Policy, any subsequent premium be not duly paid, this Policy shall not be wholly void but the Sum Assured under the Basic Plan shall be reduced to such a sum, called the paid-up value, which shall bear the same ratio to the full Sum Assured under the Basic Plan as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy. The policy so reduced shall thereafter be free from all liabilities for payment of the within-mentioned premium but shall not be entitled to participate in future profits. However, the existing vested Simple Reversionary Bonuses, if any, will remain attached to the reduced paid-up policy. On policy being paid up, all the optional / rider benefits will cease to apply.

The paid up value along with attached bonuses, if any, shall be payable on maturity or earlier death of the Life Assured.


No Assured Benefit will be payable if the policy is in paid-up condition.

Where the premiums are payable throughout the term of the policy, if any premium/s due are not paid once the payment of Assured Benefits start, the unpaid premiums, if any with interest shall be recovered from the Assured Benefits.


14. Guaranteed Surrender value :
This policy can be surrendered for cash after the policy is kept in force by payment of premiums for at least three years. The guaranteed surrender value allowable under this plan for all modes, except the single premium mode, will be equal to 30 per cent of the premiums paid excluding the premiums paid for the first year and all extra premiums and the premiums paid for optional/rider benefits. In case of single premium mode, the guaranteed surrender value will be 90 per cent of the premiums paid excluding all extra premiums and the premiums paid for optional / rider benefits. The cash value of any existing vested Simple Reversionary Bonuses, if any, will be allowed in the surrender value.

Surrender Value will not be available on Term Assurance Rider option, Accident Benefit and Critical Illness Rider option premiums.


15. Grace period for payment of premium :
A grace period of one month but not less than 30 days will be allowed for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.


16. Revivals or Reinstatements of lapsed policy :
If the policy has lapsed, it may be revived during the life time of the Life Assured, but within a period of 5 years from the date of first unpaid premium and before the date of maturity 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 at such rate as may be prevailing at the time of the payment.


17. 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 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.


18. Claim concession :
If premiums have been paid for at least first three years and death occurs within 6 months from the due date of the first unpaid premium, then the claim may become payable. Similarly if premiums have been paid for at least first five years and death occurs within one year from due date of the first unpaid premium, then the claim may become payable.


19. 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.


20. 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 9% p.a. for dating back in excess of one month. This rate is subject to revision. The interest shall be charged even where the policy is back dated to a lean month.


21. Policy stamping :
Policy stamping charges will be 20 paise per thousand Sum Assured under the Basic Plan. For Term Assurance Rider Sum Assured additional policy stamping of 20 paise per thousand Term Assurance Rider Sum Assured will be made.


22. Reinsurance :
Normal procedure for reinsurance will apply.


23. Assignments / Nominations :
Notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where this 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.


24. Proposal form :

Proposal Form No. 300 will be used for the plan.


25. Policy document :
A specimen copy of the Policy Document is enclosed as in Annexure VIII.