JEEVAN NIDHI PLAN (PLAN No. 169)

INTRODUCTION OF LIC’s JEEVAN NIDHI PLAN (PLAN No. 169)

There has been a consistent demand for endowment funding under Deferred Annuity Plan. It has, therefore been decided to introduce a new plan - “ LIC’s Jeevan Nidhi “ (Plan No. 169) w.e.f 13th November 2004, the details of which are as under:

1. Introduction :
LIC’s Jeevan Nidhi Plan is a with-profits plan which provides for death cover during the deferment period and on survival to the date of vesting, the maturity proceeds are compulsorily to be used for purchase of annuity.

2. Benefits :
a) Benefit On Vesting : Provided the policy is in full force, Sum Assured under the Basic Plan along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Terminal Bonus, if any, will compulsorily be converted into annuity. There is an option to commute up to 1/3rd of Sum Assured under the Basic Plan together with accrued Guaranteed Additions and Bonuses. If commutation is exercised then the annuity is payable for the balanced amount.

b) Benefit on death before annuity vests : On death of the Life Assured during the deferment period of the policy an amount equal to the Sum Assured under the Basic Plan along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Terminal Bonus, if any, shall be payable in a lump sum to the appointed nominee provided the policy is in full force.

c) Annuity Options : On vesting Life Assured shall have an option to purchase annuity from Life Insurance Corporation of India or from any other Life Insurance Company. If the Life Assured desires to purchase the annuity from other company, he/she shall be required to inform the same to Life Insurance Corporation of India in writing three months before the date of vesting. If purchased from LIC, then the type of annuity and annuity rate will be that applicable at the time of vesting.

d) IT Rebate : As per present tax provisions, the premiums under the plan shall be allowed for rebate under Section 80CCC of the IT Act, 1961.

3. Guaranteed Additions :
Provided the policy is in full force, Guaranteed Additions @ Rs.50/- per thousand Sum Assured will be added to the Sum Assured under the Basic Plan at the end of each policy year, for the first five years.

4.Participation in profits :
The policy shall participate in profits of the “With Profit Assurance Policies” from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation provided the policy is kept in force for full Sum Assured.

Terminal Bonuses, if any, may also be declared under the policy depending upon the experience of the Corporation and shall be payable either on death of the Life Assured or on vesting.

5.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 deferment period of the policy or till the policy anniversary on which the age nearer birthday of the Life Assured is 70 years which ever 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 deferment period 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 policies 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 deferment period 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 the 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.

6. Loans :
No loans will be available to the policyholders under this plan.

7. Rebates :

(a) For Basic plan :

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

Large Sum Assured Rebate :

For Regular Premium policies:
Sum Assured Rebate (Rs)
50,000 to 1,00,000 Nil
1,05,000 to 3,00,000 1 %o S.A.
3,05,000 and above 2 %o S.A.

For Single Premium Policies:
Sum Assured Rebate (Rs)
50,000 to1,00,000 Nil
1,05,000 to 3,00,000 5 %o S.A.
3,05,000 and above 10 %o S.A.

(b) For Term Assurance Rider :
No rebate (either for mode or for large S.A.) is available on the rider.

(c) For Critical Illness Rider :

Mode rebate / extra :
Yearly … 2% of tabular premium
Half-Yearly … 1% of tabular premium
Quarterly … 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.

(d) CEIS Rebate :
The rebate for eligible employees of the Corporation will be @ 2% of the tabular premium in case of single premium policies and @ 2.75% of the tabular premium in case of regular premium policies for the basic plan as well as the riders, if opted for.


8. Modes of Payment of premiums :
Premiums are payable either by Single Premium or regularly during the deferment period with modes of premium payment Yearly, Half-Yearly, Quarterly , Monthly or through Salary deductions.

9. Eligibility Conditions and Features :

(a) For Basic Plan :
a) Minimum age at entry : 18 years (completed)
b) Maximum age at entry : 65 years (age nearest birthday)
c) Minimum age at vesting : 40 years (age last birthday)
d) Maximum age at vesting : 75 years (age last birthday)
e) Minimum Deferment period : 6 years for Single Premium &
5 years for Regular Premium.
f) Maximum Deferment period : 35 years
g) Minimum Sum Assured : Rs.50,000/-
h) Maximum Sum Assured : No limit.
i) Minimum Annual Premium : Rs.3,000/-
j) Minimum Single premium : Rs.10,000/-
k) Maximum Premium : 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 : 18 years (completed)
b) Maximum age at entry : 50 years (age nearest birthday)
c) Maximum age at vesting : 60 years (age nearest birthday)
d) Deferment Period : 6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode
e) Minimum Sum Assured : Rs.1,00,000/-
f) Maximum Sum Assured : An amount not exceeding the Sum Assured under the Basic Plan subject to the maximum of Rs.25,00,000/- 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 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 vesting : 60 years (age nearest birthday)
d) Deferment Period : 10 to 35 years
e) Minimum Sum Assured : Rs.50,000/-
f) Maximum Sum Assured : An amount not exceeding the Sum Assured under the Basic plan subject to the maximum of Rs.5,00,000/- 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 :
1. Tabular Premium Rates for Basic Plan – as per Annexure I
2. Tabular Premium Rates for Accident Benefit Rider (Single premium) – as per Annexure II
3. Tabular Premium Rates for Term Assurance Rider Benefit – as per Annexure III.
4. Tabular Premium Rates for Critical Illness Rider Benefit – as per Annexure IV.
5. Tabular Premium Rates for Premium Waiver Benefit - as per Annexure V.
6. Extra premium rates for the Basic Plan will be the same as applicable under Endowment Assurance Plan – as per Annexure VI.
7. Existing extra premium rates for Term Assurance Rider will be applicable – as per Annexure VII.

11. Commissions payable to the Agents/Corporate Agents/Brokers& DO’s credit:
(a) Commission rates (as percentage of premium) payable to Agents, Corporate Agents and Brokers during the premium paying term are as under :
1st Year Subsequent
Years
Single premium 2% Nil
Regular Premium 7.5% 2%

No Bonus Commission is payable.

(b) Credit to Development Officers :
Premium Paying term Credit
Single premium 5%
5 to 9 years 5%
10 years & above 30%

12. Underwriting, Age proof and Medical Requirements :
All underwriting rules for the Basic Plan will be the same as that applicable to Endowment Assurance plan.

For the purpose of SUC and underwriting (Special Reports, Financial underwriting etc.) the Sum Assured under the Basic Plan, Term Assurance Rider Sum Assured and Critical Illness Rider Sum Assured taken 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 (up to 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 year’s 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 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 and shall not be entitled to the future Guaranteed Additions and Bonuses. However the existing accrued Guaranteed additions and 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.

14. Guaranteed Surrender Value :
Before the annuity vests, the 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 total 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 accrued Guaranteed Additions and 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. Special Surrender Values :
The factors for calculation of Special Surrender Value will be the same as under Endowment plan (Table No.14) for term equivalent to the deferment period.

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

17. 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 five years from the date of first unpaid premium and before the date of vesting 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.

18. 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.

If the policy is surrendered, the Life Assured shall be required to submit the discharge form along with the original policy document besides proof of age, if the age is not admitted earlier.


19. 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.

20. 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.

21. Back-dating interest :
The Policy 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.

22. 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.

23. Reinsurance :
Normal procedure for reinsurance will apply.

24. Assignments / Nominations:
Notice of change of nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

No assignment is allowed under this plan.

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