JEEVAN SHREE-1

INTRODUCTION OF LIC’S JEEVAN SHREE-1 (TABLE NO.162)

It has been decided to introduce LIC’S JEEVAN SHREE- 1 (Table.162) with effect from
1st September, 2003. The benefits and other details of the plan are as under :

1. BENEFITS:
1.1) Guaranteed Additions: Provided the policy is in full force, the sum assured under this plan will be enhanced at the Guaranteed rate of Rs.50/- per thousand Sum Assured for each completed year for the first five years. The Guaranteed Additions will be payable along with the Sum Assured.

1.2) Participation in profits : The policy shall participate in surplus of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.

1.3) Maturity Benefit : Payment of basic Sum Assured together with vested Guaranteed Additions at the rate of Rs.50/- per thousand Sum Assured for first 5 years and reversionary bonuses declared from time to time on the basis of the experience of the corporation thereafter.

1.4) Death Benefit : On death of the Life Assured during the term of the policy provided the policy is in full force on the date of death. The following death benefit shall be available : -

On death during first 5 policy years :Basic sum assured together with vested guaranteed addition of Rs.50/-per thousand sum assured for each completed year.

On death after first 5 years : Basic sum assured together with vested guaranteed addition of Rs.50/-per thousand sum assured per year for first 5 years and reversionary bonuses declared after the 5th policy year.

2. OPTIONS
2.1) Term Assurance Rider : Term Assurance as optional rider will be available under this plan. Premiums for this option are payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The premium for this option will be payable in addition to the premium under the basic plan.

2.2) Accidental Benefit : Accident benefit will be available under the plan upto a maximum of Rs.25 lakh (under all policies taken together) subject to the payment of additional premium. An additional amount equal to the Accident Benefit Sum Assured is payable on death. This benefit will be available for the full term of the policy or till the policy anniversary immediately following the Life Assured attaining 70 years of age.

3. PREMIUM RATES
3.1) The Premium rates for the Basic plan, Accident Benefit, Term Assurance option and Class- I extra for the Basic Plan and the Term Assurance Option are enclosed in Annexures 1,2,3,4 and 5 respectively.

3.2) Policy and premium paying terms :

Policy Term Premium Paying Term

5 1,2 or 3
10 1,2,3,4 or 6
15 1,2,3,4,6,8 or 10
20 1,2,3,4,6,8,10 or 12
25 1,2,3,4,6,8,10,12 or 16

where 1 indicates Single Premium.

4. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS

4.1) For the Basic Plan :
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 65 years (age nearer birthday)
(c) Maximum Maturity Age - 75 years (age nearer birthday)
(d) Policy Term - Minimum 5 years and maximum 25 yrs.
(e) Sum Assured - Minimum Rs.5 lakh. Thereafter in
multiples of Rs.1 lakh

4.2) Term Assurance Option :
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 50 years (age nearer birthday)
(c) Maximum Maturity Age - 60 years (age nearer birthday)
(d) Minimum Sum Assured - Rs.1,00,000
(e) Maximum Sum Assured - An amount up to the Basic Sum Assured
for Term Assurance Option subject to a maximum of Rs.25 lakh overall
limit, under all policies of the life assured with LIC




5. REBATES
5.1) Rebate for Mode of Premium Payment : 2% and 1% of the tabular premium in case of payment of premium under Yearly and Half-yearly mode respectively.

5.2) Rebate for High Sum Assured : In case of Sum assured of Rs.50 lakh and above, a rebate of Rs.0.50 and Rs.2.00 per thousand Sum Assured will be available on Regular and Single premium respectively.

5.3) CEIS Rebate : No employee rebate will be available under this policy.

6. UNDERWRITING
6.1) Proposal form and Policy document : A specimen copy of the Policy Document is enclosed. Proposal Form No.300 will be used for the plan.

6.2) Underwriting : All underwriting rules for the Basic Plan will be the same as that applicable to endowment 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.

For the purpose of SUC and underwriting (Spl. Reports, Financial underwriting etc.) the Sum Assured under the Basic plan and the additional Term assurance Sum Assured should be considered. Cost of medical examination will be borne by the Corporation subject to a limit of Rs.4%o Sum Assured of the Basic plan.

(1) Pregnant females will not be offered the Term Assurance Rider.
(2) This rider benefit will not apply to handicapped lives.
(3) Hazardous Occupation : Where the chargeable occupational extra is more than Rs.4/- per thousand Sum assured, the rider benefit will not be allowed.

6.3) Back Dating : The policies can be dated back within the financial year. Back-dating interest will be charged at the rate of 10.5% p.a. for dating back in excess of one month. This rate is subject to revision. Same rule of charging interest will apply even when the policy is back dated to a lean month.

6.4) Commission to agents, Corporate agents and Brokers and credit to Development Officers :
Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the premium paying term (ppt) are as under :

Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
Single premium 2%
2 to 4 years 5% 2.25% 2.25%
5 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.

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%
2 to 4 years 5% 2.25% 2.25%
5 to 9 years 10% 5% 5%
10 to 14 years 25% 5% 5%
15 years & above 30% 5% 5%

Development Officer's Credit :
Premium paying term Credit
Single premium 5%
2 to 4 years 5%
5 to 9 years 30%
10 to 14 years 60%
15 years & above 100%
7. POLICY SERVICING
7.1) Revival : The policyholder can revive his lapsed policy by paying arrears of premium together with interest to be decided by the Corporation from time to time, subject to satisfactory evidence of health. The present rate of interest is 9% p.a. payable half-yearly.

7.2) Grace Period : A grace period of 30 days will be available for payment of premiums.

7.3) Paid-up Value : The policy will acquire paid-up value after at least one full year’s premium has been paid wherever the premium paying term is 10 years or less. For premium paying terms of more than 10 years the policy will acquire paid-up value after 2 full years’ premiums have been paid.

7.4) Surrender Value :
7.4.1) Guaranteed Surrender Value : The Guaranteed Surrender Value will be available after the expiry of 3 policy years. This will be available provided the premiums have been paid for at least 3 years for policies with premium paying term of 3 years or more. For premium paying term of 2 years the Guaranteed Surrender Value will be available if all premiums have been paid.
The Guaranteed Surrender Value in case of single premium policies will be 90% of the premium excluding premium for optional benefits and extras, if any.
The Guaranteed Surrender Value allowable will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year. All extra premiums and premiums for optional benefits paid, if any, are excluded from the calculations.
The cash value of any existing Guaranteed Additions and reversionary bonuses, if any, will also be allowed.

7.4.2) Special Surrender Value : Special Surrender Value will be available under this plan after completion of one policy year provided premiums have been paid at least for 1/10th of the premium paying term subject to a minimum of one full year's premium. The vested Guaranteed additions and reversionary bonuses, if any, will also be taken into account while calculating Special Surrender Value.
Surrender value will not be available on Term Assurance and Double Accident benefit.

7.5) Loan : Loan is permissible subject to 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.

7.6) Transferability : Where a policy under this plan has been taken by an employer for a keyman employee and such keyman leave the services and joins another employer, the policy may be transferred in favour of the new employer subject to fulfillment of the following conditions :-
a) The old employer requests for the transfer and is prepared to execute an assignment in favour of the new employer,
b) The life assured employee is the keyman of the new employer, and
c) The policy is in full force.
The terms of transfer may be decided by both the employers mutually. Needless to add that such transfer will be subject to the approval from LIC.