Jeevan Tarang (With Profits) Plan (Plan No. 178)

Introduction of LIC’s Jeevan Tarang (With Profits) Plan (Plan No. 178)


1. Introduction:
It has been decided to introduce a new with profits plan, LIC’s Jeevan Tarang Plan (Plan No. 178) w.e.f.17th March 2006. The plan is a whole of life plan, which provides for annual survival benefit at a rate of 5½ % of the Sum Assured for life time after the chosen Accumulation Period.


2. Accumulation Period:
The plan offers three Accumulation periods – 10, 15 and 20 years. A proposer may choose any period.


3. Benefits under the plan:

(A) Survival Benefits:
i. The vested simple reversionary bonuses will be payable in one lump sum on survival to the end of the selected Accumulation Period.
ii. 5½% of the Sum Assured will be payable on survival to the end of each year after the Accumulation Period. The first survival benefit will be payable on survival to one year after the Accumulation Period is over.

(B) Maturity Benefit:
The Sum Assured along with Loyalty Addition, if any, will be payable on survival of the life assured to the policy anniversary coinciding with or immediately following the completion of 100 years of age.

(C) Death Benefit:
i. The Sum Assured, along with vested reversionary bonuses is payable in case of death of the Life Assured during the Accumulation Period.

In case of death before commencement of risk when the Life Assured is aged less than or equal to 12 years, the premiums paid will be returned without any interest. There will be no death benefit either for the Basic Sum Assured or for simple reversionary bonuses since, in such cases, the risk for life cover commences after 2 years from the date of taking of the policy or from the policy anniversary coinciding with or immediately following the date on which life assured completes 7 years of age, whichever is later. After the commencement of risk, the normal death benefit as stated above is payable.

ii. The Sum Assured along with Loyalty Addition, if any is payable in case of death of the Life Assured any time after the Accumulation Period.

4. Optional riders (available during the Accumulation Period only):
(A) Accident Benefit Rider Option (Allowed for Regular Premium policies only): Accident Benefit Option will be available under the plan by the payment of additional premium. Accident Benefit Rider shall be available for an amount not exceeding the Sum Assured under the basic plan subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes including those with in-built Accident Benefit taken with the Corporation and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

This benefit is available under Regular Premium policies only and it is not available under Single Premium policies.

(B) Term Assurance Rider Option: Term assurance as optional rider will be available under this plan during the Accumulation Period. The 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 Accumulation Period. The maximum cover for this rider will be Rs.25 lakh under all policies of the life assured with the Corporation taken together. The terms and conditions applicable to this rider will be as mentioned in our circular Ref: Actl/1909/4 dated 24th October 2003.
(C) Critical Illness Rider Option: An amount equal to Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of critical illnesses during the Accumulation Period subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 lakh under all policies of the life assured with the Corporation taken together. The terms and conditions applicable to this rider will be as mentioned in our circular Ref: Actl/1906/4 dated 8th October 2003 and Actl/2034/4 dated 13th September 2005.

(D) Premium Waiver Benefit Option under Critical Illness Rider: This is an optional benefit under Regular Premium policies which may be opted in case of the following:
(i) The 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
(iii) The chosen Accumulation Period is such that the premium payment ceases on or before the policy anniversary at which the Life Assured completes 60 years (nearest birthday) of age.
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.

All three optional rider benefits mentioned above shall be available during Accumulation Period only.

5. Participation in profits:
Policies under this plan shall participate in profits of the Corporation. During the accumulation period policies shall be entitled to receive simple reversionary bonuses which will be payable on survival to the end of the Accumulation Period or on earlier death. After the Accumulation Period, policies will be entitled to receive a Loyalty Addition payable on maturity or earlier death. The amount of simple reversionary bonus and Loyalty Addition will depend on the experience of the Corporation.

6. Eligibility Conditions and Restrictions under this plan and optional riders:
Ages at entry: 0 years to 60 years (nearest birthday)
Maximum age at which premium payment ceases: 70 years (nearest birthday)
Age up to which life cover available: 100 years (completed)
Minimum age at the end of accumulation period: 18 years (completed)
Modes of premium payment: Single Premium and Yearly, Half-Yearly, Quarterly, Monthly, SSS under Regular Premium
Premium paying terms: In case of regular premiums, the premiums are payable during accumulation period only.
Sum Assured: Rs.1 lakh and over in multiples of Rs.5,000/-.

Accident Benefit Rider (Allowed under Regular Premium policies only):
Ages at entry: 18 years (completed) to 60 years (nearest birthday)
Maximum age at which premium payment ceases: 70 years (nearest birthday)
Age up to which rider cover available: 70 years (nearest birthday)
Premium paying terms: Equal to the accumulation period, i.e. 10, 15 and 20 years
SA limits: Rs.25,000/- to Rs.50 lakh, considering all Accident Benefit Sums Assured under individual and group policies and Accident Benefit Rider Sum Assured under new proposals into consideration. The Sum Assured can be in multiples of Rs.5,000/-.
Availability of Rider: During chosen accumulation period.

Term Assurance Rider:
Ages at entry: 18 years (completed) to 50 years (nearest birthday)
Maximum age at which premium payment ceases: 60 years (nearest birthday)
Age up to which rider cover available: 60 years (nearest birthday)
Premium paying terms: Single Premium and, in case of regular premiums, equal to the accumulation period, i.e. 10, 15 and 20 years
Sum Assured: An amount equal to the sum assured under Basic Plan subject to a minimum Sum Assured of Rs.1 lakh and a maximum of Rs. 25 lakh overall limit taking all term assurance riders under all existing policies of the Life Assured and term assurance rider option Sum Assured for the new proposal under this plan into consideration. The Sum Assured can be in multiples of Rs.25,000/-.
Availability of Rider: During chosen accumulation period.

Critical Illness Rider:
Ages at entry: 18 years (completed) to 50 years (nearest birthday)
Maximum age at which premium payment ceases: 60 years (nearest birthday)
Age up to which rider cover available: 60 years (nearest birthday)
Premium paying terms: Single Premium and, in case of regular premiums, equal to the accumulation period, i.e. 10, 15 and 20 years
Sum Assured: An amount equal to the sum assured under Basic Plan subject to a minimum Sum Assured of Rs.50,000/- and a maximum of Rs.5 lakh overall limit taking all critical illness riders under all existing policies of the life assured and the critical illness rider option under the new proposal into consideration. The Sum Assured can be in multiples of Rs.10,000/-.
Availability of Rider: During chosen accumulation period.

7. Loan:
Loan facility is available under this plan. However, the rate of interest would be determined from time to time by the Corporation. Presently, the rate of interest is 9 % pa payable half-yearly.

8. Rebates / Incentives for high SA or purchase price / Rebate for Corporation Employees:
(A) Mode Rebate (Under Regular Premium policies only):
Yearly mode: 2% of Tabular Premium
Half-yearly mode: 1% of the Tabular Premium
Quarterly: NIL
In case of monthly mode other than SSS, an additional amount of 5% of tabular premium will be charged.

(B) High Sum Assured Rebates:
For Regular premium
Rs.1.25%o Sum Assured for Sum Assured Rs 2 lakh and over;
Rs. 2.25%o Sum Assured for Sum Assured Rs 5 lakh and over.

For Single premium
Rs.7.50%o Sum Assured for Sum Assured Rs 2 lakh and over;
Rs.12.50%o Sum Assured for Sum Assured Rs 5 lakh and over.

(C) CEIS Rebate:
An employee of the Corporation shall be eligible for a rebate in tabular premium under Corporation’s Employee Insurance Scheme (CEIS) at the following rates:
2% of the Single Premium;
5% of Regular Premium for Accumulation Period of 10 years and
10% of Regular Premium for Accumulation Periods of 15 and 20 years

9. Premium rates:
The tables below provide tabular premiums for various age-accumulation period combinations for Rs. 1000/- Sum Assured.

Regular premiums
Age
Accumulation period
10 years
15 years
20 years
Up to 40 years
109.10
71.40
51.50
41 to 45 years
109.10
71.40
53.40
46 to 50 years
109.10
73.80
56.60
51 to 55 years
111.80
77.90
-
56 to 60 years
116.60
-
-



Single premiums
Age
Accumulation period
10 yrs
15 yrs
20 yrs
Up to 46 years
756.00
644.00
548.00
47 years
756.00
644.00
549.00
48 years
756.00
644.00
552.00
49 years
756.00
644.00
555.20
50 years
756.00
644.00
558.90
51 to 55 years
756.00
644.00
-
56 to 60 years
756.00
-
-

The premium rates applicable to Term Assurance Rider Benefit will be as per our circular Ref: Actl/1909/4 dated 24th October 2003.

Similarly, the premium rates for Critical Illness Rider Benefit and Premium Waiver Benefit will be as per our circular Ref: Actl/1906/4 dated 8th October 2003.

10. Extra premium rates:
The Class I extra premium rates per Rs.1,000/- Sum Assured applicable under this plan are as given in Annexure 1. This Annexure also provides the extra premium rates to be charged in case of revival, where the period to be used shall be the outstanding premium paying term during the Accumulation Period on the date of FUP.

11. Commission for Agents / Corporate Agents / Brokers & 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
Single premium 2%
10 years 20% 7.5% 5%
15 & 20 years 25% 7.5% 5%
Bonus Commission: 40% of 1st year commission in case of regular premium policies only.

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%
10 years 25% 5% 5%
15 & 20 years 30% 5% 5%
No bonus commission is payable to brokers.

Development Officer's Credit:
Premium paying term Credit as % of First Year’s premium
Single premium 5%
10 years 60%
15 & 20 years 100%



12. Underwriting, age proof and medical requirements:
Rules regarding underwriting, age proof and medical requirements will be the same as applicable to Endowment plan Table 14 if CI rider is not opted for.

SUC
This will be the Basic Sum Assured along with Sum Assured under Term Assurance (TA) rider (if opted for) and Sum Assured under Critical Illness (CI) rider (if opted for).
Under Single Premium mode, the SUC for the Basic Plan will be Basic Sum Assured less the Single Premium. The total SUC will then be the SUC under the Basic Plan along with Sum Assured under TA rider (if opted for) and Sum Assured under CI rider (if opted for).

Adult Lives
Plan (with or without TA rider) can be allowed to standard lives and sub-standard lives attracting all classes of EMR.

Female lives
Plan can be allowed to Female Category I & II.
Plan can be allowed to Female Category III only if TA and CI riders are not opted for.
Existing rules regarding maximum allowable cover to Female Categories II & III will apply.

Minor Lives
Age at entry up to 10 years completed:
Plan (without Accident Benefit, TA & CI riders) can be allowed only to standard lives. No medical / special reports will be required.

Age at entry greater than 10 years completed:
Plan (without Accident Benefit, TA & CI riders) can be allowed to standard lives and substandard lives attracting up to EMR Class III by overweight only. Medical / special reports will be called for based on SUC.

Existing rules regarding maximum allowable cover to minors under risk plans will apply.

Non-medical Business (within existing upper limits)
Plan can be allowed under Non-medical (Special), and under Non-medical (General) to Professionals if CI rider is not opted for.

Plan can be allowed under Non-medical (General) to others if TA and CI riders are not opted for.

Age-proof
Standard age-proofs and Non-standard age-proofs subject to existing restrictions and upper limits will be allowed under this plan.
TA & CI riders will be restricted to Rs.2 lakh if NSAP-I is submitted.
TA & CI riders will not be allowed if NSAP-II & III are submitted.

CI rider
Plan with CI rider will be allowed only to standard lives and under medical business only. CI rider will not be allowed to persons suffering from Group A or B deformity.


Deformity
Plan (with or without TA rider) will be allowed only to persons suffering from Group A Deformity with loss of one limb.

Occupation Extra
Plan can be allowed to persons employed in hazardous occupation subject to charging appropriate occupation extra for Basic Sum Assured, TA and CI Rider Sums Assured. The factors to be applied to each Re.1/- per annum occupational extra premium under Single Premium policies will be the same as applying to Single Premium policies under Table 48, ie., 8.30, 11.15 and 13.35 for accumulation periods 10, 15 and 20 years respectively.

13. Paid-up & surrender values (GSV, SSV):

In case of Regular Premium policies, if after at least three full years' premiums have been paid and any subsequent premium be not duly paid, this policy shall not be wholly void, but the Sum Assured by it shall be reduced to such a Sum, called paid-up Sum Assured, as shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated 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 the future bonuses. The existing vested reversionary bonuses, if any, shall remain attached to the reduced paid-up Policy.

In the event of death of Life Assured during the accumulation period, the reduced paid-up Sum Assured as defined above, along with vested reversionary bonuses, if any, shall be payable. No Survival benefits will be payable for a reduced paid-up policy. 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 accumulation period.

During the accumulation period, if after at least 3 full years’ 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.

During the accumulation period, if after at least five full years' 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 12 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 to the date of death, and (b) the unpaid premiums falling due before the next Policy anniversary.

These provisions do not apply to the Term Assurance, Critical Illness and Accident Benefit rider options, as these riders do not acquire any paid-up value.

Guaranteed Surrender Value:
(A) During Accumulation Period:
Ø For Single Premium policies – After completion of at least one policy year, 90% of the Single Premium received, excluding premiums for optional riders and extras, if any, will be payable.
The cash value of any vested reversionary bonuses, if any, will also be payable
This is irrespective of the age of the Life Assured.

Ø For Regular Premium policies – After completion of at least three policy years and at least three full years’ premiums have been paid, 30% of the total amount of premiums paid excluding the premiums for the first year and all premiums in respect of optional benefits and extras will be payable. However, if the age at entry of the Life Assured is less than or equal to 12 years, the guaranteed surrender value will be equal to
o Before commencement of risk: 90% of the total amount of premiums (excluding premiums paid for the first year and any extras) paid.
o After commencement of risk: 90% of the total premiums (excluding premium for the first year and any extras) paid before commencement of risk and 30% of premiums paid (excluding any extras) after the commencement of risk.

Premiums for Accident Benefit rider cover, Term Assurance rider cover and Critical Illness rider cover will be excluded.
The cash value of any vested reversionary bonuses, if any, will also be payable.

(B) After Accumulation Period: This will be 85% of the Basic Sum Assured.

Special Surrender Value:
(A) During the Accumulation Period: The Special Surrender Value will be the discounted value of the Paid-up Sum Assured and the vested reversionary bonuses. The discounting factor shall be the surrender factors being used under our Endowment Assurance plan. This will be applicable to both the single premium and regular premium policies. These are subject to revision from time to time.

(B) After the Accumulation Period: The Special Surrender Value will be decided from time to time. Presently, 90% of the Sum Assured may be offered as Special Surrender Value.

14. Grace period for payment of premiums (For Regular Premium policies during Accumulation Period):
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half yearly or quarterly premiums. A grace period of 15 days will be allowed for payment of monthly premiums. If the 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. If the premium is not paid before the expiry of the days of grace, the policy lapses.

If the policy has not lapsed and the claim is admitted in case of death under a Policy where the mode of payment of premium is other than yearly, unpaid premiums, if any, falling due before the next Policy anniversary shall be deducted from the claim amount.

The above grace period will also apply to rider premiums.

15. Revivals or reinstatements of lapsed policy:
In case of a regular premium policy, 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 as also before the end of the accumulation period, 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 to the life assured. Revival of Accident Benefit Rider and / or Term Assurance Rider and/or Critical Illness Rider, if any, will only be considered along with revival of the main policy, and not in isolation.

16. 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.

17. 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. All relevant instructions issued so far with regard to cancellation of policies within cooling-off period will be applicable

18. Back-dating:
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.

19. 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.

20. Reinsurance:
Normal procedure for reinsurance will apply.

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

22. Proposal form:
Forms 300, 340 and 360 may be used for proposals under this plan.