The allocated premiums will be applied to purchase units as per the Fund type chosen. The Policyholder’s Unit Account will be subject to deduction of charges as specified in the Policy Conditions. The value of the units in the Unit Fund may increase or decrease, depending on the investment return of the assets representing the chosen Fund.


Premiums:

Regular premium can be paid either in yearly or half-yearly instalments.  The minimum annual premium will be Rs.5,000/- increasing thereafter in multiples of Rs.1,000/-.

Alternatively, a Single premium can be paid subject to a minimum of Rs.10,000 and thereafter in multiples of Rs.1,000.


Benefits:

A) Death Benefit:
      In case of death of the policyholder within the policy term, when the Life cover is opted for and is in force, the nominee will get the Sum Assured under the Basic Plan together with the Bid Value of units held in the Policyholder’s Unit Account either as a lump sum or as pension on his/her life – the actual amount of the pension will depend on the then prevailing immediate annuity rates under the annuity option chosen.

The limits on Life cover i.e. the Sum Assured under the Basic plan are as under:

For Single premium policies: Equal to the Single Premium

For Regular premium policies: 5 to 20 (integer) times of the annualised premium as per the option exercised by the proposer However, the maximum life cover shall not exceed the annualised premium multiplied by the term subject to a minimum life cover of 5 times the annualised premium.

In case the policy is taken without risk cover, then the Bid Value of the units held in the Policyholder’s Unit Account shall be payable either as a lump sum or as a pension on his/ her life, which will be based on the then prevailing immediate annuity rates under the relevant annuity option.

If the policy is in lapsed condition, then also the Bid Value of the units held in the Policyholder’s Unit Account shall become payable to the nominee, either as a lump sum or as a pension on his/ her life, which will be based on the then prevailing immediate annuity rates under the relevant annuity option.

B) Benefit on Vesting:

On the policyholder surviving to the date of vesting, the Bid Value of the units held in the Policyholder’s Unit Account will compulsorily be utilised to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option.  However, the Policyholder may opt to commute up to one-third of the Bid Value of the units held in the Policyholder’s Unit Account at the time of vesting of the annuity, which shall be paid as a lump sum. In case commutation is opted for, the amount of annuity/pension available will be reduced proportionately. There will also be an option to purchase pension from any other insurance company subject to Regulatory provisions.


Options:

A) Accident Benefit Option:

Accident Benefit can be availed of as an optional Rider benefit by paying an additional premium of Rs.0.50p for every Rs.1000/- of the Accident Benefit Sum Assured per policy year by cancellation of appropriate number of units out of the Policyholder’s Unit Account every month.  On Accidental death of the Policyholder during the term of the policy, a sum equal to the Accident Benefit Sum Assured will become payable, provided the Accident Benefit cover is opted for and is in force.  The Accident Benefit rider option will not be available in case Basic Sum Assured under the Basic Plan is zero. Further, it will be available up to the Sum Assured under the Basic Plan, subject to an overall limit of Rs.25 lakh under all policies of the Policyholder with the Corporation taken together.

B) Critical Illness Benefit Rider:

An amount equal to the Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, provided the Critical Illness Benefit cover is opted for and is in force. The maximum cover for this rider will be Rs.5 lakh under all policies of the Policyholder with the Corporation taken together. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic Plan. So, the Critical Illness rider option will not be available in case Sum Assured under the Basic Plan is zero.


Eligibility Conditions And Other Restrictions:

For the Basic Plan:

Single Premium - Equal to the Single Premium

Regular Premium - 5 to 20 (integer) times of the annualised premium as per the option exercised by the proposer However, the maximum life cover shall not exceed the annualised premium multiplied by the term subject to a minimum life cover of 5 times the annualised premium.


Critical Illness Benefit Rider Option :

Illness Benefit Rider Option - The Maximum Critical Illness Rider Sum Assured shall be of Rs.5,00,000 taking critical illness riders under all policies of the Policyholder with the Corporation and the Critical Illness Benefit option under the new proposal into consideration.

Accident Benefit Rider Option:

Under Accident Benefit Option - The Maximum Accident Benefit Sum Assured shall be of Rs.25,00,000 taking Accident Benefit under all policies of the Policyholder with the Corporation and the Accident Benefit Sum Assured under the new proposal into consideration.


Benefit Illustration:

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company.  If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page.  If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns.  These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance.”

i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively.  In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be.  The Projected Investment Rate of Return is not guaranteed.

iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

iv)  The maturity sum shown in the illustration is to be annuitised. However, the policyholder can opt to take up to one-third of the maturity sum as a tax-free lump sum.


SECTION 41 OF INSURANCE ACT 1938

(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy nor shall any person taking out or renewing or continuing a policy accept any rebate except such rebates as may be allowed in accordance with the published prospectuses or tables of the insurer provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.

(2) Any person making default in complying with the provision of this Section shall be punishable with a fine, which may extend to 500 rupees.

Note: Conditions apply for which please refer to the Policy document or contact our nearest Branch Office.