Home - Insurance Plans - Jeevan Pramukh
 

Introduction
Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).

For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

Product summary
This is an Endowment Assurance plan offering the choice of three premium paying terms. It provides financial protection against death throughout the term of the plan with the payment of maturity amount on survival to the end of the policy term.

Premiums :
Premiums are payable yearly, half-yearly, quarterly or monthly, as opted by you, throughout the premium paying term or till earlier death.

Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Sum Assured at the time of claim.

Bonuses :
The policy participates in the profits of the Corporation’s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the policy.

Death Benefit :
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on survival to the end of the policy term.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract.

Guaranteed Surrender Value :
The policy may be surrendered for cash after more than one year’s premium have been paid. The guaranteed surrender value will be 30% of the total amount of premiums paid excluding the first year’s premium and the extra premiums, if any.

Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is available after completion of at least 3 years from the date of commencement of your policy. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances especially in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.

Note :
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Guaranteed Additions:
Guaranteed Additions @ Rs.50%o Sum Assured for each completed year, for the first five years.

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

Maturity Benefit:
Sum Assured together with accrued Guaranteed Additions and accrued simple reversionary bonuses and Final Additional Bonus, if any, will be paid to the Policyholder on surviving the term of the policy provided the policy is in full force for full sum assured.

Death Benefit:
On death of the Life Assured during the term of the policy an amount equal to the Sum Assured along with accrued Guaranteed Additions and accrued Simple Reversionary Bonuses and Final Additional Bonus, if any, will be paid provided the policy is in full force for full sum assured.

Grace Period:
A grace period of 30 days will be available for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.

15 – days Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy you may return the policy to us within 15 days.

Paid-up Value
The policy will acquire paid-up value after more than one year’s premiums have been paid subject to Terms and Conditions.

Guaranteed Surrender Value
This policy can be surrendered for cash after more than one year’s premiums have been paid.

The Guaranteed Surrender Value allowable under the policy will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and the extra premiums, if any.

The cash value of any existing vested Guaranteed Additions and vested simple reversionary bonuses, if any, will also be payable after completion of 3 years.

Revival
The policyholder can revive his lapsed policy by paying arrears of premium together with interest within a period of five years from the date of first unpaid premium subject to satisfactory evidence of health and continued insurability of the Life Assured. The rate of interest will be as determined by the Corporation from time to time. Currently, the rate of interest is 8% p.a.

Loan:
Subject to Terms and Conditions loan is permissible after the policy has acquired paid-up value. The rate of interest charged on such loan amount would be determined from time to time. The present rate is 9% p.a. payable half-yearly.

Payment of premium :

Premiums under this policy are payable over a period of 3, 4 or 5 years. The following modes of payment of premium are allowed - Yearly, Half-yearly, Quarterly or Monthly.
Policy Term: 5, 10, 15, 20 or 25 years

ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

Minimum Age at entry
18 years completed
Maximum Age at entry
65 years (age nearer birthday)
Maximum Maturity Age
75 years (age nearer birthday)
Policy Term
5, 10, 15, 20 or 25 years
Sum Assured
Minimum Rs.10 lakh. Thereafter in
multiples of Rs.1,00,000

Rebate for Mode of Premium Payment:

Yearly
2% of tabular premium
Half-Yearly
1% of tabular premium
Quarterly
Nil
Monthly
5% extra of tabular premium


Sum Assured Rebate:

Up to and including Rs.50 lakh
Nil
Above Rs.50 lakh
Rs. 0.50 per thousand Sum Assured

Benefit Illustration

Statutory warning

“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. 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 future 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 dependent on a number of factors including future investment performance.”

Illustration:
Age at Entry: 35 years
Sum Assured (Rs.): 1000000
Policy Term: 25 years
Premium Paying Term: 3 years
Yearly Premium (Rs.): 178213

End of year
Total Premium paid till end of year (Rs.)

Death Benefit / Maturity Benefit (Rs.) payable at end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

178213

1000000

0

0

1000000

1000000

2

356426

1050000

0

0

1050000

1050000

3

534639

1100000

0

0

1100000

1100000

4

534639

1150000

0

0

1120000

1150000

5

534639

1200000

0

0

1150000

1200000

6

534639

1250000
22000

104000

1200000

1354000

7

534639

1250000

44000

208000

1272000

1458000

8

534639

1250000

66000

312000

1294000

1562000

9

534639

1250000

88000

416000

1338000

1666000

10

534639

1250000

110000

520000

1360000

1770000

15

534639

1250000

220000

1040000

1470000

2290000

20

534639

1250000

440000

2080000

1690000

3330000

25

53463 9

1250000

586000

2773000

1836000

4023000





























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

iii) 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) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

v) The Maturity benefit is the amount shown at the end of the Policy term.


Home | Media Coverage | Tenders | Forms Download | NRI Center | Glossary | Subsidiaries | Links | FAQ
© Copyright Life Insurance Corporation of India 2004 | Disclaimer
Registration number : 512