LICs Jeevan Pragati Plan Table no 838

LICs New Plan Jeevan Pragati (Table no 838), This is a non-linked, with-profits Endowment Assurance plan The main feature of this Jeevan Pragathi plan is the ‘sum assured on death’ (part of death benefit) automatically increases after every five years during the term of the policy..

Key Features & Eligibility Conditions of LIC Jeevan Pragati Plan

ELIGIBILITY CONDITIONS AND RESTRICTIONS:

  • Minimum Basic Sum Assured (payable on maturity) : Rs. 1,50,000/-
  • Maximum Basic Sum Assured : No Limit (Maturity Sum Assured shall be in multiple of Rs. 10,000/- only)
  • Minimum Policy Term : 12 years
  • Maximum Policy Term  : 20 years
  • Minimum Age at entry for Life Assured : 12 years (completed)
  • Maximum Entry Age : 45 years (nearer birthday)
  • Maximum Age at Maturity for Life Assured : 65 years
  • Premium payment mode : Yearly, half-yearly, quarterly & monthly.
  • Accidental Death & Disability Benefit Rider is available on payment of additional premium.
    • Minimum Accident Benefit Sum Assured is Rs 10,000
    • Maximum Accident Benefit Sum Assured is an amount equal to the Basic Sum Assured subject to the maximum of Rs 1 cr.
    • Minimum entry age for the rider is 18 years.
  • Agent’s commission for policy term
    • 12 to 14 years is 20% in first year and 7.5% in 2nd & 3rd year.
    • The first year agents’ commission would be 25% on a 15 year policy term.

Benefits under LIC’s Jeevan Pragati policy

  • Death Benefit under Jeevan Pragati Plan : On death of the Life Assured during the policy term, the Death Benefit  which is ‘Sum Assured on Death’ + Vested Simple Reversionary Bonuses + Final additional bonus, if any, shall be payable to the nominee. The Sum assured on death automatically increases every fiver years. Where “Sum Assured on Death” is defined as the higher of  a) 10 times of annualized premium (or) b) Absolute amount assured to be paid on death, which is as under;
    • i) During the first five policy years : 100% of the Basic Sum Assured.
    • ii) During 6th to 10th policy years : 125% of the Basic Sum Assured.
    • iii) During 11th to 15th policy years : 150% of the Basic Sum Assured.
    • iv) During 16th to 20th policy years : 200% of the Basic Sum Assured.
  • Maturity Benefit payable under LIC Jeevan Pragati Policy : On survival to the end of the policy term, the maturity benefit which is ‘Sum Assured on Maturity’ + Simple Reversionary Bonuses + Final Additional bonus (FAB) if any, shall be payable to the policy holder. Sum Assured on Maturity is equal to Basic Sum Assured.
  • Final Additional Bonus shall not be payable under paid-up policies..
  • The Bonuses shall be declared on the Basic Sum Assured.
  • The date of commencement of risk under Jeevan Pragati plan will be immediately from the date of issuance of policy.

MODE OF PREMIUM PAYMENT:  The modes of premium payment allowable are Yearly. Half Yearly. Quarterly, and Monti (ECS only or through salary deductions).

GRACE PERIOD FOR PAYMENT OF PREMIUM: 

  • A grace period of one calendar month but not less than 30 days will be allowed for Quarterly, Half Yearly  and Yearly premium paid and 15 days for monthly mode of payment.
  • If the death of the Life Assured occurs within the grace period but before the premium then due, the policy will be treated as in-force and the benefits will be paid deduction of the said unpaid premium and also the unpaid premiums falling due before next policy anniversary
  • If 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 the where the mode of payment of premium is other than yearly, unpaid premium(s).
  • The above grace period will also apply to rider premium as the rider premium is to be along with the premium of the base plan.

REBATES:
The rebates for base plan are as under:

Mode Percentage

  • Yearly mode : 2% of tabular premium
  • Half-yearly mode : 1% of tabular premium
  • Quarterly and monthly mode : NIL

High Basic Sum Assured Rebate:

  • 1,50,000 to 2,90,000 : Nil
  • 3.00,000 to 4,90,000 : 1.50 % B.S.A
  • 5,00,000 to 9.90.000 : 2.00 % B.S.A
  • 10.00.000 and above : 2.25 %° B.S.A

BSA –  Basic Sum Assured

LICs JEEVAN SHIKHAR Plan (Table No 837)

LIC’s Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium.

The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured.

This plan also takes care of liquidity need through its loan facility.

The plan will be open for sale for a maximum period of 120 days from the date of launch.

BENEFITS of Jeevan Shikhar Plan:

  • Maturity Benefit:
    • On maturity, the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
    • Loyalty Addition: Depending upon the Corporation’s experience, the policy shall participate in the profits in the form of Loyalty Addition. The Loyalty Addition, if any, shall be  payable on death or surrender, provided the policy has run for atleast  five policy years, or on policyholder surviving to the maturity, at such rate and on such terms as may be declared by the Corporation.
  • Death Benefit:
    • On death during first five policy years: 
      • Before the date of commencement of risk: Refund of Single Premium without interest.
        Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes.
      •  After the date of commencement of risk: “Sum Assured on Death” equal to 10 times the tabular single premium shall be payable.
    • On death after completion of five policy years but before the stipulated Date of Maturity:
      •   “Sum Assured on Death “equal to 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.

ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

  • Minimum Entry Age : 6 years (completed)
  • Maximum Entry Age : 45 years (nearer birthday)
  • Sum Assured on Death : 10 times of tabular single premium
  • Minimum Maturity Sum Assured : Rs. 100,000/-
  • Maximum Maturity Sum Assured : No Limit (Maturity Sum Assured shall be in multiple of Rs. 20,000/- only.)
  • Policy Term : 15 years
  • Premium payment mode :  Single premium only

Date of commencement of risk: In case the age at entry of the Life assured is less than 8 years, the risk under this plan will commence from one day before the policy anniversary coinciding with or immediately following the age of 8 years.

For those aged 8 years or more at entry, risk will commence immediately from the date of acceptance of risk.

SAMPLE PREMIUM RATES: Specimen Tabular Single Premium rates for some of the ages per Rs.1000/- Maturity Sum Assured are as under:

    Age at entry
 (Nearest Birthday)
Tabular Single Premium Rates (Rs.)
10 398.55
20 410.25
30 425.80
40 514.80

Note: Tabular Single Premiums do not include any extra amount if charged under the policy due to underwriting decision or taxes and is before applying high Maturity Sum Assured rebate.

REBATE FOR HIGH MATURITY SUM ASSURED:

Maturity Sum Assured (M.S.A) Reduction in Tabular premium per  Rs.1000/- Maturity Sum Assured
Below Rs.2,00,000 Nil
Rs.2,00,000 to Rs. 4,80,000 Rs. 15.00
Rs.5,00,000 and Rs. 9,80,000 Rs. 20.00
Rs.10,00,000 and above Rs. 25.00

LOAN: Loan facility shall be available under the plan at any time during the policy term after. 3 months from the date of acceptance of risk or after expiry of the free-look period, whichever is later. Depending on the age at entry, the maximum loan that can be granted as a percentage of surrender value for different policy terms are as under:

 Policy year  Maximum Loan Amount as a % of surrender value for age at entry <=35 Maximum Loan Amount as a % of surrender value for age at entry >35 years.
*3 month  to 3rd 55% 35%
4th  to 6th 65% 50%
7th  to 9th 75% 70%
10th  to 12th 80% 80%
13th to 15th 85% 85%

*3 month means loan can be availed after three months from Date of acceptance of risk or after expiry of the Free-look period, whichever is later.

SURRENDER VALUE:

The policy can be surrendered at any time during the policy year.  The Guaranteed Surrender Value allowable shall be as under:

  • First year: 70% of the Single Premium.
  • Thereafter: 90% of the Single Premium.

Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes.

The Corporation shall pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

If the policy is surrendered after completion of five policy years applicable Loyalty Addition, if any, shall also be payable.

Tax: Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of  Service Tax payable as per the prevailing rates shall be payable by the policyholder on single premium including extra amount if charged under the policy due to underwriting decision, which shall be collected separately over and above in addition to the premium payable by the policyholder. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

Free Look PeriodIf the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of Total Premium paid (being sum of single premium and any extra amount if charged under the policy due to underwriting decision) after deducting the proportionate risk premium for the period on cover, stamp duty charges and any charges incurred on medical examination and special reports.

Exclusions:

Suicide: The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of the risk, an amount which is higher of 90% of the Single Premium or Surrender Value shall be payable. The Corporation will not entertain any other claim under this policy.

This clause shall not apply in case of Life Assured whose age at the time of entry is below 8 years i.e. if age of the Life assured is below 8 years, refund of Single Premium without interest shall be payable.

Note: Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes.