LIC to introduce new plan JEEVAN UTKARSH (Plan No.846).
A close ended plan for a maximum period of 270 days since its launch date. LIC’s Jeevan Utkarsh is a single premium, non-linked, with-profits, savings cum protection plan wherein the risk cover is ten times of Tabular Single Premium.
The benefits and other details of the plan are given below.
Benefits of Jeevan Utkarsh Plan 846:
- 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 taxes, extra premium chargeable under the policy due to underwriting decision and rider premium, if any.
- After the date of commencement of risk: “Sum Assured on Death” 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. Where “Sum Assured on Death” is defined as the highest of
- 125% of the single premium; or
- Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured ; or
- “Absolute amount assured to be paid on death” i.e. 10 times of Tabular Single Premium
- On death during first five policy years:
Tabular single premiums mentioned above shall not include any extra amount if charged under the policy due to underwriting decision or taxes and is before applying any rebate for high Basic Sum Assured.
- Maturity: On the Life Assured surviving to the end of the policy term, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
- Loyalty Addition: Depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit after completion of five policy years in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation.
In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term, provided the policy has completed five policy years.
Optional Benefit: LIC’s Accidental Death and Disability Benefit Rider shall be available under this plan. LIC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider shall be available as an optional rider by payment of additional premium. This rider can be opted for at inception only. The benefit cover under this rider shall be available during the policy term of the base plan.
If this benefit is opted for, an additional amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is inforce at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years. If the policy becomes a claim by way of death before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid along with the claim amount.
Beyond the specific details as mentioned in this circular in respect of this rider, for any additional details like refund to be made in respect of this rider on surrender of base plan, requirements of claim, definition of disability etc., the introductory rider circular Ref: CO/PD/44 dated 2nd January, 2014 may be referred.
Eligibility Conditions and Restrictions:
- For Base Plan:
- Minimum Entry Age : 6 years (completed)
- Maximum Entry Age : 47 years (nearer birthday)
- Mode of premium payment : Single premium only
- Minimum Basic Sum Assured : Rs.75,000/-
- Maximum Basic Sum Assured : No Limit
- Policy Term : 12 years
- Basic Sum Assured shall be in multiples of:
- Rs. 5,000 – if Basic Sum Assured under a policy is below Rs. 3,00,000
- Rs. 20,000 – if Basic Sum Assured under a policy is Rs. 3,00,000 and above
- Age at entry for the Life Assured is to be taken as age nearer birthday except for the minimum age at entry i.e. 6 years, where it is in completed years.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 completion of 8 years of age.
For those aged 8 years or more, risk will commence immediately.
- For LIC’s Accidental Death and Disability Benefit Rider (can be opted for at inception only):
- Minimum Entry Age : 18 years (completed)
- Maximum Entry Age : 47 years (nearest birthday)
- Maximum cover ceasing Age : As per Base Plan
- Minimum Accident Benefit Sum Assured : Rs. 10,000/-
- Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured under the Base Plan subject to the maximum of Rs.100 lakhs overall limit taking all existing policies of the Life Assured under individual as well as group policies including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.
The Accident Benefit Sum Assured shall be in multiples of Rs. 10,000/- only.
Settlement Option: Settlement Option is an option to receive claim amount (i.e. Maturity Benefit or Death Benefit) in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised only by the Life Assured aged 18 years or above at the time of exercising this option, for full or part of the Death/Maturity proceeds payable under the policy. The amount opted by the Life Assured (i.e. net claim amount) can be either in absolute value or as a percentage of the total claim proceeds payable.
The installments shall be made in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:
Mode of Installment payment – Minimum installment amount
Monthly – Rs. 5000/-
Quarterly – Rs. 15000/-
Half-Yearly – Rs. 25000/-
Yearly – Rs. 50000/-
If the net claim amount is less than the required minimum installment amount as per the option exercised by the Life Assured, the claim proceed shall be paid in lump sum only.
The interest rates applicable for arriving at the installment payments under Settlement Option shall be as fixed by the Corporation from time to time.
For exercising the settlement option against Death Benefit, the Life Assured can exercise this option during his/her life while in currency of the policy, specifying the period of settlement option and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Life Assured and no alteration whatsoever shall be allowed to be made by the nominee.
For exercising the settlement option against Maturity Benefit, the Life Assured shall be required to exercise option for payment of net claim amount in installments at least 3 months before the due date of maturity claim. If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to withdraw this option the same shall be allowed on receipt of written request from the Life Assured.
After the commencement of Installment payments under Settlement Option against Maturity Benefit:
- If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to withdraw this option and commute the outstanding installments the same shall be allowed on receipt of written request from the Life Assured. In such case, the lumpsum amount, which is higher of the following, shall be paid and the policy shall terminate.
– discounted value of all the future installments due; or – (the original amount for which settlement option was exercised) less (sum of total installments already paid);
- The interest rates applicable for discounting the future installment payments, shall be as fixed by the Corporation from time to time.
- After the Date of Maturity, in case of death of the Life Assured, who has exercised Settlement Option, the outstanding installments will continue to be paid to the nominee as per the option exercised by the Life Assured and no alteration whatsoever shall be allowed to be made by the nominee.
High Basic Sum Assured Rebate:
Basic Sum Assured (B.S.A) chosen under the policy – Reduction in Tabular premium (per Rs. 1000/- Basic Sum Assured)
Rs.75,000 to Rs.1,45,000 – Nil
Rs.1,50,000 to Rs. 2,95,000 – Rs. 15.00
Rs.3,00,000 to Rs. 4,80,000 – Rs. 20.00
Rs.5,00,000 and above – Rs. 25.00
Surrender Value: The policy can be surrendered at any time during the policy term subject to realization of the premium cheque.
- Guaranteed Surrender Value: The Guaranteed Surrender Value 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, rider premium, if any, and taxes.
- Special Surrender Value: The Corporation may, however, pay Special Surrender Value as applicable on date of surrender provided the same is higher than Guaranteed Surrender Value. The Special Surrender Value will be the Special Surrender Value factor multiplied by the Basic Sum Assured. These Special Surrender Value factors shall depend on duration elapsed since commencement of the policy and are enclosed in Annexure 3.If the policy is surrendered after completion of five policy years, Loyalty Addition, if any, shall be payable.Further, if the policy is surrendered during the last policy year the same shall be the discounting value of Basic Sum Assured along with Loyalty Addition, if any.No surrender value will be available on Accidental Death and Disability Benefit Rider, if opted for. However, premium charged in respect of cover for the outstanding term after date of surrender shall be refunded.
Loans: Policy Loan can be availed under this policy at any time after three months from completion of the policy (i.e. 3 months from the Date of issuance of policy) or after expiry of the Free-Look Period, whichever is later, subject to the following conditions:
- The maximum loan that can be granted shall be 90% of the surrender value.
- The rate of interest to be charged for the loan amount would be determined from time to time by the Corporation.
- In case the policy becomes a claim by way of death or surrender or maturity, the amount of the loan or any portion thereof which is outstanding, along with all outstanding interest shall be recovered from the claim proceeds.
- In the event of default in payment of Loan interest on the due date and when the outstanding loan amount along with interest is to exceed the surrender value, the Corporation shall be entitled to foreclose such policies. On foreclosure of such policies, the difference of surrender value and the outstanding loan amount along with interest, if any, shall be paid to the policyholder and the policy will terminate.