|
Option |
Survival Benefit |
Maturity Benefit |
|
Option 1 |
No survival benefit |
100% of Sum Assured |
|
Option 2 |
5% of Sum Assured every year for 5 years |
75% of Sum Assured |
|
Option 3 |
10% of Sum Assured every year for 5 years |
50% of Sum Assured |
|
Option 4 |
15% of Sum Assured every year for 5 years |
25% of Sum Assured |
Where, Survival Benefit is the
annual payment of a fixed percentage of Sum Assured (as defined in
the table above) every year starting from policy anniversary
coinciding with or following the completion of 20 years of age and
thereafter on each of the next 4 policy anniversaries and Maturity
Benefit is a fixed percentage of Sum Assured (as defined in the
table above) along with vested Simple Reversionary Bonuses and Final
Additional Bonus, if any, on maturity.
The chosen option shall become a part of the policy contract and
no further change in option shall be allowed.
In addition, this plan also takes care of liquidity needs through
its loan facility.
The plan can be purchased by any of the parent or grand parent
for a child aged 0 to 12 years.
- Benefits available under an inforce policy:
Death Benefit:
On death during the policy term (before commencement of risk):
In case of death of the Life Assured, return of premium/s paid
excluding taxes, extra premium and rider premium, if any, without
interest shall be payable.
On death during the policy term (after commencement of risk):
In case of death during the policy term provided all due premiums
have been paid Death Benefit, defined as sum of “Sum
Assured on Death” and
vested Simple Reversionary Bonuses and Final Additional Bonus, if
any, shall be payable. Where “Sum
Assured on Death” is
defined as Higher of 10 times of annualized premium or Absolute
amount Assured to be paid on Death i.e. 125% Sum Assured.
This Death Benefit shall not be less than 105% of the total
premiums paid as on date of death.
The premiums mentioned above exclude taxes, extra premium and rider
premium, if any.
Survival Benefit: A
fixed percentage of Sum Assured shall be payable on each policy
anniversary coinciding with or immediately following the completion
of 20 years of age and thereafter on each of next four policy
anniversaries. These fixed percentages shall depend on the Option
chosen at the proposal stage and for various Options the percentages
are as given below:
|
Policy Anniversary coinciding/ following completion of ages |
Percentage of Sum Assured to be paid as Survival Benefit |
|
Option 1 |
Option 2 |
Option 3 |
Option 4 |
|
20 to 24
years |
Nil |
5% each
year |
10% each
year |
15% each
year |
Policyholder has to
opt for any one of the options above at the proposal stage only.
Maturity Benefit: In
case of Life Assured surviving the stipulated date of maturity, a
fixed percentage of Sum Assured shall be payable on maturity for
inforce maturing policies. The fixed percentage under different
Options is as below:
|
Maturity Age |
Option 1 |
Option 2 |
Option 3 |
Option 4 |
|
25 year |
100% |
75% |
50% |
25% |
In addition to the above, vested
Simple Reversionary Bonuses and Final Additional Bonus, if any,
shall also be payable.
Participation
in Profits: The
policy shall participate in profits of the Corporation and shall be
entitled to receive Simple Reversionary Bonuses declared as per the
experience of the Corporation, provided the policy is inforce.
Final Additional Bonus may also be declared under the policy in
the year when the policy results into a claim either by death or
maturity.
- Optional Rider:
LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01), on the life
of proposer may be opted for by payment of additional premium.
For more details on the above Rider, refer to the Rider brochure or
contact LIC’s nearest Branch Office.
- Eligibility
Conditions and Other Restriction:
- Minimum Sum
Assured : Rs. 75,000
- Maximum Sum Assured : No
Limit
(The Sum Assured shall be in multiples of Rs. 5,000 from Sum
Assured Rs. 75,000 to Rs. 100,000 and Rs. 10,000/- for Sum
Assured above Rs 100,000)
- Minimum Age at entry
: [90] days (last birthday)
- Maximum Age at entry :
[12] years (last birthday)
- Minimum/ Maximum Maturity Age : [25] years (last
birthday)
- Policy Term
: [25 – Age at entry] years
- Premium Paying Term (PPT) : [20 –
Age at entry] 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 either one day
before the completion of 2 years from the date commencement of
policy or one day before the policy anniversary coinciding with
or immediately following the completion of 8 years of age,
whichever is earlier. For those aged 8 years or more, risk will
commence immediately.
Date of vesting:
The policy shall automatically vest in the Life Assured on the
policy anniversary coinciding with or immediately following the
completion of 18 years of age and shall on such vesting be
deemed to be a contract between the Corporation and the Life
Assured.
Payment of Premiums:
Premiums can be paid regularly at yearly,
half-yearly, quarterly or monthly mode (through ECS only) or
through SSS mode over the premium paying term of the policy.
However, a grace period of one month but not less than 30
days will be allowed for yearly, half-yearly, quarterly modes
and 15 days for monthly mode of premium payment.
Sample Premium Rates:
Following are some of the sample tabular
premium rates (exclusive of service tax) under different Options
per Rs. 1000/- Sum Assured:
|
AGE/OPTION |
1 |
2 |
3 |
4 |
|
0 |
44.80 |
45.80 |
46.80 |
47.80 |
|
4 |
55.95 |
57.50 |
59.00 |
60.55 |
|
8 |
75.65 |
78.00 |
80.40 |
82.75 |
|
12 |
112.70 |
116.65 |
120.60 |
124.60 |
Mode and
High S.A. Rebates:
Mode Rebate:
Yearly mode
- 2% of Tabular Premium
Half-yearly mode -
1% of Tabular premium
Quarterly, Monthly, SSS -
NIL
High Sum Assured Rebate:
Sum
Assured (SA) Rebate
(Rs.)
75,000 to 1,90,000
- Nil
2,00,000 to 4,90,000 -
2 per thousand SA
5,00,000 and above -
3 per thousand SA
- Revival:
If premiums are not paid within the grace period then the
policy will lapse. A lapsed policy can be revived within a
period of 2 consecutive years from the date of first unpaid
premium by paying all the arrears of premium together with
interest (compounding half-yearly) at such rate as fixed by the
Corporation from time to time, subject to submission of
satisfactory evidence of continued insurability.
The Corporation reserves the right to accept at original
terms, accept at revised terms or decline the revival of a
discontinued policy. The revival of discontinued policy shall
take effect only after the same is approved by the Corporation
and is specifically communicated to the Policyholder.
Revival of rider, if opted for, will be considered along with
revival of the Basic Policy and not in isolation and shall be
subject to underwriting.
- Paid-up Value
For policies with premium paying term less than 10 years if
after at least two full years' premiums have been paid and for
policies with premium paying term 10 years or more if after at
least three full years' premiums have been paid, and any
subsequent premiums be not duly paid, this policy shall not be
wholly void, but shall continue as a paid-up policy.
The Sum Assured on Death under paid–up policy shall be reduced
to such a sum called “Death Paid-up Sum Assured” and shall be
equal to [(Number of premiums paid/Total Number of premiums
payable) x Sum Assured on Death]
The Sum Assured on Maturity under paid-up policy called as
“Maturity Paid-up Sum Assured” shall be equal to [(Number of
premiums paid/Total Number of premiums payable) x (Sum Assured
on Maturity plus Total Survival Benefits payable under the
policy)] less Total amount of Survival Benefits already paid
under the policy.
The policy so reduced shall thereafter be free from all
liabilities for payment of the premiums, but shall not be
entitled to participate in future profits. However, the vested
Simple Reversionary Bonuses shall remain attached to the reduced
paid up policy.
In the case of a paid up policy, no future survival benefits
shall be payable and the applicable paid up value along with the
vested Simple Reversionary Bonuses, if any, shall be payable
only in lump-sum on the expiry of policy term or on death of
life assured, if earlier.
Rider shall not acquire any paid-up value and the rider
benefit ceases to apply, if policy is in lapsed condition.
- Surrender Value:
The policy can be surrendered at any time during the policy
term provided premiums have been paid for atleast two
consecutive years if PPT is less than 10 years and for atleast
three consecutive years if PPT is 10 years or more.
The Guaranteed Surrender Value shall be equal to the total
premiums paid (excluding taxes, extra premium and rider premium,
if any) multiplied by the Guaranteed Surrender Value factor
applicable to total premiums paid, less any Survival Benefits
already paid under the policy. These Guaranteed Surrender Value
factors expressed as percentages will depend on the policy term
and policy year in which the policy is surrendered and are
specified as below:
In addition, the surrender value of any vested Simple
Reversionary Bonuses, if any, shall also be payable, which is
equal to vested bonuses multiplied by the surrender value factor
applicable to vested bonuses. These factors will depend on the
policy term and policy year in which policy is surrendered and
are specified as below:
Corporation may, however, pay Special Surrender value, if it is
more favorable to the Policyholder.
- Policy Loan:
Loan can be availed under the policy provided the policy has
acquired surrender value and subject to the terms and conditions
as the Corporation may specify from time to time.
- Taxes:
Taxes including Service Tax, if any, shall be as per the Tax
laws and the rate of tax shall be as applicable from time to
time.
The amount of tax as per the prevailing rates shall be
payable by the Policyholder on premiums including extra
premiums, if any. The amount of tax paid shall not be considered
for the calculation of benefits payable under the plan.
- Free Look period:
If the Policyholder is not satisfied with the “Terms and
Conditions”, the policy may be returned to us within 15 days
from the date of receipt of the policy bond stating the reasons
of objections. On receipt of the same the Corporation shall
cancel the policy and return the amount of premium deposited
after deducting the proportionate risk premium (for basic plan
and rider, if any) for the period on cover, expenses incurred on
medical examination and special reports (for basic plan), if
any, and stamp duty charges.
- Exclusion:
Suicide Clause:
This 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 risk and the Corporation will not
entertain any claim under this policy except for 80% of
the premiums paid excluding any taxes and extra premium,
if any, provided the policy is inforce. This clause
shall not be applicable in case age at entry of the Life
Assured is below 8 years.
- If the Life Assured (whether sane or insane) commits
suicide within 12 months from date of revival, an amount
which is higher of 80% of the premiums paid till the
date of death (excluding any taxes and extra premium, if
any,) or the surrender value shall be payable. The
Corporation will not entertain any other claim under
this policy. This clause shall not be applicable:
- in case the age of the Life Assured is below 8
years at the time of revival; or
- for a policy lapsed without acquiring paid-up
value and nothing shall be payable under such
policies.
