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Lic_Jeevan_Utkarsh

LIC’s JEEVAN UTKARSH (UIN:512N313V01)

(A non-linked, with-profit, single premium life insurance plan)

Policy Document(456 KB)

LIC’s Jeevan Utkarsh offers a combination of protection and savings wherein the risk cover is ten times of Tabular Single premium. The proposer will have an option to choose the Basic Sum Assured. The single premium payable shall depend on the chosen Basic Sum Assured and age at entry of the life assured.

In addition, this plan also takes care of liquidity need through loan facility.

It is a close ended plan which shall be available for sale for a maximum period of 270 days from the date of launch.

1.BENEFITS:

a)Death Benefit:

On death during first five policy years:

Before the date of commencement of risk: Refund of single premium without interest.

After the date of commencement of risk: “Sum Assured on Death” shall be payable.

Single Premium mentioned above shall not include any taxes, extra premium chargeable under the policy due to underwriting decision and rider premium, if any.

On death after completion of five policy years but before the stipulated Date of Maturity:

“Sum Assured on Death” 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

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.

b)Maturity Benefit:

“Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable.Where, “Sum Assured on Maturity” is equal to Basic Sum Assured.

c)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.

2.OPTIONAL BENEFIT:

The policyholder has an option of availing LIC’s Accidental Death and Disability Benefit Rider(UIN: 512B209V01).

The premium for this rider shall not exceed 30% of premium under base plan and the rider sum assured shall not exceed the Basic Sum Assured.

For more details on the above rider, refer to the rider brochure or contact LIC’s nearest Branch Office.

3.ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

a) Minimum Age at entry : 6 years (completed)
b) Maximum Age at entry : 47 years (nearest birthday)
c) Minimum Basic Sum Assured : 75,000/-
d) Maximum Basic Sum Assured : No Limit

(Basic Sum Assured shall be in multiples of:
Rs. 5,000 – if Basic Sum Assured is below Rs. 3,00,000
Rs. 20,000 – if Basic Sum Assured is Rs. 3,00,000 and above)

e) Policy Term 12 years
f) 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 completion of 8 years of age.

For those aged 8 years or more, risk will commence immediately.

Date of vesting under the plan: 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.

4.SAMPLE PREMIUM RATES:

The specimen tabular single premium rates for some of the ages per Rs.1000/- Basic Sum Assured are as under:

 
Age at entry(Nearest Birthday) Tabular Single Premium Rate(Rs.)
10 528.60
20 544.95
30 561.35
40 657.90

5.REBATE FOR HIGH BASIC SUM ASSURED:

Basic Sum Assured Reduction in tabular single premium per Rs. 1000/- Basic Sum Assured
Rs. 75000 to Rs. 1,45,000 Nil
Rs. 1,50,000 to Rs. 2,95,000 Rs. 15
Rs. 3,00,000 to Rs. 4,80,000 Rs. 20
Rs. 5,00,000 and above Rs. 25

6.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 paid
  • Thereafter: 90% of the Single premium paid

Single premium referred above shall not include taxes, extra amount chargeable under the policy due to underwriting decision and rider premium, if any.

The Corporation shall pay Special Surrender Value as applicable on date of surrender provided the same is higher than Guaranteed Surrender Value. The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI. The policyholder is advised to check the same from the branch office before surrendering the policy.

7.POLICY LOAN:

Loan can be availed under this plan at any time during the policy term 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 terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan shall be determined at periodic interval. For financial year 2017-18, the applicable interest rate is 10% p.a compounding half yearly. The maximum loan that can be granted shall be 90% of the surrender value.

Any loan outstanding along with interest shall be recovered from claim proceeds at the time of termination of the policy.

8.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 applicable taxes, as per the prevailing rates, shall be payable by the policyholder on premiums payable under the policy, which shall be collected separately over and above in addition to the premiums payable by the policyholder.

The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

9.FREE LOOK PERIOD:

If 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 single premium deposited after deducting the proportionate risk premium (for base plan and rider, if any) for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty charges.

10.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 opted 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 certain minimum installment amount.

This option can be exercised only by the Life Assured aged 18 or above. However, after the commencement of installment payments against maturity benefit, the Life Assured shall have the option to commute the outstanding installments.

On death of the Life Assured, the nominee can not alter the option as exercised by the Life Assured and the claim amount shall be paid as per the option exercised by the Life Assured.

11.EXCLUSIONS:

Suicide: This policy shall be void if the Life Assured (whether sane or insane at the time) 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 paid 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 on suicide single premium without interest shall be payable.

Single premium referred above shall not include taxes, any extra amount chargeable under the policy due to underwriting decision and rider premium, if any.

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.”

Company Name : LIC of India

Product Name : LIC's Jeevan Utkarsh

Date of illustration:

LIC's Jeevan Utkarsh
Particulars
Age At Entry 25
Policy Term 12
Mode of premium payment Single
Tabular Single Premium(Rs.) 41242
Single Premium Paid 41242
Basic Sum Assured 75000
Sum Assured on Death 412420
 

Variable scenario 1:Gross Investment return @4%p.a.

Variable scenario 2:Gross Investment return @8%p.a.

End of Policy Year Total Premium Paid
till end of year
Amount Payable on Maturity Amount Payable on Surrender
during the year**
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2 Guaranteed Surrender Value
(1) (2) (3) (4) (5) (6)=(3)+(4) (7)=(3)+(5) (8)
1 41242 412420 0 0 412420 412420 28869
2 41242 412420 0 0 412420 412420 37118
3 41242 412420 0 0 412420 412420 37118
4 41242 412420 0 0 412420 412420 37118
5 41242 412420 0 0 412420 412420 37118
6 41242 412420 0 1500 412420 413920 37118
7 41242 412420 0 1875 412420 414295 37118
8 41242 412420 0 2250 412420 414670 37118
9 41242 412420 0 2625 412420 415045 37118
10 41242 412420 0 3375 412420 415795 37118
11 41242 412420 0 4125 412420 416545 37118
12 41242 412420 0 4875 412420 417295 37118

  

End of Policy Year Total Premium Paid till end of year Amount Payable on Maturity
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
(1) (2) (3) (4) (5) (6)=(3)+(4) (7)=(3)+(5)
12 41242 75000 0 4875 75000 79875
 

*The Single Premium shown above is exclusive of applicable taxes, extra premium and rider premium, if any

**Special Surrender Value may however be payable, if it is more favorable to the policyholder.

Notes:

i)The non-guaranteed (variable) benefits in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 4% p.a.(Scenario 1) and 8% 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 4% p.a. or 8% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.

ii)Under Scenario 1 where interest rate earned by the Corporation is assumed to be 4% throughout the term, the projected Loyalty Addition is nil.

iii) The above Benefit Illustration is for illustration purpose only. 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.

SECTION 45 OF INSURANCE ACT, 1938:

The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time to time.

The simplified version of this provision is as under:

Provisions regarding policy not being called into question in terms of Section 45 of the Insurance Act, 1938, as amended by Insurance Laws (Amendment) Act, 2015 are as follows:

1. No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of 3 yrs from

  • a.the date of issuance of policy or
  • b.the date of commencement of risk or
  • c.the date of revival of policy or
  • d.the date of rider to the policy
    whichever is later.

2. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from

  • a.the date of issuance of policy or
  • b.the date of commencement of risk or
  • c.the date of revival of policy or
  • d.the date of rider to the policy
    whichever is later.

For this, the insurer should communicate in writing to the insured or legal representative or nominee or assignees of insured, as applicable, mentioning the ground and materials on which such decision is based.

3.Fraud means any of the following acts committed by insured or by his agent, with the intent to deceive the insurer or to induce the insurer to issue a life insurance policy:

  • a.The suggestion, as a fact of that which is not true and which the insured does not believe to be true;
  • b.The active concealment of a fact by the insured having knowledge or belief of the fact;
  • c.Any other act fitted to deceive; and
  • d.Any such act or omission as the law specifically declares to be fraudulent.

4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the insured or his agent keeping silence to speak or silence is in itself equivalent to speak.

5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the Insured / beneficiary can prove that the misstatement was true to the best of his knowledge and there was no deliberate intention to suppress the fact or that such mis-statement of or suppression of material fact are within the knowledge of the insurer. Onus of disproving is upon the policyholder, if alive, or beneficiaries.

6. Life insurance Policy can be called in question within 3 years on the ground that any statement of or suppression of a fact material to expectancy of life of the insured was incorrectly made in the proposal or other document basis which policy was issued or revived or rider issued. For this, the insurer should communicate in writing to the insured or legal representative or nominee or assignees of insured, as applicable, mentioning the ground and materials on which decision to repudiate the policy of life insurance is based.

7. In case repudiation is on ground of mis-statement and not on fraud, the premium collected on policy till the date of repudiation shall be paid to the insured or legal representative or nominee or assignees of insured, within a period of 90 days from the date of repudiation.

8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer. The onus is on insurer to show that if the insurer had been aware of the said fact, no life insurance policy would have been issued to the insured.

9. The insurer can call for proof of age at any time if he is entitled to do so and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof of age of life insured. So, this Section will not be applicable for questioning age or adjustment based on proof of age submitted subsequently.

PROHIBITION OF REBATES (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 rebate 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 provisions of this section shall be liable for a penalty which may extend to ten lakh rupees.

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS

IRDAI clarifies to public that

IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.

IRDAI does not announce any bonus.

Public receiving such phone calls are requested to lodge a police compliant along with details of phone call, number.

“Insurance is the subject matter of solicitation.”

Registered Office:

Life Insurance Corporation of India

Central Office, Yogakshema ,

Jeevan Bima Marg,

Mumbai-400021

Website: www.licindia.in

Registration Number: 512

Life Insurance Corporation of India – Corporate Office : Yogakshema Building, Jeevan Bima Marg, P.O. Box No – 19953, Mumbai – 400 021 IRDAI Reg No- 512
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