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Home » Products » Withdrawn Plans » LIC's Jeevan Anurag (Plan No. 168) » Other Benefits
other benefits

Other Benefits

The plan offers other benefits as follows:

Grace Period: 
A grace period of one month but not less than 30 days will be allowed 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:
If at least three full years' premiums have been paid in respect of this policy, any subsequent premium be not duly paid, this policy shall not be wholly void, but the Sum Assured by it shall be reduced to such a Sum, called the paid-up value, as shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated in the policy. The policy so reduced shall thereafter be free from all liability for payment of the within mentioned premium, but shall not be entitled to the future bonuses. The existing vested reversionary bonuses, if any, will remain attached to the reduced paid-up Policy. The Sum Assured so reduced along with existing bonuses, if any, shall be paid in one single instalment on maturity or on earlier death.

The rider benefits will cease to apply if the policy is in lapsed condition.

Once the payment of assured benefit starts, the policy shall be kept in force till maturity and the unpaid premiums, if any, will be deducted with interest at appropriate rate out of the next benefit payment. 

Loan: 
Policy Loan is permissible under the policy after it acquires a paid-up value but before starting of payment of assured benefits. The terms and conditions of loan and the rate of interest applicable will be as fixed by the Corporation from time to time. At present, the rate of interest is 9% p.a. compounding half-yearly. 

Guaranteed Surrender Value: 
This policy can be surrendered for cash after the policy is kept in force by payment of premiums for at least three years. The guaranteed surrender value allowable under this plan for all modes, except the single premium mode will be equal to 30 per cent of the premiums paid excluding the premiums paid for the first year and all extra premiums and the premiums paid for optional / rider benefits. In case of single premium mode, the guaranteed surrender value will be 90 per cent of the premiums paid excluding all extra premiums and the premiums paid for optional / rider benefits. The cash value of any existing vested bonus additions will also be payable on surrender. 

Revival: 
Subject to production of satisfactory evidence of continued insurability, a lapsed policy can be revived by paying arrears of premium together with interest within a period of five years from the due date of first unpaid premium. The rate of interest applicable will be as fixed by the Corporation from time to time. At present the rate of interest is 8% p.a. compounding half-yearly. 

OPTIONAL RIDER BENEFITS:
The plan offers following optional riders on payment of additional premium and subject to the eligibility conditions mentioned below: 

Accidental Death and Disability Benefit 
Accidental Death and Disability Benefit will be available for an amount not exceeding the sum assured under the basic plan subject to overall cover of 25 lakh under all policies of the life assured with the Corporation taken together 

Term Assurance Rider Benefit 
Term assurance rider benefit will be available for an amount not exceeding the sum assured under the basic plan subject to overall cover of 25 lakh under all policies of the life assured with the Corporation taken together. 

Critical Illness Rider Benefit 
Critical Illness Rider Benefit will be available for an amount not exceeding the sum assured under the basic plan subject to overall cover of 5 lakh under all policies of the life assured with the Corporation taken together.

If Premium Waiver Benefit is opted for, then in case of diagnosis by any of the critical illness conditions covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured under such policies will not exceed Rs 5 lakh.
ACCIDENTAL DEATH AND DISABILITY BENEFIT: 

On death arising as a result of accident an additional amount equal to the Accident Benefit Sum Assured is payable. On total and permanent disability arising due to accident (within 180 days from the date of accident) an amount equal to the Accident Benefit Sum Assured will be paid over a period of 10 years in monthly instalments.

The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn the living. Following disabilities due to accidents are covered :i) Irrevocable loss of the entire sight of both eyes, or
ii) amputation of both hands at or above the wrists, or
iii) amputation of both feet at or above ankles, or
iv ) amputation of one hand at or above the wrist and one foot at or above the ankle
No benefit will be paid if accidental death or disability arises due to accident in case of:
i) intentional self-injury, attempted suicide insanity or immorality or the Life Assured is under the influence of intoxicating liquor, drug or narcotic
ii) engagement in aviation or aeronautics other than that of a passenger in any air craft
iii) injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeple chasing or racing of any kind
iv) accident resulting from committing any breach of law
v) accident arising from employment in armed forces or military services or police organisation.
 

TERM ASSURANCE RIDER BENEFIT: 
An amount equal to Term Assurance Rider Sum Assured will be payable on death of the life assured during the policy term. 

If Premium Waiver Benefit has been opted for , then in case of diagnosis by any of the critical illness conditions covered under the policy, the total future premiums payable (total instalment premium) will be waived.
EXCLUSIONS: 

This policy shall be void if the Life Assured commits suicide (whether sane or insane at the time) at any time on or after the date on which the risk under the policy has commenced but before the expiry of one year from the date of commencement of risk. In case of death due to suicide during this period, the Corporation will not entertain any claim by virtue of this policy except to the extent of a third party’s bona-fide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the office where this policy is serviced, at least one calendar month prior to death. 

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 the 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 1:
Age at entry (Life Assured): 35 years 
Policy Term: 25 years 
Premium paying term: 25 years
Mode of premium payment: Yearly
Sum Assured: Rs.1,05,000/-
Bonus Assumptions:
Regular Bonus  - Rs.21 per thousand S.A at 6% rate of return
                         Rs.55 per thousand S.A at 10% rate of return
Terminal Bonus - Rs. 170 per thousand S.A at 6% rate of return
                         Rs. 450 per thousand S.A at 10% rate of return
Annual Premium : Rs.4,606/-

Additional Benefits: 

End of Year
Total premium paid
Benefit payable on earlier death /survival upto end of the policy term
Guaranteed
Variable
Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
22
1,01,332
21,000
0
0
21,000
21,000
23
1,05,938
21,000
0
0
21,000
21,000
24
1,10,544
21,000
0
0
21,000
21,000
25
1,15,150
42,000
72,975
1,91,625
1,14,975
2,33,625


Illustration 2:
Age at entry (Life Assured): 35 years 
Policy Term: 25 years 
Premium paying term: One
Sum Assured: Rs.1,05,000/-
Bonus Assumptions:
Regular Bonus  - Rs.24 per thousand S.A at 6% rate of return
                         Rs.92 per thousand S.A at 10% rate of return
Terminal Bonus - Rs.200 per thousand S.A at 6% rate of return
                         Rs.760 per thousand S.A at 10% rate of return
Single Premium: Rs.59,157 /-
 

End of Year
Total premium paid
Benefit payable on death during the year
Guaranteed
Variable
Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
1
59,157
1,05,000
0
0
1,05,000
1,05,000
2
59,157
1,05,000
0
0
1,05,000
1,05,000
3
59,157
1,05,000
0
0
1,05,000
1,05,000
4
59,157
1,05,000
0
0
1,05,000
1,05,000
5
59,157
1,05,000
0
0
1,05,000
1,05,000
6
59,157
1,05,000
0
0
1,05,000
1,05,000
7
59,157
1,05,000
0
0
1,05,000
1,05,000
8
59,157
1,05,000
0
0
1,05,000
1,05,000
9
59,157
1,05,000
0
0
1,05,000
1,05,000
10
59,157
1,05,000
0
0
1,05,000
1,05,000
15
59,157
1,05,000
0
0
1,05,000
1,05,000
20
59,157
1,05,000
0
0
1,05,000
1,05,000
25
59,157
1,05,000
0
0
1,05,000
1,05,000


Additional Benefits: 

 
End of Year
Total premium paid
Benefit payable on earlier death /survival upto end of the policy term
Guaranteed
Variable
Total
Scenario 1
Scenario 2
Scenario 1
Scenario 2
22
59,157
21,000
0
0
21,000
21,000
23
59,157
21,000
0
0
21,000
21,000
24
59,157
21,000
0
0
21,000
21,000
25
59,157
42,000
84,000
3,21,300
1,26,000
3,63,300

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

ii) 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. 

The Maturity Benefit is the amount shown at the end of the policy term
 

EXTRACT from Section 41 of the Insurance Act: 


(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 rebates 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 taking out by himself on his own life shall not be deemed to be 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 punishable with a fine which may extend to Rs.500 / -

Note: “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office.

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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