LIC's New Jeevan Anand
LIC’s New Jeevan Anand Plan is a Non-linked, Participating, Individual, Life Assurance plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.
1. Benefits:
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Death Benefit:
Provided all due premiums have been paid, the following death benefit shall be paid
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On Death during the policy term i.e. before the stipulated Date of Maturity:
Death benefit, equal to “Sum Assured on Death” alongwith vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable; where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 7 times of annualised premium. This death benefit shall not be less than 105% of total premiums paid upto date of death.
The premiums mentioned above exclude taxes, extra premium and rider premium(s), if any.
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On death after expiry of the policy term i.e. from the stipulated Date of Maturity:
Basic Sum Assured shall be payable.
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Benefits payable at the end of Policy Term (i.e. On Maturity):
On Life Assured surviving to the stipulated Date of Maturity, provided the policy is in-force, i.e. all due premiums have been paid “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable; where “Sum Assured on Maturity” is equal to Basic Sum Assured.
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Participation in Profits:
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses de clared as per the experience of the Corporation during policy term provided the policy is in- force.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim by death during the policy term or due for the maturity benefit provided the policy is in force. Final Additional Bonus shall not be payable under paid-up policies.
The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with provisions in this regard under LIC Act, 1956.
Eligibility Conditions And Other Restriction-
| Minimum Basic Sum Assured | ₹ 1,00,000 |
|---|---|
| Maximum Basic Sum Assured | No Limit |
| The Basic Sum Assured shall be in multiples of ₹ 5,000/- | |
| Minimum Age at Entry | 18 years (completed) |
| Maximum Age at Entry | 55 years (nearer birthday) |
| Maximum Maturity Age | 75 years (nearer birthday) |
| Minimum Policy Term | 15 Years |
| Maximum Policy Term | 35 Years |
Date of Commencement of Risk under the Plan:
Risk will commence immediately on acceptance of the risk.
3. Available Options:
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Rider Benefits:
The following four optional riders are available under this plan by payment of additional premium. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders can be availed under a policy.
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LIC’s Accidental Death and Disability Benefit Rider:
This rider can be opted for at any time under an in-force policy within the policy term of the Base plan provided the outstanding premium paying term of the base plan as well as the rider is atleast 5 years, but before the policy anniversary on which the age nearer birthday of the life assured is 65 years. The benefit cover under this rider shall be available during the policy term or before the policy anniversary on which the age nearer birthday of the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum. In case of accidental 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 in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured under the base policy which is equal to Accident Benefit Sum Assured, shall be waived.
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LIC’s Accident Benefit Rider:
This rider can be opted for at any time under an in-force policy within the policy term of the Base plan provided the outstanding premium paying term of the base plan as well as the rider is atleast 5 years, but before the policy anniversary on which the age nearer birthday of the life assured is 65 years. The benefit cover under this rider shall be available during the policy term or before the policy anniversary on which the age nearer birthday of the life assured is 70 years, whichever is earlier. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum.
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LIC’s New Term Assurance Rider:
This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy term.
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LIC’s New Critical Illness Benefit Rider:
This rider is available at the inception of the policy only. The cover under this rider shall be available during the policy term. If this rider is opted for, on first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable.
The premium for LIC’s Accident Benefit Rider/LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan.
Each of above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.
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Option to take Death Benefit in Instalments:
This is an option to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an in-force as well as paid-up policy. This option can be exercised by the Life Assured during his/her life time; for full or part of Death benefits payable under the policy. The amount opted for by the Life Assured (ie. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under:
Mode of Instalment Payment Minimum Instalment amount Monthly ₹ 5,00,000 Quarterly ₹ 15,000 Half-Yearly ₹ 25,000 Yearly ₹ 50,000 If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option exercised by the Life Assured, the claim proceeds shall be paid in lumpsum only.
The interest rates applicable for arriving at the instalment payments under this option shall be as fixed by the Corporation from time to time.
For exercising option to take Death Benefit in instalments, the Life Assured can exercise this option during his/her lifetime while in currency of the policy, specifying the period of Instalment payment 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.
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Settlement Option for Maturity Benefit:
Settlement Option is an option to receive Maturity Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up policy.
This option can be exercised by the Life Assured, for full or part of Maturity proceeds payable under the policy. The amount opted for by the Life Assured (ie. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under:
Mode of Instalment Payment Minimum Instalment amount Monthly ₹ 5,00,000 Quarterly ₹ 15,000 Half-Yearly ₹ 25,000 Yearly ₹ 50,000 If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option exercised by the Life Assured, the claim proceeds shall be paid inlumpsum only.
The interest rates applicable for arriving at the instalment payments under Settlement Option shall be as fixed by the Corporation from time to time.
For exercising the Settlement Option against_Maturity Benefit, the Life Assured shall be required to exercise option for payment of net claim amount in instalments at least 3 months before the due date of maturity claim.
The first payment will be made on the date of maturity and thereafter, based on the mode of instalment payment opted for by the Life Assured, every month or three months or six months or annually from the date of maturity, as the case may be.
After the commencement of Instalment payments under Settlement Option:
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If a Life Assured, who has exercised Settlement Option against Maturity Bernefit, desireto withdraw this option and commute the outstanding instalments, the same shall be allowed on receipt of ritten request from the Life Assured. In such case, the lump sum amount which is higher of the following shall be paid and policy shall terminate
discounted value of all the future instalments due; or
(the original amount for which settlement option was exercised) less (sum of totalin stalments already paid).
The interest rates applicable for discounting the future instalment payments shall be as fixed bythe 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 instalments 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.
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4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (through NACH only) or through salary deductions over the Policy Term.
5. Grace Period:
A grace period of 30 days shall be allowed for payment of yearly or halfyearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. During this period, the policy shall be considered inforce with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.
The above grace period will also apply to rider premiums which are payable along with premium for base policy.
6. Sample Illustrative Premium:
The sample illustrative annual premiums in ₹ for Basic Sum Assured of ₹1 Lakh for Standard lives are as under:
| Age ↓ / Policy Term → | Amount in (₹) | ||
|---|---|---|---|
| 15 | 25 | 35 | |
| 20 | 7,747/- | 4,341/- | 2,935/- |
| 30 | 8,080/- | 4,581/- | 3,165/- |
| 40 | 8,644/- | 5,037/- | 3,636/- |
| 50 | 9,575/- | 5,846/- | - |
The above premiumis exclusive of taxes.
7. Rebates:
| Mode Rebate | |
|---|---|
| Yearly mode | : 2% of Tabular Premium |
| Half-yearly mode | : 1% of Tabular premium |
| Quarterly | : Nil |
| Monthly mode & Salary Deduction | : Nil |
| High Sum Assured Rebate | |
| Basic Sum Assured (B.S.A) | Rebate (₹) |
| 1,00,000 to 1,95,000 | : Nil |
| 2,00,000 to 4,95,000 | : 1.50‰ B.S.A. |
| 5,00,000 and 9,95,000 | : 2.50‰ B.S.A. |
| 10,00,000 and above | : 3.00‰ B.S.A. |
8. 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 5 consecutive years from the date of first unpaid premium but before the end of policy term, as the case may be.
The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.
The Corporation reserves the right to accept at original terms, accept at modified 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, accepted and revival receipt is issued by the Corporation.
Revival of rider(s), if opted for, will be considered along with revival of the basic policy and not in isolation.
9. Paid-up Policy:
If less than two years’ premiums have been paid, and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable.
If at least two full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be wholly void, but shall continue as a paid-up policy.
During the Policy Term:
The “Sum Assured on Death” under the paid-up policy shall be reduced to such a sum, called “Death Paid-up Sum Assured” and shall be equal to Sum Assured on Death multiplied by the ratio of total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. In addition to the Death Paid-Up Sum Assured, vested Simple Reversionary Bonuses, if any, shall also be payable on Life Assured’s death.
This “Sum Assured on Maturity” under the paid-up policy shall be reduced to such a sum called “Maturity Paid –Up Sum Assured” and shall be equal to “Sum Assured on Maturity” multiplied by the ratio of total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. In addition to the “Maturity Paid-Up Sum Assured”, vested Simple Reversionary Bonuses, if any, shall also be payable on the expiry of the policy term.
After the expiry of Policy Term:
On death of the Life Assured after expiry of the policy term, Paid-up Sum Assured equal to Basic Sum Assured multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable shall be paid.
A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses shall remain attached to the paid-up policy.
Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.
10. Surrender:
The policy can be surrendered at any time provided two full years’ premiums have been paid. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special 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.
Guaranteed Surrender value payable during the policy term shall be equal to the total premiums paid (excluding extra premiums, taxes and premiums for riders, if opted for) multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered.
11. Policy Loan:
Loan can be availed under the policy provided atleast two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.
The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as under:
For in-force policies – upto 90%
For paid-up policies – upto 80%
The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.
Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.
12. Taxes:
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 (for base policy and rider(s), if any) including extra premiums,if any, 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.
Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this plan, please consult your tax advisor for details.
13. Free-look period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy may be returned to Corporation 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 Base plan and rider(s), if any) for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty charge.
14. Exclusion:
Suicide: - A 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, the Corporation will not entertain any claim under the policy except for 80% of total premiums paid, provided the policy is inforce.
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 total premiums paid till the date of death or the surrender value available as on the date of death, shall be payable. The Corporation will not entertain any other claim under the policy. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.
Note: Premiums referred above shall not include any taxes, extra premiums and any rider premium(s) other than Term Assurance rider, if any.
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