LlC’s New Jeevan Umang is a non-linked, with-profits whole life assurance plan. This plan provides for annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on death of the policyholder during the policy term.
LlC’s Jeevan Umang Benefits:
The benefits payable under an in force policy are as under:
a) Death Benefit:
On death before the commencement of Risk: An amount equal to the total amount of premium/s paid without interest shall be payable.
On Death after the commencement of Risk: 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 the highest of
10 times of annualised premium; or
Sum Assured on Maturity; or
Absolute amount assured to be paid on death, i.e. Basic Sum Assured.
This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.
b) Survival Benefit: On the life assured surviving to the end of the premium paying term, provided all due premiums have been paid, a survival benefit equal to 8% of Basic Sum Assured shall be payable each year. The first survival benefit payment is payable at the end of premium paying term and thereafter on completion of each subsequent year till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.
c) Maturity Benefit: On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses (as mentioned in 3 below) and Final Additional bonus, if any, shall be payable.
Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
PARTICIPATION IN PROFITS:
Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy shall participate in profits during the policy term.
During the premium paying term: Policies shall be eligible to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during the premium paying term, provided the policy is inforce.
Final Additional Bonus may also be declared under an inforce policy in the year when such policy results into a claim by death. However, Final Additional Bonus shall not be payable under paid-up policy or on surrender of a policy during the premium paying term.
In case the premiums are not duly paid, the policy shall cease to participate in future profits during premium paying term.
After the premium paying term applicable only for fully paid-up policies or for paid-up policies with Maturity Paid-up Sum Assured of Rs. 2 Iakhs or more):
Under a fully paid-up policy (i.e.where all premiums payable during the term of the policy are paid) or in a paid-up policy with Maturity Paid-up Sum Assured of Rs. 2 Iakhs or more, the terms for participation of profits after the premium paying term may be in a different form and on a differential scale depending on the Corporation’s experience under this plan at that time.
Final Additional Bonus may also be declared under the policy in the year when a policy results into a claim either by death or maturity. In addition, applicable Final Additional Bonus for surrendering policies, if any, may also be considered in payment of Special Surrender Value.
Under a paid-up policy with Maturity Paid-up Sum Assured of less than Rs. 2 Iakhs, the policy shall not participate in future profits.
LlC’s Jeevan Umang OPTIONAL BENEFIT: The following four optional riders are available under this plan. However, the policyholder can opt for either LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a policyholder can opt for a maximum of three riders under this plan.
LlC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium. This rider can be opted for at any time within the premium paying term of the Base Plan provided the outstanding premium paying term is atleast 5 years. The benefit cover under this rider shall be available upto the policy anniversary on which the age nearer birthday of the Life Assured is 70 years. Thereafter the cover shall cease.
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 and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived. The premium for the portion of Basic Sum Assured which exceeds the Accident Benefit Sum Assured and premium(s) in respect of other Rider(s), if opted for, shall continue to be paid. If the policy becomes a claim by way of death before the expiry of the said period of 10 years, the disability benefit installments which have not fallen due will be paid along with the claim amount.
The premium for this rider will not be required to be paid after the premium paying term of the base plan.
LlC’s Accidental Death and Disability Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.
LIC’s Accident Benefit Rider: LlC’s Accident Benefit Rider is available as an optional rider payment of additional premium.
This rider can be opted for at any time within the premium paying term of the Base Plan provided the outstanding premium paying term is atleast 5 years. The benefit cover under this rider shall be available only during the premium paying term of the base plan. Thereafter the cover shall cease.
If this benefit is opted for and if the Life Assured is involved in an accident leading to death within 180 days from the date of accident then an additional amount equal to the Accident benefit Sum Assured is payable. However, the policy shall have to be inforce at the time of accident irrespective of whether or not it is inforce at the time of death.
LlC’s Accident Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.
LIC’s New Term Assurance Rider: LIC’s New Term Assurance Rider is available as an optional rider at the inception of the policy by payment of additional premium. The additional premium for this rider will need to be paid along with the premium of the Base Plan and any other rider(s), if opted for, during the premium paying term of the policy. The benefit cover under this rider shall be available for a term of 35 years or till the policy anniversary on which the age nearer birthday of the Life assured is 75 years, whichever is earlier. Thereafter the cover shall cease. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on death of the life assured, provided the rider cover is inforce.
LIC’s New Critical Illness Benefit Rider: LIC’s New Critical Illness Rider is available as an optional rider at the inception of the policy by payment of additional premium. The additional premium for this rider will need to be paid along with the premium of the Base Plan and any other rider(s), if opted for, during the premium paying term of the policy. The cover under this rider shall be available for a policy term of 35 years or till the policy anniversary on which the age of the Life Assured is 75 years, whichever is earlier.
If this rider is opted for, on first diagnosis of any one of the 15 critical Illness covered under this rider, the Critical Illness Sum Assured shall be payable subject to the conditions specified in the rider circular.
LIC’s New Critical Illness Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.
Beyond the specific details as mentioned in this circular in respect of this rider, any additional details like refund to be made in respect of this rider on surrender of base plan etc., may be referred from the rider circular.
Note: The premiums under all the riders put together shall be subject to a ceiling of 30% of the premium of the Base policy. Any benefit arising under each of the riders shall not exceed the Sum Assured under the Basic product.
ELIGIBILITY CONDITIONS AND RESTRICTIONS:
For Base Plan:
- Minimum Age at entry : 90 days (completed)
- Maximum Age at entry : 55 years (nbd) for PPT=15
50 years (nbd) for PPT=20
45 years (nbd) for PPT=25
40 years (nbd) for PPT=30 - Premium Paying Term (PPT) : [15, 20, 25 and 30] years
- Minimum age at the end of the PPT : [30] years (nbd)
- Maximum Age at the end of PPT : [70] years (nbd)
- Age at Maturity : [100] years (nbd)
- Policy Term : [100-age at entry] years
- Minimum Basic Sum Assured : Rs. 2,00,000
- Maximum Basic Sum Assured : No Limit
- The Basic Sum Assured Shall be in multiples of Rs. 25,000/— only.
- Age at entry for the Policyholder is to be taken as age nearer birthday (nbd) except for the minimum age at entry 90 days i.e. where it is completed days.
- 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 of 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 issuance of policy: It is a date when a proposal after underwriting is accepted as a policy and the contract gets effected.
Date of vesting under this plan (Applicable only if the Life Assured is below 18 years on
the- date of commencement of policy):
If the policy is inforce and the Life Assured is alive on the vesting date and if a request in writing for surrendering the policy has not been received by Corporation before such vesting date from the person entitled to the policy moneys, this policy shall automatically vest in the Life Assured on such vesting date i.e. 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.
For LlC’s Accidental Death and Disability Benefit Rider:
- Minimum Entry Age : 18 years (completed)
- Maximum Entry Age : The cover can be opted for at inception or at any policy anniversary thereafter, provided the outstanding premium paying term under the base plan is at least 5 years.
- Maximum cover ceasing Age : 70 years (nbd)
- 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.
- For LIC’s Accident Benefit Rider: (cover under this rider shall be available during the PPT only)
- Minimum Entry Age : 18 years (completed)
- Maximum Entry Age : The cover can be opted for at inception or at any policy anniversary thereafter, provided the outstanding premium paying term under the base plan is at least 5 years.
- Cover ceasing Age : Age at the end of premium paying term
- Minimum Accident Benefit Sum Assured : Rs. 20,000/-
- Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured
under the base plan subject to the maximum of Rs.100 Iakh 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. 5,000/-only.
Note :The overall limit of Accident Benefit Sum Assured shall be inclusive of Sum Assured under both the Accident Benefit riders i.e. the LlC’s Accidental Death and Disability Benefit Rider and LlC’s Accident Benefit Rider.
For LlC’s New Term Assurance Rider:
- Minimum Entry Age : 18 years (completed)
- Maximum Entry Age : 55 years (nbd) for PPT=15
50 years (nbd) for PPT=20
45 years (nbd) for PPT=25
40 years (nbd) for PPT=3O - Premium paying term : same as Base plan
- Maximum policy term : 35 years
- Maximum cover ceasing Age : 75 years (nbd)
- Minimum Term Assurance Rider Sum Assured: Rs. 1,00,000/-
- Maximum Term Assurance Rider Sum Assured: An amount less than or equal to the Basic Sum Assured under the Base plan, but not exceeding the overall limit of Rs.25 Iakhs taking all Term Assurance Rider Sum Assured under all existing policies of the Life Assured including the new proposal into consideration.
- The Term Assurance Rider Sum Assured shall be in multiples of Rs. 5,000/-only.
For LIC’s New Critical Illness Benefit Rider:
- Minimum Entry Age : 18 years (completed)
- Maximum Entry Age : 55 years (last birthday) for PPT=15
50 years (last birthday) for PPT=20
45 years (last birthday) for PPT=25
40 years (last birthday) for PPT=3O - Maximum cover ceasing Age : 75 years (last birthday)
- Maximum policy term : 35 years
- Premium paying term :same as Base plan
- Minimum Critical Illness Sum Assured : Rs. 1,00,000/-
- Maximum Critical Illness Sum-Assured : An amount equal to the Sum Assured on Death under the Base plan but not exceeding an overall limit of Rs.25 lakh Critical Illness Sum Assured taking all existing policies of the Life Assured under this rider and the Critical Illness Sum Assured under the new proposal into consideration.
- The Critical Illness Sum Assured shall be in multiples of Rs 25,000/- only.
MODE OF PREMIUM PAYMENT: The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly (NACH only) or through salary deductions.
LOAN: Loan facility shall be available under this plan after at least 3 full years premiums have been paid.
If loan is availed during the premium paying term:
The maximum loan as a percentage of surrender value shall be as under:
For inforce policies- upto 90%
For paid-up policies- upto 80%
Interest on Loan during the premium paying term shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. In case the loan is not repaid during the premium paying term and if there is default in interest payment, then due interest on the loan shall be recovered from survival benefits due or any other amount payable under the policy.
If loan is availed after the premium paying term: The maximum permissible amount of new loan (where no previous loan taken earlier is outstanding) for policies which are entitled for survival benefits shall be arrived at in such a way that the effective annual interest amount payable on loan does not exceed 50% of the annual survival benefit payable under the policy.
Interest on the loan shall be recovered from the survival benefits and at the rate which
shall be specified by the Corporation when the loan is made.
In the event of default in payment of loan interest on the due dates and when the outstanding loan amount along with interest is to exceed the surrender value the policy shall be foreclosed. On foreclosure of- such policies, the difference of surrender value and the loan outstanding amount along with interest, if any, shall be paid to the policyholder and the policy will terminate.
In case a policy becomes a claim by way of death, surrender or maturity the amount of outstanding loan along with all due interest shall be recovered from the claim benefit payment.
