2
LIC’s Jeevan Dhara - II (UIN: 512N364V01)
(A Non-Linked, Non-Parcipang, Individual,
Savings, Deferred Annuity Plan)
LIC’s Jeevan Dhara - II is a Non-Linked, Non-Parcipang, Individual,
Savings, Deferred Annuity plan. The annuity rates are guaranteed at the
incepon of the policy and annuies are payable post Deferment Period in
arrears throughout the life me of Annuitant(s).
This is a non-parcipang product under which benets payable on death
or survival are guaranteed and xed (as per the chosen Annuity Opon)
irrespecve of actual experience. Hence the policy is not entled to any
discreonary benets like bonus etc. or share in Surplus.
This Plan can be purchased Oine through agents / other intermediaries as
well as Online directly through website www.licindia.in.
KEY FEATURES:
• Wide range of annuity opons to suit your needs.
• Flexibility to choose from:
o Regular Premium and Single Premium.
o Single Life Annuity and Joint Life Annuity.
o Available Deferment Period [from 5 years to 15 years (in case of Regular
Premium) and from 1 year to 15 years (in case of Single Premium)] i.e.
when to start annuity payments as per your requirements.
o Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).
• High Premium Incenve.
• Incenve for exisng Policyholders/ Nominee/Beneciary of the
Corporaon.
• Top-up Annuity i.e. Opon to increase the annuity by paying addional
premium at any me during the Deferment Period.
• Opon to take death benet as Lump-sum, in the form of Annuisaon
or in instalments.
• Liquidity Opon i.e. opon to receive a lump-sum amount in return of
reducon in annuity payments and other benets.
• Advanced Annuity Opon in case of Joint Life Annuity Opons with
Return of Premium i.e. opon to the surviving Annuitant [on rst death
(of either of the covered lives)] to withdraw discounted cash value of
annuity payable during the ‘Advance Annuity Period’ as a lump-sum.
1. Annuity Opons:
The available annuity opons under this plan are as under:
Premium
Payment
Annuity Type Annuity Opons
Regular
Premium
Single Life
Annuity
Opon-1 Life annuity for Single Life
Opon-2
Life annuity with Return of
Premium for Single Life
Opon-3
Life annuity with 50%
Return of Premium aer
aaining age 75 years for
Single Life
3
Opon-4
Life annuity with 100%
Return of Premium aer
aaining age 75 years for
Single Life
Opon-5
Life annuity with 50%
Return of Premium aer
aaining age 80 years for
Single Life
Opon-6
Life annuity with 100%
Return of Premium aer
aaining age 80 years for
Single Life
Opon-7
Life annuity with 5% Return
of Premium aer aaining
age 76 years to 95 years for
Single Life
Joint Life
Annuity
Opon-8 Life annuity for Joint Life
Opon-9
Life annuity with Return of
Premium for Joint Life
Single
Premium
Single Life
Annuity
Opon-10
Life annuity with Return of
Purchase Price for Single
Life
Joint Life
Annuity
Opon-11
Life annuity with Return of
Purchase Price for Joint Life
Annuity Opon once chosen cannot be altered.
In case of Joint life Annuity Opons, the Primary Annuitant shall be the
primary person to receive the annuity payments and the Secondary
Annuitant shall receive the same annuity only in the event of death of the
Primary Annuitant.
2. ELIGIBILITY CONDITIONS & OTHER RESTRICTIONS:
i. Minimum Age at Entry : [20] years (last birthday)
(for Annuitant/Primary/Secondary Annuitant)
ii. Maximum Age at Entry :
For Annuitant/Primary Annuitant
Annuity Opon Age in years (last birthday)
Opon: 1, 2, 8, 9, 10 & 11 80 minus Deferment Period
Opon: 5, 6 & 7 70 minus Deferment Period
Opon: 3 & 4 65 minus Deferment Period
For Secondary Annuitant : [75] years (last birthday) [Opon: 8 & 9]
: [79] years (last birthday) [Opon: 11]
iii. Minimum Vesng Age : [35] years (last birthday) [Opon: 1 to 9]
: [31] years (last birthday) [Opon: 10 & 11]
iv. Maximum Vesng Age : For Annuitant/Primary Annuitant
Annuity Opon Age in years (last birthday)
Opon: 1, 2, 8, 9, 10 & 11 80
Opon: 5,6 & 7 70
Opon: 3 & 4 65
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v. Policy Term : Not applicable
vi. Deferment Period : [5 to 15] years (Opon 1 to 9)
: [1 to 15] years (Opon 10 & 11)
[Deferment Period (DP) refers to the period, in years, as chosen by the
policyholder, commencing from the Date of Commencement of policy
to the Date of Vesng.]
vii. Premium Payment Term:
- Under Regular Premium : Same as Deferment Period
- Under Single Premium : Single Pay
viii. Minimum Premium:
The minimum yearly premium/purchase price for dierent annuity
opons and Deferment Period (DP) for age at entry below 55 years
(last birthday) and for age at entry greater than or equal to 55 years
(last birthday) shall be as under:
a) Minimum yearly Premium (in case of Regular Premium):
Annuity
Opon
Minimum yearly Premium (Rs.)
DP (10 to 15) DP (7 to 9) DP (5 to 6)
Age 55
years &
above
Age
below
55 years
Age 55
years &
above
Age
below
55 years
Age 55
years &
above
Age
below
55 years
Opon-1 11,000 16,000 18,000 25,000 28,000 37,000
Opon-2 14,000 17,000 24,000 27,000 37,000 40,000
Opon-3 16,000 17,000 27,000 27,000 42,000 41,000
Opon-4 18,000 18,000 31,000 29,000 50,000 44,000
Opon-5 15,000 17,000 25,000 27,000 39,000 40,000
Opon-6 16,000 17,000 27,000 27,000 44,000 40,000
Opon-7 15,000 17,000 25,000 27,000 40,000 40,000
Opon-8 16,000 17,000 26,000 27,000 39,000 40,000
Opon-9 17,000 17,000 27,000 27,000 41,000 41,000
For other modes of premium payment, the applicable minimum
instalment premium shall be arrived at by mulplying the applicable
Premium Conversion factor (as specied in Para 7 below) with Minimum
yearly premium.
For example: If the minimum yearly premium is ` 1 6 , 0 0 0 ,
corresponding minimum premium for other modes of premium
payment shall be as under:
Half-yearly Quarterly Monthly
` 8,144 ` 4,109 ` 1,378
The minimum instalment premium payable (for other than yearly
mode) in any case shall not be less than ` 1,000.
b) Minimum Purchase Price* (in case of Single Premium):
Annuity
Opon
Purchase Price (`)
DP (10 to 15) DP (5 to 9) DP (1 to 4)
Age 55
years &
above
Age
below 55
years
Age 55
years &
above
Age
below 55
years
Age 55
years &
above
Age
below
55 years
Opon-10 1,00,000 1,25,000 1,50,000 1,65,000 2,05,000 2,10,000
Opon-11 1,25,000 1,30,000 1,70,000 1,70,000 2,15,000 2,15,000
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*Exceponal case where minimum annuity and minimum Purchase
Price as specied above shall not be applicable: If the plan has
been purchased for the benet of dependant person with disability
(Divyangjan), as specied in Para 4.V below, the proposal shall be
allowed without any restricon on minimum annuity and the minimum
Purchase Price under such case shall be ` 50,000/-.
c) Minimum addional Premium for each Top-up Annuity: ` 50,000
ix. Maximum Premium : No limits, subject to underwring decision*
(*The maximum Regular Premium/Purchase Price allowed will be
subject to acceptance as per the Board Approved Underwring Policy.)
x. Minimum Annuity:
Annuity Mode Monthly Quarterly Half-yearly Annual
Minimum Annuity
` 1,000
per month
` 3,000
per quarter
` 6,000
per half-year
` 12,000
per annum
Joint Life Annuity: The Joint life annuity can be taken between any
two lineal descendant/ascendant of a family (i.e. Grandparent, Parent,
Children, Grandchildren) or spouse or siblings or Parent-in-law.
3. BENEFITS:
Benets payable under an in-force policy on Survival/Death of the
Annuitant(s) under applicable Annuity Opons shall be as under:
Annuity
Opon
Benets payable on Survival/Death
Annuity
Opon-1:
Life annuity
for Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately. No death benet shall be payable
and the policy shall terminate.
Annuity
Opon-2:
Life annuity
with Return
of Premium
for Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100%
of Total Premiums Paid up to the date of death shall
be payable. The policy shall terminate on payment of
death benet.
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Annuity
Opon-3:
Life annuity
with 50%
Return of
Premium
aer
aaining age
75 years for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive. In
addion to the annuity payment, an Early Return of
Premium of amount equal to 50% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the compleon of age 75 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid ll the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benet.
Annuity
Opon-4:
Life annuity
with 100%
Return of
Premium
aer
aaining age
75 years for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive. In
addion to the annuity payment, an Early Return of
Premium of amount equal to 100% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the compleon of age 75 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid ll the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benet.
Annuity
Opon-5:
Life annuity
with 50%
Return of
Premium
aer
aaining age
80 years for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive. In
addion to the annuity payment, an Early Return of
Premium of amount equal to 50% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the compleon of age 80 years.
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• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid ll the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benet.
Annuity
Opon-6:
Life annuity
with 100%
Return of
Premium
aer
aaining age
80 years for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive. In
addion to the annuity payment, an Early Return of
Premium of amount equal to 100% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the compleon of age 80 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid ll the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benet.
Annuity
Opon-7:
Life annuity
with 5%
Return of
Premium
aer
aaining age
76 years to
95 years for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable.
• On death of the Annuitant, death benet equal to 105%
of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive. In
addion to the annuity payment, an Early Return of
Premium of amount equal to 5% of Total Premiums
Paid shall also be payable on survival of the Annuitant
on each of the respecve policy anniversary coinciding
with or immediately following the compleon of ages
76 years to 95 years (both inclusive).
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid ll the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benet.
Annuity
Opon-8:
Life annuity
for Joint Life
During Deferment Period:
• On survival of the Primary Annuitant and/or Secondary
Annuitant, nothing shall be payable.
• On rst death (of either of the covered lives), no death
benet shall be payable and the policy shall connue
with payment of due Premium, if any.
• On death of the last survivor, death benet equal to
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105% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On rst death (of either of the covered lives), no death
benet shall be payable and 100% of the annuity
amount shall connue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments shall
cease immediately. No death benet shall be payable
and the policy shall terminate.
Annuity
Opon-9:
Life annuity
with Return
of Premium
for Joint Life
During Deferment Period:
• On survival of the Primary Annuitant and/or Secondary
Annuitant, nothing shall be payable.
• On rst death (of either of the covered lives), no death
benet shall be payable and the policy shall connue
with payment of due Premium, if any.
• On death of the last survivor, death benet equal to
105% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On rst death (of either of the covered lives), no death
benet shall be payable and 100% of the annuity
amount shall connue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments
shall cease immediately and death benet equal to
100% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benet.
Annuity
Opon-10:
Life annuity
with Return
of Purchase
Price for
Single Life
During Deferment Period:
• On survival of the Annuitant, nothing shall be payable
• On death of the Annuitant, death benet equal to 105%
of Purchase Price shall be payable. The policy shall
terminate on payment of death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benet equal to 100%
of Purchase Price shall be payable. The policy shall
terminate on payment of death benet.
Annuity
Opon-11:
Life annuity
with Return
of Purchase
During Deferment Period:
• On survival of the Primary Annuitant and/or Secondary
Annuitant, nothing shall be payable.
• On rst death (of either of the covered lives), no death
benet shall be payable and the policy shall connue.
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Price for
Joint Life
• On death of the last survivor, death benet equal to
105% of Purchase Price shall be payable. The policy shall
terminate on payment of death benet.
Aer Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On rst death (of either of the covered lives), no death
benet shall be payable and 100% of the annuity
amount shall connue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments
shall cease immediately and death benet equal to
100% of Purchase Price shall be payable. The policy shall
terminate on payment of death benet.
Where,
‘Total Premiums Paid’ means the total of all premiums received, excluding
any extra premium, any rider premium and taxes.
‘Purchase Price’ is an amount as opted by the policyholder which is
considered to determine the benets under the policy. This shall exclude
any extra premium, any rider premium and taxes.
‘Total Premiums Paid/ Purchase Price’ shall include the addional premium
paid for Top-up Annuity, if any.
4. OPTIONS AVAILABLE:
I. Top-up Annuity:
This is an opon to increase the Annuity (Top-up annuity) under the
policy by paying addional premium as a Single Premium and shall be
subject to the following:
i) This Opon can be exercised at any me during the deferment
period only and while the policy is in-force.
ii) The annuity amount from the addional premium for Top-up
annuity shall be based on the available prevailing Annuity rates
at the me of payment of addional premium for Top-up annuity
and shall also be subject to then prevailing product criteria with
respect to minimum and maximum limits for Age at Entry and
Deferment period and minimum Addional Premium for each Top-
up etc. However, the minimum annuity instalment limits shall not
be applicable.
iii) The Top-up annuity payable for each instance shall be calculated as
per the age of the Annuitant(s) at the me of payment of addional
premium and the then prevailing annuity rates corresponding
to Single Premium Deferred Annuity Opon i.e. Life annuity with
Return of Purchase Price for Single Life (in case the base annuity
type is Single life annuity or in case of Joint life annuity wherein
only one of the Annuitant is surviving at the me of payment of
Top-up) and Life annuity with Return of Purchase Price for Joint Life
(in case the base annuity type is Joint life annuity and wherein both
the Annuitants are surviving at the me of payment of Top-up). The
prevailing Annuity rate would be derived so as to match the ming
of the Top-up Annuity with base annuity e.g. If a policyholder opts
for 10 year Deferment Period and opts for Top-up Annuity by paying
addional premium aer 2.50 years, then prevailing annuity rates
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for Deferment Period of 7 years and 8 years would be used to derive
the Annuity rates for 7.50 years.
iv) Each payment of addional premium shall be treated as a Single
Premium as independent in its own right. All provisions i.e. Incenve
for higher premium, Suicide clause etc. shall be as applicable to
Single Premium Deferred Annuity Opon.
v) Benets payable on Death or Surrender or on Survival (Annuity
benets) shall be calculated separately for the base policy and for
each Top-up annuity tranche and the total would be payable.
vi) The total annuity amount payable shall be the sum of base annuity
and Top-up Annuity. The mode of payment of Top-up Annuity shall
be same as that of the base annuity.
vii) Any Top-up Annuity tranche can be surrendered independent of
Base policy or other Top-up annuity tranches. However, if the Base
policy is surrendered, all Top-up annuity tranches shall also be
surrendered at the same me.
II. Liquidity Opon:
This is an Opon to receive a lump-sum amount in return of reducon
in annuity payments and other benets under a Base Policy and shall
not be applied to Top-up Annuity. This Opon shall be available under
Annuity Opons with Return of Premium (Opon- 2, 9, 10 and 11). The
Opon shall be exercised subject to the following:
i) This Opon can be exercised only aer compleon of 5 years from
rst annuity payment.
ii) This opon will be allowed for a maximum of 3 mes under the
policy.
iii) A policyholder shall receive the lumpsum amount corresponding to
the poron of the Total Premium Paid he/she is willing to liquidate
e.g. If x% & y% of Total Premium Paid is opted for liquidity opon
at two dierent mes, x% & y% of the Surrender value of Base
Policy (calculated without any liquidaon) as applicable on the date
of liquidaon shall be payable at the me of respecve liquidity
opon.
iv) Total lumpsum benets that can be availed under this Opon
can not exceed 60% of Total Premiums Paid (excluding addional
Premium for Top-up Annuity).
v) Aer the exercise of this Opon, the annuity amount, death benet
and other benets (if any) shall be revised with eect from the date
of withdrawal i.e. If x% & y% of Total Premium Paid is opted for
liquidity opon at two dierent mes, revised annuity amount,
death benet, surrender value and other benet shall be reduced
to (100 –x-y) % of the original amount payable under the base
policy without adjustment of any liquidaon opons.
vi) Exercise of the opon shall be allowed subject to revised annuity
payments being at least equal to the minimum limits dened
in IRDAI (Minimum limits for Annuies and other Benets)
Regulaons, 2015 as amended from me to me.
III. Advanced Annuity Opon:
Under Joint Life Annuity Opons with Return of Premium (Opon-9
and 11), on rst death (of either of the covered lives), the surviving
Annuitant shall have an Opon to withdraw discounted cash value of
annuity payable during the ‘Advance Annuity Period’ as a lump-sum
subject to following:
i) ‘Advance Annuity Period’ shall be a maximum period of 5 years from
the policy anniversary immediately following the date of exercise of
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opon to receive annuity in advance in case of rst death (of either
of the covered lives).
ii) This Opon can be exercised only aer the end of the Deferment
Period, within 6 months from the date of rst death (of either of the
covered lives).
iii) The policyholder (survivor of the covered lives) shall have the
opon to receive in one lump-sum, the discounted cash value of a
maximum of 5 years annuies (or any proporon thereof from 1%
to 100%) payable during the ‘Advance Annuity Period’, discounted
upto the policy anniversary date immediately following the date of
exercise of the opon to receive annuity in advance.
iv) The annuity payment during the policy year in which the Opon is
exercised shall connue to be payable as and when due.
v) On exercise of this Opon, the ‘Advance Annuity Amount’ shall
be paid immediately in lump-sum and annuity payment for the
‘Advance Annuity Period’ shall connue for the balance amount of
annuity payable (if any), on their due date. E.g. If a policyholder
selects x% of original annuity amount to be received as advanced
annuity opon, then during the Advance Annuity Period an amount
equal to (100-x)% of original annuity shall connue to be paid.
vi) For the opted ‘Advance Annuity Period’ and proporon of annuies
for advance payment, the ‘Advance Annuity Amount’ shall be
calculated as under:
Advance Annuity Amount = Discounted value of Annuity Instalments
payable during ‘Advance Annuity Period’ x Proporon of annuity for
advance
vii) The Interest rate to determine the Discounted values of annuies
shall be arrived at by using the following methodology:
For Advance Annuity opons commencing during the 12 months’
period from 1st May to 30th April, the interest rate used to discount
the annuity for advance shall be per annum compounding half-
yearly rate not exceeding 5 year semi-annual G-Sec yield p.a.;
Where, the 5 year semi-annual G-Sec yield shall be as at last trading
day of previous nancial year.
Accordingly, for 12 months’ period commencing from 1st May, 2023
to 30th April, 2024, the maximum applicable interest rate used for
determining the discounted value of annuity instalments shall be
7.17% p.a. compounding half-yearly.
Any change in basis of determinaon of interest rate for discounng
shall be subject to approval.
viii) Once the ‘Advanced Annuity Period’ ends, the Annuity payment
shall resume as per the Original terms and condions.
ix) In case, the surviving annuitant surrenders or dies aer receiving
Advance Annuity amount, the surrender or death benet shall be
reduced by the following amount:
• If the surviving Annuitant surrenders or dies before the start of
‘Advanced Annuity Period’, the surrender or death benet will be
reduced by the full advanced annuity amount already paid.
• If the surviving Annuitant surrenders or dies during the ‘Advanced
Annuity Period’, the surrender or death benet will be reduced
by the outstanding advanced annuity amount which shall be
equal to :
[Advanced Annuity amount x (n-t)/n]
Where,
n = ‘Advanced Annuity Period’ in months
t = outstanding ‘Advanced Annuity Period’ in months at the me
of surrender or death of the surviving Annuitant
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IV. Opons available for payment of Death Benet:
The Annuitant(s) will have to choose one of the following opons for
the payment of the death benet to the nominee(s) under an in-force
policy as well as paid-up policy. The death claim amount shall then be
paid to the nominee(s) as per the opon exercised by the Annuitant(s)
and no alteraon whatsoever shall be allowed to be made by the
nominee(s). This opon has to be exercised by Annuitant(s) at the
proposal stage. However, this opon can be subsequently modied by
Annuitant(s) during his/her life during the currency of the policy.
• Lumpsum Death Benet: Under this opon the enre Death
Benets shall be payable to the nominee(s) in lumpsum.
• Annuisaon of Death Benet: Under this opon the benet
amount payable on death shall be ulized for purchasing an
Immediate Annuity from the Corporaon for nominee(s) eecve
from the date of death of the annuitant/last survivor. The annuity
amount payable to the nominee(s) on the admission of death
claim shall be based on the age of nominee(s) and immediate
annuity rates prevailing as on the date of death of Annuitant (last
survivor in case of Joint Life Annuity). This opon can be opted
for full or part of the benet amount payable on death. However,
the annuity payments for each nominee(s) shall be subject to the
eligibility condions of the annuity plan available at that me
and then prevailing Regulatory provisions on the minimum limits
for annuies. In case the eligibility condions of the annuity plan
available at that me are not met or the benet amount payable on
death is insucient to purchase the minimum amount of annuity,
then the said amount shall be paid as a lumpsum to the nominee(s).
• In Installment: Under this opon the benet amount payable on
death can be received in installments over the chosen period of 5 or
10 or 15 years instead of lumpsum amount under an in-force policy
as well as paid-up policy. This opon can be exercised for full or part
of the Death Benet payable under the policy. The amount opted
by the Annuitant(s) (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 paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for, subject to
minimum installment amount for dierent modes of payments
being as under:
Mode of Instalment payment Minimum Instalment amount
Monthly
` 5,000/-
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 installment amount as per the opon exercised by
the Annuitant(s), the claim proceed shall be paid in lumpsum only.
For all the instalment payment opons commencing during the
12 months’ period from 1
st
May to 30
th
April, the interest rate
applicable for arriving at the instalment amount shall be annual
eecve rate not lower than the 10 year semi-annual G-Sec yield
p.a. minus 2%; where, the 10 year semi-annual G-Sec yield shall be
as at last trading day of previous nancial year.
Accordingly, for the 12 months’ period commencing from
1
st
May, 2023 to 30
th
April, 2024, the applicable interest rate for the
calculaon of instalment amount shall be 5.31% p.a. eecve.
13
V. Opon to take the plan for the benet of dependant person with
disability (Divyangjan):
If the Proposer has a dependant person with disability (Divyangjan),
the Proposer can purchase Opon-10 (Life Annuity with Return of
Purchase Price for Single Life), on own life for the benet of Divyangjan
as Nominee, subject to minimum Purchase Price of ` 50,000.
In case of death of the Annuitant (Proposer), where the Purchase Price
under the policy is less than the minimum Purchase Price as specied in
Para 2.viii.b above, the Death Benet shall not be payable in lumpsum
and shall compulsorily be ulized to purchase the then available
Immediate Annuity (as per opon chosen by the Annuitant) on the life
of the Divyangjan who would be the nominee.
In case of Annuisaon, the annuity shall be paid to Divyangjan
irrespecve of any limit on minimum annuity payment and Purchase
Price criteria and the annuity rates applicable shall be then prevailing
Immediate Annuity rates.
For deciding the eligible disability of dependant person with disability
(Divyangjan) as Nominee, reference is to be made to meaning of
“person with benchmark disability” as assigned to it in Secon 2(r) of
“The Rights of Persons with Disabilies Act, 2016” as amended from
me to me or any other applicable Act in this regard.
5. PLAN PURCHASED AS QROPS
(Qualifying Recognized Overseas Pension Scheme):
The Annuity Opion-10 (Life Annuity with Return of Purchase Price for
Single Life) or Annuity Opion-11 (Life Annuity with Return of Purchase
Price for Joint Life) under this plan can be purchased as QROPS through
transfer of UK tax relieved assets subject to lisng and terms and
condions prescribed by HMRC (Her Majesty Revenue & Customs) such as:
i. Minimum Vesng Age shall be 55 years.
ii. If the policy is cancelled during the Free Look Period, the proceeds
from cancellaon shall only be transferred back to the fund house
from where the money was received.
iii. Subject to specic Plan features including Minimum Annuity as
specied in Para 2.x, all other terms and condions of HMRC shall
also apply as applicable from me to me.
6. PAYMENT OF PREMIUMS:
Regular Premium or Single Premium payment opons are available
under this plan. In case of Regular Premiums payment, the premium
can be paid regularly with mode of premium payment as yearly or half-
yearly or quarterly or monthly (through NACH only) or through salary
deducons (SSS).
7. PREMIUM CONVERSION FACTOR (applicable for Regular Premium):
Under this plan, policyholder has an opon to choose the amount
of premium (i.e. Instalment Premium) as per the chosen premium
payment mode (Yearly/Half-yearly/Quarterly/Monthly).
The annuity rates and various incenves are expressed in terms of
‘Annual Equivalent Premium’.
‘Annual Equivalent Premium’ is derived by dividing the ‘Instalment
premium’ with Premium Conversion factor for chosen premium
payment mode.
The Premium Conversion factors for dierent modes of Premium
Payment are as under:
Mode of Premium Payment Premium Conversion factor
Yearly 1.0000
Half-yearly 0.5090
Quarterly 0.2568
Monthly 0.0861
8. MODE OF ANNUITY PAYMENT:
The modes of annuity available are yearly, half-yearly, quarterly, and
monthly.
The Annuity shall be payable in arrears i.e. the annuity payment shall be
aer 1 year, 6 months, 3 months and 1 month from the Date of Vesng
of annuity depending on whether the mode of annuity payment is
Yearly, Half yearly, Quarterly and Monthly respecvely. Where, Date of
Vesng means the date on which the Deferment Period expires and
the annuity becomes payable in arrears as per the mode chosen for
annuity payment.
9. GRACE PERIOD (applicable for Regular Premium payment):
A grace period of 30 days will be allowed for payment of yearly or half-
yearly or quarterly premiums and 15 days for monthly premiums from
the date of First Unpaid Premium. During this period, the policy shall be
considered in-force with the risk cover without any interrupon as per
the terms of the policy. If the premium is not paid before the expiry of
the days of grace, the Policy lapses.
10. INCENTIVE/ADJUSTMENT:
The following incenve/adjustment is available under this plan:
a. Incenve for high Premium/Purchase Price:
In case of Annuity Opon-1 to 9 (Regular Premium), incenve (in
Rs.) for higher Premium by way of increase in the Tabular annual
annuity rate per Rs. 1,000 Annual Equivalent Premium is provided
for four slabs of Premium, i) ` 50,000 to Rs. 74,999, ii) `
75,000 to
` 99,999, iii) ` 1,00,000 to ` 1,99,999 and iv) greater than or equal
to ` 2,00,000.
In case of Annuity Opon-10 & 11 (Single Premium), incenve
(in ` ) for higher Purchase Price by way of increase in the Tabular
annual annuity rate per ` 1,000 Purchase Price is provided for four
slabs of Purchase Price, i) ` 3,00,000 to ` 4,99,999, ii) ` 5,00,000 to
` 9,99,999, iii) ` 10,00,000 to ` 24,99,999 and iv) greater than or
equal to ` 25,00,000.
Further, the incenve for higher Premium/Purchase Price also
depends on Deferment Period and age range (i.e. for age at entry
up to 54 years and age at entry 55 years & above). The incenve
increases as the Premium/ Purchase Price moves from the lower
slab to higher slab of the Premium and also with increase in
Deferment Period.
b. Incenve for Online Sale by way of increase in the annuity rate:
In case of Online Sale, where policies are procured directly without
any involvement of Agent or any other intermediary, following
incenve by way of increase in Tabular annuity rate per ` 1,000
Annual Equivalent Premium (in case of Regular Premium) or
Purchase Price (in case of Single Premium) shall be available.
14
15
Regular Premium Single Premium
Deferment
Period
Incenve (%)
Deferment
Period
Incenve (%)
5 years 4.00%
1 to 15 years 2.00%6 to 10 years 3.50%
11 to 15 years 3.00%
c. Adjustment for annuity payment frequency:
The Modal Annuity amount (i.e. annuity amount as per the chosen
mode of the annuity payment) shall be calculated by mulplying
the Annual annuity amount with Modal Annuity Conversion Factor
and dividing by corresponding Frequency of the chosen mode of
annuity payment.
Modal Annuity Conversion factor and corresponding frequency for
various modes of annuity payment is as under:
Mode Frequency Modal Annuity Conversion Factor
Yearly 1 1.00
Half Yearly 2 0.98
Quarterly 4 0.97
Monthly 12 0.96
d. Incenve for exisng Policyholders/Nominee/Beneciary of the
Corporaon:
The Incenve by way of increase in Tabular annuity rate per
` 1,000 Annual Equivalent Premium (in case of Regular Premium) or
Purchase Price (in case of Single Premium) for dierent categories
of exisng policyholder including the nominee or beneciary of
deceased policyholder provided the product is purchased through
any Agent / Corporate Agent / Broker / Insurance Markeng Firm
under this plan shall be as under:
Category of Policyholder
Incenve (%)
Regular
Premium
Single
Premium
In case an exisng Policyholder having
a policy with the Corporaon which has
matured within one year before the
submission of proposal under this product
and purchases this plan on his/her life and/
or on the life of any of the family members.
or
If this plan is purchased by Nominee/
Beneciary of the deceased Policyholder
where death claim is paid within one year
before the submission of proposal under
this product.
or
If this plan is purchased by an exisng
Policyholder having an in-force policy with
the Corporaon.
0.50% 0.25%
11. SAMPLE ILLUSTRATIVE ANNNUITY :
For Regular Premium:
Annual Premium : ` 50,000/- (excluding applicable taxes)
Age of Annuitant at entry : 45 years (Last Birthday)
16
Age of Secondary Annuitant at entry : 40 years (Last Birthday)
(applicable for Opon 8 & 9)
For the above combinaon of premium amount and age(s) of annuitant,
yearly annuity amount for dierent Deferment period are as under:
Opon
Deferment Period
5 10 15
Opon 1: Life annuity for Single Life 20,545 53,810 1,04,695
Opon 2: Life annuity with Return of Premium for Single Life 17,480 45,030 86,740
Opon 3: Life annuity with 50% Return of Premium aer
aaining age 75 years for Single Life
16,845 43,060 82,300
Opon 4: Life annuity with 100% Return of Premium aer
aaining age 75 years for Single Life
16,215 41,090 77,860
Opon 5: Life annuity with 50% Return of Premium aer
aaining age 80 years for Single Life
17,185 44,115 84,680
Opon 6: Life annuity with 100% Return of Premium aer
aaining age 80 years for Single Life
16,890 43,200 82,615
Opon 7: Life annuity with 5% Return of Premium aer
aaining age 76 years to 95 years for Single Life
17,170 44,065 84,570
Opon 8: Life annuity for Joint Life 18,610 47,355 89,380
Opon 9: Life annuity with Return of Premium for Joint Life 17,120 42,855 79,690
For Single Premium:
Purchase Price : ` 5,00,000/- (excluding applicable taxes)
Age of Annuitant at entry : 45 years (Last Birthday)
Age of Secondary Annuitant at entry : 40 years (Last Birthday)
(applicable for Opon 11)
For the above combinaon of purchase price and age(s) of annuitant,
yearly annuity amount for dierent Deferment period are as under :
Opon
Deferment Period
1 5 10 15
Opon 10: Life annuity with Return of Purchase Price
for Single Life
32,500 43,400 63,400 95,650
Opon 11: Life annuity with Return of Purchase Price
for Joint Life
32,100 41,900 58,200 83,150
12. REVIVAL (applicable for Regular Premium policies):
If the due premium is not paid before the expiry of the days of grace,
the policy lapses. The lapsed policy may be revived during the lifeme
of the Annuitant(s) but within a period of 5 consecuve years from the
date of First Unpaid Premium. The revival shall be eected on payment
of all the arrears of premium(s) together with interest (compounding
half-yearly) at such rate as may be decided by the Corporaon from me
to me and on sasfacon of Connued Insurability of the Annuitant(s)
on the basis of informaon, documents and reports that are already
available and any addional informaon in this regard if and as may be
required in accordance with the Underwring Policy of the Corporaon
at the me of revival, being furnished by the Annuitant(s).
The Corporaon reserves the right to accept at original terms, accept
with modied terms or decline the revival of a disconnued policy. The
revival of a disconnued policy shall take eect only aer the same is
approved, accepted and revival receipt is issued by the Corporaon.
The rate of interest applicable for revival under this product for every
12 months’ period from 1
st
May to 30
th
April shall not exceed 10 year
G-Sec yield p.a. compounding half yearly as at the last trading day of
previous nancial year plus 3% or the yield earned on the Corporaon’s
Non-Linked Non-Parcipang fund plus 1%, whichever is higher. For the
12 month period commencing from 1
st
May, 2023 to 30
th
April, 2024,
the applicable interest rate shall be 9.50% p.a. compounding half yearly.
Any change in basis of determinaon of interest rate for policy revival
shall be subject to approval.
17
On revival of a lapsed or paid-up policy, all the benets under the policy
which prevailed before the date of lapse or paid-up shall be restored.
On revival of the paid-up policy aer the deferment period, the dierence
between the Annuity payable under an in-force policy and Paid-up
Annuity already paid during the revival period, shall also be payable.
In case a lapsed policy is not revived during the revival period of 5 years
from the date of rst unpaid premium, nothing shall be payable at the
end of the revival period and the policy shall terminate subject to the
provisions specied in Para 14 below.
13. PAID-UP VALUE (applicable for Regular Premium policies):
If less than two full years’ premiums have been paid and any subsequent
premium be not duly paid, all the benets under the policy shall cease
aer the expiry of grace period from the date of First Unpaid Premium,
and nothing shall be payable. However, this shall be subject to the
provisions specied in Para 14 below.
If, aer at least two full years’ premiums have been paid and any
subsequent premium be not duly paid, the policy shall not be wholly
void, but shall subsist as a Paid-up policy.
Benets payable under a Paid-up policy shall be as under:
a) Death Benet applicable under a Paid-up policy:
The Death Benet under a paid-up policy shall be reduced to such a
sum, called ‘Paid-up Death Benet’ and shall be payable on death
of the Annuitant in case of Single Life Annuity and on death of Last
Survivor in case of Joint Life Annuity.
The ‘Paid-up Death Benet’ shall be as under:
On death during Deferment period:
Under All Annuity Opons: An amount equal to 105% of Total
Premiums Paid shall be payable.
On death aer Deferment period:
Under Annuity Opons: 1 & 8: Nothing shall be payable.
Under Annuity Opons: 2 & 9: An amount equal to 100% of Total
Premiums Paid shall be payable.
Under Annuity Opons: 3, 4, 5, 6 & 7: An amount equal to 100% of
Total Premiums Paid Less Sum of Early Return of Premium already
paid (as per the applicable Annuity Opon) ll the date of death, if
any, shall be payable.
On payment of Paid-up Death Benet, no further benets shall be
payable.
b) Annuity payable under a Paid-up policy:
The Annuity amount under a Paid-up policy shall be reduced to
such a sum called ‘Paid-up Annuity’ and shall be equal to Original
Annuity amount mulplied by the rao of the total period for which
premiums have already been paid bears to the maximum period for
which premiums were originally payable.
The ‘Paid-up Annuity’ shall be as under:
i. During Deferment Period: On the survival of the Annuitant/
Primary Annuitant and/or Secondary Annuitant, nothing shall be
payable.
ii. Aer Deferment Period: On the survival of the Annuitant/
Primary Annuitant and/or Secondary Annuitant, ‘Paid-up Annuity’
payments shall be made in arrears as long as the Annuitant/ Primary
Annuitant and/or Secondary Annuitant is alive, as per the annuity
opon and mode of annuity payment.
18
Under a Paid-up policy, in case of Single Life Annuity Opon-3, 4, 5, 6
& 7 (i.e. Annuity Opons with Early Return of Premium), in addion to
the Paid-up annuity, an Early Return of Premium of amount equal to
a specied proporon of Total Premiums Paid, as per the applicable
Annuity Opon shall be payable on survival of the Annuitant to Policy
Anniversary coinciding with or immediately following the compleon of
specied age.
If any addional premium(s) are paid for top-up annuity, the benets
with respect to the top-up annuity shall remain unchanged.
The total annuity amount payable under a Paid-up policy shall be ‘Paid-
up Annuity’ plus Top-up Annuity.
The ‘Paid-up Annuity’ along with any Top-up Annuity amount shall
be subject to the minimum annuity allowed under the product. If the
Paid-up annuity along with any Top-up Annuity amount is less than
the minimum annuity allowed under the product (as specied in Para
2.x above) and the policy is not revived during the revival period of
5 years from the date of rst unpaid premium, applicable surrender
value (specied in Para 15) as on the date of expiry of revival period will
be paid as a lump sum, at the end of the revival period and the policy
shall terminate.
14. POLICY LAPSED WITHOUT ACQUIRING PAID-UP VALUE
(applicable for Regular Premium policies):
If less than two full years’ premiums have been paid and any subsequent
premium be not duly paid, all the benets under the policy shall cease
aer the expiry of grace period from the date of First Unpaid Premium,
and nothing shall be payable.
However, if the policyholder has paid at least one full year’s premium
but less than two full years’ premiums and Total Premium Paid is at least
`1,25,000/- and the policy is not revived during the Revival Period, then
on 7
th
policy anniversary, an amount equal to 80% of Total Premiums
Paid shall be ulized to purchase a Single Premium Life annuity with
Return of Purchase Price with 1 year Deferment Period corresponding
to the aained age of the Annuitant(s) on that date subject to the
availability of the product and sasfying the eligibility condions of
then prevailing Single Premium annuity opon.
In case of death of the Annuitant/Last Survivor in case of Joint life
annuity, during the above duraon, then an amount equal to 80%
of Total Premiums Paid shall be paid on 7
th
policy anniversary to the
Nominee/Beneciary of the deceased Annuitant(s) under the policy.
Further, in the above situaon, in case of non-availability of the product
or eligibility condions are not met by the Annuitant(s), then an
amount equal to 80% of Total Premiums Paid shall be paid on 7th policy
anniversary to the surviving Annuitant(s).
In all other cases, nothing shall be payable.
15. SURRENDER:
Under Regular Premium payment, the policy can be surrendered by the
Policyholder at any me during or aer Deferment Period, provided
two full years’ premiums have been paid. Under Single Premium
payment, the policy can be surrendered by the policyholder at any me
on payment of Purchase Price.
The Surrender Value payable under the policy shall be as under:
a) During the deferment period: Surrender shall be allowed under
all the Annuity Opons. The Surrender Value payable shall be
higher of Guaranteed Surrender value (GSV) and Special Surrender
Value (SSV).
19
b) Aer the deferment period: Surrender shall be allowed only under
the Annuity Opons with Return of Premiums/Purchase Price
(Opon: 2, 3, 4, 5, 6, 7, 9, 10 & 11). The Surrender Value payable
under these annuity opons shall be equal to Special Surrender
Value (SSV).
Guaranteed Surrender value (GSV)
The Guaranteed Surrender Value shall be equal to the Total Premiums
Paid / Purchase Price mulplied by the applicable GSV factor i.e. GSV=
(Total Premiums Paid/Purchase Price x GSV factor).
Premiums/Purchase Price referred above shall not include any taxes,
any underwring extra premium, rider premium(s) and addional
premiums for Top-up annuity, if any.
The GSV factors shall depend on the Annuity Opon chosen, Deferment
Period and the Policy year in which the policy is surrendered and are
given below for various Annuity Opons.
Guaranteed Surrender Value Factors for Opon 1 to Opon 9:
Policy
Year
Deferment Period
5 6 7 8 9 10 11 12 13 14 15
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
9 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
10 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
11 90.00% 90.00% 90.00% 90.00% 90.00%
12 90.00% 90.00% 90.00% 90.00%
13 90.00% 90.00% 90.00%
14 90.00% 90.00%
15 90.00%
Guaranteed Surrender Value Factors for Opon 10 & Opon 11:
The Guaranteed Surrender Value Factors for all Deferment Period shall
be as under:
- During rst three policy year : 75%
- Thereaer : 90%
The Special Surrender Value (SSV) is reviewable and shall be determined
by the Corporaon from me to me with approval.
Upon payment of Surrender value, the Policy terminates and no further
benets shall be payable.
Any loan amount outstanding along with interest and/or any other
amount recoverable from Annuitant shall be recovered from the
surrender value payment.
In case of QROPS, the surrender provisions shall be further subject
to any specic provisions regarding procedures as per Rules and
Regulaons of the HMRC.
For addional Premium for Top-up annuity:
Any Top-up annuity tranche can be surrendered at any me during or
aer Deferment Period independent of Base policy or other Top-up
annuity tranches. However, if the Base policy is surrendered, all Top-up
annuity tranches shall also be surrendered at the same me.
The Surrender value for addional Premium for Top-up annuity shall be
derived as per methodology as applicable for Single Premium Policies
as menoned above corresponding to the Annuity Opon chosen.
20
If addional premium for Top-up Annuity has been paid under a policy,
Total Surrender Value payable shall be the sum of Surrender value
applicable for Original Annuity opon chosen under the policy (i.e. Base
policy) and the Surrender value of Top-up annuity tranches, if any.
Note: The insurance policy being a long term contract should be taken from
the long term perspecve of connuing the policy. While there is provision
for surrender under various annuity opons menoned above, it may be
noted that there can be signicant loss on surrender of a policy and hence,
it is advisable to connue the policy.
16. POLICY LOAN:
Loan facility shall be available during or aer the deferment period
under annuity opons with Return of Premium/ Purchase Price.
In case of regular premium payment, loan facility shall be available aer
at least two full years premiums have been paid under Opons 2, 3, 4,
5, 6, 7 and 9.
In case of single premium payment, loan facility shall be available at any
me aer three months from the compleon of policy (i.e. 3 months
from the date of issuance of policy) or aer expiry of the free-look
period, whichever is later, under Opons 10 and 11.
The maximum amount of loan that can be granted under the policy
shall be such that the eecve annual interest amount payable on loan
does not exceed 50% of the annual annuity amount payable under
the policy subject to maximum of 80% of Surrender Value (inclusive of
Surrender value of Top-up annuity tranches, if any).
Under joint life annuity opon, the loan can be availed by the Primary
Annuitant and in the absence of Primary Annuitant the same can be
availed by the Secondary Annuitant.
During Deferment Period:
The policy loan shall be available subject to the following terms and
condions:
i) In case if the loan is not repaid during the Deferment Period and
if there is no default in the interest payment as of the end of
Deferment Period, then Interest on the loan shall be recovered
from annuity amount payable aer the Deferment Period. Aer
Deferment Period Loan interest will accrue as per the frequency of
annuity payment under the policy and it will be due on the due date
of annuity.
ii) In case if the loan is not repaid during the Deferment Period and
if there is a default in the interest payment as of the end of the
Deferment Period, the dierence of Surrender Value and the loan
outstanding amount along with interest, if any, shall be payable to
the Annuitant/ Primary Annuitant / Secondary Annuitant and the
policy shall be terminated.
iii) During the Deferment Period, in the event of failure of payment
of interest payment on the due dates and when the outstanding
loan amount along with interest is to exceed the Surrender Value,
the policy shall be forfeited to the Corporaon. The dierence
of Surrender Value and the loan outstanding amount along
with interest, if any, shall be payable to the Annuitant / Primary
Annuitant/ Secondary Annuitant and the policy shall be terminated.
iv) In case of death or surrender (of base policy or any Top-up Annuity
tranches) during the deferment period, any outstanding loan and
loan interest shall be recovered from the claim proceeds and the
balance amount, if any, shall be payable.
21
Aer Deferment Period:
Loan interest will be recovered from annuity amount payable under the
policy. The Loan interest will accrue as per the frequency of annuity
payment under the policy and it will be due on the due date of annuity.
The loan outstanding along with Interest payable, if any shall be
recovered from the claim proceeds at the me of exit or from surrender
of any Top-up Annuity tranches or from the early Return of Premium
amount payable, if any under the policy.
The rate of interest applicable for full loan term, for the loans to be
availed for every 12 months’ period from 1
st
May to 30th April, shall
not exceed 10 year G-Sec yield p.a. compounding half-yearly as at the
last trading date of previous nancial year plus 3% or the yield earned
on the Corporaon’s Non-Linked Non-parcipang fund plus 1%,
whichever is higher.
For loan sanconed during the 12 months’ period commencing from
1
st
May, 2023 to 30
th
April, 2024, the applicable interest rate shall be
9.50% p.a. compounding half-yearly for enre term of the loan.
Any change in basis of determinaon of interest rate for policy loan
shall be subject to approval.
In case of QROPS, above policy loan provisions shall be subject to Rules
and Regulaons of HMRC in this regard.
17. ALTERATION:
The following alteraon shall be allowed:
i) Change in Premium Payment Mode during the Deferment Period
ii) Change in mode of annuity payments
18. TAXES:
Statutory Taxes, if any, imposed on such insurance plans by the
Government of India or any other constuonal Tax Authority of India
shall be as per the Tax laws and the rate of tax as applicable from me
to me.
The amount of applicable taxes (such as GST), as per the prevailing
rates, shall be payable by the policyholder on Premium/Purchase Price,
which shall be collected separately over and above in addion to the
Premium/Purchase Price payable by the policyholder. The amount of
tax paid shall not be considered for the calculaon of benets payable
under the plan.
Regarding Income tax benets/implicaons on premium(s) paid and
benets payable under this plan, please consult your tax advisor for details.
19. FREE LOOKPERIOD:
If the Policyholder is not sased with the “Terms and Condions” of
the policy, the policy may be returned to the Corporaon within 30
days from the date of receipt of the electronic or physical mode of the
Policy Bond whichever is earlier stang the reasons of objecons. On
receipt of the same the Corporaon shall cancel the policy and return
the amount of premium deposited aer deducng charges for stamp
duty and annuity paid, if any.
The condion of Free Look period shall only be applicable in case of
new purchase of Deferred Annuity plan. Free Look cancellaon shall
not be applicable, where the purchase is from the proceeds of Deferred
Pension products or Group Superannuaon Schemes of the Corporaon
where annuizaon is compulsory.
Wherever the purchase is from the exisng fund the Free Look
22
cancellaon shall not be applicable and the treatment of such policies
shall be as below:
i) If this policy is purchased out of proceeds of a deferred pension plan
of any Life Insurance Company: The proceeds from cancellaon will
be transferred back to that Life Insurance Company.
ii) If this policy has been purchased as QROPS as detailed in Para 5
above: The proceeds from cancellaon shall only be transferred
back to the fund house from where the money was received. In case
of QROPS, above provisions shall be further subject to any specic
provisions regarding procedures as per Rules and Regulaons of the
HMRC in this regard.
20. SUICIDE EXCLUSION:
Suicide exclusion for base policy:
Under Regular Premium Payment policy (applicable for annuity opon
1 to 9):
i. If the Annuitant or Last Survivor in case of Joint life annuity (whether
sane or insane) commits suicide at any me within 12 months from
the date of commencement of risk, the Nominee or Beneciary of
the Annuitant or Last Survivor shall be entled to 80% of the total
premiums paid ll the date of death provided the policy is inforce.
ii. If the Annuitant or Last Survivor in case of Joint life annuity (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 ll the date of death or the surrender value available as on
date of death, shall be payable. The Nominee or Beneciary of the
Annuitant or Last Survivor shall not be entled to 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.
In case of death of the Annuitant or Last Survivor in case of Joint life
annuity due to suicide aer the Deferment Period, the above suicide
clause is not applicable and Death Benet as per the opon chosen will
be applicable.
Under Single Premium policy (applicable for annuity opon 10 & 11):
If the Annuitant or Last Survivor in case of Joint life annuity (whether
sane or insane) commits suicide at any me within 12 months from
the date of commencement of risk, the Nominee or Beneciary of
the Annuitant or Last Survivor shall be entled to an amount which is
higher of 80% of the Purchase Price or Surrender value available as on
the date of death.
Premium/Purchase Price referred above shall not include any taxes,
extra amount chargeable under the policy due to underwring decision
and rider premium(s), if any. Total Premiums Paid /Purchase Price shall
not include the addional premium paid for Top-up Annuity, if any.
Suicide exclusion for addional Premium for Top-up annuity:
Suicide clause shall be as applicable under Single Premium Deferred
Annuity Opon.
21. SAMPLE BENEFIT ILLUSTRATION:
The main objecve of the illustraons is that the client is able to
appreciate the features of the product and the ow of the benet with
some level of quancaon. This illustraon is applicable to a standard
life (from medical, lifestyle and occupaon point of view) for policies
procured through agent/intermediary.
Illustraon 1:
Opon 2- Life annuity with Return of Premium for Single Life
Age of the Annuitant 45 years Instalment Premium
` 50,000/-
Deferment Period 15 years GST Rate (1
st
year) 4.5%
Premium Payment Regular GST Rate (2
nd
year onwards) 2.25%
Mode of Premium
Payment
Yearly
Note: GST Rate shall be as applicable from me
to me.
Mode of Annuity
Payment
Yearly Annuity Instalment
` 86,740/-
Benet Summary: (Amount in `)
Policy Year¹
(End of the
year )
Annual
Equivalent
Premium²
(Cumulave )
Survival
Benet/Annuity
(in a policy year )
Other Benet
(Early Return
of Premium,
if any )
Death Benet
1 50,000 0 0 52,500
2 1,00,000 0 0 1,05,000
3 1,50,000 0 0 1,57,500
4 2,00,000 0 0 2,10,000
5 2,50,000 0 0 2,62,500
6 3,00,000 0 0 3,15,000
7 3,50,000 0 0 3,67,500
8 4,00,000 0 0 4,20,000
9 4,50,000 0 0 4,72,500
10 5,00,000 0 0 5,25,000
11 5,50,000 0 0 5,77,500
12 6,00,000 0 0 6,30,000
13 6,50,000 0 0 6,82,500
14 7,00,000 0 0 7,35,000
15 7,50,000 0 0 7,87,500
16 7,50,000 86,740 0 7,50,000
17 7,50,000 86,740 0 7,50,000
18 7,50,000 86,740 0 7,50,000
19 7,50,000 86,740 0 7,50,000
20 7,50,000 86,740 0 7,50,000
30 7,50,000 86,740 0 7,50,000
40 7,50,000 86,740 0 7,50,000
50 7,50,000 86,740 0 7,50,000
56 7,50,000 86,740 0 7,50,000
Note:
1. This illustraon is showing the ow of benets up to 101 years of age of
annuitant. For the later years, benet amounts as shown for last policy
year in the above illustraon will be applicable. Premium is payable in
advance at the start of the year.
2. Annual Equivalent Premium excludes underwring extra premium,
frequency loadings on premiums and Goods & Service Tax.
Illustraon 2:
Opon 10- Life annuity with Return of Purchase Price for Single Life
Age of the Annuitant 45 years Purchase Price
` 5,00,000/-
Deferment Period 15 years GST Rate (1
st
year) 1.8%
Premium Payment Single GST Rate (2
nd
year onwards) Not Applicable
Mode of Premium
Payment
Single
Note: GST Rate shall be as applicable from me
to me.
Mode of Annuity
Payment
Yearly Annuity Instalment
` 95,650/-
23
Benet Summary: (Amount in `)
Policy Year
1
(End of the
year)
Purchase Price
2
(Cumulave)
Survival
Benet/Annuity
(in a policy year)
Other Benet
(Early Return
of Premium,
if any)
Death Benet
1 500,000 0 0 525,000
2 500,000 0 0 525,000
3 500,000 0 0 525,000
4 500,000 0 0 525,000
5 500,000 0 0 525,000
6 500,000 0 0 525,000
7 500,000 0 0 525,000
8 500,000 0 0 525,000
9 500,000 0 0 525,000
10 500,000 0 0 525,000
11 500,000 0 0 525,000
12 500,000 0 0 525,000
13 500,000 0 0 525,000
14 500,000 0 0 525,000
15 500,000 0 0 525,000
16 500,000 95,650 0 500,000
17 500,000 95,650 0 500,000
18 500,000 95,650 0 500,000
19 500,000 95,650 0 500,000
20 500,000 95,650 0 500,000
30 500,000 95,650 0 500,000
40 500,000 95,650 0 500,000
50 500,000 95,650 0 500,000
56 500,000 95,650 0 500,000
Note:
1. This illustraon is showing the ow of benets up to 101 years of age of
annuitant. For the later years, benet amounts as shown for last policy
year in the above illustraon will be applicable. Premium is payable in
advance at the start of the year.
2. Purchase Price excludes underwring extra premium, frequency
loadings on premiums and Goods & Service Tax.
24
SECTION 45 OF INSURANCE ACT, 1938:
The provision of Secon 45 of the Insurance Act, 1938 as amended from
me to me shall be applicable. The current provision is as under:
(1) No policy of life insurance shall be called in queson on any ground
whatsoever aer the expiry of three years from the date of the policy,
i.e. from the date of issuance of the policy or the date of commencement
of risk or the date of revival of the policy or the date of the rider to the
policy, whichever is later.
(2) A policy of life insurance may be called in queson at any me within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date
of the rider to the policy, whichever is later on the ground of fraud:
Provided that the insurer shall have to communicate in wring to the
insured or the legal representaves or nominees or assignees of the
insured the grounds and materials on which such decision is based.
Explanaon I- For the purposes of this sub-secon, the expression
“fraud” means any of the following acts commied by the 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 suggeson, as a fact of that which is not true and which the
insured does not believe to be true;
(b) the acve concealment of a fact by the insured having knowledge
or belief of the fact;
(c) any other act ed to deceive; and
(d) any such act or omission as the law specially declares to be
fraudulent.
Explanaon II- Mere silence as to facts likely to aect the assessment of
the risk by the insurer is not fraud, unless the circumstances of the case
are such that regard being had to them, it is the duty of the insured
or his agent, keeping silence to speak, or unless his silence is, in itself,
equivalent to speak.
(3) Notwithstanding anything contained in subsecon (2), no insurer shall
repudiate a life insurance policy on the ground of fraud if the insured
can prove that the misstatement of or suppression of a material fact
was true to the best of his knowledge and belief or that there was
no deliberate intenon to suppress the fact or that such misstatement
of or suppression of a material fact are within the knowledge of
the insurer:
Provided that in case of fraud, the onus of disproving lies upon the
beneciaries, in case the policyholder is not alive.
Explanaon – A person who solicits and negoates a contract of
insurance shall be deemed for the purpose of the formaon of the
contract, to be the agent of the insurer.
(4) A policy of life insurance may be called in queson at any me within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date
of the rider to the policy, whichever is later, on the ground that any
statement of or suppression of a fact material to the expectancy of
the life of the insured was incorrectly made in the proposal or other
document on the basis of which the policy was issued or revived or
rider issued:
25
Provided that the insurer shall have to communicate in wring to the
insured or the legal representaves or nominees or assignees of the
insured the grounds and materials on which such decision to repudiate
the policy of life insurance is based:
Provided further that in case of repudiaon of the policy on the ground
of misstatement or suppression of a material fact, and not on the
ground of fraud the premiums collected on the policy ll the date of
repudiaon shall be paid to the insured or the legal representaves or
nominees or assignees of the insured within a period of ninety days
from the date of such repudiaon.
Explanaon - For the purposes of this sub-secon, the misstatement of
or suppression of fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer, the onus is on the
insurer to show that had the insurer been aware of the said fact no life
insurance policy would have been issued to the insured.
(5) Nothing in this secon shall prevent the insurer from calling for proof of
age at any me if he is entled to do so, and no policy shall be deemed
to be called in queson merely because the terms of the policy are
adjusted on subsequent proof that the age of the life insured was
incorrectly stated in the proposal.
PROHIBITION OF REBATES (SECTION 41 OF INSURANCE ACT, 1938):
1. No person shall allow or oer to allow, either directly or indirectly,
as an inducement to any person to take out or renew or connue an
insurance in respect of any kind of risk relang 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 connuing a policy accept any rebate, except
such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer.
2. Any person making default in complying with the provisions of this
secon shall be liable for a penalty which may extend to ten lakh
rupees.
Various Secons of the Insurance Act, 1938, applicable to LIC to
apply as amended from me to me.
This product brochure gives only salient features of the plan. For
further details please refer to the Policy document on our website
www.licindia.in or contact our nearest Branch Oce.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS /
FRAUDULENT OFFERS
IRDAI is not involved in acvies like selling insurance policies,
announcing bonus or investment of premiums. Public receiving such
phone calls are requested to lodge a police complaint.
26
LIFE INSURANCE CORPORATION OF INDIA
“Life Insurance Corporaon of India” was established on
1
st
September, 1956 under Life Insurance Corporaon Act, 1956,
with the objecve of spreading life insurance more widely, in
parcular to the rural areas with a view to reaching all insurable
persons in the country and providing them adequate nancial
cover against insured events. LIC connues to be the important
life insurer even in the liberalized scenario of Indian insurance
and is moving fast on a new growth trajectory surpassing its own
past records. In its existence of over six decades, LIC has grown
from strength to strength in various areas of operaon.
27
Registered Oce:
Life Insurance Corporaon of India
Central Oce,
Yogakshema, Jeevan Bima Marg, Mumbai – 400021.
Website: www.licindia.in
Registraon Number: 512
28
