1. INTRODUCTION
What is Endowment Policy?
An endowment policy is a life insurance contract designed to pay a lump sum after a specified
term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a
certain age limit. Some policies also pay out in the case of critical illness.
What is Traditional with Profit Endowment?
There is an amount guaranteed to be paid out called the sum assured and this can be increased
on the basis of investment performance through the addition of periodic (for example annual)
bonuses. Regular bonuses (sometimes referred to as reversionary bonuses) are guaranteed at
maturity and a further non-guaranteed bonus may be paid at the end known as a terminal bonus.
During adverse investment conditions, the encashment value or surrender value may be reduced
by a 'Market Value Reduction' or MVR (It is sometime referred to as a market value adjustment
but this is a term in decline through pressure from the Financial Services Authority to use clearer
terms). The idea of such a measure is to protect the investors who remain in the fund from others
withdrawing funds with notional values that are, or risk being, in excess of the value of
underlying assets at a time when stock markets are low. If an MVA applies an early surrender
would be reduced according to the policies adopted by the funds managers at the time.
The Endowment Assurance Policy
FEATURES:-
Moderate Premiums
High bonus
High liquidity
Savings oriented.
This policy not only makes provisions for the family of the Life Assured in event of his early
death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide
an annuity during the remainder of his life or in any other way considered suitable at that time.
Premiums are usually payable for the selected term of years or until death if it occurs during the
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2. term period.
Suitable For:
Being an endowment assurance policy, this plan is apt for people of all ages and social groups
who wish to protect their families from a financial setback that may occur owing to their demise.
The amount assured if not paid by reason of his death earlier will payable at the end of the
endowment term where it can be invested in an annuity provision for the rest of the
policyholder's life or in any other way he may think most suitable at that time.
Disability Benefit:
In case policy holder becomes totally and permanently disabled due to an accident before
reaching the age of 70 and the policy is in full force, he will not be required to pay further
premiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum assured on
any one life) and the policy will continue to be in force.
Accident Benefit:
By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his family are
entitled to the following benefits on death or permanent disability caused by accident. Even
students above the age of 18 years can avail of this benefit.
Premium Stoppage:
If payment of premiums ceases after at least THREE years' premiums have been paid , a free
paid-up policy for a reduced sum assured will be automatically secured provided the reduced
sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum
assured will become payable on the event as stipulated in the policy.
Bonus:
Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but
only if it is a „with profits‟ policy. Every year the Life Insurance Corporation distributes its
surplus among policyholder to „with profits‟ polices in the form of bonuses. Substantial bonuses
have been declared in the past after each valuation of policy liabilities.
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3. BENEFITS:
This is the most popular form of life assurance since it not only makes provision for the family of
the Life Assured in the event of his early death, but also assures a lump sum at any desired age.
The amount assured, if not paid by reason of his earlier death, becomes payable at the end of the
endowment term when it may be invested to provide an annuity during the remainder of his life
or in any other way he may think most suitable at the time.
Suitable For:
Being an endowment assurance policy, this plan is apt for people of all ages and social groups
who wish to protect their families from a financial setback that may occur owing to their demise.
The amount assured if not paid by reason of his death earlier will payable at the end of the
endowment term where it can be invested in an annuity provision for the rest of the
policyholder's life or in any other way he may think most suitable at that time.
PLAN PARAMETERS
Minimum Maximum
Entry Age 12 65
Sum Assured (Rs.) 50000 NO LIMIT
Term (years) 5 55
Mode of Payment Maximum Premium Paying Policy Loan Available
Period
Monthly, Quarterly, Half 75 Yes
Yearly, Yearly, Salary Saving
Scheme
The Endowment Assurance Policy-Limited Payment:
Limited Payment Endowment Plan Summary:
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4. This is an Endowment policy provides the flexibility of choosing the Premium Paying Term (PPT).
If you want to pay premium only for few years then this is right endowment plan for you. All other
features are quite similar to Endowment Assurance plan.
The best part of “Limited Payment Endowment” policy is that, even you are paying premium for
limited term but Bonus is paid for entire term. However premium is marginal higher
then Endowment with Profit but at the end you end up paying less premiums.
Key Features:
Flexibility of choosing Premium Paying Term.
Bonus is paid for the entire term irrespective of PPT.
Life Risk covered for entire term, irrespective of PPT.
Maturity amount is paid at the end of term and not at the end of PPT.
Tax Benefit
Benefits:
Natural Death:
Sum Assured + Bonus for number of years till death + Final Additional Bonus (FAB) if any.
Accidental Death:
Sum Assured + Additional SA for DAB + Bonus for number of years till death + FAB if any (If
accidental benefit is taken)
Maturity Benefit:
Sum Assured + Bonus for entire term + Final Bonus.
Accident And Permanent Disability Benefit:
You can avail this benefit by paying Rs.1 extra per 1000 sum assured. Accident benefit is
maximum Rs.50 lakh and available only upto premium paying term.
Tax Benefit:
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5. Tax benefit on your premium u/s 80C and Maturity/Death Claim u/s 10 (10D)
Loan:
Loan Facility is available on this policy after 3 years, you can also use it as Housing Loan
collateral.
Premium Payment:
You can pay premium Yearly, Half-yearly, Quarterly, Monthly or Single premium.
Eligibility Conditions and Restrictions:
Minimum age: 12 years
Maximum age: 60 years (Regular)
Maximum age for single Premium: 65 years
Maximum age at Maturity: 75 years for all.
Min. Sum Assured: Rs.50,000/-
Max. Sum Assured: No Limit
Min SA for Single Premium Rs.30,000/- (Without DAB)
Policy Term:
For Regular: 15, 20 and 25 years
For Single Premium: 5 years ti 50 years (In multiple of 5 years)
Premium Paying Term for Regular Premiums:
For 15 years term: 5 and 10 years
For 20 years term: 5, 10 and 15 years
For 25 years term: 5, 10, 15 and 20 years
FEATURES:
Just as in the case of limited payment whole life polices, here, too, the payment of premium can be
limited either to a single payment or to a term shorter than the policy. The endowment is, however,
payable only at the end of the policy term, or on death of the policy holder if it takes place earlier.
If payment of the premiums ceases after at least three years' premiums have been paid, a free paid-
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6. up Policy for an amount bearing the same proportion to the sum assured as the number of
premiums actually paid bears to the number stipulated for in the policy, will be automatically
secured provided the reduced sum assured, exclusive of any attached bonus, is not less than
Rs.250.
Such reduced paid-up Policy will not be entitled to participate in the profits declared thereafter, but
such Bonus as has already been declared on the Policy will remain attached hereto.
BENEFITS:
This is the most popular form of life assurance since it not only makes provision for the family of
the Life Assured in the event of his early death, but also assures a lump sum at any desired age.
The amount assured, if not paid by reason of his earlier death, becomes payable at the end of the
endowment term when it may be invested to provide an annuity during the remainder of his life or
in any other way he may think most suitable at the time.
Suitable For:
Being an endowment assurance policy, this plan is apt for people of all ages and social groups who
wish to protect their families from a financial setback that may occur owing to their demise. The
amount assured if not paid by reason of his death earlier will payable at the end of the endowment
term where it can be invested in an annuity provision for the rest of the policyholder's life or in any
other way he may think most suitable at that time.
TREBLE PLAN PARAMETERS
Minimum Maximum
Entry Age 12 nearer birthday 65
Sum Assured (Rs.) 50000 NO LIMIT
(except for single premium)
Term (years) 5 55
Mode Of Payment Maximum Premium Paying Policy Loan Available
Period
Monthly, Quarterly, Half 75 Years No loan under policies issued
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7. Yearly, Yearly, Salary Saving on minors until vesting
Scheme
Jeevan Anand :
FEATURES
Product summary:
This plan is a combination of Endowment Assurance and Whole Life plans. It provides financial
protection against death throughout the lifetime of the life assured with the provision of payment of
a lump sum at the end of the selected term in case of his survival.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted
by you throughout the selected term of the policy or till earlier death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporation‟s life insurance business.
It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per
thousand Sum Assured annually at the end of each financial year. Once declared, they form part of
the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if
it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for
certain minimum period.
BENEFITS:
Benefits in case of death during the selected term:
The Sum Assured along with the vested bonuses is payable on death in a lump sum.
Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end of
the term. An additional Sum Assured is payable on death thereafter.
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8. Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death due
to accident up to age 70 of life assured. In case of permanent disability of the life assured due to
accident this additional Sum assured is payable in instalments.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An
additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are
available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed
surrender value is 30% of the basic premiums paid excluding the first year‟s premium. Any extra
premium(s) paid and premium(s) towards Accident Benefit are also excluded.
Corporation’s policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more
than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted
value of the reduced claim amount that would be payable on death or at maturity. This value will
depend on the duration for which premiums have been paid and the policy duration at the date of
surrender. In some circumstances, in case of early termination of the policy, the surrender value
payable may be less than the total premium paid.
The Corporation‟s surrender value will be reviewed from time to time and may change depending
on the economic environment, our experience and other factors.
Note: The above is the product summary giving the key features of the plan. This is for illustrative
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9. purpose only. This does not represent a contract and for details please refer to your policy
document.
Jeevan Mitra (Double Cover Endowment Plan)
Product summary
This is an Endowment Assurance plan that provides greater financial protection against death
throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as
opted by you, throughout the term of the policy or earlier death. Jeevan Mitra plan is not allowed
for non-earning majors including:
(i) When occupational extra is chargeable (ii) Pregnant ladies (iii) students.
Bonuses: This is a with-profit plan and participates in the profits of the Corporation‟s life
insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary
Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may
also be payable provided a policy has run for certain minimum period.
Death Benefit:
Twice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump
sum upon the death of the life assured.
Accident Benefit:
3 times of Sum Assured plus all the Bonus is given on accidental death provided policy was
covered for accidental benefit.
Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on
survival to the end of the policy term.
Tax Benefit:
Tax Benefit is available on Premiums u/s 80C
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10. Whereas Maturity/Death Claim u/s 10D
Loan Facility:
Loan is allowed after 3 years
Housing Loan Collateral: Twice Basic sum assured.
Conditions and Requirements:
Min. age at entry: 18 years
Max. age at entry: 50 years
Max. Maturity age: 70 years.
Min. S.A.: Rs. 50,000/-
Max. SA.: Any amount
SA in multiples: Rs. 5,000
Accident benefit per 1000 SA: Re. 1 extra.
Min Term: 15 years.
Max Term: 30 years.
Surrender of Policy: Yes
Revival: Yes
Housing Loan: Available
Assignment: Available
Survival Benefits: No
Permanent Disability Benefit: Available
Surrender:
Buying Insurance policy is a long term commitment but Jeevan Mitra policy may be surrendered
after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic
premiums paid excluding the first year‟s premium.
Example:
1. Mrs. Geeta takes Jeevan Mitra policy for Rs 1 Lakh for 16 years term under Jeevan Mitra
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11. Double cover table no. 88. She dies of natural death due to heart attack after 3 years. Her
nominee gets Rs. 2,13,200/- (Rs. 2,00,000/- SA being Double Cover Policy + Rs 13200 being
bonus at an estimated Rs 44 per thousand pa for 3 years).
In case, Mrs Geeta dies in an accident, her nominee will receive Rs. 3,00,000/- being 3 times the
SA + accumulated Bonus till her death.
2. If Mrs Geeta takes the same policy but with for Rs 1 lakh but for 20 years and she survives till maturity. T
Geeta gets Rs. 1,88,000/- (Rs. 100000 SA + Rs. 88,000/- being bonus at an estimated Rs 44 per thousand p.a.).
BENEFIT EXAMPLE
Benefit Illustration
Statutory Warning
“Some benefits are guaranteed and some benefits are variable with returns based on the future
performance of your life insurance company. If your policy offers guaranteed returns then these
will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers
variable returns then the illustrations on this page will show two different rates of assumed
investment returns. These assumed rates of return are not guaranteed and they are not upper or
lower limits of what you might get back as the value of your policy is dependant on a number of
factors including future investment performance.”
Illustration 1:
Table No 14
Age at entry: 35 years
Policy Term: 25 years
Sum Assured: Rs.1,00,000/-
Premium paying term: 25 years
Mode of premium payment: Yearly
Annual Premium : Rs.4,750 /-
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12. End Total Premiums Benefit Payable On Death/Maturity At The End Of Year
Of Paid Till End Of Variable Total
Year Year
Guaranteed Scenario Scenario Scenario 1 Scenario 2
1 2
1 4,750 200000 2,100 5,700 202100 205700
2 9,500 200000 4,200 11,400 204200 211400
3 14,250 200000 6,300 17,100 206300 217,100
4 19,000 200000 8,400 22800 208400 222800
5 23,750 200000 10,500 28500 210500 228500
6 28,500 200000 12,600 34200 212600 234200
7 33,250 200000 14,700 39900 214700 239900
8 38,000 200000 16,800 45600 216800 245600
9 42,750 200000 18,900 51300 218900 251300
10 47,500 200000 21,000 57000 221000 257000
15 71,250 200000 31,500 85500 231500 285500
20 95,000 200000 56,000 152000 256000 352000
25 118,750 200000 69,500 189500 269500 389500
End Total premiums Benefit payable on death / maturity at the end of year
of paid till end of Variable Total
year year
Guaranteed Scenario Scenario Scenario 1 Scenario 2
1 2
Illu
25 118,750 100,000 69,500 189500 169500 289500 stra
tion 2:
Table No 133
Age at entry: 35 years
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13. Policy Term: 25 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 25 years
Mode of premium payment: Yearly
Annual Premium: Rs.5,453 /-
End Total Premiums Benefit Payable On Death/Maturity At The End Of Year
Of Paid Till End Variable Total
Guaranteed
Year Of Year Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 5453 300000 2,100 5,700 302100 305700
2 10906 300000 4,200 11,400 304200 311400
3 16359 300000 6,300 17,100 306300 317,100
4 21812 300000 8,400 22800 308400 322800
5 27265 300000 10,500 28500 310500 328500
6 32718 300000 12,600 34200 312600 334200
7 38171 300000 14,700 39900 314700 339900
8 43624 300000 16,800 45600 316800 345600
9 49077 300000 18,900 51300 318900 351300
10 54530 300000 21,000 57000 321000 357000
15 81795 300000 31,500 85500 331500 385500
20 109060 300000 56,000 152000 356000 452000
25 136325 300000 69,500 189500 369500 489500
End Total Premiums Benefit Payable On Death/Maturity At The End Of Year
Of Paid Till End Variable Total
Guaranteed
Year Of Year Scenario 1 Scenario 2 Scenario 1 Scenario 2
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14. 25 136325 100000 69500 189500 169500 289500
i) This illustration is applicable to a non-smoker male/female standard (from medical,
life style and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that
they are consistent with the Projected Investment Rate of Return assumption of 6%
p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing
this benefit illustration, it is assumed that the Projected Investment Rate of Return that
LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10%
p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to appreciate the
features of the product and the flow of benefits in different circumstances with some
level of quantification.
iv) Future bonus will depend on future profits and as such is not guaranteed. However,
once bonus is declared in any year and added to the policy, the bonus so added is
guaranteed.
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Mitra Summary:
Jeevan Mitra – Triple Risk cover plan is a refined version of endowment plan. Jeevan Mitra –
Triple Risk cover is ideal for the persons who require high risk cover and at the same time want
provision for certain needs. This plan is also good for persons availing housing loans etc.
This is an Endowment Assurance plan that provides greater financial protection against death
throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.
Premiums:
You can pay your insurance Premiums yearly, half-yearly, quarterly, monthly or through Salary
deductions.
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15. Bonuses:
Jeevan Mitra – Triple Riskcover is a with-profit insurance plan that participates in the profits of
the LIC‟s life insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each
financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final
(Additional) Bonus may also be payable provided a policy has run for certain minimum period.
Death Benefit:
3 times of Sum Assured + Bonus is payable in a lump sum upon the death of the life assured.
Accident Benefit:
4 times of SA + Bonus is given on accidental death provided policy was covered for accidental
benefit.
Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on
survival to the end of the policy term.
Tax Benefit:
Tax Benefit is available on Premiums u/s 80C
Whereas Maturity/Death Claim u/s 10D
Loan Facility:
Loan is allowed after 3 years
Housing Loan Collateral: Thrice Basic sum assured.
FEATURES
Product summary
This is an Endowment Assurance plan that provides greater financial protection against death
throughout the term of plan. It pays the maturity amount on survival to the end of the policy term.
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16. Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as
opted by you, throughout the term of the policy or earlier death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporation‟s life insurance
business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are
declared per thousand Sum Assured annually at the end of each financial year. Once declared,
they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be
payable provided a policy has run for certain minimum period.
BENEFITS
Maturity Benefit : The Sum Assured plus all bonuses declared up to maturity date is payable in
a lump sum on survival to the end of the policy term.
Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic
plan for extra protection/option. An additional premium is required to be paid for these benefits.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value will be
available under the plan on earlier termination of the contract.
Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed
surrender value is 30% of the basic premiums paid excluding the first year‟s premium.
Company’s policy on surrenders :
In practice, the company will pay a Special Surrender Value – which is either equal to or more
than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted
value of the reduced claim amount that would be payable on death or at maturity. This value will
depend on the duration for which premiums have been paid and the policy duration at the date of
19 | P a g e

17. surrender. In some circumstances, in case of early termination of the policy, the surrender value
payable may be less than the total premiums paid.
The Corporation reviews the surrender value payable under its plans from time to time depending
on the economic environment, experience and other factors.
Note : The above is the product summary giving the key features of the plan. This is for
illustrative purpose only. This does not represent a contract and for details please refer to your
policy document.
BENEFIT ILLUSTRATION
Benefit Illustration
Statutory Warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future
performance of your life insurance company. If your policy offers guaranteed returns then these
will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers
variable returns then the illustrations on this page will show two different rates of assumed
investment returns. These assumed rates of return are not guaranteed and they are not upper or
lower limits of what you might get back as the value of your policy is dependant on a number of
factors including future investment performance.”
Illustration1:
Age at Entry: 35 years
Policy Term: 25 Years
Sum Assured: Rs. 1,00,000/-
Premium Paying Term: 25 Years
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18. Mode of Premium Payment: Yearly
Annual Premium: Rs. 4,750/-
End Of Total Premiums Paid Benefit Payable On Death/Maturity At The End Of
Year Till End Of Year Year
Variable Total
Guarantee
Scenario Scenario Scenario Scenario
d
1 2 1 2
1 4,750 200000 2,100 5,700 202100 205700
2 9,500 200000 4,200 11,400 204200 211400
3 14,250 200000 6,300 17,100 206300 217,100
4 19,000 200000 8,400 22800 208400 222800
5 23,750 200000 10,500 28500 210500 228500
6 28,500 200000 12,600 34200 212600 234200
7 33,250 200000 14,700 39900 214700 239900
8 38,000 200000 16,800 45600 216800 245600
9 42,750 200000 18,900 51300 218900 251300
10 47,500 200000 21,000 57000 221000 257000
15 71,250 200000 31,500 85500 231500 285500
20 95,000 200000 56,000 152000 256000 352000
25 118,750 200000 69,500 189500 269500 389500
End of Total premiums paid till Benefit payable on death / maturity at the end of
year end of year year
Guarantee Variable Total
d Scenario Scenario Scenario Scenario
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19. 1 2 1 2
25 118,750 100,000 69,500 189500 169500 289500
Illu
stration 2:
Age at Entry: 35 years
Policy Term: 25 Years
Sum Assured: Rs. 1,00,000/-
Premium Paying Term: 25 Years
Mode of Premium Payment: Yearly
Annual Premium: Rs. 5,453/-
Benefit Payable On Death/Maturity At The End
Of Year
End Of Total Premiums Paid
Variable Total
Year Till End Of Year Guarantee
Scenario Scenario Scenario Scenario
d
1 2 1 2
1 5453 300000 2,100 5,700 302100 305700
2 10906 300000 4,200 11,400 304200 311400
3 16359 300000 6,300 17,100 306300 317,100
4 21812 300000 8,400 22800 308400 322800
5 27265 300000 10,500 28500 310500 328500
6 32718 300000 12,600 34200 312600 334200
7 38171 300000 14,700 39900 314700 339900
8 43624 300000 16,800 45600 316800 345600
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20. 9 49077 300000 18,900 51300 318900 351300
10 54530 300000 21,000 57000 321000 357000
15 81795 300000 31,500 85500 331500 385500
20 109060 300000 56,000 152000 356000 452000
25 136325 300000 69,500 189500 369500 489500
Benefit Payable On Death/Maturity At The End
Of Year
End Of Total Premiums Paid
Variable Total
Year Till End Of Year Guarantee
Scenario Scenario Scenario Scenario
d
1 2 1 2
25 136325 100000 69500 189500 169500 289500
i) This illustration is applicable to a non-smoker male/female standard (from medical, life style
and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are
consistent with the Projected Investment Rate of Return assumption of 6% p.a. (Scenario 1) and
10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is
assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout
the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment
Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to appreciate the features of the
product and the flow of benefits in different circumstances with some level of quantification.
iv)Future bonus will depend on future profits and as such is not guaranteed. However, once bonus
is declared in any year and added to the policy, the bonus so added is guaranteed.
New Janaraksha Plan Summary:
New Janaraksha Plan is an Endowment Assurance plan that provides financial protection against
death throughout the term of plan.
It provides full life insurance for 3 years even when the premiums are not paid. New Janaraksha
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21. Plan (with Profits) is specially designed for people with irregular income and whose job is not
secure due to fluctuating income, i.e. Workers with unorganized sector, Daily wage earners, Call
Center Employees, Farmers, Small businessman etc.
Bonuses:
New Janaraksha Plan is a with-profit plan and it participates in the profits of the LIC‟slife
insurance business. You will get a share of the profit in the form of bonuses. Simple Revisionary
Bonuses are declared per thousand Sum Assured annually at the end of each financial year. The
Bonuses Once declared, they form part of the guaranteed benefits of the plan. Final (Additional)
Bonus may also be payable provided a policy has run for certain minimum period.
Death Benefit:
The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life
assured during the policy term.
Accident Benefit:
The Sum Assured (subject to a limit of Rs.5 lakhs) is payable in a lump sum on accidental death
of the life assured during the policy term. In case of permanent disability of the life assured due
to accident during the policy term, this benefit is payable in installments.
Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on
survival to the end of the policy term.
Tax Benefit:
The Premiums are exempt u/s 80C. Maturity/Death Claim is exempt u/s 10(10D)
Premiums:
You may pay premiums yearly, half-yearly, quarterly, monthly or through Salary deductions,
throughout the term of the policy or earlier death. After at least two full years‟ premiums have
been paid, full insurance cover is available even when premiums are not paid for up to three
years.
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22. Eligibility Conditions and Restrictions for New Janaraksha Plan:
Minimum age at entry: 18 years (Last Birthday)
Maximum age at entry: 50 years (Nearest)
Max. age at Maturity: 70 years
Min. Term: 12 years
Max. Term: 30 years
Min. SA: 30,000
Max. Sum Assured: 10,00,000
Policy/ Housing Loan Available: Yes
Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy
to Life Insurance Corporation Of India within 15 days.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender value will be
available under the plan on earlier termination of the contract.
The Unique Identification No. of New Janaraksha Plan is 512N083V01
ULIP (UNIT LINKED INVESTMENT PLAN):
Unit-linked endowment
Unit-linked endowments are investments where the premium is invested in units of a unitized
insurance fund. Units are en-cashed to cover the cost of the life assurance. Policyholders can
often choose which funds their premiums are invested in and in what proportion. Unit prices are
published on a regular basis and the encashment value of the policy is the current value of the
units. This is the simplest definition.
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