LIC’s JEEVAN LAKSHYA (UIN: 512N297V02)

(A Non-Linked, Participating, Individual, Life Assurance Savings Plan)

LIC's Jeevan Lakshaya is a Non-linked, Participating, Individual, Life Assurance plan which offers a
combination of protection and savings. This plan provides for Annual Income benefit that may help to
fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate death of
Policyholder any time before maturity and a lump sum amount at the time of maturity irrespective of
survival of the Policyholder. This plan also takes care of liquidity needs through its loan facility.

1. Benefits:
A. Death Benefit:
Death benefit payable in case of death of the Life Assured during the policy term provided the
policy is in-force shall be defined as sum of “Sum Assured on Death”, vested Simple
Reversionary Bonuses and Final Additional Bonus, if any.

Where “Sum Assured on Death” is defined as higher of:

- 7 times of annualised premium or
- Sum of 110% of Basic Sum Assured, which shall be payable on date of maturity and Annual
Income Benefit equal to 10% of the Basic Sum Assured, which shall be payable from the policy
anniversary coinciding with or following the date of death of Life Assured, till the policy
anniversary prior to the date of maturity.

The vested Simple Reversionary Bonuses and Final Additional Bonus, if any, included in the Death
Benefit, shall be payable on due date of maturity.

The Death Benefit defined above shall not be less than 105% of total premiums paid upto the date of
death.

Premiums referred above exclude taxes, extra premium and rider premium(s), if any.

B. Maturity Benefit:
On Life Assured surviving the policy term, provided the policy is in-force, “Sum Assured on
Maturity” along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall
be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

C. Participation in Profits:
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple
Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in-
force.

In case of death under a policy which is in-force, the policy shall continue to participate in profits
upto the date of maturity and the entire vested Simple Reversionary Bonuses and Final Additional
Bonus, if any, shall be payable on due date of maturity. Hence, the Simple Reversionary Bonus and
Final Additional Bonus, if any, shall be payable under the policy on due date of maturity irrespective
of survival of the Life Assured.

In case the premiums are not duly paid (except in case of death of the Life Assured under in-force
policy), the policy shall cease to participate in future profits irrespective of whether or not the policy
has acquired paid up value. However, the policy shall be considered as in-force on death during the
grace period.

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 Final Additional Bonus shall not be payable under reduced paid-up policies.

2. Eligibility Conditions and Other Restrictions :

a) Minimum Basic Sum Assured : Rs. 100,000
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)
c) Policy Term : 13 to 25 years
d) Premium Paying Term : (Policy Term – 3) years
e) Minimum Age at entry : 18 years (last birthday)
f) Maximum Age at entry : 50 years (nearer birthday)
g) Maximum Maturity Age : 65 years (nearer birthday)

3. Options available:
I. Rider Benefits:
The following four optional riders are available under this plan by payment of additional
premium. However, the policyholder can opt between either of the LIC’s Accidental Death and
Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders
can be availed under a policy.
i) LIC’s Accidental Death and Disability Benefit Rider (UIN:512B209V02)
This rider can be opted for at any time within the premium paying term of the Base plan
provided the outstanding premium paying term of the base plan is atleast 5 years. The benefit
cover under this rider shall be available during the policy term. If this rider is opted for, in case
of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along
with the death benefit under the base plan. In case of accidental disability arising due to
accident (within 180 days from the date of accident), an amount equal to the Accident Benefit
Sum Assured will be paid in equal monthly instalments spread over 10 years and future
premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum
Assured under the base policy which is equal to Accident Benefit Sum Assured, shall be
waived.

ii) LIC’s Accident Benefit Rider (UIN:512B203V03)

This rider can be opted for at any time within the premium paying term of the Base plan
provided the outstanding premium paying term of the base plan is atleast 5 years. The benefit
cover under this rider shall be available during the premium paying term. If this rider is opted
for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as
lumpsum along with the death benefit under the base plan.

iii) LIC’s New Term Assurance Rider (UIN: 512B210V01)

This rider is available at inception of the policy only. The benefit cover under this rider shall be
available during the policy term. If this rider is opted for, an additional amount equal to Term
Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy
term.
iv) LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
This rider is available at the inception of the policy only. The cover under this rider shall be
available during the policy term. If this rider is opted for, on first diagnosis of any one of the
specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be
payable.

The premium for LIC’s Accident Benefit Rider/LIC’s Accidental Death and Disability Benefit Rider
and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the base plan
and the premiums under LIC’s New Term Assurance Rider shall not exceed 30% of premiums under
the base plan.

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 Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch
Office.
II. Option to take Death Benefit in installments:
Under this option, the applicable lumpsum amount payable in case of death of the Life Assured,
which shall be payable on date of maturity under an in-force or paid-up policy, can be received in
instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This
option can be exercised only by the Life Assured during his/her life time; for full or part of the
lumpsum amount payable in case of death, as specified above. The amount opted by the Life
Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total
claim proceeds payable.

This option shall not be applicable for the Annual Income Benefit payable on death of the Life
Assured.

The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals,
as opted for, subject to minimum instalment amount for different modes of payments being as
under:

Mode of Installment
Minimum installment amount
payment
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-

If the Net Claim Amount is less than the required amount to provide the minimum instalment
amount as per the option exercised by the Life assured, the claim proceed shall be paid in lump
sum only.

The interest rates applicable for arriving at the instalment payments under this option shall be as
fixed by the Corporation from time to time.

For exercising option to take Death Benefit in instalments, the Life Assured can exercise this
option during his/her lifetime while in currency of the policy, specifying the period of Instalment
payment and net claim amount for which the option is to be exercised. The death claim amount
shall then be paid to the nominee as per the option exercised by the Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.

4. Payment of Premiums:
Premiums can be paid regularly during the premium paying term at yearly, half-yearly, quarterly or
monthly mode (through NACH only) or through salary deductions over the premium paying term of
the policy.

5. Grace Period
A grace period of 30 days shall 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 interruption as per the terms of the
policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.

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 The above grace period will also apply to rider premiums which are payable along with premium for
base policy.

6. Sample Illustrative Premium:

The sample illustrative annual premiums (in Rs.) for Basic Sum Assured of Rs 1 lakh for Standard
lives are as under:

AGE POLICY TERM

13 15 20 25
(PPT = 10) (PPT = 12) (PPT = 17) (PPT = 22)
20 9873 8114 5645 4253
30 9918 8163 5718 4366
40 10118 8399 6047 4787
50 10775 9109

7. Rebates:
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of Tabular premium
Quarterly & Salary deduction - NIL

High Sum Assured Rebate:

Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,90,000 - Nil
2,00,000 to 4,90,000 - 2%o Basic Sum Assured
5,00,000 to and above - 3%o Basic Sum Assured

8. Revival:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be
revived within a period of 5 consecutive years from the date of first unpaid premium and before the
date of maturity, as the case may be. The revival shall be effected on payment of all the arrears of
premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the
Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on
the basis of information, documents and reports that are already available and any additional
information in this regard if and as may be required in accordance with the Underwriting Policy of
the Corporation at the time of revival, being furnished by the Policyholder/Life Assured.

The Corporation reserves the right to accept at original terms, accept with modified terms or decline
the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after
the same is approved by the Corporation and is specifically communicated in writing to the Life
Assured.

Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and not in
isolation.

9. Paid-up Value:
If less than two years’ premiums have been paid, and any subsequent premium be not duly paid, all
the benefits under this policy shall cease after the expiry of grace period from the date of first unpaid
premium and nothing shall be payable.

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 If after at least two full years’ premiums have been paid and any subsequent premiums be not duly
paid, this policy shall not be wholly void, but shall subsist as a paid-up policy till the end of the Policy
Term.

The benefit payable in case of death under a paid-up policy called “Death Paid-up Sum Assured”,
shall be equal to the sum of:
• 110% of Basic Sum Assured multiplied by the ratio of the total period for which premiums
have already been paid bears to the maximum period for which premiums were originally
payable which shall be payable on the date of maturity; and
• Reduced Income Benefit i.e. 10% of Basic Sum assured multiplied by the ratio of the total
period for which premiums have already been paid bears to the maximum period for which
premiums were originally payable, shall be payable from the policy anniversary coinciding
with or following the date of death of Life Assured till the policy anniversary prior to date of
maturity.

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity
Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity multiplied by the ratio of
the total period for which premiums have already been paid bears to the maximum period for which
premiums were originally payable
A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple
Reversionary Bonuses, if any, shall remain attached to the reduced paid up policy and shall be payable
only on the date of maturity.

Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed
condition.

10. Surrender Value:

The policy can be surrendered at any time provided atleast two full years’ premiums have been paid.
On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of
Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to
time subject to prior approval of IRDAI.

The Guaranteed Surrender value payable during the policy term shall be equal to the total premiums
paid (excluding extra premiums, taxes and premiums for rider(s), if opted for) multiplied by the
Guaranteed Surrender Value factors applicable to total premiums paid. These Guaranteed Surrender
Value factors expressed as percentages will depend on the policy term and policy year in which the
policy is surrendered and are as specified below:

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In addition, the surrender value of any vested simple reversionary bonuses, if any, shall also be
payable which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor
applicable to vested bonuses. These factors will depend on the policy term and policy year in which
the policy is surrendered and are as specified below:

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11. Policy Loan:
Loan can be availed under the policy provided the policy has acquired surrender value and subject to
the terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be
determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation
based on the method approved by the IRDAI.

In case of exit i.e. either by Surrender or Maturity, any loan outstanding along with interest shall be
recovered from the claim proceeds. However, in case of death of the policyholder, until the loan is
fully repaid, interest on such outstanding loan (principal amount with interest) as on the date of death
shall be recovered from any immediate benefit(s) i.e. Rider Benefit(s) payable under the policy and
Annual Income Benefits. The principal amount of loan outstanding shall be recovered from any rider
benefit(s) if payable under the policy else from the final lumpsum payment.

12. Taxes:
Statutory Taxesif any, imposed on such insurance plans by the Govt. of India or any other
constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax shall be as
applicable from time to time.

The amount of applicable taxes as per the prevailing rates shall be payable by the Policyholder on
premiums (for base policy and rider(s), if any) including extra premiums, if any which shall be
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 collected separately over and above in addition to the premiums payable by the policyholder. The
amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this
plan, please consult your tax advisor for details.

13. Free Look period:

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be
returned to the Corporation within 15 days from the date of receipt of the policy bond stating the
reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the
amount of premium deposited after deducting the proportionate risk premium (for Base Plan and
rider(s), if any) for the period on cover, expenses incurred on medical examination, special reports, if
any and stamp duty charge.

14. Exclusion:
Suicide: - This policy shall be void
i. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from
the date of commencement of risk, the Corporation will not entertain any claim under this policy
except for 80% of the total premiums paid provided the policy is in-force.

ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of
revival, an amount which is higher of 80% of the total premiums paid till the date of death or the
Surrender Value available as on the date of death, shall be payable. The Corporation will not
entertain any other claim under this policy. This clause shall not be applicable for a policy lapsed
without acquiring paid-up value and nothing shall be payable under such policies.

Note: Premiums referred above shall not include any taxes, extra premiums and any rider
premium(s), other than Term Assurance Rider, if any.

BENEFIT ILLUSTRATION:

LIC’s Jeevan Lakshya

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 Disclaimer:

i) This illustration is applicable to a standard (from medical, life style and occupation point of view) life wherein any
riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed benefits with returns based on the future
performance show two different rates of assumed future investment returns.
iii) The Non Guaranteed benefits in above illustration has been given assuming that the death occurs during the policy
year and has been calculated so that they are consistent with the Projected Investment Rate of Return assumption of
4% p.a. (Scenario 1) and 8% p.a. (Scenario 2). 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 4% p.a.
or 8% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed and they are not the upper
or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including
actual future investment performance.
iv) 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.

SECTION 45 OF INSURANCE ACT, 1938:

The provision of Section 45of the Insurance Act 1938 shall be as amended from time to time. The
simplified version of this provision is as under:

Provisions regarding policy not being called into question in terms of Section 45 of the Insurance Act,
1938are as follows:

1. No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of 3 yrs
from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
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whichever is later.

2. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.

For this, the insurer should communicate in writing to the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the ground and materials on which such decision is based.

3. Fraud means any of the following acts committed by 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 suggestion, as a fact of that which is not true and which the insured does not believe to be true;
b. The active concealment of a fact by the insured having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent.

4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the insured or
his agent keeping silence to speak or silence is in itself equivalent to speak.

5.No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the Insured / beneficiary
can prove that the misstatement was true to the best of his knowledge and there was no deliberate intention
to suppress the fact or that such mis-statement of or

suppression of material fact are within the knowledge of the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.

6. Life insurance Policy can be called in question within 3 years on the ground that any statement of or
suppression of a fact material to expectancy of life of the insured was incorrectly made in the proposal or
other document basis which policy was issued or revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on which decision to repudiate the policy of life
insurance is based.

7. In case repudiation is on ground of mis-statement and not on fraud, the premium collected on policy till
the date of repudiation shall be paid to the insured or legal representative or nominee or assignees of
insured, within a period of 90 days from the date of repudiation.

8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer.
The onus is on insurer to show that if the insurer had been aware of the said fact, no life insurance policy
would have been issued to the insured.

9. The insurer can call for proof of age at any time if he is entitled to do so and no policy shall be deemed
to be called in question merely because the terms of the policy are adjusted on subsequent proof of age of
life insured. So, this Section will not be applicable for questioning age or adjustment based on proof of age
submitted subsequently.

[Disclaimer : This is not a comprehensive list of Section 45 of the Insurance Act, 1938 and only a
simplified version prepared for general information. Policyholders are advised to refer to Section 45 of
the Insurance Act, 1938, for complete and accurate details. ]

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PROHIBITION OF REBATES (SECTION 41 OF INSURANCE ACT, 1938):
1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to
take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in
India, any rebate of the whole or part of the commission payable or any rebate of the premium shown
on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate,
except such 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 section shall be liable for a
penalty which may extend to ten lakh rupees.

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 Office.

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT

OFFERS

IRDAI is not involved in activities like selling insurance policies, announcing bonus or
investment of premiums. Public receiving such phone calls are requested to lodge a police
compliant.

Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai – 400021.
Website: www.licindia.in
Registration Number: 512

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