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LIC’s BIMA JYOTI (UIN: 512N339V01)

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

LIC’s Bima Jyoti is a Non-Linked, Non-Participating, Individual,

Savings Plan which offers an attractive combination of protection
and savings. This plan provides financial support for the family in case
of unfortunate death of the policyholders during the policy term and
guaranteed lumpsum payment to the surviving policyholder at the time of
maturity.This plan also takes care of liquidity needs through loan facility. This
plan can be purchased Offline through agent /other intermediaries as
well as Online directly through website www.licindia.in

1. Benefits payable under an in-force policy (where all due

premiums have been paid):

A. Death Benefit:
(i) On death during the policy term before the date of
commencement of risk.
Return of premiums paid excluding taxes, extra premium and
rider premium(s), if any.
(ii) On death during the policy term after the date of
commencement of risk
“Sum Assured on Death” and Accrued Guaranteed
Additions. Where “Sum Assured on Death” is defined as
higher of 125% of Basic Sum Assured or 7 times of annualised
premium
Death Benefit as mentioned in A(ii) above shall not be less
than 105% of the total Premiums paid (excluding any extra
premium, any rider premium(s) and taxes) up to the date of
death.
B. Maturity Benefit:
On Life Assured surviving the stipulated Date of Maturity
provided the policy is in-force, “Sum Assured on Maturity”
along with Guaranteed Additions, shall be payable. Where
“Sum Assured on Maturity” is equal to Basic Sum
Assured.
C. Guaranteed Additions:
Provided the policy is in-force by payment of due premiums,
Guaranteed Additions at the rate of Rs.50 per thousand Basic
Sum Assured will be added to the policy at the end of each policy
year. In case of death under in-force policy, the Guaranteed
Addition in the year of the death shall be for full policy year. In
case the premiums are not duly paid, the Guaranteed Addition
shall cease to accrue under a policy.

In case of a paid-up policy or on surrender of a policy, the

Guaranteed Addition for the policy year in which the last
premium is received will be added on proportionate basis in
proportion to the premium received for that year.

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2. Eligibility Conditions and Other Restrictions:
a) Minimum Basic Sum : Rs. 1,00,000
Assured
b) Maximum Basic Sum : No limit
Assured
(Basic Sum Assured
shall be in multiples Rs
25,000/- )

c) Policy Term : 15 to 20 years

d) Premium Paying Term : Policy Term minus 5 Years
e) Minimum Age at entry : 90 days Completed

f) Maximum Age at Entry : 60 Years (Age Nearer Birthday)

g) Minimum Age at : 18 years (Completed)
Maturity
h) Maximum Age at : 75 Years (Age Nearer Birthday)
Maturity
65 Years (Age Nearer Birthday) for policies procured through
POSP-LI
Date of commencement of risk:
In case the age at entry of the Life Assured is less than 8 years, the
risk under this plan will commence either 2 years from the date of
commencement or from the policy anniversary coinciding with or
immediately following the attainment of 8 years of age, whichever
is earlier. For those aged 8 years or more, risk will commence
immediately.
Date of vesting :
If the policy is issued on the life of a minor, the policy shall
automatically vest on the Life Assured on the policy anniversary
coinciding with or immediately following the completion of 18
years of age and shall on such vesting be deemed to be a contract
between the Corporation and the Life Assured.

3. Options available:

I. Rider Benefits:
The following five 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 and/or the remaining three
riders subject to the eligibility as detailed below.
a) LIC’s Accidental Death and Disability Benefit Rider
(UIN: 512B209V02)
This rider can be opted for under an in-force policy at any time
within the premium paying term of the Base plan provided the
outstanding premium paying term of the Base plan as well as
the Rider is atleast 5 years but before the policy anniversary on
which the age nearer birthday of the life assured is 65 years. If
this rider is opted for, in case of accidental death, the Accident

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 Benefit Sum Assured will be payable in 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 under the policy, shall be waived. Under
the policy on the life of minors, this rider will be available from
the policy anniversary following completion of age 18 years on
receipt of specific request.
b) LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any time under an in-force policy
within the premium paying term of the Base plan provided the
outstanding premium paying term of the Base plan as well as
the Rider is atleast 5 years but before the policy anniversary on
which the age nearer birthday of the life assured is 65 years.
The benefit cover under this rider shall be available only during
the premium paying term. If this rider is opted for, in case of
accidental death, the Accident Benefit Sum Assured will be
payable in lumpsum along with the death benefit under the
base plan.
c) 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 amount equal to Term Assurance
Rider Sum Assured shall be payable on death of the Life
Assured during the policy term.
d) LIC’s New Critical Illness Benefit Rider (UIN:
512A212V02)
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.
e) LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
Under an in-force policy, this rider can be opted for on the life
of Proposer of the policy, at any time coinciding with the policy
anniversary but within the premium paying term of the Base
Policy provided the outstanding premium paying term of the
Base Policy and the rider is at least five years. Further, this rider
shall be allowed under the policy wherein the Life Assured is
Minor at the time of opting this rider. The Rider term shall be
outstanding premium paying term of the base plan as on date
of opting this rider or (25 minus age of the minor Life Assured
at the time of opting this rider), whichever is lower. If the rider
term plus proposer’s age is more than 70 years, the rider shall
not be allowed.
If this rider is opted for, on death of proposer, payment of
premiums in respect of base policy falling due on and after
the date of death till the expiry of rider term shall be waived.

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 However, in such case, if the premium paying term of the base
policy exceeds the rider term, all the further premiums due
under the base policy from the date of expiry of this Premium
Waiver Benefit Rider term shall be payable by the Life Assured.
On non-payment of such premiums the policy would become
paid-up.
The premium for LIC’s Accident Benefit Rider or LIC’s Accidental
Death and Disability Benefit Rider and LIC’s New Critical Illness
Benefit Rider shall not exceed 100% of premium under the base
plan and the premiums under all other life insurance riders put
together shall not exceed 30% of premiums under the base plan.

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

For more details on the above riders, refer to the rider brochure or
contact LIC’s nearest Branch Office.

No rider shall be available in case of the policies procured

through POSP-LI.

II. Settlement Option (for Maturity Benefit):

Settlement Option is an option to receive Maturity Benefit in
instalments over the chosen period of 5 or 10 or 15 years instead
of lump sum amount under an in-force as well as Paid-up policy.
This option can be exercised by the Policyholder during minority of
the Life Assured or by the Life Assured aged 18 years and above,
for full or part of the maturity proceeds payable under the policy.
The amount opted for this option by the Policyholder/ Life Assured
(i.e. Net Claim Amount) can be either in absolute value or as a
percentage of the total claim proceeds payable.

The instalments shall be paid in advance at yearly or half-yearly or

quarterly or monthly intervals, as opted for, subject to minimum
instalment amount for different modes of payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly 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
Policyholder / Life Assured, the claim proceed shall be paid in lump
sum only.
For all the instalment payment options commencing during the 12
months’ period from 1st May to 30th April, the interest rate used to
arrive at the amount of each instalment shall be annual effective rate

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 equal to the 10 year G-Sec rate p.a. compounding half-yearly minus
200 basis points; where, the 10 year G-Sec rate shall be as at last
trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the applicable interest rate for the
calculation of the instalment amount shall be 4.71% p.a. effective.
For exercising the settlement option against Maturity Benefit, the
Policyholder /Life Assured shall be required to exercise option
for payment of net claim amount in instalments at least 3 months
before the due date of maturity.
After the commencement of Instalment payments under
Settlement Option against Maturity Benefit:
a) If a Life Assured, who has exercised Settlement Option against
Maturity Benefit, desires to withdraw this option and commute
the outstanding instalments, the same shall be allowed on
receipt of written request from the Life Assured. In such case,
the lumpsum amount, which is higher of the following shall be
paid and the policy shall terminate.
• discounted value of all the future instalments due; or
• (the original amount for which settlement option was
exercised) less (sum of total instalments already paid);
b) The applicable interest rate that will be used to discount the
future instalment payments shall be annual effective rate not
exceeding 10 year G-Sec rate p.a. compounding half-yearly;
where, the 10 year G-Sec rate shall be as at last trading day of
previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the maximum applicable interest
rate used for discounting the future instalments shall be 6.71%
p.a. effective.
c) After the Date of Maturity, in case of death of the Life Assured,
who has exercised Settlement Option, the outstanding
instalments will continue to be paid to the nominee as per
the option exercised by the Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.
This option is not applicable in case of policy purchased
through POSP-LI.
III. Option to take Death Benefit in instalments:
This is an option to receive Death Benefit in instalments over the
chosen period of 5 or 10 or 15 years instead of lump sum amount
under an in-force as well as paid-up policy. This option can be
exercised by the Policyholder during minority of the Life Assured
or by Life Assured aged 18 years and above, during his/her life time;
for full or part of the Death benefits payable under the policy. The
amount opted by the Policyholder/Life Assured (i.e. Net Claim
Amount ) can be either in absolute value or as a percentage of the
total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or
quarterly or monthly intervals, as opted for, subject to minimum
instalment amount for different modes of payments being as under:

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 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 instalment amount as per the option exercised by the
Policyholder /Life Assured, the claim proceed shall be paid in lump
sum only.
For all the instalment payment options commencing during the 12
months’ period from 1st May to 30th April, the interest rate used
to arrive at the amount of each instalment shall be annual effective
rate equal to the 10 year G-Sec rate p.a. compounding half-yearly
minus 200 basis points; where, the 10 year G-Sec rate shall be as at
last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the applicable interest rate for the
calculation of the instalment amount shall be 4.71% p.a. effective.
For exercising option to take Death Benefit in instalments, the
Policyholder during minority of the Life Assured or the Life Assured,
if major, 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 Policyholder/Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.
This option is also applicable in case of policy purchased
through POSP-LI.

4. Payment of Premiums:

Premiums can be paid regularly at yearly, half-yearly, quarterly or

monthly intervals (monthly premiums through NACH only) or through
salary deductions.

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.

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

6. Sample Illustrative Premium:

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The sample illustrative annual premiums for Basic Sum Assured of Rs10
lakh for Standard lives are as under:

(Amount in Rs)
Policy Term (Premium Paying Term)
Age (Nearer Birthday)
15(10) 18(13) 20(15)
20 1,13,217 87,541 77,153
30 1,13,609 88,031 77,790
40 1,15,667 90,481 80,534
50 1,22,135 97,488 88,178

The above premium is exclusive of taxes.

7. Rebates:

Mode Rebate
Mode Rebate
Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular premium
Quarterly, Monthly (NACH)&Salary NIL
deduction

High Basic Sum Assured Rebate

Basic Sum Assured Rebate on tabular
(BSA) premium per Rs 1000
BSA (Rs.)
1, 00,000 to 2, 75,000 Nil
3, 00,000 to 4, 75,000 4.00
5,00,000 to 9 ,75,000 5.00
10,00,000 and above 6.00

Proposal to be completed under online sales without any assistance of

Agent / intermediary shall be eligible for rebate on tabular premium at
the following rates:

Rebate under Online Sale

Premium Paying Term Online Sale (Rate of rebate)
10 to 14 years 7.5%
15 years 10%

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8. Revival:

If the premiums are not paid within the grace period, then the policy
will lapse. A lapsed policy can be revived, but within a period of 5
consecutive years from the date of First Unpaid Premium but before
the date of maturity. 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 and/or Proposer (if LIC’s Premium Waiver Benefit Rider is
opted for) on the basis of information, documents and reports that
are already available and any additional information in this regard if
and as may be required in accordance with the Underwriting Policy
of the Corporation at the time of revival, being furnished by the
Policyholder/Life Assured/Proposer.
The Corporation reserves the right to accept at original terms,
accept 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, accepted and revival receipt is issued by the
Corporation.
The rate of interest applicable for revival under this plan for every
12 months’ period from 1st May to 30th April shall not exceed
10 year G-Sec Rate as p.a. compounding half-yearly as at the last
trading day of previous financial year plus 300 basis points. For the
12 months’ period commencing from 1st May, 2020 to 30th April,
2021 the applicable interest rate shall be 9.5% p.a. compounding
half-yearly.
Revival of rider(s), if opted for, will be considered along with revival
of the Base Policy, and not in isolation.

9. Plan purchased through Point of Sales Person – Life Insurance

(POSP-LI):

This plan can be purchased through Point of Sales Persons-Life Insurance

(POSP-LI).The eligibility conditions and other terms and conditions shall
be as per the Guidelines, Circulars and Regulations etc. issued by the
IRDAI applicable to POS Plans and POSP-LI.

Currently, the parameters / Eligibility conditions are as follows:

Maximum Age at Entry : 65 years (Age Nearer Birthday) minus
Policy Term
Maximum Age at Maturity : 65 Years (Age Nearer Birthday)
Maximum Sum Assured Limit on a single life: Rs 25 Lakhs.
However, the maximum allowable Sum Assured to each individual
will be decided as per the non-medical limits under this plan in
accordance with the Underwriting policy of the Corporation.
No rider shall be available in case of the policies procured
through POSP-LI.
Settlement Option (for Maturity Benefit) is not applicable in case of
policy purchased through POSP-LI.

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10. Paid-up value:

If less than two full years’ premiums have been paid in respect of
this policy 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.
If, after atleast 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 policy
term.
The Sum Assured on Death under a paid-up policy shall be
reduced to such a sum, called ‘Death Paid-up Sum Assured’
and shall be equal to Sum Assured on Death multiplied by the ratio
of the total period for which premiums have already been paid
bears to the maximum period for which premiums were originally
payable. In addition to the Death Paid-up Sum Assured, Guaranteed
Additions accrued up to the date of First Unpaid Premium, shall also
be payable on death.
The Sum Assured on Maturity under a 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. In addition to the Maturity Paid-up Sum Assured,
Guaranteed Additions accrued up to the date of First Unpaid
Premium shall also be payable on maturity.
Under a Paid-up policy, accrued Guaranteed shall be payable for
the duration for which the policy was in-force, i.e. for the duration
for which all the premiums have been paid. Hence, under a paid-up
policy, the Guaranteed Addition for the policy year in which the
last premium is received will be added on proportionate basis in
proportion to the premium received for that year.

11. Surrender :

The policy can be surrendered at any time provided two full

years’ premiums have been paid .On surrender of the policy,
the Corporation shall pay the Surrender Value equal to higher of
Guaranteed Surrender Value or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined
by the Corporation from time to time subject to prior approval of
IRDAI.
The Guaranteed Surrender Value payable during the policy term
shall be equal to the total premiums paid (excluding any extra
premium, any premiums for rider(s), if opted for and taxes),
multiplied by the Guaranteed Surrender Value factor applicable to
total premiums paid plus accrued Guaranteed Additions multiplied
by GSV factor applicable to accrued Guaranteed Additions. 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 given below:

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 Guaranteed Surrender Value factor applicable to total premiums
paid

  Policy Term "

Policy
15 16 17 18 19 20
Year

1 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%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 54.29% 53.75% 53.33% 53.00% 52.73% 52.50%
9 58.57% 57.50% 56.67% 56.00% 55.45% 55.00%
10 62.86% 61.25% 60.00% 59.00% 58.18% 57.50%
11 67.14% 65.00% 63.33% 62.00% 60.91% 60.00%
12 71.43% 68.75% 66.67% 65.00% 63.64% 62.50%
13 75.71% 72.50% 70.00% 68.00% 66.36% 65.00%
14 90.00% 76.25% 73.33% 71.00% 69.09% 67.50%
15 90.00% 90.00% 76.67% 74.00% 71.82% 70.00%
16   90.00% 90.00% 77.00% 74.55% 72.50%
17     90.00% 90.00% 77.27% 75.00%
18       90.00% 90.00% 77.50%
19         90.00% 90.00%
20           90.00%

Guaranteed Surrender Value factors applicable to Accrued

Guaranteed Additions

  Policy Term "

Policy
15 16 17 18 19 20
Year

1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
3 17.66% 17.58% 17.58% 17.03% 16.58% 16.22%
4 17.85% 17.66% 17.58% 17.58% 17.03% 16.58%
5 18.16% 17.85% 17.66% 17.58% 17.58% 17.03%
6 18.60% 18.16% 17.85% 17.66% 17.58% 17.58%

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 7 19.18% 18.60% 18.16% 17.85% 17.66% 17.58%
8 19.93% 19.18% 18.60% 18.16% 17.85% 17.66%
9 20.85% 19.93% 19.18% 18.60% 18.16% 17.85%
10 21.99% 20.85% 19.93% 19.18% 18.60% 18.16%
11 23.38% 21.99% 20.85% 19.93% 19.18% 18.60%
12 25.05% 23.38% 21.99% 20.85% 19.93% 19.18%
13 27.06% 25.05% 23.38% 21.99% 20.85% 19.93%
14 30.00% 27.06% 25.05% 23.38% 21.99% 20.85%
15 35.00% 30.00% 27.06% 25.05% 23.38% 21.99%
16   35.00% 30.00% 27.06% 25.05% 23.38%
17     35.00% 30.00% 27.06% 25.05%
18       35.00% 30.00% 27.06%
19         35.00% 30.00%
20           35.00%

No surrender value will be available on Rider(s), if any.

12. Policy Loan:

Loan can be availed under the policy provided atleast two full years’
premiums have been paid and subject to the terms and conditions
as the Corporation may specify from time to time.
The maximum loan allowed under this policy as a percentage of
surrender value shall be as under:
• For in-force policies- upto 90%
• For paid-up policies- upto 80%
The interest rate to be charged for policy loan and as applicable for
entire term of the loan shall be determined at periodic intervals.
The rate of loan interest applicable for full loan term, for the loan
to be availed under this product for every 12 months’ period
from 1st May to 30th April shall not exceed 10 year G-Sec Rate
p.a. compounding half-yearly as at the last trading date of previous
financial year plus 300 basis points. For loan sanctioned during 12
months’ period commencing from 1st May, 2020 to 30th April,
2021 the applicable interest rate shall be 9.5% p.a. compounding
half-yearly for entire term of the loan.
Any loan outstanding along with interest shall be recovered from
the claim proceeds at the time of exit.

13. Taxes:

Statutory Taxes, if any, imposed on such insurance plans by the

Government of India or any other constitutional Tax Authority of
India shall be as per the Tax laws and the rate of tax as applicable
from time to time.

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 The amount of applicable taxes, as per the prevailing rates shall
be payable by the policyholder on premiums(for Base Policy and
Rider(s), if any) including extra premiums, if any, which shall be
collected separately over and above 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.

14. 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 (30 days in case of online sale) 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 Policy and Rider(s), if any) for the period of
cover, charges for medical examination, special reports, if any and
stamp duty charges.

15. Suicide Exclusion:

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 excluding any taxes, extra
premium and rider premiums other than Term Assurance
Rider, if any, provided the policy is in-force. This clause
shall not be applicable in case age at entry of the Life
Assured is below 8 years.

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 (excluding any taxes, extra premium and
rider premiums other than term assurance rider, if any),
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:

• In case the age of the life assured is below 8
years at the time of revival; or
• For a policy lapsed without acquiring paid-up
value and nothing shall be payable under such
policies

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16. Waiting Period:

In case the Plan is purchased through Point of Sales Persons-

Life Insurance (POSP-LI), on death of the Life Assured within
the first 90 days from the date of commencement of risk, the
Corporation shall refund the total premiums paid, provided
death is not on account of an accident. However, in case of
death due to accident during waiting period “Sum Assured on
Death” shall be payable. This clause shall not be applicable in
case age at entry of the Life Assured is below 8 years.

BENEFIT ILLUSTRATION:
GST Rate (1st
Age 35 4.50%
Year):
GST Rate (2nd
Policy Term 20 2.25%
Year onwards):
Basic Sum
Premium Payment Term 15 1000000
Assured Rs.
Amount of Instalment Sum Assured on
78,770 1250000
Premium Death Rs.
Guaranteed
Mode of payment of
Yearly Additions per Rs
premium
1000 per year 50

Policy Guaranteed Benefits

Year Annualized*
(End Premium Minimum**
of the (Cumulative) Survival Guaranteed Maturity Death Guaranteed
year) Benefit Additions Benefit Benefit Surrender
Benefit
1 78770 0 50000 0 1300000 0
2 157540 0 100000 0 1350000 47262
3 236310 0 150000 0 1400000 107039
4 315080 0 200000 0 1450000 190700
5 393850 0 250000 0 1500000 239500
6 472620 0 300000 0 1550000 289050
7 551390 0 350000 0 1600000 337225
8 630160 0 400000 0 1650000 401474
9 708930 0 450000 0 1700000 470237
10 787700 0 500000 0 1750000 543728
11 866470 0 550000 0 1800000 622182
12 945240 0 600000 0 1850000 705855
13 1024010 0 650000 0 1900000 795152
14 1102780 0 700000 0 1950000 890327
15 1181550 0 750000 0 2000000 992010
16 1181550 0 800000 0 2050000 1043664

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 17 1181550 0 850000 0 2100000 1099088
18 1181550 0 900000 0 2150000 1159241
19 1181550 0 950000 0 2200000 1348395
20 1181550 0 1000000 2000000 2250000 1413395

Notes:
1. The main objective of the illustration is that the client is
able to appreciate the features of the product and the flow
of the benefit with some level of quantification.

2. This illustration is applicable to a standard (from medical,

life style and occupation point of view) life and wherein
Rider is not opted for.

3. In any case the total death benefit at any time shall not be
less than 105% of the total premiums paid (excluding GST,
extra premium and rider premiums, if any).

*Annualized Premium excludes underwriting extra premium,

frequency loadings on premiums, the premiums paid towards
the riders, if any, and Goods & Service Tax. Refer Sales
literature for explanation of terms used in this illustration.
**Special surrender value may however be payable, if it is more
favourable to the Policyholder. Special Surrender Value is
subject to revision from time to time only after prior approval
of the Regulator.

SECTION 45 OF THE INSURANCE ACT, 1938:

The provision of Section 45 of 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, 1938 are as follows:
1. No Policy of Life Insurance shall be called in question
on any ground whatsoever after expiry of 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.

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
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 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
16
 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. Policy Holders are advised
to refer to Section 45 of Insurance Act, 1938,for complete
and accurate details. ]

PROHIBITION OF REBATES (SECTION 41 OF THE

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.

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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 complaint.

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 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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