1 OBJECTIVE OF PROJECT During my period of Internship at Insure µn¶ Inves t ,I got a live exposure of style of working in an organization .I observed how diff erent customers approach Insureµ n ¶ Invest f or policies, how they were dealt,and pr ovided with best suited policy for them. Moreover I worked on my project on LIC & its products, got to learn about the various guildelines and ways LIC deals with its customers. And the best selling products o f LIC and its reasons.
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OBJECTIVE OF PROJECT
During my period of Internship at Insure µn¶ Invest ,I got a live exposure of style of working in
an organization .I observed how different customers approach Insureµ n¶ Invest for policies,how they were dealt,and provided with best suited policy for them.
Moreover I worked on my project on LIC & its products, got to learn about the various
guildelines and ways LIC deals with its customers.
And the best selling products of LIC and its reasons.
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History of insurance in india with
special referenece to LIC
Insurance in its current form has its history dating back until
1818, when Oriental Life Insurance Company was started
by Anita Bhavsar in Kolkata to cater to the needs of
European community. The pre-independence era in India
saw discrimination between the lives of foreigners (English)
and Indians with higher premiums being charged for the
latter. In 1870, Bombay Mutual Life Assurance Society
became the first Indian insurer.
In the year 1912, the Life Insurance Companies Act and the
Provident Fund Act were passed to regulate the insurance
business. The Life Insurance Companies Act, 1912 made it
necessary that the premium-rate tables and periodical
valuations of companies should be certified by an actuary.
However, the disparity still existed as discrimination
between Indian and foreign companies. The oldest existing
insurance company in India is the National Insurance
Company Ltd., which was founded in 1906. It is in business.
The Government of India issued an Ordinance on19th
January, 1956 nationalising the Life Insurance sector and
Life Insurance Corporation came into existence in the same
year(1-9-56). The Life Insurance Corporation (LIC)
absorbed 154 Indian, 16 non-Indian insurers as also 75
provident societies²245 Indian and foreign insurers in all.
It was in December 7, 1999 parliament passed the
Insurance Regulatory and Development Authority (IRDA) Act which paved the way for granting licences to private
sector insurance companies. After privatisation of
the insurance sector more than twentylife
insurance companies have entered the business. Therefore, monopoly of LIC of India has come to an
end and the Corporation has to perform in a competitive environment.
Life Insurance Corporation of India
Type Government-owned corporation
Industry Insurance
Founded 1 September 1956
Headquarters Mumbai, India
K ey people
D. K. Mehrotra, Thomas Mathew
and A. Dasgupta (MD)
Products Life insurance
Pensions
Mutual funds
Total assets 9.31 trillion (US$207.61 billion)
Owner(s) Government of India
Employees 115,966 (2010)
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CONCEPTS OF LIFE INSURANCE, WITH SPECIAL REFERENCE TO LIC
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
y The date of maturity, or
y Specified dates at periodic intervals, or
y Unfortunate death, if it occurs earlier.
Life insurance, in short, is concerned with two hazards that stand across the life-
path of every person:
1. That of dying prematurely leaving a dependent family to fend for itself.
2. That of living till old age without visible means of support.
Life Insurance Vs. Other Savings
Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides.
The doctrine of disclosing all material facts is embodied in this important principle, which
applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in the proposal form
are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading
to the acceptance of the risk would render the insurance contract null and void.
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Protection:
Savings through life insurance guarantee full protection against risk of death of the saver. Also,
in case of demise, life insurance assures payment of the entire amount assured (with bonuses
wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is
payable.
Aid To Thrif t:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be made
effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for
insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method
of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme
is ideal for any institution or establishment subject to specified terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has
acquired loan value. Besides, a life insurance policy is also generally accepted as security, even
for a commercial loan.
Tax R elief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is
available for amounts paid by way of premium for life insurance subject to income tax rates in
force.
Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect
pays a lower premium for insurance than otherwise.
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can be effectively
used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for cash over a
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stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from service
and used for any specific purpose, such as, purchase of a house or for other investments. Also,
loans are granted to policyholders for house building or for purchase of flats (subject to certain
conditions).
Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter into a valid contract can insure
himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse or children.
While underwriting proposals, certain factors such as the policyholder¶s state of health, the
proponent's income and other relevant factors are considered by the Corporation.
Insurance For Women
Prior to nationalisation (1956), many private insurance companies would offer insurance to
female lives with some extra premium or on restrictive conditions. However, after nationalisation
of life insurance, the terms under which life insurance is granted to female lives have been
reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases, a
restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not
have an income attracting Income Tax.
Medical And Non-Medical Schemes
Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been
extending insurance cover without any medical examination, subject to certain conditions.
With Profit And Without Profit Plans
An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any,
after periodical valuations are allotted to the policy and are payable along with the contracted
amount.
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In 'without' profit plan the contracted amount is paid without any addition. The premium rate
charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.
K eyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm
against financial losses, which may occur due to the premature demise of the Keyman.
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GUIDELINES FOR ONE AND ALL BY LIC
The Policy Bond And Its Safety
The policy bond is the document that is given to one after they accept the proposal for
insurance.
The risk coverage commences after acceptance of the proposal and the conditions and
privileges of policy are mentioned in the policy bond.
This is an important document which would be referred to for various servicing interactions ±
Keep the policy bond safe. It will be required at the time of settlement of claims on the policy.
You will also require it if you are availing a loan or want to assign the policy.
Inform your spouse/Parents/Children as to where the policy is kept.
In case one is handing over the policy bond to any person or office, please take a written
acknowledgement. Keep a Photostat copy of the policy for reference.
Policy Number
The policy number is consisting of nine digits and can be found at the top left hand corner of
the schedule of your policy bond.
This is a unique identification number that distinguishes your policies from other policies and
will remain unchanged throughout the lifetime of the policy.
Remember to quote the policy number every time in the correspondence, as it helps to locate
the records for reference.
Policy Conditions
Every policy is taken for different types of needs; therefore the conditions for the policy will
vary according to the Plan and Term of the policy.
The policy schedule contains on the first page of the policy, like the ones mentioned above as
well as other information like nominee, address etc. It also shows the date of commencement of
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policy, date of birth, date of maturity, due dates and months in which the renewal premiums are
to be paid etc.
The second page onwards carries the various policy conditions like risk coverage, additional
risks coverage if opted for, standard benefits that are available for all policies, accident benefit
if opted for, exclusion of risks if any and other conditions that govern the contract of
insurance.
Alterations In Policy
There may be instances when one would like to make alterations in their policy like change of
premium payment mode, reduction in premium paying term etc.
The applications may be given in writing to the branch that services ones policy for our further
action.
After the policy is issued, the policyholder in a number of cases finds the terms not suitable to
him and desires to change them. LIC allows certain types of alterations during the lifetime of
the policy. However, no alteration is permitted within one year of the commencement of the
policy with some exceptions. The following alterations are allowed.
y Alteration in class or term.
y Reduction in the Sum Assured
y Alteration in the mode of payment of premiums
y Removal of an extra premium
y Alteration from without profit plan to with profit plan
y Alternation in name
y Correction in policies
y Settlement option of payment of sum assured by installments
y Grant of accident benefit
y Grant of premium waiver benefit under CDA policies
y Alteration in currency and place of payment of policy monies
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A fee for the change or alteration in the policy is charged by the Corporation called quotation
fee and no additional fee is charged for giving effect to the alteration.
If the Policy Is Lost
Kindly make a thorough search before concluding that one has lost the policy bond. Look for
the same within the residence, among your investment papers, at your office and even with
your agent to whom one might have entrusted the document for some reason.
It could have been even pledged with LIC/any other financial institution for availing a loan by
you. LIC retains the policy bond when one go in for a loan against the policy. Make sure that
the document one is searching is not one that has already been assigned to LIC, or to another
financial institution.
If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining
portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate
policy.
In case one is sure that the policy bond is untraceable due to unknown causes, there is a simple
procedure to comply with while applying for the duplicate policy at the branch.
Duplicate Policy:
A duplicate policy confers on its owner the same rights and privileges as the original policy.
The following are the requirements for issuing a duplicate policy:
1. Insertion of an advertisement at the policyholder¶s cost in one English daily newspaper
having wide circulation in the State where the loss is reported to have occurred. A copy of the
Newspaper in which the advertisement appeared should be sent to the servicing office one
month after its appearance. If no objection has been lodged with LIC regarding the policy in
question, a duplicate policy will be issued after complying further requirements, i.e., Indemnity
Bond and payment of charges for preparing duplicate policy and stamp fee.
2. However, the requirement of advertisement and Indemnity Bond may be dispensed with or
modified in certain circumstances as given below :
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y loss of policy by theft
y destruction of policy by fire
y loss of policy while in custody of an office of government
y mutilated or damaged policy
y policy in torn and a part of it is missing
y policy partially destroyed by white ants
Contact Address
Ones address is very important for. Without ones latest address they would not be in a position
to contact for any service offering. They would not like to keep any benefit that is due pending
for want of this very important information. Whenever one shift residences, please inform the
new address. Otherwise any communication they send, like premium notices, dischargevouchers for maturity and survival benefits etc., will get delayed in reaching.
LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and
email addresses in ones contact addresses information. Kindly inform servicing branch to
incorporate the same in ones policy records.
Admission Of Age
Check the policy bond and see if the date of birth is correctly given therein.
This is one of the factors on which the premiums one pay for their policy is arrived at.
This would also form the basis of all future policies one might avail.
In case ones earlier policies do not have date of birth incorporated and have a date of birth
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certificate issued by the competent authority, one may send an attested copy of the same to us,
with a request to admit his/her age .
Age Proof accepted by LIC:
The Proofs of age, which are generally acceptable to the Corporation, are as under:
y Certified extract from Municipal or other records made at the time of birth.
y Certificate of Baptism or certified extract from family Bible if it contains age or date of
birth.
y Certified extract from School or College if age or date of birth is stated therein.
y Certified extract from Service Register in case of Govt. employees and employees of
Quasi-Govt. institutions including Public Limited Companies and Pass port issued by
the Pass port Authorities in India.
Alternative Age Proof s which are accepted:
y Marriage certificate in the case of Roman Catholics issued by Roman Catholic Church.
y Certified extracts from the Service Registers of Commercial Institutions or Industrial
Undertakings provided it is specifically mentioned in such extracts that conclusiveevidence of age was produced at the time of recruitment of the employee.
y Certificate of Birth granted by Syedna v. Molana Badruddin Sahib of Baroda
y Identity Cards issued by Defence Department.
y A true copy of the University Certificate or of Matriculation/Higher Secondary
Education, S.S.L. Certificate issued by a Board set up by a State/Central Government.
y Non- standard age proof like Horoscope, Service Record where age is not verified at the
time of entry, E.S.I.S. Card, Marriage Certificate in case of Muslim Proposer, Elder¶s
Declaration, Self-declaration and Certificate by Village Panchayats are accepted subject
to certain rules.
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Nomination
Ensure that the nominees name is correctly incorporated in the policy bond.
One may change the nomination in their policy any time during the lifetime of the policy
In case one have not included the name of the nominee till now, please do not delay; inform the
nomination immediately. Kindly note that the change of nomination has to be done in the
branch that services the policy.
The nominee is the person to whom the insurance claim amounts would be payable, in case
anything unfortunate within the purview of the policy conditions happens.
The policy is usually taken by you to benefit your family ± nominate the persons who¶ll have
the welfare of your family in your absence; the usual preferences being spouse and children.
One may nominate even minors like their children, in which case one have to name another
person who¶ll have the welfare of the minor children, as an appointee.
Nomination:
The nominee is statutorily recognized as a payee who can give a valid discharge to the
Corporation for the payment of policy monies.
Nomination will be incorporated in the text of the policy at the time of its issue. After the
policy is prepared and issued and if no Nomination has been incorporated the assured can
ordinarily affect the nomination only by an endorsement on the policy itself. A nomination
made in this manner is required to be notified to the Corporation and registered by it in its
records. A nomination is not required to be stamped.
Any change or cancellation of nomination should be given in writing only by the Life Assured.
Nomination under Joint Life Policy can only be a joint nomination. Nomination in favour of a
stranger cannot be made as there is no insurable interest and moral hazard may be involved.
Nomination in favour of wife and children as a class is not valid. Specific names of the existing
wife and children should be mentioned. Where nomination is made in favour of successive
nominees, i.e., nominee ³A´ failing him to nominee ³B´ failing whom nominee ³C´, the
nomination in favour of one individual in the order mentioned will be considered. Where the
nominee is a minor, an appointee has to be appointed to receive the monies in the event of the
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assured¶s death during the minority of the nominee. No nomination can be made under a policy
financed from HUF funds.
In the case of first endorsement of nomination the date of registration of nomination will be the
date of receipt of the policy by the servicing office and in case of any other nomination or
cancellation or change thereof, the date of receipt of the policy and/or of notice whichever is
later, will be the date of registration
Assignment
In case one is raising a loan against their policy from LIC or any other financial institution, the
policy would have to be assigned to LIC or the financial institution.
When one assign the policy the title of the policy is shifted from his/her name to that of the
institution.
The policy would be reassigned to one on the repayment of the loan.
A fresh nomination should be done after reassignment of the policy.
Assignment of policies can be done even when a loan is not required or for some special purposes.
An assignment has an effect of directly transferring the rights of the transferor in respect of the
property transferred. Immediately on execution of an assignment of the Policy of life assurance
the assignor forgoes all his rights, title and interest in the Policy to the assignee. The
premium/loan interest notices etc. in such cases will be sent to the assignee. In case the
assignment is made in favor of public bodies, institutions, trust etc., premium notices/receipts
will be addressed to the official who has been designated by the institutions as a person to
receive such notice
An assignment of a life insurance policy once validly executed, cannot be cancelled or rendered
in effectual by the assignor. Scoring of such assignments or super scribing words like
'cancelled' on such assignment does not annul the assignment. And the only way to cancel such
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assignment would be to get it re-assigned by the assignee in favor of the assignor.
There are two types of assignments:
1. Conditional Assignment whereby the assignor and the assignee may agree that on the
happening of a specified event which does not depend on the will of the assignor, the
assignment will be suspended or revoked wholly or in part.
2. Absolute Assignment whereby all the rights, title and interest which the assignor has in the
policy passes on to the assignee without reversion to the assignor or his estate in any event.
R e-assignment:
Status of ones policy indicates if his/her policy is in force or has lapsed due to non-payment of
premium. It also provides other important information with respect to your policy, for your
reference.
When To Pay The Premiums
Remember to pay premium in time, even if the notices do not reach. There may be a postal
delay.
LIC usually sends premium notices one month in advance to the due month of the premium.
The months in which premiums are due are given on the first page of the Policy bond.
Grace Period For Premium Payment
In case one have not paid the premium within the due date there is still time for one to make the
payments without payment of interest on the premium. This period is called the grace period.
(With the exception of some plans)
The grace period for policies where the premium payment mode is monthly is 15 days from the
due date.
The grace period for policies where the premium payment mode is quarterly, half-yearly or
yearly is one month but not less than30 days.
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Non-f orfeiture regulations:
If the policy has run for atleast 3 full years and subsequent premiums have not been paid the
policy shall not be void but the sum assured will be reduced to a sum which will bear the same
ratio as to the number of premiums paid bear to the total number of premiums payable.The
concessions regarding claim in the above case is explained in the appropriate section.
Forfeiture in certain events:
In case of untrue or incorrect statement contained in the proposal, personal statement,
declaration and connected documents or any material information with held, subject to the
provision of Section 45 of the Insurance Act 1938, wherever applicable, the policy shall be
declared void and all claims to any benefits in virtue thereof shall cease.
How And Where To Pay The Premiums
y By cash, local cheque (subject to realization of cheque), Demand Draft at Branch
Office.
y The DD and cheques or Money Order may be sent by post.
y You can pay your premiums at any of our Branches as 99% of our Branches are
networked.
y Many Banks do accept standing instructions to remit the premiums. So by providing a
standing instruction to your Bank to debit your account for the premium amount and
send it vide a banker¶s cheque to LIC, on the due dates and months mentioned on your
policy bond.
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y Through Internet : Payment of premiums can be made through Internet through Service
Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank,
Bank of Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk.
y Premium payment can also be made through ATMs of Corporation Bank and UTI
Bank.
y Premium payment can also be made through Electronic Clearing Service (ECS) which
has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur,
1. Mr. Yadav takes a Money back Policy for 25 years for rs. 1 lakh under table 93-25. hereceives rs 15,000 each at the end of 5th, 10th, 15th, & 20th year. In the 25th year, he receives
a balance Rs. 40,000 + Bonus of rs. 1,10,000 at an estimated Rs. 44 per 1000 SA + Final
Additional Bonus of Rs 10000. Totally, Mr yadav will receive Rs. 1,60,000. the above table will
gives an insight for reinvestment.
In case Mr. Yadav dies during 12th year, his nominee will get Rs 1,52,800 (rs. 1,00,000 SA + Rs
52,800 Bonus). The survival benefit already paid during 5th and 10th year will not be deducted.
2. Mr. Yadav takes a Money back Policy for 20 years for rs. 1 lakh under table 75-20. He
receives rs 20,000 each at the end of 5th, 10th, & 15th year. In the 20th year, he receives
a balance Rs. 40,000 + Bonus of Rs. 78,000 at an estimated Rs. 39 per 1000 SA + Final
Additional Bonus of Rs 7500.
In case Mr. Yadav dies during 12th year, his nominee will get Rs 1,46,800 (rs. 1,00,000 SA + Rs
46,800 Bonus @ an estimated 39 per 1000 SA). The survivalbenefit already paid during 5th and
10th year will not be deducted. The survivalbenefit already paid during 5th & 10th year will not
be deducted
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LIC¶s Endowment Plan (Table 14)
It is one of the oldest and popular LIC plan. Endowment plan (Table 14) provides financial
assistance to the family of the life assured in the event of policy holders early death or a
lumpsum amount on policy holders survival upto the selected term. Hence, Endowment plan
(Table 14) provides for family income in the event of unfortunate death of the life assured or
makes provision for retirement in case of living too long. Endowment Plan is best for every
reason, for all long and short term financial needs.
Benefits:
Natural Death:
Sum Assured + Bonus for number of years premium paid + Terminal Bonus if any.
Accidental Death:
Double Sum Assured + Bonus for number of years premium paid + Terminal Bonus if any.
Maturity:
Sum Assured + Bonus + Terminal Bonus.
Accident And Permanent Disability Benefit:
Accident benefit is maximum Rs.50 lakh.
Tax Benefit:
Tax beneift 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.
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Eligibility Conditions and R estrictions:
Minimum age: 12 years
Maximum age: 65 years
Maximum age at Maturity: 75 years
Min. Term: 5 years
Max Term: 55 years
Minimum SA: Rs.50,000/-
Max. Sum Assured: No Limit
Example:
Mr. Rajesh buy an Endowment policy under Table-14 for Rs.1Lakh for 25 years term. He dies
due to a disease after 3 yrs. In this case, Mr. Rajesh¶s family/nominee will receive Rs.1,
14,400(Rs.14, 400 being Bonus for 3 yrs at an estimated Rs.48 per 1000 p.a.). If Rajesh survive
till maturity he would receive Rs.2,70,000 as maturity benefit (Rs.1,20,000 being Bonus for 25
yrs at an estimated Rs.48 per 1000 p.a. + FAB @ 500/- per 1000 = 50,000/-)
Amulya Jeevan
Protect your loved ones from any unexpected surprises in life, any time with Life Insurance
Corporation of India¶s Amulya Jeevan. Amulya Jeevan 1 (Plan No. 190) is a Term Assurance
plan with minimum Sum Assured of Rs.25 lakh.
Benefits:
On Maturity:
On Maturity no amount will be paid to the Policyholder.
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On Death:
On death of the Policyholder during policy term, S.A. will be paid to the nominee, provided the
policy is kept in force.
Income tax rebate:
The premium paid towards Amulya Jeevan 1 is eligible for tax deduction under section 80C of
the Income Tax Act,1961.
Eligibility Conditions and R estrictions
Minimum Age at entry: 18 years (completed)
Maximum Age at entry: 60 years (nearest birthday)
Maximum Age at maturity: 70 years (nearest birthday)
Policy Term: 5 years to 35 years
Minimum Sum Assured: Rs.25,00,000/-
Maximum Sum Assured: No Upper Limit
(Policies will be issued in multiples of Rs.1,00,000/- for Sum Assured more than the minimum
Sum Assured)
Loan: Not available
Surre
nde
r Value:
NilDating Back : Allowed
Grace Period: 15 days
Mode of Premium :
Premium can be paid either in Yearly, Half-yearly & Single Premium.
Cooling off period:
If you are not satisfied with the ³Terms and Conditions´ of the policy, you may return the policy
to Life Insurance Corporation Of India within 15 days.
Example: Mr. LIC takes a policy for 25 years for Rs.50 lakhs.
(a) On survival till maturity, Mr. LIC will not receive any amount.
(b) On death of Mr. LIC during policy term, his nominee will get Rs.50 lakh S.A
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Komal Jeevan: (Table No.159)
LIC Komal Jeevan is a children¶s Money Back Plan that provides financial protection against
death during the term of plan with periodic payments on survival at specified durations. Komal
Jeevan can be purchased by any of the parent or grand parent or legal guardian for a child aged
between 0 year to 10 years. The payment of the premium stops at the age of 18 years.
Suitablity:
In today¶s competitive world, every parent dream for best education for their son/daughter. This
policy is suitable for parents who dream to secure money for their children¶s higher education.
Benefits:
The policy matures when the child grows up to be 26. Once the child attains majority, the
survival benefit is paid in four installments.
1. 20% on policy anniversary after completing age 18.
2. 20% on policy anniversary after completing age 20.
3. 30% on policy anniversary after completing age 22.
4. 30% on policy anniversary after completing age 24.
5. Guaranteed addition + Loyalty Addition on completing age 26 (Maturity date)
Guaranteed additions :
The policy gives guaranteed additions at Rs 75 per Rs 1,000 sum assured on every policy
anniversary till age 26.
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Commencement of risk cover:
The risk commences only after the child attains age seven or two years after the commencement
of the policy, whichever is later.
Premium Waiver Benefit:
Premium Waiver Benefit available with some extra premium amount.
Term R ider Benefit:
Term Rider Benefit can be availed by the proposer to the extent of 20% of the basic sum assured
under the policy not exceeding Rs.1,00,000/-. The benefit will be payable in case the proposer
dies before the policy anniversary on which the child is 18 years last birthday.
Death Benefits
y In case of death of life assured before the commencement of risk, the policy is canceled
and premiums paid are refunded.
y After the commencement of risk, if the life assured dies before policy matures, full sum
assured plus guaranteed additions are payable without deduction of earlier installment
benefits paid.
y Special benefit in maturity: Loyalty additions depending on policy duration and sum
assured are paid on maturity.
Mode of premium
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as
opted by you, up to the policy anniversary immediately after the life assured (child) attains 18
years of age or till the earlier death of the life assured. Alternatively, the premium may be paid in
lump sum (Single premium).
Eligibility Conditions and R estrictions
Min. age at entry: 0 year (Last Birthday)
Max. age at entry: 10 years (Last Birthday).
Min. S.A.: 1 lakh.
Max. SA.: 25 lakhs.
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SA in multiples: Rs. 25,000
Max. Maturity age: 26 years (lbd)
Min. PPT: 8 years. (Premium Paying term)
Max. PPT: 18 years.
Accident benefit: NA
Term R ider Option: Available
Critical Illness R ider: No
Policy Loan: No
R evival: Yes
Surrender of Policy: Yes
Survival Benefits: Yes
Housing Loan: No
New Bima Gold (Table No.179)
Gold never loses its value, just like LIC Of Indiaµs New Bima Gold insurance policy. LIC¶s New
Bima Gold (plan no.179) is a special with profit money back plan that offers 50% of the life
cover during extended term even after maturity.
Benefits:
Survival Benefit: Payable in case of life assured surviving to the end of the specified durations
provided the policy is in full force as given below:
For policy term 12 years:15% of the Sum Assured under Basic Plan at the end of each 4th &
8th policy year.
For policy term 16 years:15% of the Sum Assured under Basic Plan at the end of each 4th, 8th
&12th policy year.
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For policy term 20 years:10% of the Sum Assured under Basic Plan at the end of each 4th, 8th,
12th & 16th policy year.
On expiry of policy term:Total amount of premiums (excluding extra/optional rider premiums,
if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid earlier.
Death Benefit:
During the policy term: Payment of an amount equal to Sum Assured under the Basic Plan on
death of the Life Assured during the policy term provided the life cover is in force.
During the extended term: Payment of an amount equal to 50% of Sum Assured under the
Basic Plan on death of the Life Assured during the extended term provided all the premiumsunder the policy have been paid.
Extended Term: The extended term shall be half of the policy term after the expiry of the policy
term.
Mode of Premiums:
Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS)
installments.
Eligibility Conditions and R estrictions :
FOR BASIC PLAN:
1. Minimum age at entry: 14 years (completed)
2. Maximum age at entry: 57 years (nearest birthday) for Term 12 years
3. Maximum age at entry: 51 years (nearest birthday) for Term 16 years
4.Maximum age at entry: 45 years (nearest birthday) for Term 20 years
Age at expiry of extended term: Maximum 75 years (nearest birthday)
Policy Term: 12, 16 and 20 years.
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Minimum Sum Assured: Rs. 50,000 /-
Maximum Sum assured: No limit
Sum Assured will be in multiples of Rs.5,000 /- only.
FOR THE ACCIDENT BENEFIT RIDER OPTION :
1. Minimum age at entry: 18 years (completed)
2. Maximum age at entry: 57 years (nearest birthday) for Term 12 years
3.Maximum age at entry: 51 years (nearest birthday) for Term 16 years
4.Maximum age at entry: 45 years (nearest birthday) for Term 20 years
Minimum Sum Assured: Rs. 50,000 /-
Sum Assured will be in multiples of Rs.5,000 /- only.
Cooling off period:
If you are not satisfied with the ³Terms and Conditions´ of the policy, you may return the policy
to LIC of India within 15 days.
Jeevan Mithra (Triple Benefit)
y Sum Insured + Bonus Accrued For the Policy Term chosen, on your surviving the
premium payment term you have chosen (15 to 30 years),
y 3 times the basic sum Insured + Bonus accrued on the basic sum insured in case you do
not outlive the premium payment term you have chosen ( 15 to 30 years)
y 4 times the basic sum insured in case death is due to accident against a little extra,
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y Waiver of further premium payable + Basic Sum Insured spread over in the form of an
Annuity for next 10 years + All other Maturity benefits in case of Total and Permanent
Disability due to Accident,
y Loan against surrender value at 9.00% per annum simple interest,
Benefits
y Financial security available to your nominee in your absence during the currency of the
plan is maximum,
y Maturity Benefit available should you outlive the PPT you have chosen is quite
impressive,
y Premium paid qualifies for Section 80 C benefit within the overall limit of Rs 1 Lakh per
annum allowed for various savings,
y Policy proceeds received by you on surviving the PPT chosen are free from income-tax
under section 10(10D) of the I.T Act.
y Policy loans available under the plan offer you additional investment facilities without
effecting any of the policy privileges,
y Most ideal as a collateral security while drawing housing or any capital loans in view of
the high security it offers
Premium Paying term
y 15 to 30 years ceasing at death, if it occurs early.
Modes of investment
y Yearly, Half-yearly or Quarterly or Monthly.
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Jeevan Tarang
y Cash value of bonus on the full sum insured + Annual Installments @ 5.5% of the sum
insured upto your 100 years of age + Sum Insured whenever you are not alive instead of
annual installments, without any deduction towards installments already paid + Loyalty
Addition if any, on your surviving the premium payment term you have chosen (10 or 15
or 20 years),
y Sum Insured + Bonus accrued in case you do not outlive the premium payment term you
have chosen ( 10 or 15 or 20 years)
y Loan against surrender value at 9.00% per annum simple interest,
y Additional sum equal to face value but not exceeding Rs 50 Lakhs in case of fatal
accident against a small extra,
y Premium waiver in addition to the above accident benefit in case of Total and Permanent
Disability due to Accident against a small extra,
y Term Cover Rider against extra
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Benefits
1. Under this plan, your nominee is assured of the face value of the policy on your death
whenever it occurs within your 100 years of age. Your premium payment however is
limited only for the term chosen (10 or 15 or 20 years).
2. You are assured of a regular annual income as long as you are alive upto a maximum of
100 years of age, once you outlive the premium payment term you have chosen. By going
for LIC's Jeevan Tarang every month, you can reduce the frequency of annual
installments to monthly also.
3. From income-tax point of value also, you stand to gain quite a bit through LIC's Jeevan
Tarang investment. While the premium paid qualifies for Section 80 C benefit within the
overall limit of Rs 1 Lakh per annum allowed for various savings, annual installments
received as above are free from income-tax, since they are nothing but settlement options
on the sum insured exercised by you. In otherwords, under LIC's Jeevan Tarang,you are
assured of a tax-free annuity @5.5% of the sum you have insured for rest of your life,
once you outlive the PPT chosen.
4. Bonus available before commencement of Annuity can be profitably invested to fetch
you income additional to annuity installments available under the plan.
5. Policy loans available under the plan offer you additional investment facilities without
effecting any of the policy privileges.
Premium paying term
y 10 or 15 or 20 years ceasing at death, if it occurs early.
Modes of Investment
y Single, Yearly, Half-yearly or Quarterly or Monthly
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Anmol jeevan-I
Life Insurance Corporation Of India¶s Anmol Jeevan-I (Plan No. 164) is a unique plan of
assurance, by far the cheapest policy to buy; cheaper than even a whole life policy to start with.
Anmol Jeevan-I is a pure term cover provides only life cover unlike endowment and money back
policies which have a built-in saving element too.
Eligibility Conditions and R estrictions
Minimum Age at entry: 18 years (completed)
Maximum Age at entry: 55 years (nearest birthday)
Maximum Age at maturity: 65 years (nearest birthday)
Policy Term: 5 years to 25 years
Minimum Sum Assured: Rs.5,00,000/-
Maximum Sum Assured: Less than 25,00,000 /-
(Policies will be issued in multiples of Rs.1,00,000/- for Sum Assured above the minimum Sum
Assured)
Loan: Not available
Surrender Value: Nil
Dating Back : Allowed
Grace Period: 15 days
Payment Of claims:
No Claims concession will be applicable to this Policy.
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Benefits of investing
On Maturity:
On Maturity no amount will be paid to the Policyholder.
On Death:
On death of the Policyholder during policy term, S.A. will be paid to the nominee.
Income tax rebate:
The premium paid towards Anmol Jeevan-I is eligible for tax deduction under section 80C of the
Income Tax Act,1961.
Modes o
f inv
estm
ent
Premium can be paid either in Yearly, Half-yearly & Single Premium.
Example: Mr.ABC takes a policy for 20 years for Rs.20 lakh sum assured.
(a) On survival till maturity, Mr. ABC will not receive any amount.
(b) On death of Mr.ABC during policy term, his nominee will get Rs.20 lakhs S.A.
Jeevan Arogya
It is LIC¶s mediclaim policy available for all Indian Investors for hospitalization in India due
to either accident or sickness for a period exceeding 24 hours. Every block of 4 hours or
more is deemed as one day. It is not a regular life insurance policy. There is no maturity
benefit or death benefit.
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Benefits
1. Hospital Cash Benefit (HSB) under which there is cash reimbursement equivalent to
Applicable Daily Benefit (ADB) that starts with a minimum of Rs 1000/- to Rs 4000/-
per day, increasing by 5% every year, reaching a maximum of 150% . Only Condition for
this reimbursement is, hospitalization either for accident or sickness beyond 24 hours.
Every block of 4 hours is deemed as 1 day. In case of treatment in an ICU, this benefit is
doubled.
2. No Claim benefit ,
3. Major Surgical Benefit (MSB) under which there is cash reimbursement upto MSB
Sum Assured for listed major surgeries,
4. Daily Hospital Cash Benefit (DHCB) under which there is a lumpsum amount equl to
5 times the ADB applicable, regardless of the actual costs incurred for Day Care
Procedure,
5. Cash reimbursement equal to 2 times the ADB per day in case of non-listed
surgeries,
6. Ambulance f acility or Rs 1000/- in lieu of ambulance expenses,
7. Waiver of premium f or 1 year in case of major surgeries.
Premium Paying term
Upto your 80 years of age .
Income-Tax benefit
Premium paid every year enjoys income-tax exemption upto Rs 15,000/- per individual or Rs
30,000/- for the family members
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Reasons to invest
y Medical benefit is available upto your 80 years of age without any interruption,
y Medical benefit can be extended to all family members including parents and parents-in-
law in the age group 0-75 under a single policy,
y 50% of the claim amount can be drawn in advance for meeting surgical procedures
instead of waiting for the claim to be made.
y ADB keeps increasing every year by 5%, reaching a maximum of 150%. As a result,
other benefits like HCB and MSB also stand increased.
y HCB can be availed every year upto a maximum of 30 days or as a lifetime benefit upto
720 days.
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Tax benefits with LIC
INCOME-TAX AND TAX BENEFITS FROM LIFE INSUR ANCE
A] INCOME-TAX R ATES FOR ASSESSMENT YEAR 2011-2012 (FINANCIAL YEAR