LIC Jeevan Tarang policy

LIC Jeevan Tarang policy :
Features of plan: jeevan tarang plan (plan No.178) is introduced w. e. f 17th march 2006. the plan is a whole life plan, which provides annual survival benefit at a rate of 5.5 % Of the sum assured for life time after the chosen accumulation period

Accumulation period:
The plan offer three accumulation periods - 10, 15 and 20 years. A proposer may choose.

Plan parameters
Age at entry: min.0 yrs. (LBD) max 60 yrs. (NBD)
Premium payment
Ceasing age: 70 yr. (NBD)
Age up which
Life cover available: 100 yrs. (completed)
Min. age at the and
Of accumulation period: 18 yrs. (completed)
Sum assured: min. 1 Lac max. no. limit
Premium
In multiples: Rs.5000
Accumulation period: 10,15,20, yrs
Mode of payment: YLY/ HLY/ QLY/ SSS/ MLY/ SP
Accident benefit: Re. 1 extra per
(max. 50Lacs inclusive 1000 S.A.
all plan)
Policy loan: yes
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: yes
CIR: yes

Underwriting condition
Form no: 300/340/360
Age proof: std./ NSAP- 1.2.3
Female lives category: I/II/III
Non-medical (gen): allowed
Non-medical (prof): allowed
Non-medical (special): allowed
Actual sum assured: basic SA
Dating back: allowed @ 9% p.a

BENEFITS:

Survival benefit

The vested simple reversionary bonuses will be payable in one lump sum on survival to the end of the selected accumulation period.

5 ½ % of the sum assured will be payable on survival to the and each year after the accumulation period. The first survival benefit will be payable on survival to one year after the accumulation period is over.
Maturity benefit:

The sum assured, along with vested reversionary bonus is payable in case of death of the life assured during the accumulation period.

In case of death before commencement of risk when the life assured is aged less then or equal to 12 years, the premiums paid will be retuned without any interest. There will be no death benefit either for the basic sum assured or for simple reversionary bonuses since, in such case, the risk for life cover commences after 2 years from the death of taking of the policy anniversary coinciding with or immediately following the date on which life assured completes 7 years of age , whichever is later. After the commencement of risk, the normal death benefit as stated above is payable.

The sum assured along whichever along with loyalty addition, if any payable in case of death of the life assured any time after the accumulation period.
Optional riders (available during the accumulation period only)
Accident benefit rider option (allowed for regular premium policies only):
Accident benefit option will be available under the plan by the payment of conditional premium. Accident benefit rider shall be available for an amount not exceeding the sum assured under the basic plan subject to an overall limit of Rs.50Lakh taking all existing policies of the life assured under individual as will as group schemes including those with in- built accident benefit taken with the corporation and other insurance companies and the accident benefit rider sum assured the new proposal into consideration. This benefit is available under regular premium policies only and it is available under premium policies.

Term assurance rider option: term assurance as optional rider will be available under this plan during the accumulation period. The premium for this option are payable during the premium paying term and an amount equal to term assurance sum assured will be payable on death during the accumulation period. The maximum cover for rider will be Rs.25Lakh under all policies of the life assured with the corporation taken together. The terms and condition applicable to this rider will be as mentioned in circular Ref: Actl/1909/4 dated 24th October 2003.

Critical illness rider option: an amount equal to critical illness rider sum assured will be payable in case of diagnosis of defined categories of critical illness during the accumulation period subject to certain term and conditions. The maximum cover for this rider will be Rs.5Lakh under all policy all policy of the life assured with the corporation taken together. The term and conditions applicable to this rider will be as mentioned in circular Ref: Actl/1906/4 dated 8th October 2003 and Actl/2034/4 dated 13th September 2005.

Premium waiver benefit option under critical illness rider: this is an optional Benefit under regular premium policy which may be opted in case of the following.

The critical illness under has been opted for, and

The sum assured under the basic plan is equal to the critical Illness rider sum assured

The chosen accumulation period is such that the premium payment ceases on or before the policy anniversary at which the life assured completes 60 years (nearest birthday) of age in case the life assured is diagnosed with any of the critical IIInesses covered under the policy, the life total future premium (i. e. premium for sum assured under the basic plan and the premium policy is in full force. All there optional rider benefit mentioned above shall be available during accumulation period only.
Occupation extra: paln can be allowed to persons employed in hazaedous occupation subject to charging appropriate occupation extra for basic sum assured, TA and CI rider sum assured the factor to be applied to each Re.1/- per annum occupation extra premium under single premium policies will be the same as applying to single premium policies Table 48, ie., 8.30, 11.15 and 13.35 for accumulation period 10,15 and 20 years respectively.

Paid-up & surrender vales (GSV SSV): In case of regular premium policies, if after at lest there full year's premium have been paid and any subsequent premium be not duly paid, this policy shall not be wholly viod, but the sum assured by it shall be reduced to such a sum, called paid-up sum assured, as shall bear to the total number of premiums originally stipulated in the policy. The policy so reduced shall thereafter be fore from all liabilities for payment of the within mentioned premium, but shall not be entitled to the future bonuses. The existing vested reversionary bonuses, if any, shall remain attached to the reduced paid-up policy.

In the event of death of life assured during the accumulation period, the reduced paid-up sum assured as defined above, along with vested reversionary bonus, if any, shall be payable. No survival benefit will be payable for a reduced paid-up policy. Provided the life assured is then alive, the vested bonuses and the reduced paid-up sum assured as defined above shall be payable at the end of the accumulation period.

Money back 20 years insurance policy

Unlike ordinary endowment insurance plan where the survival benefits are payable only at the end of the endowment period, this scheme provides periodic payments of partial survival benefits as follows during the term of the policy. Of course so long as the policyholder is alive this plan is best suitable for businessmen and professionals.

In case of a 20-year money-back policy (table 75), 20% of the S. A. become payable each after 5,10,15 year, and the balance 40% plus the accrued should have attained majority.

An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full S.A. without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full S.A.

Plan parameters

Age at entry: Min. 13 yrs LBD, Max. 50 yrs (T- 75) Max. 45 yrs (T-93)
Maturity age: Max.70 yrs.
Sum. in Multiples: 5000, Min. Max No Limit
Term: Min. 20 yrs, Max. 20yrs (T-75) Max. 25yrs (T-93)
Mode of Payment: YLY/HLY/QLY/SSS/MLY
Accident Benefit: Re.1 Extra per
(Max. 50 Lac inclusive 1000 S.A.
All plan)
Policy loan: yes,@ 10.5%
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: yes
CIR: yes

Underwriting condition

Form no.: 300/340
Age proof: std /NSAP-1,2,3
Female lives category: I/II/III
Non-medical (Gen): allowed
Non-medical (pro): allowed
Non-medical (special): allowed
Actual sum assured: basic SA
Rusk coverage: SA + bonus
Dating back@ 8%: Allowed


Benefits

Death benefits: payment of full S.A. + bonus on full S.A. + FAB. If any is paid to the nominee The survival benefit already paid, if any is not deducted.

Maturity benefit: balance survival benefit + bonus on full S.A. + FAB, if any

Example: Ms. Sania Mirza, aged 25 invests Rs.2lac in a money back policy (T.No-75) paying an annual premium of Rs.12,546/- for 20 years period. she receives Rs.40,000 at the end of each 5th, 10th, 15th year. On maturity balance Rs.80,000+ Rs.1,64,000/- (as per bonus rate of 2005 i.e. Rs.41per thousand p.a.)+Rs.4000/- FAB if Ms. Sania dies after 8 year, his nominee will receive S.A. +Bonus without deducting the survival benefit survival benefit already paid to Ms. Sania