LIC’S JEEVAN ANKUR (Plan No. 807)

1. INTRODUCTION:


It has been decided to introduce LIC’s Jeevan Ankur (Plan No. 807) with effect from 23

rd

January, 2012.


This is a conventional with profits plan which is specially designed to meet the educational

and other needs of the child. This plan is allowed to the parents who have a child upto the age

of 17 years last birthday. The risk cover under the plan will be on the life of the parent who will

be the Life Assured. There is no insurance coverage on the life of the child, but the policy term

shall be based on the age of the child. The child will be the nominee under the plan. The term

of the policy can be chosen so that on the date of maturity age of the child is in the range 18

to 25 years last birthday.

2. BENEFITS:

a) Benefits payable on death:

On death of the Life Assured

In case of death of the Life Assured during the policy term, Basic Sum Assured is payable

immediately on death. In addition, an Income Benefit equal to 10% of the Basic Sum Assured

is payable on each policy anniversary from the policy anniversary coinciding with or next

following the date of death, till the end of policy term to the nominee child. Another lump sum

amount equal to Basic Sum Assured is payable on the scheduled maturity date of the policy

along with Loyalty Addition, if any.

On death of child, when Life Assured is alive.

In case of death of the child when the Life Assured is alive, the Life Assured will have an

option to nominate another child/person and the policy will continue with the same benefit - 2 -

payable to new nominee/legal heirs after the death of the Life Assured during the term of the

policy.

On death of child/nominee after Life Assured’s death.

In case of death of the child/nominee after Life Assured’s death, the policy shall continue and

the benefits shall be payable to the legal heir(s) till the end of policy term.

b) Benefits payable on maturity:

At the end of the policy term, an assured maturity benefit equal to Basic Sum Assured along

with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.

c) Loyalty Addition:

Provided the policy is in full force at the time of maturity or on death, whichever is applicable,

then depending upon the Corporation’s experience with regard to the policies issued under

this plan, the policy will be eligible for Loyalty Addition on the stipulated date of maturity at

such rate and on such terms as may be declared by the Corporation.

3. OPTIONAL BENEFITS:

1) Accident Benefit Rider: Accident Benefit (AB) Rider shall be available as optional rider for

a premium at the rate of Rs. 0.50 per thousand Accident Benefit Rider Sum Assured.

Accident Benefit Rider shall be available for an amount not exceeding the Sum Assured

under the Basic Plan subject to the maximum of Rs.50 lakh overall limit considering the

Accident Benefit Sum Assured in respect of all existing policies on the life of the Life

Assured under individual and group policies including the policies taken from Life Insurance

Corporation of India and other Insurance companies and the Accident Benefit Rider Sum

Assured under new proposal into consideration. This benefit will be available for the full

policy term or till the policy anniversary on which the age nearer birthday of the Life Assured

is 70 years whichever is earlier. If this benefit is opted for, an additional amount equal to the

Accident Benefit Sum Assured is payable in case of accidental death.

This benefit is available under Regular Premium policies only and it is not available under

Single Premium policies.

2) Critical Illness Benefit Rider : An amount equal to the Critical Illness Rider Sum Assured

will be payable in case of diagnosis of defined categories of Critical Illness subject to certain

terms and conditions, provided the Critical Illness Benefit cover is opted for and is in force.

The maximum cover for this rider will be Rs.5 lakhs under all policies of the Life Assured

with the Corporation taken together including the new proposal under consideration. The

Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic

Plan. This benefit will be available provided the policy matures on or before the Life

Assured attains 60 years of age. The terms and conditions applicable to this rider will be as

mentioned in our circular Ref: Actl/1906/4 dated 8

th

October 2003 and Actl/2034/4 dated 13

th

September 2005.

3) Premium Waiver Benefit Option under Critical Illness Rider: This is an optional benefit

under Regular Premium policies which may be opted in case of the following:

(i) The Critical Illness rider has been opted for, and

(ii) The Sum Assured under the Basic Plan is equal to the Critical Illness Rider Sum

Assured

(iii) The chosen policy term is such that the policy matures on or before the Life Assured

attains 60 years of age. - 3 -

In case the Life Assured is diagnosed with any of the Critical Illnesses covered under the

policy, the total future premiums (i.e. premium for Sum Assured under the Basic Plan and

the premiums for the Riders opted for) in respect of the policy shall be waived provided the

policy is in full force.

4. ELIGIBILITY CONDITIONS AND FEATURES:

For Basic Plan:

1) Minimum Age at entry for Life Assured : 18 years (completed)

2) Maximum Age at entry for Life Assured : 50 years (nearest birthday)

3) Minimum Age at entry for child : 0 years (last birthday

4) Maximum Age at entry for child : 17 years (last birthday)

5) Minimum Term : Higher of (18 – age of child, 8) years

6) Maximum Term : (25 – age of child) years

7) Minimum Basic Sum Assured : Rs. 1,00,000/-

8) Maximum Basic Sum Assured : No Limit



The Basic Sum Assured shall be in multiples of Rs. 5000/-.

Age at entry for the policyholder is to be taken as age nearest birthday except for the minimum

age at entry i.e. 18 years.

For Accident Benefit Rider:

1) Minimum Entry Age : 18 years (completed)

2) Maximum Entry Age : 50 years (nearest birthday)

3) Maximum Maturity Age : 70 years (nearest birthday)

4) Minimum Accident Benefit Sum Assured : Rs. 25,000/-

5) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured

subject to the maximum of Rs.50 lakh overall limit taking all existing policies of the Life

Assured under individual as well as group schemes including policies with in built

accident benefit taken with Life Insurance Corporation of India and other Insurance

companies and the Accident Benefit Sum Assured under the new proposal into

consideration.

The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000/-.

For Critical Illness Rider:

1) Minimum Entry Age : 18 years (completed)

2) Maximum Entry Age : 50 years (nearest Birthday)

3) Minimum Policy Term : 10 years for Regular premium and

8 Years for Single premium

4) Maximum Maturity Age : 60 years (nearest Birthday)

5) Minimum Critical Illness Rider Sum Assured: Rs. 50,000/-

6) Maximum Critical Illness Rider Sum Assured: An amount equal to the Basic Sum

Assured subject to the maximum of Rs.5 lakhs overall limit taking all critical illness riders

under all existing policies of the life assured and the critical illness rider option under the

new proposal into consideration.

The Critical Illness Rider Sum assured shall be in multiples of Rs. 10,000/-.

- 4 -

5. MODES OF PREMIUM PAYMENT:

The policyholder has the choice to pay premiums either in lump sum or regularly during the

policy term with modes of premium payment Yearly, Half Yearly, Quarterly, and Monthly (ECS

or through salary deductions).

6. PREMIUM RATES:

The tabular premium rates (exclusive of service tax) per thousand Basic Sum Assured are

given in Annexure 1.

The class – I extra premium rates are given in Annexure 2.

7. GRACE PERIOD FOR PAYMENT OF PREMIUM:

A grace period of one calendar month but not less than 30 days will be allowed for payment of

yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. If the death of

the Life Assured occurs within the grace period but before the payment of premium then due,

the policy will still be valid and the benefits are paid after deductions of the said unpaid

premium and also the unpaid premium/s falling due before the next policy anniversary.

If the premium is not paid before the expiry of the days of grace, the policy lapses.

8. REBATES:

The rebates for basic plan are as under:

Mode Rebate:

Rebates are available at the following rates:

Yearly mode : 2% of tabular premium

Half-yearly mode : 1% of tabular premium

Quarterly and SSS mode : NIL

High Sum Assured Rebate:

Single Premium

Sum Assured Rebate (Rs.)

1, 00,000 to 1, 95,000 Nil

2, 00,000 to 4, 95,000 4.00 %o S.A.

5, 00,000 and above 6.00 %o S.A.

Regular Premium

Sum Assured Rebate (Rs.)

1, 00,000 to 1, 95,000 Nil

2, 00,000 to 4, 95,000 2.00 %o S.A.

5, 00,000 and above 3.00 %o S.A.

9. CEIS REBATE:

An employee of the Corporation shall be eligible for a rebate in tabular premium under

Corporation’s Employee Insurance Scheme (CEIS) at the following rates provided policy is not

taken through any Agent/ Corporate Agent/ Broker:

2% of the Single Premium;

5% of Regular Premium for policy term less than 15 years and

10% of Regular Premium for policy term 15 years or more. - 5 -

10. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/ BROKERS &

DEVELOPMENT OFFICER’S CREDIT:

Commission to Agents & Corporate Agents:

Policy Term 1

st

Year 2

nd

& 3

rd

Year Subsequent Years

Single premium 2% - -

8 to 9 years 10% 5% 5%

10 to 14 years 20% 7.5% 5%

15 years & above 25% 7.5% 5%

Bonus Commission: 40% of 1

st

year commission in case of regular premium policy only.

Commission to Brokers:

Policy Term 1

st

Year 2

nd

& 3

rd

Year Subsequent Years

Single Premium 2% - -

8 to 9 years 10% 5% 5%

10 to 14 years 25% 5% 5%

15 years & above 30% 5% 5%

Bonus Commission: No bonus commission is payable to brokers.

Development Officer’s Credit:

Premium Paying term Credit

Single premium 5%

8 to 9 years 30%

10 to 14 years 60%

15 years & above 100%

11. PAID-UP VALUE:

Under regular premium policies, if after atleast three full years’ premium 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. The Basic Sum Assured under the policy shall be reduced to such

a sum, called Paid-up Sum Assured, as shall bear the same ratio to the Basic Sum Assured

as the number of premiums actually paid bears to the total number of premiums originally

stipulated for in the policy. This Paid-Up Sum Assured shall be payable on the date of maturity

or on Life Assured’s prior death.

The policy so reduced shall thereafter be free from all liability for payment of the within

mentioned premium.

Notwithstating what is stated above, if atleast 3 full years’ premiums have been paid in respect

of this policy, and any subsequent premium be not duly paid, in the event of the death of the

Life Assured within six months from the due date of first unpaid premium, the policy moneys

will be paid as if the policy had remained in full force after deduction of (a) the premium or

premiums unpaid with interest thereon upto the date of death on the same terms as for revival

of the Policy during such period, and (b) the unpaid premiums falling due before the next

Policy anniversary.

Notwithstating what is stated above, if at least five full years' premiums have been paid in

respect of this policy, any subsequent premium be not duly paid, in the event of death of the

Life Assured within 12 months from the first unpaid premium, the policy moneys will be paid

as if the policy had remained in full force after deduction of (a) the premium or premiums - 6 -

unpaid with interest thereon upto the date of death on the same terms as for revival of the

Policy during such period, and (b) the unpaid premiums falling due before the next Policy

anniversary.

In case of death of life assured under a paid-up policy, Paid-Up Value shall be paid

immediately on death. Thereafter, neither Income Benefit nor Paid-Up Value on maturity shall

be payable.

Accident Benefit and Critical Illness riders will cease to apply if the policy is paid-up.

12. GUARANTEED SURRENDER VALUE:

The Guaranteed Surrender Value available to the Life Assured will be as under:

i.) Single Premium Policies: The Guaranteed Surrender Value will be available after

completion of atleast one policy year and is equal to 90% of the premium paid excluding

extra premium, if any.

ii.) Regular Premium Policies: The Guaranteed surrender value will be available after

completion of three policy years and atleast three full years’ premiums have been paid and

is equal to 30% of the total premiums paid excluding the premiums paid for the first year

and all premiums in respect of optional rider(s) and extras, if any.

Surrender of policy will not be allowed after the death of life assured.

13. SPECIAL SURRENDER VALUE:

Special surrender value will be payable to the life assured, if it is more favorable to the

policyholder. The Special Surrender Value will be the discounted value of the Paid-up Sum

Assured (as defined in Para 11). The discount factors shall be the surrender value factors

used for Endowment Assurance plan.

Surrender of policy will not be allowed after the death of life assured.

14. REVIVALS:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy may

be revived within a period of 5 years from the date of first unpaid premium or before the date

of maturity, whichever is earlier, by payment of full arrears of premium together with interest at

such rate as may be prevailing at the time of the payment and subject to submission of proof

of continued insurability of the Life Assured to the satisfaction of the Corporation.

The Corporation reserves the right to accept at original terms, accept at revised terms or

decline the revival of a discontinued policy. The revival of discontinued policy shall take effect

only after the same is approved by the Corporation and is specifically communicated to the life

assured. Riders shall be revived along with the basic plan and not in isolation.

15. LOANS:

No loan facility will be available under this plan.

16. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS :

U & R department will issue instructions. - 7 -

17. SUICIDE CLAUSE:

This policy shall be void if the Life Assured commits suicide (whether sane or insane at that

time) at any time within one year from the date of commencement of risk and the Corporation

will not entertain any other claim by virtue of this policy except to the extent of a maximum of

90% of single premium paid excluding any extra premium (in case of single premium policies

only).

18. SERVICE TAX:

Under this plan, the amount of service tax as per the prevailing rates shall be payable by the

policyholder on premium(s), as and when the premiums are paid.

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as

applicable from time to time.

The instructions regarding issues related to service tax will be issued by Finance & Accounts

Department, Central office, separately.

19. NORMAL REQUIREMENTS FOR CLAIM:

The normal documents which the claimant shall submit while lodging the claim in case of

death of the Life Assured shall be the claim forms accompanied with original policy document,

proof of title, proof of death, proof of accident/disability, medical treatment prior to death,

employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age

is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.

On maturity or on earlier surrender, the Life Assured shall submit the discharge form along

with the original policy document besides proof of age, if the age is not admitted earlier.

20. COOLING-OFF PERIOD:

If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may

return the policy to the Corporation within 15 days from the date of receipt of the policy.

The refund of premium to the policyholder subject to following deductions:

1. Stamp duty on policy;

2. Actual cost of medical examination and special reports, if any;

3. Mortality charges as per c.o. circular ref: Actl/1819/4 dated 23.08.2002. For

substandard lives, the mortality charge shall be increased by multiplying with the

factor given in above said circular;

4. If Accident Benefit Rider has been opted for, the premium shall be charged at the

rate of 4.17 paisa per month corresponding to Re. 0.50 per thousand sum assured

per annum AB premium.

21. BACK-DATING INTEREST:

The policies can be dated back within the financial year, as usual. Back-dating interest will be

charged at the prevailing rate at the time of completion of policy for dating back in excess of

one month. The interest shall be charged even where the policy is back dated to a lean

month.

22. POLICY STAMPING:

Policy stamping charges will be 20 paise per thousand Basic Sum Assured under this Plan. - 8 -

23. REINSURANCE:

Normal procedure for Reinsurance will apply.

24. ASSIGNMENTS/NOMINATIONS:

The named child under the policy shall be the nominee. An appointee shall be required to be

mentioned in the policy to exercise the powers of nominee after the death of Life Assured such

as receiving sum assured on death and Income Benefit till the nominee is a minor. No change

in nomination shall be allowed till the child nominee named under the policy survives. In case

of death of child during the policy term, the Life Assured may nominate another person.

Assignment will not be allowed under this plan.

25. ACCOUNTING PROCEDURE:

Instructions regarding the accounting procedure to be followed under the plan shall be issued

separately by Finance & Accounts Department, Central office.

26. PROPOSAL FORM :

Proposal Form No. 300 will be used under this plan. An additional declaration regarding

nomination is required to be filled up and enclosed with the proposal form as an addendum.

The specimen Declaration Form is enclosed in Annexure 3.

27. POLICY DOCUMENT :

The specimen Policy Document will be sent by the Corporate Communications Department,

Central Office.