LIC – Life Insurance Corporation of India

LIC – Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is a Government of India enterprise and is said to be the largest life insurance company and also the largest investor in the country. It was founded in the year 1956 and has been serving people ever since. The main objective of this corporation was to spread awareness about life insurance among financially backward people as well as urbanites. it gave you a way to save and buy affordable packages which would eventually be beneficial for you.

LIC of India has made its mark in the country for years. The main headquarters of LIC is in Mumbai with approximately eight zonal units and over 2048 branches established across the country. It has subsidiary groups in more than twelve other countries with the same objective in mind. It has helped millions of lives in the past 55 years.

The basic plan is that where the payment of a specified amount of money to the insured person is made, at the plan’s maturity, or to the family in the event of the insured person’s death. Often you don’t realize the importance of your life, LIC has made its prime objective to make sure people know the importance of their life and keep their future safe by investing in different policies of LIC as per their requirements. The insecurity of people is fully taken care of by the LIC.

Most of the policies do not care about the future of the individual. But LIC takes care of the whole endowment policy by providing a bonus that is accumulated with the policy. LIC offers various plans for its policyholders such as; Endowment plans, children plans, special plans for handicaps, money back plans, whole life plans, pension plans, group plans, health insurance plans. All these plans are specially designed for the welfare of the people.

Due to the formulated plans and objectives of the LIC Corporation, it has hit the mark where most insurance companies never reached. They have stayed as the biggest competitor and therefore have been termed as one of the biggest Life Insurance in the republic.

Important Dates:

  • LIC was founded on September 1, 1956, hence Every year LIC celebrates 1st September as LIC day and
  • The first week of September is Insurance Week.

Jeevan Varsha – Unique Money Back Plan

LIC Jeevan Varsha Summary:

Jeevan Varsha (Plan No. 196) is a money-back plan with Guaranteed Additions and Loyalty Additions if any.
Jeevan Varsha is a close-ended plan and it would be open for sale from 16th February 2009 to 31st March 2009.

1. Features:

  • Short-Term Money-Back for 9 Years or 12 years.
  • Policy Term for 9 Years or 12 Years
  • Assured Money-Back every 3 years (Survival Benefit)
  • Guaranteed Returns – Rs.65 per Thousand for 9 Years and Rs.70 per Thousand for 12 Years
  • Complete Risk Coverage throughout the Tenure
  • Profit-Sharing through Loyalty Additions.

2. Benefits:

A) Death Benefit:
On death during the policy term excluding last policy year:  Sum Assured with accrued Guaranteed Additions.
On death during last policy year:  Sum Assured with accrued Guaranteed Additions along with Loyalty Addition if any.

B) Survival Benefits in Jeevan Varsha:

Survival benefits will be payable as given below:

Survival at end of 9-year plan12-year plan
3rd year15% of Sum Assured
10% of Sum Assured
6th year25% of Sum Assured20% of Sum Assured
9th year60% of S.A +G.A + L.A30% of Sum Assured
12th yearNA40% S.A+ G.A+ L.A

c) Maturity Benefit

For policy term of 9 years: 60% of the Sum Assured along with Guaranteed Additions and Loyalty Addition, if any, will be payable.

For policy term of 12 years:  40% of the Sum Assured along with Guaranteed Additions and Loyalty Addition, if any, will be payable as described in the above survival benefit table.

D) Guaranteed Addition:

The Guaranteed Addition will accrue for each policy year at the following rates:

– Rs. 65 per thousand Sum Assured per year for a policy of 9 years term.

– Rs. 70 per thousand Sum Assured per year for a policy of 12 years term.

In case of a death claim or surrender of a fully paid-up policy (applicable for a policy term of 12 years), the Guaranteed Additions for the policy year of death or surrender will be added fully.

In the case of surrenders and paid-up policies, the Guaranteed Additions for the policy year in which the last premium is received will be added on a proportionate basis. For example, if two months’ premiums have been received for the policy year, then 2/12th of the Guaranteed Additions for that policy year shall be added.

E) Loyalty Addition:

Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the Corporation.

Eligibility Conditions and Restrictions Jeevan Varsha:

a) Minimum Sum Assured: Rs.75,000/- for ECS monthly mode OR Rs 50,000/- for other modes

b) Maximum Sum Assured: No limit

c) Minimum age at entry: 15 years completed.

d) Maximum age at entry: 66 years (nearest birthday) for the policy of term 9 years 63 years(nearest birthday) for the policy of term 12 years

e) Maximum age at maturity: 75 years nearest birthday

f) Policy Term : 9 & 12 years

g) Premium Paying Term:9 years

The Sum Assured shall be in multiples of Rs. 5,000.

Age at entry for the life assured is to be taken as age nearest birthday except for the minimum age at entry i.e. 15 years.

4. Modes of Premium Payment :

You can pay premium Yearly, Half-yearly, Quarterly, and Monthly (through ECS only)

Grace Period For Payment Of Premium:

A grace period of one 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 death occurs within this period and before the payment of the premium then due, the policy will still be valid and the Sum Assured shall be paid after deduction of the said premium as also unpaid premiums falling due before the next Policy anniversary.

If a premium is not paid before the expiry of the grace days, then the Policy will lapses.

5. Rebates (Discount):

Mode Rebates:

Rebates are available at the following rates:
Yearly mode: 2% of tabular premium
Half-yearly mode: 1% of the tabular premium

Sum Assured Rebates:

Sum Assured
Rebate
Less than Rs.1, 00,000Nil
Rs 1, 00,000 to Rs 1, 99,999Rs 2.00
Rs 2, 00,000 ato Rs. 4,99,999Rs 3.50
Rs. 5,00,000 and aboveRs 5.00

6. Paid-Up Value:

If after at least 3 full years’ premiums have been paid in respect of this policy and any subsequent premium be not duly paid, this policy shall not be wholly void but shall subsist as a paid-up policy for a reduced sum.

7. Guaranteed Surrender Value:

The Guaranteed surrender value will be available after the expiry of 3 policy years, provided the premiums have been paid for at least three years. The guaranteed surrender value allowable under this policy is equal to 30 percent of the total amount of the premiums paid excluding the premium for the first year, all extra premiums that may have been paid and the number of survival benefits paid earlier. The cash value of any existing guaranteed additions will also be payable.

Jeevan Varsha Special Surrender Value:

The special surrender value will be payable if it is more favorable to the policyholder. The Special Surrender Value will be the discounted value of the Sum Assured and Guaranteed Additions accrued. The discount factors shall be the special surrender value factors used for the Endowment Assurance plan, which will depend on the policy term and the duration elapsed since the commencement of the policy. The cash value of any existing guaranteed additions will also be payable.

10. Loans:

A loan facility will be available under this plan after the policy acquires paid-up value.
The rate of interest charged for this loan amount would be determined from time to time by the Corporation (LIC Of India).


Update: Plan No. 196 Has Been Discontinued.