Loyalty Addition in Jeevan Saral policy for 2016-17

Loyalty Addition in Jeevan Saral policy for 2016-17

LIC, Life Insurance

Bonus rates of LIC of India for the year 2016-17 has been declared on 1st September 2016 for all its participating policies. Loyalty Addition (LA) of all the eligible policies are declared too, including Jeevan Saral (Plan No. 165). Loyalty addition in Jeevan Saral Policy is available when the policy exit through death, maturity or surrender after 10 years.

Loyalty Addition (LA) in Jeevan Saral (Plan No. 165) of LIC of India

Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral. In the case of the partial surrender annual premium band must be calculated on reduced premium.

This year loyalty addition declared in Jeevan Saral is more than the loyalty addition declared last year, you can compare both the rates are given below.

Loyalty addition rates declared previous year (2015-2016) are given below

Loyalty Addition in Jeevan Saral  Policy (Plan No. 165) for the year 2015-2016

For the purpose of determining the rate of loyalty addition for exits by death or surrender or maturity the duration in completed years for which premiums have been paid shall be considered. In the case of partial surrender in policy, the benefits will be proportionately reduced.

How to calculate Loyalty addition in Jeevan Saral

There are two types of Sum Assured in Jeevan Saral a) Death Sum Assured, b) Maturity Sum Assured. To calculate loyalty addition in your policy refer your policy bond to know the Maturity Sum Assured. Also refer premium of your policy and calculated annual premium of your policy (if other than yearly Mode).

Formula to calculate loyalty addition: (Maturity Sum Assured/1000)* Rate of Loyalty Addition as per                                                                                                                                         annual premium band

Note: Maturity Sum Assured on policy bond is written according to the term you have chosen at proposal stage. It will not be used to calculate loyalty addition while surrendering the policy before term.

Under Plan 165, provided at least 10 years premiums have been paid under the policy and policy has been in force for at least 10 years, the loyalty addition is payable on exits by maturity or death or surrender per thousand maturity sum assured for the complete duration for which the premiums have been paid.

Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Loyalty Additions provided other qualifying conditions are satisfied

LIC of India’s Bonus rates declared for 2016-17

LIC of India’s Bonus rates declared for 2016-17

LIC, Life Insurance

This year LIC of India has declared Bonus rate for all its with profit policies before the usual time as LIC is celebrating its Diamond Jubilee year. Every year Actuarial Department of LIC do the valuation and declares the bonus rates. These bonus rates are applicable for policy year entered upon during the inter-valuation period i.e. 01/04/2015 to 31/03/2016 and in force for full sum assured as on 31/03/2016. It will be applicable to policies resulting from claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2016.

Life Insurance Corporation of India has also declared the One time Diamond Jubilee Bonus.

Latest: LIC of India’s Bonus rate declared for 2017-18

Final additional bonus (FAB) and Loyalty addition (LA) are also declared with reversionary bonus rate. FAB and LA are not applicable to each policy. They are paid as per the policy conditions and depend on the Sum assured and policy term.

How to calculate Bonus in your policy

Example: If you have a New Jeevan Anand Policy (Table No. 815), Sum Assured: Rs. 500000, Term: 21 years.  Bonus calculations Formula: (Sum Assured/1000)*Bonus rates

Bonus in above mentioned plan: (500000/1000)*49 = Rs. 24500.

Bonus Rates declared by LIC of India

The rates of Simple Reversionary Bonus declared in respect of participating policies issued by Life Insurance Corporation of India are as given in the table below

The above reversionary bonus rates are applicable for policy year entered during the inter-valuation period i.e. 01/04/2015 to 31/03/2016 and in force for full sum assured as on 31/03/2016. Bonus rates will be applicable to the policies resulting from claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2017.

No cash bonus rate has been declared in respect of New Jeevan Akshay – I (Plan 146).

For General Annuity / Pension policies (Plans 147, 148 & 169), the bonus rates are applicable only during the deferment period. The bonus rates in case of Plan 147 & 148 are not applicable for policies exiting by death during the deferment period. However, the cash value of bonuses is payable in case of surrenders during the deferment period.

No bonus has been declared for any other General Annuity or Pension plans.

Disclaimer: I have taken utmost care while entering the bonus rates, but in the case of error or any ambiguity please consult your LIC Branch. 

All you need to know about sites comparing insurance products

All you need to know about sites comparing insurance products

General Insurance, IRDA Updates, Life Insurance

You might have come across many websites which are comparing the insurance plans premiums and collecting data about the interested person through their online portals. These sites are called Web Aggregators.

“Web Aggregator” – For the purpose of these guidelines, a web aggregator is a Company registered under Companies Act, 1956 (1 of 1956), approved by the Authority under these guidelines, in whose behalf a website offers information pertaining to insurance products and / or price comparisons of products of different Insurers.-IRDA(Web Aggregators) Regulations, 2013

Do you know that all the sites which are working as Web aggregators have to be registered with IRDA and only after the approval of the IRDA any website can work as Web Aggregators? A Web Aggregator cannot be an insurance agent.

You can find the list of IRDA approved web aggregators at the end of this post, as published by IRDA on 24/08/2016 on its websites.

IRDA has laid down the regulations about the Web Aggregators called as IRDA(WebAggregators) Regulations, 2013; these regulations are about the registration process, lead generations, affiliation with insurers, the number of insurers that an aggregator can work with, sharing of information collected through websites with insurers and many others.

As per the regulations a Web Aggregator has to follow these points:

  1. Web aggregator shall display on the website the premium rates and Key Features of the insurance products of all the Insurers for each class of insurance business.
  1. The price comparisons that are displayed shall be up to date and reflect a true picture of the products.
  1. If you have provided your information on a web aggregators site but didn’t show your interest in any particular insurance product/company, then a web aggregator can share your information with maximum up to 5 insurers in same insurance class (life/nonlife/health). He can also share your information in these case to any insurance broker but not to both.
  1. Web aggregator has to transmit the data of clients to Insurer/Broker:
    1. within five days of the client’s visit to the website.
    2. must be secured from unauthorized access and misuse;
    3. with a reasonable level of suitability, reliability, and correctness;
    4. in compliance with generally accepted security procedures;
  1. Web aggregator can only transmit any leads generated through clients visiting their sites
  2. If a lead was given to an insurer/broker convert into a sale then insurer/broker pay the remuneration to web aggregator which is not more that 25% of the first-year premium.

Obligations of web aggregators

  1. Web aggregator should display the particulars of the validity of approval obtained from the IRDA on its website.
  2. Web aggregator must state clearly and unequivocally that insurance is the subject matter of solicitation.
  3. At no point of time of its functioning, a web aggregator shall have net worth below rupees fifty lakhs
  4. At no point of time of its functioning, a web aggregator shall have the referral arrangement with any Insurer.
  5. Web aggregator shall maintain the records and the reports of its activities under the agreement with insurer / broker, in the manner specified in the agreement entered into between the insurer / broker and the web aggregator.
  6. Web aggregator shall along with its employees (whatever their designation may be) comply with all the provisions of the Act, the IRDA Act, 1999, the rules and regulations framed thereunder and such other directions issued by the IRDA from time to time.

You can find the list of approved Web Aggregator below:


LIC changed agency MBG criteria for agents

LIC changed agency MBG criteria for agents

LIC Agents, Life Insurance

Ahead of its Diamond Jubilee year Life Insurance Corporation of India has given a good gift to its agents by changing various norm related to MBG criteria and eligibility norms related to recruitment of agent. This step will be beneficial for both agents as well as Development Officer of LIC. Earlier the MBG criteria for the LIC agents was 12 lives and . 100000/- FYPI  in an agency year.

It will not only help the LIC to retain more agents but also help its Development Officers to recruit more agents as the overall eligibility criteria of minimum qualification of agent reduced to 10th compared to 12th in urban areas and 10th in rural areas. Other than the changes made by LIC, all the other conditions will be governed by the LIC Agents Rules (1972)

Here are the key changes which were approved by the LIC board related to agency matter:

Agency Performance Review policy (MBG Criteria):

  1. The Minimum Business Guarantee norms (MBG Criteria) to be achieved by agents during the agency year :
    An agent has to procure –
    EITHER 6 lives AND .50,000/- FYPI
    OR  12 lives
    OR . 1 Lac FYPI.                                                                                                                                                           Notwithstanding the above, an agent shall be exempt from bringing in the business
    required of him, if he has continually worked for the Corporation as an agent for a
    period of:

    • not less than 21 years ; or
    • at least fifteen years and he is at least 55 years of age; or
    • fifteen years and at any time subsequent thereto there is a business in force in the books of the Corporation under his agency yielding a renewal premium income of not less than Rs. 2,00,000 per annum.
  2. The criteria for termination of agency for failure to achieve the Minimum Business Guarantee:
    If an agent fails to bring in the business required of him as specified in 4(a) above in
    an agency year, his appointment shall stand terminated at the end of such agency year
    under the provisions of Agents Rules, 1972.
  3. The criteria for re-appointment / reinstatement of agents terminated for failure to achieve the Minimum Business Guarantee: As per Agents Rules, 1972 and amended from time to time
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Eligibility conditions for Appointment of Insurance Agents:

  1. Eligible Age:

    An applicant must be at least 18 years of age on the date of the application.

  2. Eligible Educational Qualifications:

    Passed minimum Class X (matriculation examination), or equivalent examination from
    a recognized Board or Institution.

  3. Interview Procedure :

    Branch Manager to interview all applicants.

Pre-Recruitment training on Insurance to Applicants:

Pre-recruitment Insurance Training (online or offline) to equip the prospective agents
with the insurance, knowledge to appear for insurance agency examination –

  • for life insurance agent –

    25 hours of classroom training; and 25 hours of practical training in accordance with the syllabus prescribed by the authority in life [in Branch Office – the respective Development Officer to impart training and certificate of successful practical training to be issued either by Development Officer or ABM(S)]or BM (S) ; 25 hours of classroom training at the time of renewal of agency (as appointment will have to be renewed after every 3 years);

  • for a composite agent with respect to the Life aspect –

    25 hours of classroom training; and 25 hours of practical training in accordance with the syllabus prescribed by the authority in life As regards Non-Life part, training needs will depend upon the respective Insurers. The Training will be valid for a period of 6 months.

Skill Development Training:

Agents shall be exposed to various training for the purpose of Skill Development including those conducted by National Skill Development Council (NSDC), Government of India, BFSI SSC Financial Sector Skill Council in a phased manner.

Other than MBG criteria and  above-mentioned points all other conditions related to LIC agents are according to LIC agents rule 1972 and other circular related to agency conditions and benefits issued later on by LIC. To know more about other changes approved by Board of LIC click the link provided next Board Approved Policy on Agency Matters

Direct debit facility for LIC premium payment

Direct debit facility for LIC premium payment

Life Insurance

Have you missed to deposit your last LIC premium on time? Do find remembering the premium due dates a tiresome process? Do you have multiple policies with different due dates? You want to take policy in ECS mode but your bank is not connected to any ECS center? Then Direct debit facility is the solution for you, only requirement is you must have a bank account in ICICI, corporation bank or State bank of India. Till now LIC of India have tie up with these three banks only for Direct Debit.

This facility is different than the ECS system in which clearing house is also involved, while direct debit is a provision between LIC and bank, on due date bank deduct the premium from your account and deposit in the account of LIC of India pool account with same bank. After the LIC received your payments in its account it is then appropriated in your policy. Direct debit facility can be availed in any branch of ICICI, corporation and SBI even if they are not connected to ECS system. Even in through rural branched of these bank direct debit facility can be enabled. Direct debit facility is available for both new and existing policy holders of LIC of India.

Process of enabling direct debit facility is very simple.

  1. Fill the form of  debit facility in 2 copies
  2. Submit one to bank (ICICI, Corporation or SBI)
  3. Get the other copy attested and submit to LIC of India (Bank may charge for attestation as per their rules). Submission of attested mandate form to LIC of India is very important, LIC do not accept unattested mandate form.

Other important things about direct debit facility

  1. Debit facility can be taken at any stage of policy and for any mode of premium payment
  2. Bank account must have sufficient balance on debit date
  3. Under this facility, only positive/honoured transactions will be accounted.
  4. If dishonored due to reason “Insufficient balance” then dishonors charges Rs. 125 per transaction will be charged by LIC of India.
  5. If any due is dishonored, payment for the dishonor due and all the installments due up to the date of payment are to be paid in cash or DD at any LIC Branch cash counter.
  6. Debit facility will benefit the policy holders at locations where there is no ECS clearing house.

To download mandate for Direct debit facility Click Here

Types of revival for lapsed LIC policies

Types of revival for lapsed LIC policies

LIC, Life Insurance

To keep the risk cover in force in your LIC policy a policyholder must pay his/her insurance premium on time or within the grace period. If a policyholder failed to do so then his policy became lapse, and no risk cover is available under that policy.

To restart the risk cover in the policy, a policyholder has to revive the policy by paying all the due premiums up to the date of revival.

Nowadays policies can be revived in other branches if the policy is to be revived on DGH and Medical Report only. If there is any special medical report is called for then policyholder has to visit his servicing branch to revive his/her policy. But sometimes it’s not possible for the customer to deposit all the due premiums to revive his/her policy, to make the revival process easy and convenient, LIC have different types of revival scheme so that customers can revive their policy to restart the risk cover.

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Types of Revival Schemes in LIC

There are five types of  schemes are available in LIC of India. These are Ordinary Scheme, Special Scheme, SB cum Revival scheme, loan cum revival scheme and installment revival scheme.

Ordinary Revival Scheme

Its the simplest scheme of all, all you have to do is to visit your servicing branch, get the revive quotation from the branch and deposit all the due premiums in your policy with DGH (Declaration of Good Health) or special medical report wherever applicable as per age and sum to be revived.

Special Revival Scheme

Sometimes it is not possible to pay all the due premiums due to huge amount to revive policy, and policy holder do not want to loose the money he has already paid as premium in particular policy (Majority of the policies acquire paid up value after premium have been paid for full three years and 3 years completed in policy). For customer who’s policy have not acquired paid up value (Premium is not paid for 3 years) and policy is in lapsed condition for not less than 6 months and not more than 3 years (6 months < FUP > 3 years), the policy can be revived under Special Scheme.

Under this scheme Date of commencement can be increased up to 2 years of original date of commencement and

  • other requirements will be same as of ordinary scheme
  • the difference of new and old premium must be deposited with any due premium
  • Since DOC and maturity date will shift, consent of policyholder is required
  • endorsement fee of Rs. 50 and policy bond for endorsement is required
  • this type of revival can be done once in policy term
  • Policies under withdrawn plans can be revived under this scheme, even if the new date of commencement falls beyond the date of withdrawal of the plan provided the other conditions applicable for the scheme are satisfied.
  • Some policies are not allowed under this scheme.
  • For policies issued before 01/01/2014, a new date of commencement (DOC) should not be later than 31/12/2013. (As per LIC circular CO/CRM/1012/23 dated 17/03/2016)

As per the LIC of India circular CO/CRM/1012/23 dated 17/03/2016, Special Revival scheme is not available to new plans launched on or after 01/01/2014.

Loan-cum-Revival Scheme

Under this scheme, the policyholder can take the loan in his/her policy and that loan amount is adjusted in premiums. It is not necessary that your policy has acquired paid up value, even policy where paid up value is not acquired can be revived. The loan amount is calculated as if the policy is in force condition till the date of revival. Very useful scheme if the policyholder is not able to pay lump sum revival amount from his pocket at that time.

Survival Benefit cum Revival Scheme

The revival of money back policies can be allowed under ordinary revival by taking into account the amount of survival benefit that had fallen due. The policyholder has to submit usual revival requirements, S.B. discharge form and policy document.

This scheme is allowed for

  1. Survival benefit amount is more than revive amount and balance amount after utilizing amount for revivel is payable to policyholder
  2. Survival benefit amount is less than revival amount. However, shortfall amount will be required to be paid by policyholder

Revival By Installment Method

Under this scheme, the amount is spread over the next two year. Revivl under this scheme will be permitted-

  • for the policyholder who is not in a position to pay the arrears of premiums in one lump sum and policy cannot be revived under special scheme.where the arrears of premiums are for more than 1 year.
  • There is no loan outstanding under the policy at the time
  • No survival benefit falls due during the installment paying period of revivl
  • The arrears of premiums will be calculated in the usual manner as under ordinary scheme. Depending upon the mode of payment, life assured has to pay initially 6 Monthly premiums, 2 Quarterly premiums, 1 Half-premium , or ½ of Yearly premium. Balance of the arrears will be spread over in the remaining premium due date in current policy anniversary and two full policy anniversary thereafter

To download DGH (Declaration of Good Health) Form No. 680 Click Here

How to protect yourself from insurance frauds

How to protect yourself from insurance frauds

Life Insurance


Lots of Insurance frauds are in the news of various newspapers, Fraudsters using various means to cheat people, they are using phone calls claiming themselves officers of IRDA, preparing duplicate policy bonds, imposing as an insurance agent with false ID cards and much more that we cannot imagine.

Insurance scam: Crime branch arrests man for duping former government employee off Rs 77 lakh

Fake LIC agents dupe techies with bogus IDs-The Times of India

Insurance scam: IRDA warns against fraudulent agents who mis-sell products with refund baits-DNA

One can only protect himself from these insurance frauds by being vigilant.

Anyone can become the victim of these insurance frauds, so how to keep yourself protected from these insurance frauds.

Points to keep in mind to protect yourself from Insurance frauds

  1. Always update your contact details in your policy with your insurer like your mobile no. email ID and correspondence address, so that you can get all the messages sent by insurer related to your policy, like premium due dates, registration of NEFT details, payments under your policy,  changes in your policy or any other alteration in your policy.
  2. Do not fall prey of rebate in insurance premium, people often hand over cash to agents deducting rebate and become an easy prey of fraudsters.
  3. No insurance company declare bonus to one customer and not to other and never ask you to deposit money in any account to get the bonus. Do not fall prey of these calls and claims.
  4. Keep your policy bond in a secure place and share it with your spouse/or trusted person only.
  5. Never hand over you policy bond to anyone in any case, until unless you know the person very well and his where about or to your old and regular insurance agent (keep in mind not only old but regular insurance agent)
  6. Never engage yourself in any phone calls claiming themselves from IRDAI. IRDAI never calls any policyholder for payment of bonus or to tell you about how your insurance agent is cheating you. If you get the call just go to you branch and check the status of your policy and report about the call to officials of an insurance company.
  7. Add you bank account details to all of your policies not matter how long is the maturity date.
  8. If any new insurance agent contacts you for new plans don’t take the policy immediately in one visit. Check his ID card and confirm with the concerned branch, before his second visit. If it’s confirmed that he/she is a genuine insurance adviser then only consider taking policy from him.
  9. Never hand over cash to any new/unknown insurance agent for new proposal/renewal premium to avoid insurance frauds. Pay through account payee cheque only, clearly mentioning Company name and amount in it. Always write the purpose of issuing cheque behind it like, “For new proposal in the name of ******* for policy 820-20-15, sum assured Rs. 500000, annual premium Rs. *******” or “for renewal premium of policy/policies no. ******
  10. Take follow-up after issuing cheque after two-three days if you do not receive any message from an insurance company. (Nowadays all insurer send message for completion of new proposal to customers mobile no.)
  11. If you always give cash or cheque to your agent for deposit of premium then at least check the status of your policy in every 6 months.
  12. Create your online account with the insurer to know the status of your policies anywhere and anytime you want.

One can never know what type of mediums and means these fraudsters are using, you can only be vigilant to avoid such type of insurance frauds.

LIC’s New Plan Jeevan Labh (Plan no. 836)

LIC’s New Plan Jeevan Labh (Plan no. 836)

LIC, Life Insurance

LIC of India’s Jeevan Labh (Plan No. 836) is a limited premium paying, non-linked, with-profit endowment assurance Plan. Unique identification number (UIN) of Jeevan Labh plan is 512N304V01. This policy is available from a child of 8 years old to a person of age 59. The main feature of this plan is a very limited premium payment option, for the 16-year policy term customer have to pay the premium for 10 years and for 21 and 25 years of policy term policyholder have to pay the premium for 15 and 16 years respectively.

Benefits of Jeevan Labh Plan

Benefits payable under an inforce policy are:

Death Benefit

On the death of the life assured during the term of the policy, the Death Benefit defined as the sum of “Sum Assured on Death” and vested simple reversionary bonuses and Final Additional Bonus, if any, shall be payable.

Where “Sum Assured on Death” is defined as the higher of 10 times of annualized premium or absolute amount assured to be paid on death i.e. Basic Sum Assured.

This death benefit shall not be less than 105% of the total premiums paid as on date of death.

Premium mentioned above will not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium if any

हिन्दी में पढें: एल आई सी की नयी योजना जीवन लाभ (तालिका क्र. 836)

Maturity Benefit in Jeevan Labh

On survival to the end of the policy term, “Sum Assured on Maturity” along with vested simple reversionary bonuses and Final Additional bonus, if any, shall be payable. Where Sum Assured on Maturity is equal to Basic Sum Assured (BSA)

Optional Benefits

  1. LIC’s Accidental Death and Disability Rider UIN (512B209V01): If this benefit is opted for an additional amount equal to the Accidental Benefit Sum Assured is payable on death due to an accident, provided the rider is in full force at the time of the accident.
  2. LIC’s New Term Assurance Rider UIN (512B210V01): If policyholder opts for this rider then, an amount equal to Term Assurance Rider sum assured will be payable to on the death of the Life Assured during the policy term, provided the rider cover is in full force at the time of death.

Other conditions and policy feature of Jeevan Labh

  1. Policy will acquire paid up value if at least 3 full years’ premiums have been paid
  2. Jeevan Labh policy can be surrendered at any time during the policy term provided at least three full years’ premium have been paid
  3. Loan facility is available under this plan, after payment of premiums for at least 3 full years subject to conditions: Maximum loan for inforce policy-90% of surrender value and for paid up policies 80% of surrender value.
  4. Policy can be taken from backdate up to current financial year
  5. Nomination and assignment in this policy are available
  6. policy can be revived within the 2 years of First Unpaid Premium (FUP) by paying all the due premiums

LIC of India’s New insurance plan “Jeevan Tarun” (Plan No. 834)

LIC of India’s New insurance plan “Jeevan Tarun” (Plan No. 834)

LIC, Life Insurance

The new policy is named as Jeevan Tarun (Plan No. 834), and it’s a non-linked, with profit, limited premium payment policy, specially designed to meet the requirement of growing children. Premium paying term is 5 years less that the policy term. In this plan, proposer can choose any of the four options for survival benefit between the 20 to 24 years of child age and the maturity at the age of 25 years of child’s age.

The four options are as follows:

OptionSurvival BenefitMaturity Benefit
Option 1No survival benefit100% of Sum Assured
Option 25% of Sum Assured every year for 5 years75% of Sum Assured
Option 310% of Sum Assured every year for 5 years50% of Sum Assured
Option 415% of Sum Assured every year for 5 years25% of Sum Assured

Benefits of Jeevan Tarun Policy:

Benefits payable to an inforce Jeevan Tarun (834)policy are as under

Death Benefit:

On death before the date of Commencement of risk:

The death benefit is paid as the total amount of Premiums paid excluding taxes, extra premium and rider Premiums (if any).

On death after the date of Commencement of risk: Death benefit is paid as Sum Assured on death + Vested Simple Reversionary bonuses and Final Additional Bonus (if any). Where “Sum Assured on death” is defined as higher of 10 times of the annualized premium or absolute amount assured to be paid on death ie 125% of Basic sum assured.

Survival Benefit:

Survival benefit is paid to the life assured in last five year of the policy if he/she survives between the next policy anniversary falling after life assured complete the age of 20 and up to24 years of age, amount of the survival benefit will depend on upon the option chosen by the proposer at the proposal stage. There are four options to choose from to get the survival benefit. Once the option is chosen at proposal stage it cannot be altered later on.

Policy Anniversary coinciding with/following completion of agesPercentage (%) of Sum assured to be paid as Survival Benefit
Option 1Option 2 Option 3Option 4
20 to 24 years Nil 5% each year10% each year15% each year

Maturity Benefit:

Under Maturity benefit, the policyholder will receive the Sum Assured on Maturity + Vested Simple Reversionary bonuses and Final Additional Bonus (if any).

Sum Assured on maturity depends on survival benefit in which the option is chosen by the policyholder. If Policyholder opts for any of the four options then the maturity benefits given to policyholder are as follows.

Option 1: 100% of Basic Sum Assured

Option 2: 75% of Basic Sum Assured

Option 3: 50% of Basic Sum Assured

Option 4: 25% of Basic Sum Assured

Jeevan Tarun Policy will participate in the profit of corporation if, in inforce stage, No final additional bonus will be paid if the policy is in reduce paid up condition.

Premium Waiver Benefit Rider

Premium waiver benefit rider is available with this plan, and can be taken at the proposal stage by paying an extra premium or it can be taken later in policy term provided at least 5 years of premium paying term is left.

Date of commencement of risk under the plan: In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, the risk will commence immediately.

Date of vesting under the plan: The policy shall automatically vest in 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.

Eligibility Conditions of Premium Waiver Benefit Rider (Optional)

  1. Minimum age at entry:  18 years (LBD)
  2. Maximum age at entry:  55 years (NBD)
  3. Policy term:    20-age at entry of child at the time of opting the rider
  4. Cover ceasing age:  70 years

This plan is best suitable for the planning of higher education child.  To know more about Jeevan Tarun Please Visit the official website of LIC of India.

Diferment of escalation clause for LIC of India’s Club Member agents

Diferment of escalation clause for LIC of India’s Club Member agents

LIC, LIC Agents, Life Insurance

In my earlier post “Conditions for Club membership for FY 2015-16 for LIC agents” I mentioned about the escalation clause and commission required to qualify for the particular club for the financial year 2015-16 for new as well as continuing club members. The escalation clause is a yearly increase in commission by 5% compared to last year, and it was effective from 2013-14 for new entrants and 2014-15 for continuing club members. But as per the new circular of LIC Mkt/A/21(R) dated 01/07/2015  dated 06/06/2016 escalation clause has been reviewed. Continue reading “Diferment of escalation clause for LIC of India’s Club Member agents”