LIC policy enquiry-Just call LIC Customer Zone

LIC policy enquiry-Just call LIC Customer Zone

LIC, Life Insurance

Have any policy enquiry related to your LIC insurance policy, and you want to know the status and other details on the phone? Are you in a different city than where your policy servicing branch is and confused whether you will get all the details of your policy in another branch? If yes, then answer if LIC Customer Zone. Continue reading “LIC policy enquiry-Just call LIC Customer Zone”

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

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”

LIC’s rate of interest for various financial transaction for FY 2016-17

LIC’s rate of interest for various financial transaction for FY 2016-17

LIC, Life Insurance

Life Insurance Corporation of India (LIC) every year declares the rate of interest to charged on the various financial transaction in the coming financial year. These financial transactions include policy loan, revival, backdating of policy and many other transactions. The rate of interest in these financial transactions are declared by the actuarial department of LIC.

Rate of Interest for the various financial transaction for FY 2016-17

S No.Type of TransactionRate of Interest
1 (i)Policy Loans [under all plans except Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)]10.00%
1 (ii)Policy Loans under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)10.50%
2(i)For policy issued on or after 01/01/1987, arrear of premiums with in six month from the date of FUP9.50% (subject to minimum int. of Rs. 5)
2(ii)For policy issued on or after 01/01/1987, for revival9.50% (subject to minimum int. of Rs. 5)
3Arrear of premiums for alterations and age proving higher9.50%
4Dating back the policies9.50%
5(i)Discount factor for commutation of instalments under Education Annuity policies.9.50%
5(ii) Discount factor for commutation of Income Benefits under Multi-purpose, Guaranteed Benefits under Annuity Policies.9.50%
5(iii)Discount factor for unpaid instalments under settlement option9.50%
6Settlement options for Maturity Claims6.00%
7(i)Advance payment of premiums under Jeevan Sneha (Plan 128)10.00%
7(ii)Advance payment of premiums under Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192)6.00%
8Delayed payment of claims9.00%
9Discounted value of Accumulated Vale for calculation of SSV under Jeevan Saral (Plan 165)7.50%
10Accumulation of Survival Benefit (SB) under Jeevan Bharati (Plan 160) and Jeevan Bharati-I (Plan 192)4.00%
11Discounting of claims during the last year of policy term9.00%
12Reinstatement of surrendered policies10.50%

These rates will be effective from 01/04/2016 to 31/03/2017. All the rate of Interest mentioned above will also be applicable on all the plans launched after 01/01/2014.

Terminology that every LIC club member agent must know

Terminology that every LIC club member agent must know

LIC, Life Insurance

LIC of India has more than 12 lac agent, and according to their performance LIC rewards them in the different form. One is Club membership. According to the business procured by agents in last 4 year LIC awards club membership to agents. These Clubs are Corporate Club, Galaxy Club, Chairman Club, Zonal Manager Club, Divisional Manager Club, Branch Manager Club and Distinguish Club. LIC has made the criteria for the entry to new club or continuation in a new club. These criteria mainly depend upon a number of lives procured by an agent in the financial year, total in force lives, renewal commission, and first-year commission. But other than this, there are many other factors which an  LIC club member agent should know to continue or enter in a new club, which we are going to discuss here one by one, all the points covered here to be done in a financial year.

Number of Policies” in a financial year:

This is, all the policies procured by an agent in a financial year (1st April to 31 March). This will also include policies done on the same life by the agent in the same financial year.

Number of lives” by LIC club member agent in a financial year:

The number of lives is a very crucial factor for getting a club membership. The number of lives means, the number of the different people insured by an agent in a financial year. An agent may do 2 or more policies of a single person. When an agent does 100 policies it does not mean he has done insurance of 100 different people. There is no exact correlation between Number of Policies and Number of Lives, an agent can do insurance of 2 or more individuals in 1 policies also. But, more the number of lives, more the policies.

“Total Inforce Lives” by LIC club member agent

This is nothing but all the policies procured by an agent from the first day of his agency, which is still running (in force condition as on  31 March of the current financial year). Only those policies will be considered as in force where  FUP is less than 6 months. Policies under auto cover are not included in “total in force lives” where FUP is >6 Month.

Policies which are in auto cover (like New Bima Gold, New Janraksha, and Jeevan Saral) but FUP >6 months are considered as lapse and not included in “Total in force lives” of the agent. In differed annuity policies where policy is vested and premium payment, the term is over are also excluded from “Total in force lives”. 

“Net Number of Lives” by LIC club member agent in a financial year

This is the first condition for LIC club member agent, which he has to complete to continue or enter a new club. for CM club, it is 40 Net lives and 30, 20 and 15 for ZM, DM, and BM club respectively. The net number of lives arrives after reducing duplicate lives, first-year lapse policy from the total number of lives introduced by an agent in a financial year.

Here yearly policy complete in last financial year having FUP >6 months will also be taken as first-year lapse policy. I am quoting the lines of LIC circular Mktg./A/ZD/29/2009 Date: 22nd October 2009 for club member conditions here for reference.

“Net Number of Lives” are distinct lives insured ( not number of policies) during the qualifying financial year reduced by the number of lives who had been insured in the financial year preceding the qualifying financial year whose policies are lapsed as on 31st March of the said qualifying financial year.

“First year Commission” by LIC club member agent in a financial year

This is the commission paid to an agent for the first year of the policy. The first-year commission includes first commission paid on yearly policy, commission paid on first two installments of half-yearly policy and commission paid on first 4 and 12 premiums in quarterly and monthly mode policy respectively. Bonus commission paid to an agent on the first-year commission is also included here for club membership purpose.

For more click on the next page

LIC’s New Plan Jeevan Pragati (Plan No. 838)

LIC’s New Plan Jeevan Pragati (Plan No. 838)

LIC, Life Insurance

Jeevan Pragati, this is the name of New life insurance plan of Life Insurance Corporation of India, Table No. 838. It is going to be launched on 03/02/2016. Jeevan Pragati is a non linked, with profit endowment assurance plan, where death sum assured automatically increases after every five years during the term of the policy. Unique Identification number of Jeevan Pragati Plan is 512N306V01.

हिन्दी मे पढें: एल आई सी की नयी योजना जीवन प्रगति (तालिका क्र. 838)

Death Benefit in Jeevan Pragati Plan

On death of the Life assured during the policy term, death benefit equals to “Sum Assured on Death” along with vested simple reversionary bonus and Final Additional Bonus (FAB) if any will be payable.

Here “Sum Assured on Death” is defined as the higher of

  1. 10 times of annualized premium or
  2. Absolute amount assured to be paid on death, which is
    • During the first five policy years: 100% of Basic sum Assured (BSA)
    • During 6th to 10th policy years: 125% of Basic sum Assured (BSA)
    • During 11th to 15th policy years: 150% of Basic sum Assured (BSA)
    • During 16th to 20th policy years: 200% of Basic sum Assured (BSA)

Death benefit mentioned here will not be less than the 105% of total premium paid up to the death of life assured.

Premium mentioned here will not include any taxes, extra amount in the policy due to underwriting decisions and rider premium, if any.

Benefits payable on Maturity in Jeevan Pragati Plan

On survival to the end of the policy term, “Sum Assured in Maturity” along with vested simple reversionary bonus and Final Additional Bonus, if any, will be payable. “Sum Assured in Maturity” mentioned here is equal to Basic sum assured in the policy.

Optional Benefits available in Jeevan Pragati Plan

  • 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 accident, provided the rider is in full force at the time of the accident.

Other features of Jeevan Pragati

  1. Loan facility available after payment of full 3 years of premium.
  2. Policy can be surrendered after payment of full 3 years of premium.
  3. Policy can be revived with 2 years of FUP.
  4. Taxes are applicable as per prevailing rates
  5. Policy can be dated back in same financial year
  6. Assignment and nomination can be made in this policy
  7. Free look period of 15 days available from date of receipt of the policy bond.

To know about the premium rates of Jeevan Pragati please Click Here. For ready recknor please Click Here

 

Relaxations in club membership conditions for LIC agents

Relaxations in club membership conditions for LIC agents

LIC Agents, Life Insurance

Life Insurance Corporation of India (LIC) has more than 12 lac agents. To motivate the agents, LIC have made different club according to the business procured by agents and club membership rules. These clubs mainly are, Distinguish Club, Branch Managers’ Club (BM Club), Divisional Managers’ Club (DM Club), Zonal Managers’ Club (ZM Club), Chiarmans’ Club (CM Club), Newly introduced Galaxy club and Corporate Club.

As per the business procured by the agents and club membership conditions, agent gets the club membership for one year from 1st of September to 31st August, and can continue or become member of higher club by continuing or qualifying conditions of higher club.

LIC has also provided some relaxation in these conditions so as to bring new and more agents in these clubs

Relaxation conditions to qualify or continue the club membership in a club

  1. An agent will have to fulfill condition with regard to Renewal Commission and First Year Renewal Commission. However, a shortfall in fulfillment of First Year Commission (paid) condition may be accepted maximum up to 50%, in years to be required for Club Membership, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid
  2. A shortfall in fulfillment of Renewal Commission paid condition may be accepted up to a maximum of 100% in years to be required for Club Membership provided it is compensated with the same or higher percentage increase on the basic condition prescribed for First Year Commission paid. This means a newly appointed LIC agent can aspire to be member of any club from day 1.
  3. If first year lapsation of a continuing club member go above 15%, but other qualifying conditions are fulfilled, then he may be continued in the club but, he will be kept under watch and no fresh advances will be paid. But if a FP lapsation is greater than 15% in a qualifying year for a aspiring club member then that year will not be considered for club membership purpose.
  4. An agent who is club member for a certain club will continue to be in club if he fails to bring minimum net number of lives, if he has completed 5 years in same club then relaxation of 1 year and if club member of certain club for 10 years then relaxation of 2 years. Note: This relaxation is for only minimum net number of lives, agent have to qualify in other conditions.
  5. An agent who has completed the age of 60 years as on the date of commencement of club membership year and had been a continuous member of the same club for not less than 15 membership years can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club.

These relaxations are given by LIC to motivate agent, even if agents is not able to do required amount of business (according to above mentioned conditions) due to some unforeseen conditions with him/her.