Best Tax saving plans from LIC of India

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Difference Between Life Insurance and Bank Fixed Deposit

New Investors always get confused about which investment they should choose, Here are some tips for new investors, so they can get quickly idea to choose good investment tool.

Bank Fixed Deposit : Several banks and Non Banking Financial Centers provides fixed deposit, Fix Deposit is the deposit for a period of time on fixed interest rate.

Difference Between Fixed Deposit and Life Insurance investment plans : 

Fixed Deposits: 

These are a few components investors ought to remember while putting resources into long haul bank fixed stores: 

Taxable returns : Investors ought to look at different investment streets in the wake of considering the tax component. Premium salary is taxable in the hands of the financial specialist while profit wage is most certainly not. 

To comprehend the distinction , let us accept that the returns from a fixed store and a few shares are 10 for every penny for 2011. For an individual in the most elevated tax section the returns from a fixed store are just 6.7 for every penny while the returns from shares are 10 for every penny. 

For this situation, it doesn't bode well for the financial specialist to put resources into fixed stores regardless of the possibility that the investment rate is the most astounding today. 

Tax Rebate on Deposit:

Under the proposed Direct Tax Code, five-year term stores with banks or post work places, or stores in senior subjects' reserve funds plan and non-unadulterated life insurance premiums will never again be qualified for rebate under Section 80c. The new tax code is required to be executed from April 2012. 

Investors thus have a restricted timeline to put resources into long haul fixed stores that are entitled for rebate. 

Inflation:

The genuine benefits or salary from fixed stores could be abrogated by a climbing expansion rate. Assume the swelling rate is at three for every penny and ascents to six for every penny, and the fixed store rate is 10 for every penny. The yearly returns will successfully be just four for every penny (10 for every penny short six for every penny). The returns would have been seven for every penny (10 for every penny less three for every penny) if the rate of expansion had not changed. 

In nations, for example, the US, investors have a decision of swelling balanced bonds. The investment returns on these bonds are balanced upwards or modified downwards focused around the underlying swelling number. Investors here, however , need to sit tight for fixed wage markets to develop before such decisions are made accessible to them. 

Tax deducted at source :

Not at all like profits, premium got from fixed stores is taxable in the hands of the collector, and henceforth tax is deducted by the bank after a limit. The bank considers the wage earned by the investor work the end of a money related year and after that deducts the tax on it. 

Life Insurance -

Preferences of Life Insurance 

• Risk Cover - Life today is loaded with vulnerabilities; in this situation Life Insurance guarantees that your friends and family keep on appreciating a decent personal satisfaction against any unforeseen occasion. 

• Making arrangements for life stage needs - Life Insurance not just accommodates fiscal backing in the occasion of awkward passing additionally goes about as a long haul investment. You can meet your objectives, be it your kids' instruction, their marriage, assembling your fantasy home or arranging a loose resigned life, as indicated by your life stage and danger hankering. Conventional life insurance strategies i.e. conventional blessing arrangements, offer in-fabricated sureties and characterized development benefits through assortment of item alternatives, for example, Money Back, Guaranteed Cash Values, Guaranteed Maturity Values. 

• Insurance against climbing well being costs - Life Insurers through riders or remain solitary well being insurance arrangements offer the benefits of assurance against discriminating illnesses and hospitalization costs. This benefit has expected basic significance given the expanding frequency of lifestyle ailments and heightening medicinal expenses. 

• Fabricates the propensity of thrift - Life Insurance is a long haul contract where as policyholder, you need to pay a fixed sum at a characterized periodicity. This assembles the propensity of long haul investment funds. Standard reserve funds over a long period guarantees that a good corpus is constructed to help at different life stages. 

• Sheltered and productive long haul investment - Life Insurance is a profoundly managed area. IRDA, the administrative body, through different tenets and regulations guarantees that the wellbeing of the policyholder's cash is the essential obligation of all stakeholders. Life Insurance being a long haul reserve funds instrument, likewise guarantees that the life guarantors concentrate on returns over a long haul and don't take unsafe investment choices for transient increases. 

• Guaranteed pay through annuities - Life Insurance is one of the best instruments for retirement arranging. The cash spared amid the acquiring life compass is used to give a relentless wellspring of wage amid the resigned period of life. 

• Assurance in addition to investment funds over a long haul - Since customary strategies are seen both by the wholesalers and also the clients as a long haul duty; these approaches help the policyholders meet the double need of insurance and long haul riches creation productively. 

• Development through profits - Traditional strategies offer a chance to partake in the monetary development without taking the investment hazard. The investment wage is disseminated among the policyholders through yearly declaration of profits/reward. 

• Office of advances without influencing the arrangement benefits - Policyholders have the choice of taking advance against the approach. This helps you help without unfavorably influencing the benefits of the strategy they have purchased. 

• Tax Benefits-Insurance arrangements give appealing tax-benefits for both at the time of section and passageway under the vast majority of the arrangements. 

• Contract Redemption- Insurance goes about as a viable device to blanket home loans and advances taken by the policyholders so that, in the event of any unforeseen occasion, the trouble of reimbursement does not fall on the dispossessed crew.

Save Tax by saving in LIC's new Jeevan Anand,Money Back 20, 25 Yrs,Endowment(814 815 816 817 820821): LIC Child Shiksha Plan - Complete Child Education Plan Combination

Save Tax by saving in LIC's new Jeevan Anand,Money Back 20, 25 Yrs,Endowment(814 815 816 817 820821): LIC Child Shiksha Plan - Complete Child Education Plan Combination

LIC Child Shiksha Plan - Complete Child Education Plan Combination

LIC Child Shiksha Plan - Complete Child Education Plan Combination :  It is a complete package to your child which provides you money backs when your children need according to their educational needs. Below is the table which gives you the Idea of Money Backs provided yearly. To know more CLICK Here

LIC New Anand Money Back Package

To Buy  Click Here Or Call Manish Raghav - 9818837008
Life Insurance Corporation of India Presents:

New Jeevan Anand Money Back Package, this is the combination of three policies, Two New money back Policies and one New Jeevan Anand Policy. It gives you the unique benefits of all three plans, in this package you get regular money back after 4th, 5th, 9th, 10th, 14th, 15th, 19th, 20th, 21st and 25th year. In this plan we backdate one new money back for 20 years to 3 months so this plan gives you money back on different times. Below is the example in the following conditions;

Plan Number	Plan Name	Sum Assured
815	New Jeevan Anand	150,000
820	New Money Back 20 Years	150,000
821	New Money Back 25 Years	150,000

Below is the premium age wise and Money Backs and Other Benefits

Money Back Chart				Age	Yearly Premium Payable
1	After 4 years	30000			1-15 Years	16-20 Years	21 Years
2	After 5 years	22500		21	29863	17404	8265
3	After 9 years	30000		22	29744	17455	8302
4	After 10 Years	22500		23	29805	17503	8333
5	After 14 years	30000		24	29864	17553	8369
6	After 15 years	22500		25	29941	17614	8407
7	After 19 Years	225000		26	30025	17682	8453
8	After 20 years	22500		27	30115	17747	8496
9	After 21 years	423750		28	30205	17822	8541
10	After 25 years	285000		29	30312	17899	8588
				30	30433	17986	8638
				31	30561	18083	8691
Life Insurance				32	30706	18189	8751
1	Natural Death Cover	562500		33	30865	18299	8810
2	Accidental Death Cover	1012500		34	31032	18419	8870
3	Insurance After Maturity	150000		35	31222	18554	8945
				36	31418	18689	9012
				37	31645	18843	9093
				38	31889	19011	9177
				39	32145	19188	9265
				40	32428	19375	9355
				41	32723	19577	9452
				42	33055	19799	9556
				43	33404	20033	9669
				44	33783	20286	9788
				45	34185	20555	9908

Note: Anand Money Back Package is Available till 31st March 2014 only.

To Buy :  Click Here

For More Details : Click Here

LIC'S NEW TERM PLAN - ANMOL JEEVAN II TABLE NO 822

LIC Presents Term Insurance Plan

Benefits:


LIC’s Anmol Jeevan - II is a protection plan which provides financial protection to the insured’s family in case of his/her unfortunate demise.

Benefits:

Death Benefit: In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.

Maturity Benefit: On survival to the end of the policy term, nothing shall be payable.

Eligibility Conditions and Other Restrictions:


Minimum Sum Assured          :   Rs. 6,00,000
Maximum Sum Assured         :   Rs. 24,00,000
            (The Sum Assured shall be in multiples of Rs. 1, 00,000/-)

Minimum age at entry             :  18 years (completed)
Maximum age at entry            :  55 years (nearest birthday)
Maximum cover ceasing age             :  65 years (nearest birthday)
Minimum policy term              :  5 years
Maximum policy term            :  25 years


Payment of Premiums:

Premiums can be paid regularly during the term of the policy at yearly or half-yearly intervals.

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

Sample Premium Rates: 

The sample premium rates (exclusive of taxes) are as under:

Additional Premium:
 Additional premium for half-yearly mode: 2.0% of tabular annual premium


Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the expiry of policy term, by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation at the time of payment, subject to submission of satisfactory evidence of continued insurability.

The cost of the medical reports, including special reports, if any, required for the purpose of revival of the policy, shall be borne by the Life Assured.

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 Policyholder.


Paid-up Value:

The policy shall not acquire any paid-up value.


Surrender Value:

No Surrender Value will be available under this plan.


Taxes:

Taxes, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.

The amount of tax as per the prevailing rates shall be payable by the Policyholder on Instalment premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.


Cooling-off period:

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to us within 15 days from the date of receipt of the policy bond stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period on cover, stamp duty charges, expenses for medical examination and special reports, if any.

Exclusion:
Suicide: 
This policy shall be void if the Life Assured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk or from the date of revival, an amount equal to 80% of the premiums paid till the date of death (excluding any taxes, extra premium, if any,), provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.

Section 45 of Insurance Act, 1938:
No policy of life insurance shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life assured was incorrectly stated in the proposal.

Prohibition of Rebates (Section 41 of INSURANCE ACT, 1938) :
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy nor shall any person taking out or renewing or continuing a policy accept any rebate except such rebates as may be allowed in accordance with the published prospectuses or tables of the insurer provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taking out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.

(2) Any person making default in complying with the provision of this Section shall be punishable with a fine, which may extend to 500 rupees.

LIC’S NEW BIMA BACHAT (TABLE NO 816)

LIC’s New Bima Bachat is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.

a) BENEFITS:Death benefit:

On death during the first five policy years: Sum Assured.
On death after completion of five policy years: Sum Assured along with Loyalty Addition, if any.

b)Survival Benefits:
Payable as given below in case of Life Assured surviving to the end of the specified durations:

For policy term 9 years: 15% of the Sum Assured at the end of each of 3rd & 6th policy year

For policy term 12 years: 15% of the Sum Assured at the end of each of 3rd, 6th & 9th policy year

For policy term 15 years: 15% of the Sum Assured at the end of each of 3rd, 6th, 9th & 12th policy year

c) Maturity Benefit:

Payment of Single Premium (excluding taxes and extra premium, if any) along with Loyalty Addition, if any, in case of Life Assured surviving to the end of the policy term.

d) Loyalty AdditionDepending upon the Corporation’s experience the policies shall be participate in the profits and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable on death after completion of five policy years and on policyholder surviving to maturity, at such rate and on such terms as may be declared by the Corporation.

Benefit Illustration:

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business.  If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page.  If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns.  These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.”

Notes:


1.  The Single Premium shown above is exclusive of tax.



2. This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.



3. The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 4% p.a.(Scenario 1) and 8% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 4% p.a. or 8% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.



4. The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.



5. v) The amount shown under benefit payable on survival at the end of the policy term is the Maturity Benefit.


SECTION 45 OF INSURANCE ACT, 1938:
No policy of life insurance shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life assured was incorrectly stated in the proposal.

(SECTION 41 OF INSURANCE ACT, 1938):


1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:   provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
1. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.
Note: “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office.
“Insurance is the subject matter of solicitation”

1. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS :

a) Minimum entry age : 15 years (completed)


b) Maximum entry age : 66 years (nearest birthday) for term 9 years

63 years (nearest birthday) for term 12 years

60 years (nearest birthday) for term 15 years


c) Maximum maturity age: : 75 years (nearest birthday)


d) Policy Term : 9, 12 or 15 years.


e) Minimum Sum Assured : Rs.35,000 for term 9 years

Rs.50,000 for term 12 years

Rs.70,000 for term 15 years


f) Maximum Sum assured : No limit

Sum Assured will be in multiples of Rs.5,000 /- only.



g) Premium payment mode : Single Premium only





2. SAMPLE PREMIUM RATES:

The sample premium rates (exclusive of taxes) are as under: -

3. REBATE FOR HIGH SUM ASSURED :

High Sum Assured Rebates (As percentage of Tabular Premium) :



Term = 9 years

Less than Rs. 75,000 : NIL

Rs. 75,000 and Less than Rs.150,000 : 6 %

Rs. 150,000 and above . : 8 %

Term =12 years

Less than Rs. 100,000 : NIL

Rs. 100,000 and Less than Rs. 200,000. : 4 %

Rs. 200,000 and above : 6 %



Term =15 years

Less than Rs. 150,000 : NIL

Rs. 150,000 and Less than Rs.300,000 : 3 %

Rs. 300,000 and above : 5 %



4. LOAN :

Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 60% of the surrender value as on date of sanction of loan.

5. SURRENDER VALUE:

Buying a life insurance contract is a long term commitment. However, surrender value is available under the plan on earlier termination of the contract.

The Guaranteed Surrender Value allowable shall be as under:

- First year: 70% of the Single premium excluding taxes and extra premium, if any.

- Thereafter: 90% of the Single premium excluding taxes, extra premium, if any and all survival benefits paid earlier.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

6. TAXES:

Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax as per the prevailing rates shall be payable by the Life Assured on the single premium including extra premium, if any. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

7. COOLING-OFF PERIOD:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the proportionate risk premium for the period on cover, charges for medical examination, special reports, if any, and stamp duty.

8. EXCLUSIONS:

The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90% of the single premium paid excluding taxes and any extra premium paid.

LIC'S NEW MONEY BACK PLAN-25 YEARS (TABLE NO 821)

LIFE INSURANCE CORPORATION OF INDIA LTD (LIC) Presents
LIC's New Money Back Plan-25 years is a participating non-linked plan which offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term. This unique combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

Benefits:
Death benefit: On death during the policy term provided the policy is in full force, death benefit, defined as 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 higher of 125% of the Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
                                                                                                                                       
The premiums mentioned above exclude tax, extra premium and rider premium, if any.

Survival Benefits:
In case of Life Assured surviving to the end of the specified durations 15% of the Basic Sum Assured at the end of each of 5th, 10th, 15th & 20th policy year.

Maturity Benefit:
In case of Life assured surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable.

Participation in Profits:
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity provided the policy has run for certain minimum term.

Optional Benefit:
LIC’s Accidental Death and Disability Benefit Rider:  LIC’s Accidental Death and Disability Benefit Rider can be opted for under an inforce policy at any time within the premium paying term by payment of additional premium and the cover will be available throughout the policy term provided the Policy is inforce for the full Sum Assured as on date of accident. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

However, on surrender of an inforce basic policy (which has acquired Surrender Value) to which this rider is attached, a proportion of additional premium charged in respect of cover after premium paying term shall be refunded.

Benefit Illustration: 

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business.  If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page.  If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns.  These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.”

Notes:


1.  This illustration is applicable to a standard (from medical, life style and occupation point of view) life.
2. The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2) respectively.  In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 4% p.a. or 8% p.a., as the case may be.  The Projected Investment Rate of Return is not guaranteed.
3. The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

No policy of life insurance shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life assured was incorrectly stated in the proposal.

PROHIBITION OF REBATES (SECTION 41 OF INSURANCE ACT, 1938):


1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:   provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
1. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.
Note: “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office.
“Insurance is the subject matter of solicitation”

Eligibility Conditions and Other Restrictions:

For Basic plan


1. Minimum Basic Sum Assured                     :   Rs. 100,000
2. Maximum Basic  Sum Assured                    :   No Limit
       (The Basic Sum Assured shall be in multiples of Rs. 5000/-)


1. Minimum Age at entry for Life Assured       :  13 years (completed)
2. Maximum Age at entry for Life Assured      :  45 years (nearest birthday)
3. Maximum Maturity Age for Life Assured  :  70 years (nearest birthday)
4. Term                                                               :  25 years
5. Premium paying term                                                :  20 years
For LIC’s Accidental Death and Disability Benefit Rider


1. Minimum Accident Benefit Sum Assured  :   Rs. 100,000
2. Maximum Accident Benefit Sum Assured  :   An amount equal to the Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh Accident Benefit Sum Assured 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 the Accident Benefit Sum Assured under the new proposal into consideration.     
 (The Accident Benefit Sum Assured shall be in multiples of Rs. 5000/-)


1. Minimum Age at entry for Life Assured   :  18 years (completed)
2. Maximum Age at entry for Life Assured :  The cover can be opted for at any policy anniversary during the premium paying term.
3. Maximum cover ceasing age                      :  70 years (nearest birthday)
2. Payment of Premiums:                                                                                Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy.
However, a grace period of one month but not less than 30 days will be allowed for yearly, half-yearly, quarterly modes and 15 days for monthly mode of premium payment.


3. Sample Premium Rates:                                                                      Following are some of the sample tabular annual premium rates (exclusive of service tax) per Rs. 1000/- Basic Sum Assured:

4. Mode and High S.A. Rebates:

Mode Rebate:
Yearly mode                                     -       2% of Tabular Premium
Half-yearly mode                                         -       1% of Tabular premium
Quarterly & Salary deduction          -     NIL

High Sum Assured Rebate:
       Basic Sum Assured (B.S.A)                     Rebate (Rs.)
1, 00,000 to 1, 95,000             -           Nil
2, 00,000 to 4, 95,000             -           2.00 %o B.S.A.
5, 00,000 and above               -           3.00%o B.S.A.

5. Revival:If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the date of maturity by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation from time to time subject to submission of satisfactory evidence of continued insurability.

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 Policyholder

Revival of rider(s), if opted for, will be considered along with revival of the Basic Policy and not in isolation.


6. Paid-up Value
If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy. The Basic Sum Assured under the policy shall be reduced to such a sum, called Paid-up Sum Assured and shall be equal to [(Number of premiums paid / Total Number of premiums payable) x Basic Sum Assured] less Total amount of survival benefits already paid under the policy.

The policy so reduced shall thereafter be free from all liabilities for payment of the premiums, but shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses shall remain attached to the reduced paid-up policy.

Notwithstanding the benefits available under a fully inforce policy, in the case of a reduced paid up policy, no survival benefits shall be payable and the paid-up value along with the vested Simple Reversionary Bonuses, if any, shall be payable only in lump-sum on the expiry of policy term or death of life assured, if earlier.

Rider(s) shall not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.


7. Surrender Value:
The policy can be surrendered for cash provided atleast three full years’ premiums have been paid. The Guaranteed Surrender value shall be percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for riders, if opted for less any survival benefits already paid. This percentage will depend on the policy year in which the policy is surrendered and specified as below: 

In addition, the surrender value of any vested Simple Reversionary Bonuses, if any, shall also be payable, which is equal to accrued bonuses multiplied by the surrender value factor applicable to accrued bonuses. These factors will depend on the policy year in which the policy is surrendered and specified as below:

Corporation may, however, pay Special Surrender value, if it is more favorable to the Policyholder.


8. Policy Loan:
Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.


9. Taxes:
Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.
      The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.


10. Cooling-off period:
If the Policyholder is not satisfied with the “Terms and Conditions”, policy may be returned to us within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting proportionate risk premium (for basic plan and rider(s) if any)  for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty charges.


11. Exclusion:
Suicide: - This policy shall be void


• If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums, if any, provided the policy is inforce.
• If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any,) or the surrender value, provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.