LIC’s Jeevan Dhara - II (UIN: 512N364V01)

(A Non-Linked, Non-Participating, Individual,

Savings, Deferred Annuity Plan)
LIC’s Jeevan Dhara - II is a Non-Linked, Non-Participating, Individual,
Savings, Deferred Annuity plan. The annuity rates are guaranteed at the
inception of the policy and annuities are payable post Deferment Period in
arrears throughout the life time of Annuitant(s).
This is a non-participating product under which benefits payable on death
or survival are guaranteed and fixed (as per the chosen Annuity Option)
irrespective of actual experience. Hence the policy is not entitled to any
discretionary benefits like bonus etc. or share in Surplus.
This Plan can be purchased Offline through agents / other intermediaries as
well as Online directly through website www.licindia.in.
KEY FEATURES:
• Wide range of annuity options to suit your needs.
• Flexibility to choose from:
o Regular Premium and Single Premium.
o Single Life Annuity and Joint Life Annuity.
o Available Deferment Period [from 5 years to 15 years (in case of Regular
Premium) and from 1 year to 15 years (in case of Single Premium)] i.e.
when to start annuity payments as per your requirements.
o Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).
• High Premium Incentive.
• Incentive for existing Policyholders/ Nominee/Beneficiary of the
Corporation.
• Top-up Annuity i.e. Option to increase the annuity by paying additional
premium at any time during the Deferment Period.
• Option to take death benefit as Lump-sum, in the form of Annuitisation
or in instalments.
• Liquidity Option i.e. option to receive a lump-sum amount in return of
reduction in annuity payments and other benefits.
• Advanced Annuity Option in case of Joint Life Annuity Options with
Return of Premium i.e. option to the surviving Annuitant [on first death
(of either of the covered lives)] to withdraw discounted cash value of
annuity payable during the ‘Advance Annuity Period’ as a lump-sum.
1. Annuity Options:
The available annuity options under this plan are as under:
Premium Annuity Type Annuity Options
Payment
Regular Single Life Option-1 Life annuity for Single Life
Premium Annuity
Life annuity with Return of
Option-2
Premium for Single Life
Life annuity with 50%
Return of Premium after
Option-3
attaining age 75 years for
Single Life
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 Life annuity with 100%
Return of Premium after
Option-4
attaining age 75 years for
Single Life
Life annuity with 50%
Return of Premium after
Option-5
attaining age 80 years for
Single Life
Life annuity with 100%
Return of Premium after
Option-6
attaining age 80 years for
Single Life
Life annuity with 5% Return
of Premium after attaining
Option-7
age 76 years to 95 years for
Single Life
Option-8 Life annuity for Joint Life
Joint Life
Annuity Life annuity with Return of
Option-9
Premium for Joint Life
Single Life annuity with Return of
Single Life
Premium Option-10 Purchase Price for Single
Annuity
Life
Joint Life Life annuity with Return of
Option-11
Annuity Purchase Price for Joint Life
Annuity Option once chosen cannot be altered.
In case of Joint life Annuity Options, the Primary Annuitant shall be the
primary person to receive the annuity payments and the Secondary
Annuitant shall receive the same annuity only in the event of death of the
Primary Annuitant.
2. ELIGIBILITY CONDITIONS & OTHER RESTRICTIONS:
i. Minimum Age at Entry : [20] years (last birthday)
(for Annuitant/Primary/Secondary Annuitant)
ii. Maximum Age at Entry :
For Annuitant/Primary Annuitant
Annuity Option Age in years (last birthday)
Option: 1, 2, 8, 9, 10 & 11 80 minus Deferment Period
Option: 5, 6 & 7 70 minus Deferment Period
Option: 3 & 4 65 minus Deferment Period
For Secondary Annuitant : [75] years (last birthday) [Option: 8 & 9]
: [79] years (last birthday) [Option: 11]
iii. Minimum Vesting Age : [35] years (last birthday) [Option: 1 to 9]
: [31] years (last birthday) [Option: 10 & 11]
iv. Maximum Vesting Age : For Annuitant/Primary Annuitant
Annuity Option Age in years (last birthday)
Option: 1, 2, 8, 9, 10 & 11 80
Option: 5,6 & 7 70
Option: 3 & 4 65
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v. Policy Term : Not applicable
vi. Deferment Period : [5 to 15] years (Option 1 to 9)
: [1 to 15] years (Option 10 & 11)
[Deferment Period (DP) refers to the period, in years, as chosen by the
policyholder, commencing from the Date of Commencement of policy
to the Date of Vesting.]
vii. Premium Payment Term:
- Under Regular Premium : Same as Deferment Period
- Under Single Premium : Single Pay
viii. Minimum Premium:
The minimum yearly premium/purchase price for different annuity
options and Deferment Period (DP) for age at entry below 55 years
(last birthday) and for age at entry greater than or equal to 55 years
(last birthday) shall be as under:
a) Minimum yearly Premium (in case of Regular Premium):
Minimum yearly Premium (Rs.)
DP (10 to 15) DP (7 to 9) DP (5 to 6)
Annuity
Option Age 55 Age Age 55 Age Age 55 Age
years & below years & below years & below
above 55 years above 55 years above 55 years
Option-1 11,000 16,000 18,000 25,000 28,000 37,000
Option-2 14,000 17,000 24,000 27,000 37,000 40,000
Option-3 16,000 17,000 27,000 27,000 42,000 41,000
Option-4 18,000 18,000 31,000 29,000 50,000 44,000
Option-5 15,000 17,000 25,000 27,000 39,000 40,000
Option-6 16,000 17,000 27,000 27,000 44,000 40,000
Option-7 15,000 17,000 25,000 27,000 40,000 40,000
Option-8 16,000 17,000 26,000 27,000 39,000 40,000
Option-9 17,000 17,000 27,000 27,000 41,000 41,000
For other modes of premium payment, the applicable minimum
instalment premium shall be arrived at by multiplying the applicable
Premium Conversion factor (as specified in Para 7 below) with Minimum
yearly premium.
For example: If the minimum yearly premium is ` 16,000,
corresponding minimum premium for other modes of premium
payment shall be as under:
Half-yearly Quarterly Monthly
` 8,144 ` 4,109 ` 1,378
The minimum instalment premium payable (for other than yearly
mode) in any case shall not be less than ` 1,000.
b) Minimum Purchase Price* (in case of Single Premium):
Purchase Price (`)
DP (10 to 15) DP (5 to 9) DP (1 to 4)
Annuity
Age 55 Age Age 55 Age Age 55 Age
Option
years & below 55 years & below 55 years & below
above years above years above 55 years
Option-10 1,00,000 1,25,000 1,50,000 1,65,000 2,05,000 2,10,000
Option-11 1,25,000 1,30,000 1,70,000 1,70,000 2,15,000 2,15,000
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 *Exceptional case where minimum annuity and minimum Purchase
Price as specified above shall not be applicable: If the plan has
been purchased for the benefit of dependant person with disability
(Divyangjan), as specified in Para 4.V below, the proposal shall be
allowed without any restriction on minimum annuity and the minimum
Purchase Price under such case shall be ` 50,000/-.
c) Minimum additional Premium for each Top-up Annuity: ` 50,000
ix. Maximum Premium : No limits, subject to underwriting decision*
(*The maximum Regular Premium/Purchase Price allowed will be
subject to acceptance as per the Board Approved Underwriting Policy.)
x. Minimum Annuity:

Annuity Mode Monthly Quarterly Half-yearly Annual

` 1,000 ` 3,000 ` 6,000 ` 12,000

Minimum Annuity
per month per quarter per half-year per annum
Joint Life Annuity: The Joint life annuity can be taken between any
two lineal descendant/ascendant of a family (i.e. Grandparent, Parent,
Children, Grandchildren) or spouse or siblings or Parent-in-law.
3. BENEFITS:
Benefits payable under an in-force policy on Survival/Death of the
Annuitant(s) under applicable Annuity Options shall be as under:

Annuity Benefits payable on Survival/Death

Option
Annuity During Deferment Period:
Option-1: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
for Single Life of Total Premiums Paid upto the date of death shall
be payable. The policy shall terminate on payment of
death benefit.
After Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately. No death benefit shall be payable
and the policy shall terminate.
Annuity During Deferment Period:
Option-2: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with Return of Total Premiums Paid upto the date of death shall
of Premium be payable. The policy shall terminate on payment of
for Single Life death benefit.
After Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100%
of Total Premiums Paid up to the date of death shall
be payable. The policy shall terminate on payment of
death benefit.
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Annuity During Deferment Period:
Option-3: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with 50% of Total Premiums Paid upto the date of death shall
Return of be payable. The policy shall terminate on payment of
Premium death benefit.
after After Deferment Period:
attaining age • Annuity payments, as per the chosen mode, shall be
75 years for made in arrears as long as the Annuitant is alive. In
Single Life addition to the annuity payment, an Early Return of
Premium of amount equal to 50% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the completion of age 75 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid till the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benefit.
Annuity During Deferment Period:
Option-4: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with 100% of Total Premiums Paid upto the date of death shall
Return of be payable. The policy shall terminate on payment of
Premium death benefit.
after After Deferment Period:
attaining age • Annuity payments, as per the chosen mode, shall be
75 years for made in arrears as long as the Annuitant is alive. In
Single Life addition to the annuity payment, an Early Return of
Premium of amount equal to 100% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the completion of age 75 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid till the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benefit.
Annuity During Deferment Period:
Option-5: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with 50% of Total Premiums Paid upto the date of death shall
Return of be payable. The policy shall terminate on payment of
Premium death benefit.
after After Deferment Period:
attaining age • Annuity payments, as per the chosen mode, shall be
80 years for made in arrears as long as the Annuitant is alive. In
Single Life addition to the annuity payment, an Early Return of
Premium of amount equal to 50% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the completion of age 80 years.
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 • On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid till the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benefit.
Annuity During Deferment Period:
Option-6: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with 100% of Total Premiums Paid upto the date of death shall
Return of be payable. The policy shall terminate on payment of
Premium death benefit.
after After Deferment Period:
attaining age • Annuity payments, as per the chosen mode, shall be
80 years for made in arrears as long as the Annuitant is alive. In
Single Life addition to the annuity payment, an Early Return of
Premium of amount equal to 100% of Total Premiums
Paid shall be payable on survival of the Annuitant to
policy anniversary coinciding with or immediately
following the completion of age 80 years.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid till the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benefit.
Annuity During Deferment Period:
Option-7: • On survival of the Annuitant, nothing shall be payable.
Life annuity • On death of the Annuitant, death benefit equal to 105%
with 5% of Total Premiums Paid upto the date of death shall
Return of be payable. The policy shall terminate on payment of
Premium death benefit.
after After Deferment Period:
attaining age • Annuity payments, as per the chosen mode, shall be
76 years to made in arrears as long as the Annuitant is alive. In
95 years for addition to the annuity payment, an Early Return of
Single Life Premium of amount equal to 5% of Total Premiums
Paid shall also be payable on survival of the Annuitant
on each of the respective policy anniversary coinciding
with or immediately following the completion of ages
76 years to 95 years (both inclusive).
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100% of
Total Premiums Paid up to the date of death Less Sum
of Early Return of Premium already paid till the date of
death, if any, shall be payable. The policy shall terminate
on payment of death benefit.
Annuity During Deferment Period:
Option-8: • On survival of the Primary Annuitant and/or Secondary
Life annuity Annuitant, nothing shall be payable.
for Joint Life • On first death (of either of the covered lives), no death
benefit shall be payable and the policy shall continue
with payment of due Premium, if any.
• On death of the last survivor, death benefit equal to
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 105% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benefit.
After Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On first death (of either of the covered lives), no death
benefit shall be payable and 100% of the annuity
amount shall continue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments shall
cease immediately. No death benefit shall be payable
and the policy shall terminate.
Annuity During Deferment Period:
Option-9: • On survival of the Primary Annuitant and/or Secondary
Life annuity Annuitant, nothing shall be payable.
with Return • On first death (of either of the covered lives), no death
of Premium benefit shall be payable and the policy shall continue
for Joint Life with payment of due Premium, if any.
• On death of the last survivor, death benefit equal to
105% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benefit.
After Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On first death (of either of the covered lives), no death
benefit shall be payable and 100% of the annuity
amount shall continue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments
shall cease immediately and death benefit equal to
100% of Total Premiums Paid upto the date of death
shall be payable. The policy shall terminate on payment
of death benefit.
Annuity During Deferment Period:
Option-10: • On survival of the Annuitant, nothing shall be payable
Life annuity • On death of the Annuitant, death benefit equal to 105%
with Return of Purchase Price shall be payable. The policy shall
of Purchase terminate on payment of death benefit.
Price for After Deferment Period:
Single Life • Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Annuitant is alive.
• On death of the Annuitant, the annuity payments shall
cease immediately and death benefit equal to 100%
of Purchase Price shall be payable. The policy shall
terminate on payment of death benefit.
Annuity During Deferment Period:
Option-11: • On survival of the Primary Annuitant and/or Secondary
Life annuity Annuitant, nothing shall be payable.
with Return • On first death (of either of the covered lives), no death
of Purchase benefit shall be payable and the policy shall continue.
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Price for • On death of the last survivor, death benefit equal to
Joint Life 105% of Purchase Price shall be payable. The policy shall
terminate on payment of death benefit.
After Deferment Period:
• Annuity payments, as per the chosen mode, shall be
made in arrears as long as the Primary Annuitant and/
or Secondary Annuitant is alive.
• On first death (of either of the covered lives), no death
benefit shall be payable and 100% of the annuity
amount shall continue to be paid as long as the last
survivor is alive.
• On death of the last survivor, the annuity payments
shall cease immediately and death benefit equal to
100% of Purchase Price shall be payable. The policy shall
terminate on payment of death benefit.
Where,
‘Total Premiums Paid’ means the total of all premiums received, excluding
any extra premium, any rider premium and taxes.
‘Purchase Price’ is an amount as opted by the policyholder which is
considered to determine the benefits under the policy. This shall exclude
any extra premium, any rider premium and taxes.
‘Total Premiums Paid/ Purchase Price’ shall include the additional premium
paid for Top-up Annuity, if any.
4. OPTIONS AVAILABLE:
I. Top-up Annuity:
This is an option to increase the Annuity (Top-up annuity) under the
policy by paying additional premium as a Single Premium and shall be
subject to the following:
i) This Option can be exercised at any time during the deferment
period only and while the policy is in-force.
ii) The annuity amount from the additional premium for Top-up
annuity shall be based on the available prevailing Annuity rates
at the time of payment of additional premium for Top-up annuity
and shall also be subject to then prevailing product criteria with
respect to minimum and maximum limits for Age at Entry and
Deferment period and minimum Additional Premium for each Top-
up etc. However, the minimum annuity instalment limits shall not
be applicable.
iii) The Top-up annuity payable for each instance shall be calculated as
per the age of the Annuitant(s) at the time of payment of additional
premium and the then prevailing annuity rates corresponding
to Single Premium Deferred Annuity Option i.e. Life annuity with
Return of Purchase Price for Single Life (in case the base annuity
type is Single life annuity or in case of Joint life annuity wherein
only one of the Annuitant is surviving at the time of payment of
Top-up) and Life annuity with Return of Purchase Price for Joint Life
(in case the base annuity type is Joint life annuity and wherein both
the Annuitants are surviving at the time of payment of Top-up). The
prevailing Annuity rate would be derived so as to match the timing
of the Top-up Annuity with base annuity e.g. If a policyholder opts
for 10 year Deferment Period and opts for Top-up Annuity by paying
additional premium after 2.50 years, then prevailing annuity rates
9
 for Deferment Period of 7 years and 8 years would be used to derive
the Annuity rates for 7.50 years.
iv) Each payment of additional premium shall be treated as a Single
Premium as independent in its own right. All provisions i.e. Incentive
for higher premium, Suicide clause etc. shall be as applicable to
Single Premium Deferred Annuity Option.
v) Benefits payable on Death or Surrender or on Survival (Annuity
benefits) shall be calculated separately for the base policy and for
each Top-up annuity tranche and the total would be payable.
vi) The total annuity amount payable shall be the sum of base annuity
and Top-up Annuity. The mode of payment of Top-up Annuity shall
be same as that of the base annuity.
vii) Any Top-up Annuity tranche can be surrendered independent of
Base policy or other Top-up annuity tranches. However, if the Base
policy is surrendered, all Top-up annuity tranches shall also be
surrendered at the same time.
II. Liquidity Option:
This is an Option to receive a lump-sum amount in return of reduction
in annuity payments and other benefits under a Base Policy and shall
not be applied to Top-up Annuity. This Option shall be available under
Annuity Options with Return of Premium (Option- 2, 9, 10 and 11). The
Option shall be exercised subject to the following:
i) This Option can be exercised only after completion of 5 years from
first annuity payment.
ii) This option will be allowed for a maximum of 3 times under the
policy.
iii) A policyholder shall receive the lumpsum amount corresponding to
the portion of the Total Premium Paid he/she is willing to liquidate
e.g. If x% & y% of Total Premium Paid is opted for liquidity option
at two different times, x% & y% of the Surrender value of Base
Policy (calculated without any liquidation) as applicable on the date
of liquidation shall be payable at the time of respective liquidity
option.
iv) Total lumpsum benefits that can be availed under this Option
can not exceed 60% of Total Premiums Paid (excluding additional
Premium for Top-up Annuity).
v) After the exercise of this Option, the annuity amount, death benefit
and other benefits (if any) shall be revised with effect from the date
of withdrawal i.e. If x% & y% of Total Premium Paid is opted for
liquidity option at two different times, revised annuity amount,
death benefit, surrender value and other benefit shall be reduced
to (100 –x-y) % of the original amount payable under the base
policy without adjustment of any liquidation options.
vi) Exercise of the option shall be allowed subject to revised annuity
payments being at least equal to the minimum limits defined
in IRDAI (Minimum limits for Annuities and other Benefits)
Regulations, 2015 as amended from time to time.
III. Advanced Annuity Option:
Under Joint Life Annuity Options with Return of Premium (Option-9
and 11), on first death (of either of the covered lives), the surviving
Annuitant shall have an Option to withdraw discounted cash value of
annuity payable during the ‘Advance Annuity Period’ as a lump-sum
subject to following:
i) ‘Advance Annuity Period’ shall be a maximum period of 5 years from
the policy anniversary immediately following the date of exercise of
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 option to receive annuity in advance in case of first death (of either
of the covered lives).
ii) This Option can be exercised only after the end of the Deferment
Period, within 6 months from the date of first death (of either of the
covered lives).
iii) The policyholder (survivor of the covered lives) shall have the
option to receive in one lump-sum, the discounted cash value of a
maximum of 5 years annuities (or any proportion thereof from 1%
to 100%) payable during the ‘Advance Annuity Period’, discounted
upto the policy anniversary date immediately following the date of
exercise of the option to receive annuity in advance.
iv) The annuity payment during the policy year in which the Option is
exercised shall continue to be payable as and when due.
v) On exercise of this Option, the ‘Advance Annuity Amount’ shall
be paid immediately in lump-sum and annuity payment for the
‘Advance Annuity Period’ shall continue for the balance amount of
annuity payable (if any), on their due date. E.g. If a policyholder
selects x% of original annuity amount to be received as advanced
annuity option, then during the Advance Annuity Period an amount
equal to (100-x)% of original annuity shall continue to be paid.
vi) For the opted ‘Advance Annuity Period’ and proportion of annuities
for advance payment, the ‘Advance Annuity Amount’ shall be
calculated as under:
Advance Annuity Amount = Discounted value of Annuity Instalments
payable during ‘Advance Annuity Period’ x Proportion of annuity for
advance
vii) The Interest rate to determine the Discounted values of annuities
shall be arrived at by using the following methodology:
For Advance Annuity options commencing during the 12 months’
period from 1st May to 30th April, the interest rate used to discount
the annuity for advance shall be per annum compounding half-
yearly rate not exceeding 5 year semi-annual G-Sec yield p.a.;
Where, the 5 year semi-annual G-Sec yield shall be as at last trading
day of previous financial year.
Accordingly, for 12 months’ period commencing from 1st May, 2023
to 30th April, 2024, the maximum applicable interest rate used for
determining the discounted value of annuity instalments shall be
7.17% p.a. compounding half-yearly.
Any change in basis of determination of interest rate for discounting
shall be subject to approval.
viii)Once the ‘Advanced Annuity Period’ ends, the Annuity payment
shall resume as per the Original terms and conditions.
ix) In case, the surviving annuitant surrenders or dies after receiving
Advance Annuity amount, the surrender or death benefit shall be
reduced by the following amount:
• If the surviving Annuitant surrenders or dies before the start of
‘Advanced Annuity Period’, the surrender or death benefit will be
reduced by the full advanced annuity amount already paid.
• If the surviving Annuitant surrenders or dies during the ‘Advanced
Annuity Period’, the surrender or death benefit will be reduced
by the outstanding advanced annuity amount which shall be
equal to :
[Advanced Annuity amount x (n-t)/n]
Where,
n = ‘Advanced Annuity Period’ in months
t = outstanding ‘Advanced Annuity Period’ in months at the time
of surrender or death of the surviving Annuitant
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IV. Options available for payment of Death Benefit:
The Annuitant(s) will have to choose one of the following options for
the payment of the death benefit to the nominee(s) under an in-force
policy as well as paid-up policy. The death claim amount shall then be
paid to the nominee(s) as per the option exercised by the Annuitant(s)
and no alteration whatsoever shall be allowed to be made by the
nominee(s). This option has to be exercised by Annuitant(s) at the
proposal stage. However, this option can be subsequently modified by
Annuitant(s) during his/her life during the currency of the policy.
• Lumpsum Death Benefit: Under this option the entire Death
Benefits shall be payable to the nominee(s) in lumpsum.
• Annuitisation of Death Benefit: Under this option the benefit
amount payable on death shall be utilized for purchasing an
Immediate Annuity from the Corporation for nominee(s) effective
from the date of death of the annuitant/last survivor. The annuity
amount payable to the nominee(s) on the admission of death
claim shall be based on the age of nominee(s) and immediate
annuity rates prevailing as on the date of death of Annuitant (last
survivor in case of Joint Life Annuity). This option can be opted
for full or part of the benefit amount payable on death. However,
the annuity payments for each nominee(s) shall be subject to the
eligibility conditions of the annuity plan available at that time
and then prevailing Regulatory provisions on the minimum limits
for annuities. In case the eligibility conditions of the annuity plan
available at that time are not met or the benefit amount payable on
death is insufficient to purchase the minimum amount of annuity,
then the said amount shall be paid as a lumpsum to the nominee(s).
• In Installment: Under this option the benefit amount payable on
death can be received in installments over the chosen period of 5 or
10 or 15 years instead of lumpsum amount under an in-force policy
as well as paid-up policy. This option can be exercised for full or part
of the Death Benefit payable under the policy. The amount opted
by the Annuitant(s) (i.e. net claim amount) can be either in absolute
value or as a percentage of the total claim proceeds payable.
The installments shall be paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for, subject to
minimum installment amount for different modes of payments
being as under:
Mode of Instalment payment Minimum Instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the Net Claim Amount is less than the required amount to provide
the minimum installment amount as per the option exercised by
the Annuitant(s), the claim proceed shall be paid in lumpsum only.
For all the instalment payment options commencing during the
12 months’ period from 1st May to 30th April, the interest rate
applicable for arriving at the instalment amount shall be annual
effective rate not lower than the 10 year semi-annual G-Sec yield
p.a. minus 2%; where, the 10 year semi-annual G-Sec yield shall be
as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from
1st May, 2023 to 30th April, 2024, the applicable interest rate for the
calculation of instalment amount shall be 5.31% p.a. effective.
12
V. Option to take the plan for the benefit of dependant person with
disability (Divyangjan):
If the Proposer has a dependant person with disability (Divyangjan),
the Proposer can purchase Option-10 (Life Annuity with Return of
Purchase Price for Single Life), on own life for the benefit of Divyangjan
as Nominee, subject to minimum Purchase Price of ` 50,000.
In case of death of the Annuitant (Proposer), where the Purchase Price
under the policy is less than the minimum Purchase Price as specified in
Para 2.viii.b above, the Death Benefit shall not be payable in lumpsum
and shall compulsorily be utilized to purchase the then available
Immediate Annuity (as per option chosen by the Annuitant) on the life
of the Divyangjan who would be the nominee.
In case of Annuitisation, the annuity shall be paid to Divyangjan
irrespective of any limit on minimum annuity payment and Purchase
Price criteria and the annuity rates applicable shall be then prevailing
Immediate Annuity rates.
For deciding the eligible disability of dependant person with disability
(Divyangjan) as Nominee, reference is to be made to meaning of
“person with benchmark disability” as assigned to it in Section 2(r) of
“The Rights of Persons with Disabilities Act, 2016” as amended from
time to time or any other applicable Act in this regard.
5. PLAN PURCHASED AS QROPS
(Qualifying Recognized Overseas Pension Scheme):
The Annuity Opion-10 (Life Annuity with Return of Purchase Price for
Single Life) or Annuity Opion-11 (Life Annuity with Return of Purchase
Price for Joint Life) under this plan can be purchased as QROPS through
transfer of UK tax relieved assets subject to listing and terms and
conditions prescribed by HMRC (Her Majesty Revenue & Customs) such as:
i. Minimum Vesting Age shall be 55 years.
ii. If the policy is cancelled during the Free Look Period, the proceeds
from cancellation shall only be transferred back to the fund house
from where the money was received.
iii. Subject to specific Plan features including Minimum Annuity as
specified in Para 2.x, all other terms and conditions of HMRC shall
also apply as applicable from time to time.
6. PAYMENT OF PREMIUMS:
Regular Premium or Single Premium payment options are available
under this plan. In case of Regular Premiums payment, the premium
can be paid regularly with mode of premium payment as yearly or half-
yearly or quarterly or monthly (through NACH only) or through salary
deductions (SSS).
7. PREMIUM CONVERSION FACTOR (applicable for Regular Premium):
Under this plan, policyholder has an option to choose the amount
of premium (i.e. Instalment Premium) as per the chosen premium
payment mode (Yearly/Half-yearly/Quarterly/Monthly).
The annuity rates and various incentives are expressed in terms of
‘Annual Equivalent Premium’.
‘Annual Equivalent Premium’ is derived by dividing the ‘Instalment
premium’ with Premium Conversion factor for chosen premium
payment mode.
The Premium Conversion factors for different modes of Premium
Payment are as under:

13
 Mode of Premium Payment Premium Conversion factor
Yearly 1.0000
Half-yearly 0.5090
Quarterly 0.2568
Monthly 0.0861

8. MODE OF ANNUITY PAYMENT:

The modes of annuity available are yearly, half-yearly, quarterly, and
monthly.
The Annuity shall be payable in arrears i.e. the annuity payment shall be
after 1 year, 6 months, 3 months and 1 month from the Date of Vesting
of annuity depending on whether the mode of annuity payment is
Yearly, Half yearly, Quarterly and Monthly respectively. Where, Date of
Vesting means the date on which the Deferment Period expires and
the annuity becomes payable in arrears as per the mode chosen for
annuity payment.

9. GRACE PERIOD (applicable for Regular Premium payment):

A grace period of 30 days will be allowed for payment of yearly or half-
yearly or quarterly premiums and 15 days for monthly premiums from
the date of First Unpaid Premium. During this period, the policy shall be
considered in-force with the risk cover without any interruption as per
the terms of the policy. If the premium is not paid before the expiry of
the days of grace, the Policy lapses.

10. INCENTIVE/ADJUSTMENT:
The following incentive/adjustment is available under this plan:
a. Incentive for high Premium/Purchase Price:
In case of Annuity Option-1 to 9 (Regular Premium), incentive (in
Rs.) for higher Premium by way of increase in the Tabular annual
annuity rate per Rs. 1,000 Annual Equivalent Premium is provided
for four slabs of Premium, i) ` 50,000 to Rs. 74,999, ii) ` 75,000 to
` 99,999, iii) ` 1,00,000 to ` 1,99,999 and iv) greater than or equal
to ` 2,00,000.
In case of Annuity Option-10 & 11 (Single Premium), incentive
(in ` ) for higher Purchase Price by way of increase in the Tabular
annual annuity rate per ` 1,000 Purchase Price is provided for four
slabs of Purchase Price, i) ` 3,00,000 to ` 4,99,999, ii) ` 5,00,000 to
` 9,99,999, iii) ` 10,00,000 to ` 24,99,999 and iv) greater than or
equal to ` 25,00,000.
Further, the incentive for higher Premium/Purchase Price also
depends on Deferment Period and age range (i.e. for age at entry
up to 54 years and age at entry 55 years & above). The incentive
increases as the Premium/ Purchase Price moves from the lower
slab to higher slab of the Premium and also with increase in
Deferment Period.
b. Incentive for Online Sale by way of increase in the annuity rate:
In case of Online Sale, where policies are procured directly without
any involvement of Agent or any other intermediary, following
incentive by way of increase in Tabular annuity rate per ` 1,000
Annual Equivalent Premium (in case of Regular Premium) or
Purchase Price (in case of Single Premium) shall be available.

14
 Regular Premium Single Premium
Deferment Deferment
Incentive (%) Incentive (%)
Period Period
5 years 4.00%
6 to 10 years 3.50% 1 to 15 years 2.00%
11 to 15 years 3.00%
c. Adjustment for annuity payment frequency:
The Modal Annuity amount (i.e. annuity amount as per the chosen
mode of the annuity payment) shall be calculated by multiplying
the Annual annuity amount with Modal Annuity Conversion Factor
and dividing by corresponding Frequency of the chosen mode of
annuity payment.
Modal Annuity Conversion factor and corresponding frequency for
various modes of annuity payment is as under:
Mode Frequency Modal Annuity Conversion Factor
Yearly 1 1.00
Half Yearly 2 0.98
Quarterly 4 0.97
Monthly 12 0.96
d. Incentive for existing Policyholders/Nominee/Beneficiary of the
Corporation:
The Incentive by way of increase in Tabular annuity rate per
` 1,000 Annual Equivalent Premium (in case of Regular Premium) or
Purchase Price (in case of Single Premium) for different categories
of existing policyholder including the nominee or beneficiary of
deceased policyholder provided the product is purchased through
any Agent / Corporate Agent / Broker / Insurance Marketing Firm
under this plan shall be as under:
Incentive (%)
Category of Policyholder Regular Single
Premium Premium
In case an existing Policyholder having
a policy with the Corporation which has
matured within one year before the
submission of proposal under this product
and purchases this plan on his/her life and/
or on the life of any of the family members.
or
If this plan is purchased by Nominee/
0.50% 0.25%
Beneficiary of the deceased Policyholder
where death claim is paid within one year
before the submission of proposal under
this product.
or
If this plan is purchased by an existing
Policyholder having an in-force policy with
the Corporation.

11. SAMPLE ILLUSTRATIVE ANNNUITY :

For Regular Premium:
Annual Premium : ` 50,000/- (excluding applicable taxes)
Age of Annuitant at entry : 45 years (Last Birthday)
15
 Age of Secondary Annuitant at entry : 40 years (Last Birthday)
(applicable for Option 8 & 9)
For the above combination of premium amount and age(s) of annuitant,
yearly annuity amount for different Deferment period are as under:
Deferment Period
Option
5 10 15
Option 1: Life annuity for Single Life 20,545 53,810 1,04,695
Option 2: Life annuity with Return of Premium for Single Life 17,480 45,030 86,740
Option 3: Life annuity with 50% Return of Premium after
16,845 43,060 82,300
attaining age 75 years for Single Life
Option 4: Life annuity with 100% Return of Premium after
16,215 41,090 77,860
attaining age 75 years for Single Life
Option 5: Life annuity with 50% Return of Premium after
17,185 44,115 84,680
attaining age 80 years for Single Life
Option 6: Life annuity with 100% Return of Premium after
16,890 43,200 82,615
attaining age 80 years for Single Life
Option 7: Life annuity with 5% Return of Premium after
17,170 44,065 84,570
attaining age 76 years to 95 years for Single Life
Option 8: Life annuity for Joint Life 18,610 47,355 89,380
Option 9: Life annuity with Return of Premium for Joint Life 17,120 42,855 79,690

For Single Premium:

Purchase Price : ` 5,00,000/- (excluding applicable taxes)
Age of Annuitant at entry : 45 years (Last Birthday)
Age of Secondary Annuitant at entry : 40 years (Last Birthday)
(applicable for Option 11)
For the above combination of purchase price and age(s) of annuitant,
yearly annuity amount for different Deferment period are as under :
Deferment Period
Option
1 5 10 15
Option 10: Life annuity with Return of Purchase Price
32,500 43,400 63,400 95,650
for Single Life
Option 11: Life annuity with Return of Purchase Price
32,100 41,900 58,200 83,150
for Joint Life

12. REVIVAL (applicable for Regular Premium policies):

If the due premium is not paid before the expiry of the days of grace,
the policy lapses. The lapsed policy may be revived during the lifetime
of the Annuitant(s) but within a period of 5 consecutive years from the
date of First Unpaid Premium. The revival shall be effected on payment
of all the arrears of premium(s) together with interest (compounding
half-yearly) at such rate as may be decided by the Corporation from time
to time and on satisfaction of Continued Insurability of the Annuitant(s)
on the basis of information, documents and reports that are already
available and any additional information in this regard if and as may be
required in accordance with the Underwriting Policy of the Corporation
at the time of revival, being furnished by the Annuitant(s).
The Corporation reserves the right to accept at original terms, accept
with modified terms or decline the revival of a discontinued policy. The
revival of a discontinued policy shall take effect only after the same is
approved, accepted and revival receipt is issued by the Corporation.
The rate of interest applicable for revival under this product for every
12 months’ period from 1st May to 30th April shall not exceed 10 year
G-Sec yield p.a. compounding half yearly as at the last trading day of
previous financial year plus 3% or the yield earned on the Corporation’s
Non-Linked Non-Participating fund plus 1%, whichever is higher. For the
12 month period commencing from 1st May, 2023 to 30th April, 2024,
the applicable interest rate shall be 9.50% p.a. compounding half yearly.
Any change in basis of determination of interest rate for policy revival
shall be subject to approval.
16
 On revival of a lapsed or paid-up policy, all the benefits under the policy
which prevailed before the date of lapse or paid-up shall be restored.
On revival of the paid-up policy after the deferment period, the difference
between the Annuity payable under an in-force policy and Paid-up
Annuity already paid during the revival period, shall also be payable.
In case a lapsed policy is not revived during the revival period of 5 years
from the date of first unpaid premium, nothing shall be payable at the
end of the revival period and the policy shall terminate subject to the
provisions specified in Para 14 below.
13. PAID-UP VALUE (applicable for Regular Premium policies):
If less than two full years’ premiums have been paid and any subsequent
premium be not duly paid, all the benefits under the policy shall cease
after the expiry of grace period from the date of First Unpaid Premium,
and nothing shall be payable. However, this shall be subject to the
provisions specified in Para 14 below.
If, after at least two full years’ premiums have been paid and any
subsequent premium be not duly paid, the policy shall not be wholly
void, but shall subsist as a Paid-up policy.
Benefits payable under a Paid-up policy shall be as under:
a) Death Benefit applicable under a Paid-up policy:
The Death Benefit under a paid-up policy shall be reduced to such a
sum, called ‘Paid-up Death Benefit’ and shall be payable on death
of the Annuitant in case of Single Life Annuity and on death of Last
Survivor in case of Joint Life Annuity.
The ‘Paid-up Death Benefit’ shall be as under:
On death during Deferment period:
Under All Annuity Options: An amount equal to 105% of Total
Premiums Paid shall be payable.
On death after Deferment period:
Under Annuity Options: 1 & 8: Nothing shall be payable.
Under Annuity Options: 2 & 9: An amount equal to 100% of Total
Premiums Paid shall be payable.
Under Annuity Options: 3, 4, 5, 6 & 7: An amount equal to 100% of
Total Premiums Paid Less Sum of Early Return of Premium already
paid (as per the applicable Annuity Option) till the date of death, if
any, shall be payable.
On payment of Paid-up Death Benefit, no further benefits shall be
payable.
b) Annuity payable under a Paid-up policy:
The Annuity amount under a Paid-up policy shall be reduced to
such a sum called ‘Paid-up Annuity’ and shall be equal to Original
Annuity amount multiplied by the ratio of the total period for which
premiums have already been paid bears to the maximum period for
which premiums were originally payable.
The ‘Paid-up Annuity’ shall be as under:
i. During Deferment Period: On the survival of the Annuitant/
Primary Annuitant and/or Secondary Annuitant, nothing shall be
payable.
ii. After Deferment Period: On the survival of the Annuitant/
Primary Annuitant and/or Secondary Annuitant, ‘Paid-up Annuity’
payments shall be made in arrears as long as the Annuitant/ Primary
Annuitant and/or Secondary Annuitant is alive, as per the annuity
option and mode of annuity payment.
17
 Under a Paid-up policy, in case of Single Life Annuity Option-3, 4, 5, 6
& 7 (i.e. Annuity Options with Early Return of Premium), in addition to
the Paid-up annuity, an Early Return of Premium of amount equal to
a specified proportion of Total Premiums Paid, as per the applicable
Annuity Option shall be payable on survival of the Annuitant to Policy
Anniversary coinciding with or immediately following the completion of
specified age.
If any additional premium(s) are paid for top-up annuity, the benefits
with respect to the top-up annuity shall remain unchanged.
The total annuity amount payable under a Paid-up policy shall be ‘Paid-
up Annuity’ plus Top-up Annuity.
The ‘Paid-up Annuity’ along with any Top-up Annuity amount shall
be subject to the minimum annuity allowed under the product. If the
Paid-up annuity along with any Top-up Annuity amount is less than
the minimum annuity allowed under the product (as specified in Para
2.x above) and the policy is not revived during the revival period of
5 years from the date of first unpaid premium, applicable surrender
value (specified in Para 15) as on the date of expiry of revival period will
be paid as a lump sum, at the end of the revival period and the policy
shall terminate.
14. POLICY LAPSED WITHOUT ACQUIRING PAID-UP VALUE
(applicable for Regular Premium policies):
If less than two full years’ premiums have been paid and any subsequent
premium be not duly paid, all the benefits under the policy shall cease
after the expiry of grace period from the date of First Unpaid Premium,
and nothing shall be payable.
However, if the policyholder has paid at least one full year’s premium
but less than two full years’ premiums and Total Premium Paid is at least
`1,25,000/- and the policy is not revived during the Revival Period, then
on 7th policy anniversary, an amount equal to 80% of Total Premiums
Paid shall be utilized to purchase a Single Premium Life annuity with
Return of Purchase Price with 1 year Deferment Period corresponding
to the attained age of the Annuitant(s) on that date subject to the
availability of the product and satisfying the eligibility conditions of
then prevailing Single Premium annuity option.
In case of death of the Annuitant/Last Survivor in case of Joint life
annuity, during the above duration, then an amount equal to 80%
of Total Premiums Paid shall be paid on 7th policy anniversary to the
Nominee/Beneficiary of the deceased Annuitant(s) under the policy.
Further, in the above situation, in case of non-availability of the product
or eligibility conditions are not met by the Annuitant(s), then an
amount equal to 80% of Total Premiums Paid shall be paid on 7th policy
anniversary to the surviving Annuitant(s).
In all other cases, nothing shall be payable.
15. SURRENDER:
Under Regular Premium payment, the policy can be surrendered by the
Policyholder at any time during or after Deferment Period, provided
two full years’ premiums have been paid. Under Single Premium
payment, the policy can be surrendered by the policyholder at any time
on payment of Purchase Price.
The Surrender Value payable under the policy shall be as under:
a) During the deferment period: Surrender shall be allowed under
all the Annuity Options. The Surrender Value payable shall be
higher of Guaranteed Surrender value (GSV) and Special Surrender
Value (SSV).
18
 b) After the deferment period: Surrender shall be allowed only under
the Annuity Options with Return of Premiums/Purchase Price
(Option: 2, 3, 4, 5, 6, 7, 9, 10 & 11). The Surrender Value payable
under these annuity options shall be equal to Special Surrender
Value (SSV).
Guaranteed Surrender value (GSV)
The Guaranteed Surrender Value shall be equal to the Total Premiums
Paid / Purchase Price multiplied by the applicable GSV factor i.e. GSV=
(Total Premiums Paid/Purchase Price x GSV factor).
Premiums/Purchase Price referred above shall not include any taxes,
any underwriting extra premium, rider premium(s) and additional
premiums for Top-up annuity, if any.
The GSV factors shall depend on the Annuity Option chosen, Deferment
Period and the Policy year in which the policy is surrendered and are
given below for various Annuity Options.
Guaranteed Surrender Value Factors for Option 1 to Option 9:
Policy Deferment Period
Year 5 6 7 8 9 10 11 12 13 14 15
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 90.00% 90.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
9 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
10 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
11 90.00% 90.00% 90.00% 90.00% 90.00%
12 90.00% 90.00% 90.00% 90.00%
13 90.00% 90.00% 90.00%
14 90.00% 90.00%
15 90.00%

Guaranteed Surrender Value Factors for Option 10 & Option 11:

The Guaranteed Surrender Value Factors for all Deferment Period shall
be as under:
- During first three policy year : 75%
- Thereafter : 90%
The Special Surrender Value (SSV) is reviewable and shall be determined
by the Corporation from time to time with approval.
Upon payment of Surrender value, the Policy terminates and no further
benefits shall be payable.
Any loan amount outstanding along with interest and/or any other
amount recoverable from Annuitant shall be recovered from the
surrender value payment.
In case of QROPS, the surrender provisions shall be further subject
to any specific provisions regarding procedures as per Rules and
Regulations of the HMRC.
For additional Premium for Top-up annuity:
Any Top-up annuity tranche can be surrendered at any time during or
after Deferment Period independent of Base policy or other Top-up
annuity tranches. However, if the Base policy is surrendered, all Top-up
annuity tranches shall also be surrendered at the same time.
The Surrender value for additional Premium for Top-up annuity shall be
derived as per methodology as applicable for Single Premium Policies
as mentioned above corresponding to the Annuity Option chosen.
19
 If additional premium for Top-up Annuity has been paid under a policy,
Total Surrender Value payable shall be the sum of Surrender value
applicable for Original Annuity option chosen under the policy (i.e. Base
policy) and the Surrender value of Top-up annuity tranches, if any.
Note: The insurance policy being a long term contract should be taken from
the long term perspective of continuing the policy. While there is provision
for surrender under various annuity options mentioned above, it may be
noted that there can be significant loss on surrender of a policy and hence,
it is advisable to continue the policy.
16. POLICY LOAN:
Loan facility shall be available during or after the deferment period
under annuity options with Return of Premium/ Purchase Price.
In case of regular premium payment, loan facility shall be available after
at least two full years premiums have been paid under Options 2, 3, 4,
5, 6, 7 and 9.
In case of single premium payment, loan facility shall be available at any
time after three months from the completion of policy (i.e. 3 months
from the date of issuance of policy) or after expiry of the free-look
period, whichever is later, under Options 10 and 11.
The maximum amount of loan that can be granted under the policy
shall be such that the effective annual interest amount payable on loan
does not exceed 50% of the annual annuity amount payable under
the policy subject to maximum of 80% of Surrender Value (inclusive of
Surrender value of Top-up annuity tranches, if any).
Under joint life annuity option, the loan can be availed by the Primary
Annuitant and in the absence of Primary Annuitant the same can be
availed by the Secondary Annuitant.
During Deferment Period:
The policy loan shall be available subject to the following terms and
conditions:
i) In case if the loan is not repaid during the Deferment Period and
if there is no default in the interest payment as of the end of
Deferment Period, then Interest on the loan shall be recovered
from annuity amount payable after the Deferment Period. After
Deferment Period Loan interest will accrue as per the frequency of
annuity payment under the policy and it will be due on the due date
of annuity.
ii) In case if the loan is not repaid during the Deferment Period and
if there is a default in the interest payment as of the end of the
Deferment Period, the difference of Surrender Value and the loan
outstanding amount along with interest, if any, shall be payable to
the Annuitant/ Primary Annuitant / Secondary Annuitant and the
policy shall be terminated.
iii) During the Deferment Period, in the event of failure of payment
of interest payment on the due dates and when the outstanding
loan amount along with interest is to exceed the Surrender Value,
the policy shall be forfeited to the Corporation. The difference
of Surrender Value and the loan outstanding amount along
with interest, if any, shall be payable to the Annuitant / Primary
Annuitant/ Secondary Annuitant and the policy shall be terminated.
iv) In case of death or surrender (of base policy or any Top-up Annuity
tranches) during the deferment period, any outstanding loan and
loan interest shall be recovered from the claim proceeds and the
balance amount, if any, shall be payable.
20
 After Deferment Period:
Loan interest will be recovered from annuity amount payable under the
policy. The Loan interest will accrue as per the frequency of annuity
payment under the policy and it will be due on the due date of annuity.
The loan outstanding along with Interest payable, if any shall be
recovered from the claim proceeds at the time of exit or from surrender
of any Top-up Annuity tranches or from the early Return of Premium
amount payable, if any under the policy.
The rate of interest applicable for full loan term, for the loans to be
availed for every 12 months’ period from 1st May to 30th April, shall
not exceed 10 year G-Sec yield p.a. compounding half-yearly as at the
last trading date of previous financial year plus 3% or the yield earned
on the Corporation’s Non-Linked Non-participating fund plus 1%,
whichever is higher.
For loan sanctioned during the 12 months’ period commencing from
1st May, 2023 to 30th April, 2024, the applicable interest rate shall be
9.50% p.a. compounding half-yearly for entire term of the loan.
Any change in basis of determination of interest rate for policy loan
shall be subject to approval.
In case of QROPS, above policy loan provisions shall be subject to Rules
and Regulations of HMRC in this regard.
17. ALTERATION:
The following alteration shall be allowed:
i) Change in Premium Payment Mode during the Deferment Period
ii) Change in mode of annuity payments
18. TAXES:
Statutory Taxes, if any, imposed on such insurance plans by the
Government of India or any other constitutional Tax Authority of India
shall be as per the Tax laws and the rate of tax as applicable from time
to time.
The amount of applicable taxes (such as GST), as per the prevailing
rates, shall be payable by the policyholder on Premium/Purchase Price,
which shall be collected separately over and above in addition to the
Premium/Purchase Price payable by the policyholder. The amount of
tax paid shall not be considered for the calculation of benefits payable
under the plan.
Regarding Income tax benefits/implications on premium(s) paid and
benefits payable under this plan, please consult your tax advisor for details.
19. FREE LOOKPERIOD:
If the Policyholder is not satisfied with the “Terms and Conditions” of
the policy, the policy may be returned to the Corporation within 30
days from the date of receipt of the electronic or physical mode of the
Policy Bond whichever is earlier 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 charges for stamp
duty and annuity paid, if any.
The condition of Free Look period shall only be applicable in case of
new purchase of Deferred Annuity plan. Free Look cancellation shall
not be applicable, where the purchase is from the proceeds of Deferred
Pension products or Group Superannuation Schemes of the Corporation
where annuitization is compulsory.
Wherever the purchase is from the existing fund the Free Look
21
 cancellation shall not be applicable and the treatment of such policies
shall be as below:
i) If this policy is purchased out of proceeds of a deferred pension plan
of any Life Insurance Company: The proceeds from cancellation will
be transferred back to that Life Insurance Company.
ii) If this policy has been purchased as QROPS as detailed in Para 5
above: The proceeds from cancellation shall only be transferred
back to the fund house from where the money was received. In case
of QROPS, above provisions shall be further subject to any specific
provisions regarding procedures as per Rules and Regulations of the
HMRC in this regard.
20. SUICIDE EXCLUSION:
Suicide exclusion for base policy:
Under Regular Premium Payment policy (applicable for annuity option
1 to 9):
i. If the Annuitant or Last Survivor in case of Joint life annuity (whether
sane or insane) commits suicide at any time within 12 months from
the date of commencement of risk, the Nominee or Beneficiary of
the Annuitant or Last Survivor shall be entitled to 80% of the total
premiums paid till the date of death provided the policy is inforce.
ii. If the Annuitant or Last Survivor in case of Joint life annuity (whether
sane or insane) commits suicide within 12 months from date of
revival, an amount which is higher of 80% of the total premiums
paid till the date of death or the surrender value available as on
date of death, shall be payable. The Nominee or Beneficiary of the
Annuitant or Last Survivor shall not be entitled to any other claim
under the policy.
This clause shall not be applicable for a policy lapsed without acquiring
paid-up value and nothing shall be payable under such policies.
In case of death of the Annuitant or Last Survivor in case of Joint life
annuity due to suicide after the Deferment Period, the above suicide
clause is not applicable and Death Benefit as per the option chosen will
be applicable.
Under Single Premium policy (applicable for annuity option 10 & 11):
If the Annuitant or Last Survivor in case of Joint life annuity (whether
sane or insane) commits suicide at any time within 12 months from
the date of commencement of risk, the Nominee or Beneficiary of
the Annuitant or Last Survivor shall be entitled to an amount which is
higher of 80% of the Purchase Price or Surrender value available as on
the date of death.
Premium/Purchase Price referred above shall not include any taxes,
extra amount chargeable under the policy due to underwriting decision
and rider premium(s), if any. Total Premiums Paid /Purchase Price shall
not include the additional premium paid for Top-up Annuity, if any.
Suicide exclusion for additional Premium for Top-up annuity:
Suicide clause shall be as applicable under Single Premium Deferred
Annuity Option.
21. SAMPLE BENEFIT ILLUSTRATION:
The main objective of the illustrations is that the client is able to
appreciate the features of the product and the flow of the benefit with
some level of quantification. This illustration is applicable to a standard
life (from medical, lifestyle and occupation point of view) for policies
procured through agent/intermediary.
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 Illustration 1:
Option 2- Life annuity with Return of Premium for Single Life
Age of the Annuitant 45 years Instalment Premium ` 50,000/-
Deferment Period 15 years GST Rate (1st year) 4.5%
Premium Payment Regular GST Rate (2nd year onwards) 2.25%
Mode of Premium Note: GST Rate shall be as applicable from time
Yearly
Payment to time.
Mode of Annuity
Yearly Annuity Instalment ` 86,740/-
Payment

Benefit Summary: (Amount in `)

Annual Other Benefit

Policy Year¹ Survival
Equivalent (Early Return
(End of the Benefit/Annuity Death Benefit
Premium² of Premium,
year ) (in a policy year )
(Cumulative ) if any )
1 50,000 0 0 52,500
2 1,00,000 0 0 1,05,000
3 1,50,000 0 0 1,57,500
4 2,00,000 0 0 2,10,000
5 2,50,000 0 0 2,62,500
6 3,00,000 0 0 3,15,000
7 3,50,000 0 0 3,67,500
8 4,00,000 0 0 4,20,000
9 4,50,000 0 0 4,72,500
10 5,00,000 0 0 5,25,000
11 5,50,000 0 0 5,77,500
12 6,00,000 0 0 6,30,000
13 6,50,000 0 0 6,82,500
14 7,00,000 0 0 7,35,000
15 7,50,000 0 0 7,87,500
16 7,50,000 86,740 0 7,50,000
17 7,50,000 86,740 0 7,50,000
18 7,50,000 86,740 0 7,50,000
19 7,50,000 86,740 0 7,50,000
20 7,50,000 86,740 0 7,50,000
30 7,50,000 86,740 0 7,50,000
40 7,50,000 86,740 0 7,50,000
50 7,50,000 86,740 0 7,50,000
56 7,50,000 86,740 0 7,50,000
Note:
1. This illustration is showing the flow of benefits up to 101 years of age of
annuitant. For the later years, benefit amounts as shown for last policy
year in the above illustration will be applicable. Premium is payable in
advance at the start of the year.
2. Annual Equivalent Premium excludes underwriting extra premium,
frequency loadings on premiums and Goods & Service Tax.
Illustration 2:
Option 10- Life annuity with Return of Purchase Price for Single Life

Age of the Annuitant 45 years Purchase Price ` 5,00,000/-

Deferment Period 15 years GST Rate (1st year) 1.8%
Premium Payment Single GST Rate (2nd year onwards) Not Applicable
Mode of Premium Note: GST Rate shall be as applicable from time
Single
Payment to time.
Mode of Annuity
Yearly Annuity Instalment ` 95,650/-
Payment

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Benefit Summary: (Amount in `)

Other Benefit
Policy Year1 Survival
Purchase Price2 (Early Return
(End of the Benefit/Annuity Death Benefit
(Cumulative) of Premium,
year) (in a policy year)
if any)
1 500,000 0 0 525,000
2 500,000 0 0 525,000
3 500,000 0 0 525,000
4 500,000 0 0 525,000
5 500,000 0 0 525,000
6 500,000 0 0 525,000
7 500,000 0 0 525,000
8 500,000 0 0 525,000
9 500,000 0 0 525,000
10 500,000 0 0 525,000
11 500,000 0 0 525,000
12 500,000 0 0 525,000
13 500,000 0 0 525,000
14 500,000 0 0 525,000
15 500,000 0 0 525,000
16 500,000 95,650 0 500,000
17 500,000 95,650 0 500,000
18 500,000 95,650 0 500,000
19 500,000 95,650 0 500,000
20 500,000 95,650 0 500,000
30 500,000 95,650 0 500,000
40 500,000 95,650 0 500,000
50 500,000 95,650 0 500,000
56 500,000 95,650 0 500,000
Note:
1. This illustration is showing the flow of benefits up to 101 years of age of
annuitant. For the later years, benefit amounts as shown for last policy
year in the above illustration will be applicable. Premium is payable in
advance at the start of the year.
2. Purchase Price excludes underwriting extra premium, frequency
loadings on premiums and Goods & Service Tax.

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SECTION 45 OF INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 as amended from
time to time shall be applicable. The current provision is as under:
(1) No policy of life insurance shall be called in question on any ground
whatsoever after the expiry of three years from the date of the policy,
i.e. from the date of issuance of the policy or the date of commencement
of risk or the date of revival of the policy or the date of the rider to the
policy, whichever is later.
(2) A policy of life insurance may be called in question at any time within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date
of the rider to the policy, whichever is later on the ground of fraud:
Provided that the insurer shall have to communicate in writing to the
insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision is based.
Explanation I- For the purposes of this sub-section, the expression
“fraud” means any of the following acts committed by the insured or
by his agent, with the intent to deceive the insurer or to induce the
insurer to issue a life insurance policy:-
(a) the suggestion, as a fact of that which is not true and which the
insured does not believe to be true;
(b) the active concealment of a fact by the insured having knowledge
or belief of the fact;
(c) any other act fitted to deceive; and
(d) any such act or omission as the law specially declares to be
fraudulent.
Explanation II- Mere silence as to facts likely to affect the assessment of
the risk by the insurer is not fraud, unless the circumstances of the case
are such that regard being had to them, it is the duty of the insured
or his agent, keeping silence to speak, or unless his silence is, in itself,
equivalent to speak.
(3) Notwithstanding anything contained in subsection (2), no insurer shall
repudiate a life insurance policy on the ground of fraud if the insured
can prove that the misstatement of or suppression of a material fact
was true to the best of his knowledge and belief or that there was
no deliberate intention to suppress the fact or that such misstatement
of or suppression of a material fact are within the knowledge of
the insurer:
Provided that in case of fraud, the onus of disproving lies upon the
beneficiaries, in case the policyholder is not alive.
Explanation – A person who solicits and negotiates a contract of
insurance shall be deemed for the purpose of the formation of the
contract, to be the agent of the insurer.
(4) A policy of life insurance may be called in question at any time within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date
of the rider to the policy, whichever is later, on the ground that any
statement of or suppression of a fact material to the expectancy of
the life of the insured was incorrectly made in the proposal or other
document on the basis of which the policy was issued or revived or
rider issued:
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 Provided that the insurer shall have to communicate in writing to the
insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision to repudiate
the policy of life insurance is based:
Provided further that in case of repudiation of the policy on the ground
of misstatement or suppression of a material fact, and not on the
ground of fraud the premiums collected on the policy till the date of
repudiation shall be paid to the insured or the legal representatives or
nominees or assignees of the insured within a period of ninety days
from the date of such repudiation.
Explanation - For the purposes of this sub-section, the misstatement of
or suppression of fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer, the onus is on the
insurer to show that had the insurer been aware of the said fact no life
insurance policy would have been issued to the insured.
(5) 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 insured 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.
2. Any person making default in complying with the provisions of this
section shall be liable for a penalty which may extend to ten lakh
rupees.

Various Sections of the Insurance Act, 1938, applicable to LIC to

apply as amended from time to time.

This product brochure gives only salient features of the plan. For
further details please refer to the Policy document on our website
www.licindia.in or contact our nearest Branch Office.

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS /

FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance policies,
announcing bonus or investment of premiums. Public receiving such
phone calls are requested to lodge a police complaint.

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 LIFE INSURANCE CORPORATION OF INDIA
“Life Insurance Corporation of India” was established on
1st September, 1956 under Life Insurance Corporation Act, 1956,
with the objective of spreading life insurance more widely, in
particular to the rural areas with a view to reaching all insurable
persons in the country and providing them adequate financial
cover against insured events. LIC continues to be the important
life insurer even in the liberalized scenario of Indian insurance
and is moving fast on a new growth trajectory surpassing its own
past records. In its existence of over six decades, LIC has grown
from strength to strength in various areas of operation.

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 Registered Office:
Life Insurance Corporation of India
Central Office,
Yogakshema, Jeevan Bima Marg, Mumbai – 400021.
Website: www.licindia.in
Registration Number: 512

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