JEEVAN SUGAM - Single Premium , Multiple benefits

LIC’s Jeevan Sugam is a non-linked single premium plan wherein the risk cover is a multiple of premium paid by you. On maturity this plan offers a Maturity Sum Assured chosen by you.
The plan will be open for sale for a maximum period of 45 days from the date of launch.
  1. BENEFITS

  1. Death Benefit:
  On death during first five policy years:
Basic Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra        premium charged shall be payable.
On death after completion of five policy years:
  Basic Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged along with loyalty addition, if any, shall be payable.
  1. Maturity Benefit:
On maturity, the  Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
  1. Loyalty Addition:
Depending upon the Corporation’s experience with regard to policies issued under this plan, this policy will be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable on death after completion of  five policy years, on surrender during the last policy year and on maturity, at such rate and on such terms as may be declared by the Corporation.
  1. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS

  1. Minimum Entry Age                                         : 8 years (completed)
  2. Maximum Entry Age                                         : 45 years (nearest birthday)
  3. Minimum/Maximum Basic Sum Assured        : 10 times of single premium paid (excluding   
                                                                                          extra premium, if any)
  1. Minimum Maturity Sum Assured                      : Rs. 60,000/-
  2. Maximum Maturity Sum Assured                      : No Limit
 Maturity Sum Assured shall be available in multiples of Rs. 5,000/-.
  1. Policy Term                                                        : 10 years
  2. Premium payment mode                                   : Single premium only

  1. Sample Premium Rates:
Specimen Single Premium rates (exclusive of Service Tax) for some of the ages per Rs.1000/- Maturity Sum Assured are as under:
    Age at entry
 (Nearest Birthday) 		Single Premium Rates (Rs.)
10
537.75
20
552.90
30
562.65
40
629.35
  1. INCENTIVE FOR HIGH MATURITY SUM ASSURED:
Incentive for higher Maturity Sum Assured by way of increase in the Maturity Sum Assured is as under:
 Maturity Sum Assured
Increase in  Maturity Sum Assured
Below Rs.150,000
Nil
Rs.150,000 to Rs. 399,999
3.50%
Rs.400,000 and above
4.50%
If the policy holder opts for Maturity Sum Assured Rs. 150000/- or above, the Maturity Sum Assured shall be automatically increased by the percentage corresponding to opted Maturity Sum Assured as shown above. This Increased Maturity Sum Assured shall be the Maturity Sum Assured payable at the time of maturity along with Loyalty Addition, if any.
For e.g. if opted Maturity Sum Assured by the Proposer is Rs. 150,000/-. Maturity Sum Assured payable at Maturity is Rs. 150,000 * (1+3.5%) i.e. Rs. 155,250/-
  1. LOAN
Loan can be availed under this plan any time during the policy term. Loan shall be equal to 60% of the surrender value as on the date of sanction of loan.
  1. SURRENDER VALUE
The policy can be surrendered for cash at any time during the policy term.  The minimum Guaranteed Surrender Value allowable shall be as under:
    1. First year: 70% of the Single premium (net of service tax) excluding all extra premiums, if any.
    2. Thereafter: 90% of the Single premium (net of service tax) excluding all extra premiums, if any.
Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.
The Special Surrender Value will be the discounted value of the Maturity Sum Assured as on date of surrender. If the policy is surrendered during the last policy year it shall be eligible for loyalty addition, if any.
  1. SERVICE TAX:  Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on the premium.
  1. 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 risk premium, expenses incurred on medical examination, if any, and stamp duty.
  1. EXCLUSIONS
The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within one year from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of a maximum of (i) 90% of the single premium paid excluding any extra premium paid or (ii) third party’s bonafide beneficial interest acquired in the policy for valuable consideration (but limited to applicable death benefit of this policy) of which notice has been given in writing to the branch where the policy is being presently serviced (where the policy records are kept) at least one calendar month prior to death.


"Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company.  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 investment returns.  These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance."

 
Notes:
 
i)  The single premium shown above is exclusive of service tax.
 
ii) This illustration is applicable to a standard (from medical, life style and occupation point of view) life.
 
iii) 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 6% p.a. (Scenario 1) and 10% 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 6% p.a. or 10% p.a., as the case may be.  The Projected Investment Rate of Return is not guaranteed.
 
iv) Under Scenario 1 where interest rate earned by the Corporation is assumed to be 6% p.a. throughout the term, the projected Loyalty Addition is nil.
 
v) 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.
 
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.
 
(2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

SOURCE LIC OF INDIA
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