New Children's Money Back Plan - Life Insurance Policy
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LIC's New
Children’s Money Back Plan is a participating non-linked money
back plan. This plan is specially designed to meet the
educational, marriage and other needs of growing children
through Survival Benefits. In addition, it provides for the risk
cover on the life of child during the policy term and for number
of survival benefits on surviving to the end of the specified
durations.
The plan can be purchased by any of the parent or grand parent
for a child aged 0 to 12 years.
1. Benefits:
Death benefit:
On death of the Life Assured before the stipulated Date
of Maturity provided the policy is in full
force, then
On death of the Life Assured before the date of
commencement of risk: Return of premium/s
excluding taxes, extra premium and rider premium, if any.
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On death after the date of commencement of risk:
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 10 times of annualized premium or
Absolute amount Assured to be paid on
Death i.e. Basic Sum Assured.
This death benefit shall not be less than 105% of the
total premiums paid as on date of death.
The premiums mentioned above exclude taxes, extra premium
and rider premium, if any.
Survival Benefit: On the Life Assured surviving the
policy anniversary coinciding with or
immediately following the completion of ages 18 years, 20
years and 22 years, 20% of the Basic
Sum Assured on each occasion shall be payable, provided
the policy is in full force.
Maturity Benefit: On the Life assured surviving the
stipulated date of maturity, provided the
policy is in full force, Sum Assured on Maturity ( which
is 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.
2. Optional Benefit:
a) Option to defer the Survival Benefit(s): The
policyholder will have option to take the survival
benefit at any time on or after its due date but during
the currency of the policy. In case of
deferment of a due survival benefit (s) opted by the
policyholder, the Corporation will pay
increased survival benefit (s) equal to
Survival Benefits % * Sum Assured * (Factor applicable to
Survival Benefit (s))
These factors are enclosed as Annexure I.
This option shall be required to be intimated in writing
by the policyholder six months before
the due date of the Survival Benefit to the servicing
branch of policy.
b) LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01):
LIC’s Premium Waiver Benefit Rider
is available as an optional rider on the life of proposer
aged between ages 18 to 55 years by
payment of additional premium. In case of death of the
proposer, the premiums under the
basic plan falling due after the date of death shall be
waived. The cost of medical and special
reports shall be borne by the proposer. This rider shall
not operate in the event of death of the
proposer by his own hands whether sane or insane within
12 months from the date of issuance
of First Premium receipt or within 12 months from the
date of revival.
For more details on the above rider, refer the rider
brochure or contact LIC’s nearest Branch
Office.
3. Eligibility Conditions and Other Restriction :
a) Minimum Basic Sum Assured : Rs. 100,000
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of Rs.
10,000/-)
c) Minimum Age at entry for Life Assured : [0] years
(last birthday)
d) Maximum Age at entry for Life Assured : [12] years
(last birthday)
e) Minimum/ Maximum Maturity Age for : [25] years (last
birthday)
Life Assured
f) Policy Term/Premium Paying Term : [25 – Age at entry]
years
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than
8 years, the risk under this plan will
commence either one day before the completion of 2 years
from the date commencement of policy
or one day before the policy anniversary coinciding with
or immediately following the completion
of 8 years of age, whichever is earlier. For those aged 8
years or more, risk will commence
immediately.
Date of vesting under the plan:
The policy shall automatically vest in the Life Assured
on the policy anniversary coinciding with
or immediately following the completion of 18 years of
age and shall on such vesting be deemed to
be a contract between the Corporation and the Life
Assured.
4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly,
quarterly or monthly mode (through ECS
only) or through SSS mode over the term of policy
However, a grace period of one month but not less than 30
days will be allowed for yearly, halfyearly,
quarterly modes and 15 days for monthly mode of premium
payment.
5. Sample Premium Rates:
Following are some of the sample tabular premium rates
(exclusive of service tax) per Rs. 1000/-
Basic Sum Assured:
6. Mode and High S.A. Rebates:
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of Tabular premium
Quarterly, Monthly, SSS - NIL
High Sum Assured Rebate:
Basic Sum Assured (B.S.A) Rebate (Rs.)
1,00,000 to 1,90,000 Nil
2,00,000 to 4,90,000 2 per thousand B.S.A.
5,00,000 and above 3 per thousand B.S.A.
7. 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, as the case may be 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, if opted for, will be considered along
with revival of the Basic Policy and not in
isolation and shall be subject to underwriting.
8. 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 Sum Assured on Death under paid–up policy shall be
reduced to such a sum called “Death
Paid-up Sum Assured” and shall be equal to [(Number of
premiums paid/Total Number of
premiums payable) x Sum Assured on Death]
The Sum Assured on Maturity under paid-up policy shall be
reduced to such a sum called
“Maturity Paid-up Sum Assured” and shall be equal to
[(Number of premiums paid/Total
Number of premiums payable) x (Sum Assured on Maturity
plus Total Survival Benefits payable
under the policy)] less Total amount of Survival Benefits
already paid.
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.
In case of a paid up policy, no future survival benefits
shall be payable. However, if the option to
defer the Survival Benefit(s) has been exercised and
payment of such Survival Benefit(s) have not
yet been made, these increased Survival Benefit(s) shall
also be paid as specified in para 2a above.
Rider shall not acquire any paid-up value and the rider
benefits cease to apply, if policy is in
lapsed condition.
9. Surrender Value:
The policy can be surrendered 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 premium for rider, if opted
for, less any survival benefits already
due and payable.
This percentage will depend on the policy term and 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 vested bonuses multiplied by
the surrender value factor applicable to
vested bonuses. These factors will depend on the policy
term and policy year in which policy is
surrendered and specified as below:
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Corporation may, however, pay Special Surrender value, if
it is more favorable to the Policyholder.
In addition to the payable Surrender Value, if the option
to defer the Survival Benefit(s) has been
exercised and payment of such Survival Benefit(s) which
were due but have not yet been made,
these increased Survival Benefit(s) (as specified in para
2a above) shall also be paid.
10. 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.
11. 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.
12. Cooling-off period:
If the Policyholder is not satisfied with the “Terms and
Conditions”, the policy may be returned to
the Corporation 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 the proportionate risk
premium (for basic plan and rider, if
any) for the period on cover, expenses incurred on
medical examination and special reports , if
any, and stamp duty charges.
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13. Exclusion:
Suicide Clause:
This policy shall be void
i. If the Life Assured (whether sane or insane) commits
suicide at any time within 12 months
from the date of commencement of risk, the Corporation
will not entertain any claim under
this policy except for 80% of the premiums paid excluding
any taxes and extra premium, if
any, provided the policy is inforce. This clause shall
not be applicable in case age at entry of
the Life Assured is below 8 years.
ii. 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 and extra premium, if any,) or the
surrender value shall be payable. The
Corporation will not entertain any other claim under this
policy. This clause shall not be
applicable:
a) in case the age of the Life Assured is below 8 years
at the time of revival; or
b) for a policy lapsed without acquiring paid-up value
and nothing shall be payable
under such policies.
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.”
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Notes:
i) This illustration is applicable to a standard (from
medical) life.
ii) 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.
iii) 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.
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SECTION 45 OF INSURANCE ACT, 1938:
The provision of Section 45of the Insurance Act 1938
shall be as amended from time to
time. The simplified version of this provision is as
under:
Provisions regarding policy not being called into
question in terms of Section 45 of the Insurance Act,
1938, as amended by Insurance Laws (Amendment) Ordinance
dated 26.12.2014 are as follows:
1. No Policy of Life Insurance shall be called in
question on any ground whatsoever after expiry of 3
yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may
be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to
the insured or legal representative or
nominee or assignees of insured, as applicable,
mentioning the ground and materials on which such
decision is based.
3. Fraud means any of the following acts committed by
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 specifically
declares to be fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the
insured or his agent keeping silence to speak or silence
is in itself equivalent to speak.
5.No Insurer shall repudiate a life insurance Policy on
the ground of Fraud, if the Insured /
beneficiary can prove that the misstatement was true to
the best of his knowledge and there was no
deliberate intention to suppress the fact or that such
mis-statement of or
suppression of material fact are within the knowledge of
the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within
3 years on the ground that any statement of or
suppression of a fact material to expectancy of life of
the insured was incorrectly made in the
proposal or other document basis which policy was issued
or revived or rider issued. For this, the
insurer should communicate in writing to the insured or
legal representative or nominee or
assignees of insured, as applicable, mentioning the
ground and materials on which decision to
repudiate the policy of life insurance is based.
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7. In case repudiation is on ground of mis-statement and
not on fraud, the premium collected on
policy till the date of repudiation shall be paid to the
insured or legal representative or nominee or
assignees of insured, within a period of 90 days from the
date of repudiation.
8. Fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the
insurer. The onus is on insurer to show that if the
insurer had been aware of the said fact, no life
insurance policy would have been issued to the insured.
9. The insurer can call 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 of age of life insured. So, this Section will not
be applicable for questioning age or adjustment
based on proof of age submitted subsequently.
[ Disclaimer : This is not a comprehensive list of
amendments of Insurance Laws (Amendment)
Ordinance,2014 and only a simplified version prepared for
general information. Policy Holders are
advised to refer to Original Ordinance Gazette
Notification dated December 26 , 2014 for complete
and accurate details. ]
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.
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.
Note: “Conditions apply” for which please refer to the
Policy document or contact our nearest Branch Office.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS /
FRAUDULENT OFFERS
IRDA clarifies to public that
IRDA or its officials do not involve in activities like
sale of any kind of insurance or financial products nor
invest premiums.
IRDA does not announce any bonus.
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