INTRODUCTION

In law and economics, insurance is a form of risk management primarily used to

hedge against the risk of a contingent, uncertain loss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment. An insurer is a company selling the insurance; an insured, or
policyholder, is the person or entity buying the insurance policy. The insurance rate
is a factor used to determine the amount to be charged for a certain amount of
insurance coverage, called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and
practice.
The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate (indemnify) the insured in the case of a financial (personal)
loss. The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insured will be financially
compensated.

History of insurance
Turning to insurance in the modern sense (i.e., insurance in a modern money
economy, in which insurance is part of the financial sphere), early methods of
transferring or distributing risk were practised by Chinese and Babylonian traders
as long ago as the 3rd and 2nd millennia BC, respectively.[13] Chinese merchants
travelling treacherous river rapids would redistribute their wares across many
vessels to limit the loss due to any single vessel's capsizing. The Babylonians
developed a system which was recorded in the famous Code of Hammurabi, c.
1750 BC, and practised by early Mediterranean sailing merchants. If a merchant
received a loan to fund his shipment, he would pay the lender an additional sum in
exchange for the lender's guarantee to cancel the loan should the shipment be
stolen or lost at sea.
Achaemenian monarchs of Ancient Persia were the first to insure their people and
made it official by registering the insuring process in governmental notary offices.
The insurance tradition was performed each year in Norouz (beginning of the
Iranian New Year); the heads of different ethnic groups as well as others willing to
take part, presented gifts to the monarch. The most important gift was presented
during a special ceremony. When a gift was worth more than 10,000 Derrik
(Achaemenian gold coin) the issue was registered in a special office. This was
advantageous to those who presented such special gifts. For others, the presents
were fairly assessed by the confidants of the court. Then the assessment was
registered in special offices.
The purpose of registering was that whenever the person who presented the gift
registered by the court was in trouble, the monarch and the court would help him.
Jahez, a historian and writer, writes in one of his books on ancient Iran: Whenever

the owner of the present is in trouble or wants to construct a building, set up a

feast, have his children married, etc. the one in charge of this in the court would
check the registration. If the registered amount exceeded 10,000 Derrik, he or she
would receive an amount of twice as much.
A thousand years later, the inhabitants of Rhodes invented the concept of the
general average. Merchants whose goods were being shipped together would pay a
proportionally divided premium which would be used to reimburse any merchant
whose goods were deliberately jettisoned in order to lighten the ship and save it
from total loss.
The Greeks and Romans introduced the origins of health and life insurance c. 600
AD when they organized guilds called "benevolent societies" which cared for the
families and paid funeral expenses of members upon death. Guilds in the Middle
Ages served a similar purpose. The Talmud deals with several aspects of insuring
goods. Before insurance was established in the late 17th century, "friendly
societies" existed in England, in which people donated amounts of money to a
general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were
insurance pools backed by pledges of landed estates. These new insurance
contracts allowed insurance to be separated from investment, a separation of roles
that first proved useful in marine insurance. Insurance became far more
sophisticated in post-Renaissance Europe, and specialized varieties developed.
Lloyd's of London, pictured in 1991, is one of the world's leading and most famous
insurance markets

Some forms of insurance had developed in London by the early decades of the
17th century.
TYPES OF INSURANCE

CHAPTERNO.1 WHAT IS LIFE INSURANC

What is Child Life Insurance?
Child life insurance comes in several forms and is used to insure the life of a child.
It may also be used to help a child who develops a medical condition in childhood
to obtain life insurance at a later point, though this varies with the policy. There are
many claims about child life insurance and its important to understand the
different types.
Some insurance companies claim that child life insurance protects your childs
future. This really depends on the policy. Some policies are whole life insurance,
which means that a child would be able to continue to get insurance from that
company when he reaches a certain age, usually at age 18. This isnt the case of all
child life insurance.
Some insurance companies sell term life insurance, which does not guarantee
future ability to be insured. Moreover at the expiration of this insurance, you have
nothing to show for it. The main point of having child life insurance of this type is
to insure that you will be able to pay for a funeral and perhaps defray costs of
losing work or needing therapeutic help if your child dies. Some term life
insurance may also pay out if your child becomes seriously disabled during the
term.
Term life usually means you cant borrow against or cash out the policy, and its
often offered for less money than is whole life insurance. Some parents feel that
what they would really need in the awful event where a child died is financial help

to pay for a funeral and perhaps to be able to take time off work. Since the
payments for this type of insurance are fairly low, it may be a good investment.
There is some benefit to child life insurance that is whole life insurance especially
if you have known medical or genetic conditions that might manifest later in
childhood and make it very hard for your child to obtain life insurance as an adult.
Since this type of insurance is usually purchased for very young children, it could
give them some assurance of being able to get insurance later, and they may be
able to borrow against the policy to do things like go to school.
Most parents do not want to prepare for a childs death, and instead want to prepare
for the happy and successful lives they want their kids to have. Child life insurance
may play on parents fears about what would occur if they lose children. Some
financial experts recommend that it doesnt make sense to purchase this insurance
and it makes much more sense to start a savings account for children. You can
invest the same amount or little more than you would pay in insurance premiums
and these can be used without restriction when needed later, hopefully to help a
child with college expenses.

Why Would Someone Purchase Life Insurance for His Child?

Buying life insurance for your child has been a long-standing topic of substantial
debate. Arguments on both sides of the issue have repeatedly been presented, each
with its own merits. Understanding the benefits of purchasing life insurance on
your child will help you evaluate the issue and make a more educated and

informed decision about whether or not coverage is appropriate for your goals and
individual situation.
Policy Types
The vast majority of life insurance types issued to minor children are permanent
policies. Whole life and universal life are the most common forms of permanent
protection purchased for children. Many insurance carriers will actually refuse to
issue other types of policies to children and have specific restrictions on the types
of products available and the face amounts for which minors are eligible.
Final Expenses
Providing for burial expenses is the most obvious reason someone would purchase
life insurance for her child. Funeral costs are continually increasing, and often
exceed $10,000. Without life insurance on your child, you would have to find other
means of acquiring the necessary funds to pay for your child's final expenses.
Future Insurability
Medical exams are not required as part of the application or underwriting process
to purchase life insurance for a child. Carriers will typically automatically place
minors into the "Standard" underwriting category, assuming that they are in
average good health and do not present extraordinary risks. If your child develops
a disorder or condition that would ordinarily result in the declination of a life
insurance application, their "standard" underwriting status is protected within the
policy you purchased, often allowing for an increase in coverage without
additional medical analysis or investigation.
Investment Accumulation

Permanent life insurance products are designed to accumulate cash value. Buying a
policy for your child will allow for substantially greater interest earnings over the
years. As an adult, your child will have the option of terminating the policy and
withdrawing the accumulated value, reducing or possibly eliminating future
premium payments entirely, or continuing normal scheduled premium payments to
further increase the investment potential of the policy.
Level Premiums
Premium payments for permanent life insurance policies are designed to remain
level for your entire life. The cost for coverage on your child will be minimal, and
will remain level forever. As an adult, your child's financial outlay for the policy
you bought will be extremely small. The cost for identical coverage as an adult
would be significantly higher than the premium required to maintain a policy
purchased as a minor.
Minors' Life Insurance Coverage
No parent wants to ever think about losing a child, but there is always the chance
of the worst occurring. The U.S. Centers for Disease Control found that, in 2005,
the leading causes of death for minors were:
1. Accidents (37 in 100,000)
2. Assault/Homicide (13 in 100,000)
3. Suicide (10 in 100,000)

Each of these unfortunate events carries with it a myriad of unintended emotional

effects. Life insurance coverage helps ensure that economic uncertainty need to
add to the woes of a love one's death.
Benefits of Minors' Life Insurance
Aside from the financial security of losing any loved one, there are some other
benefits to consider about getting your young one life insurance coverage. Minors
tend to get better rates, especially with whole life policies. The reasoning behind
this is that once the child is no longer a minor, they can continue coverage well into
adulthood at a better rate than if they were to purchase it on their own. It becomes
an investment in the future that minors may not appreciate or fully understand at
first, but for which they will come to find beneficial later in life.
How to Find a Life Insurance Policy for a Minor
Anyone, from grandparents or parents, to legal guardians can purchase life
insurance for minors. In many cases its not uncommon for grandparents of a
newborn child to buy life insurance for the new addition to the family to help the
parents receive more peace of mind after going through the trials of childbirth.
There are companies that specialize in policies for minors and children. Gerber
Life Insurance is one of many life insurance companies that offer policies to
minors. If you would prefer going through a universal insurance provider, then you
may do so instead as these insurers may offer minor-oriented life insurance policies
as well.
How Much is Minor Life Insurance

Because the chances of death for children and teenagers is much lower than the
chances of older generations, minor life insurance has become extremely
affordable -- especially in recent years. One way to determine what a minor life
insurance policy could cost you is to request more information from this site. We
will get you connected directly with a life insurance company that can give you a
quote over the phone, usually within minutes.
Should Your Child Have a Life Insurance Policy?
The loss of a child is devastating to a family, and it's certainly something that most
people would prefer not to think about. Equally so, buying life insurance for your
child isn't something most people will consider -- but in some situations, buying a
policy could benefit your child in the future.
When does children's life insurance make sense?
Do you really need to insure your child's life? In the majority of cases children
don't contribute to household finances, so the death of a child, while emotionally
devastating, won't cause a drop in income.
Many experts have noted that insuring your child's life can cover funeral and burial
costs in the event of a tragedy, or build up cash value to use for college tuition or
other life expenses. These can both be valid reasons to insure a child's life, but it's
important to think about whether or not such expenses could best be met in other
ways.
One very good reason to buy a life insurance policy for your child is the fact that as
they grow up, that insurance policy can easily be upgraded to provide a larger
amount of coverage. If a certain type of genetic disease or inheritable illness runs

in your family, this could prove to be highly beneficial, as your child will not have
to deal with the high premiums that go along with having a pre-existing condition.
Their rates were presumably locked in while they were a child and the rates should
remain with them for life.
Find out more about children's life insurance
Getting a life insurance policy for your child definitely does make sense in some
situations, but it's important to understand all the terms and conditions of the
policy, and make sure the insurance you buy is right for your needs. Learn more
about life insurance options for your children; it only takes a few simple steps. To
get started, request children's life insurance information here. Upon submitting
your request, you'll be contacted by an experienced representative who can help
you find the best policy
Why Minors Benefit from Life Insurance
Children need life insurance as well. Since kids are not the primary breadwinners
in a home, some parents feel that they don't need a life insurance policy for their
minor children. However, the truth is that horrible things can happen to anyone,
including children. The unexpected happens no matter how much we wish it
wouldn't.
Minor life insurance scenario #1
It is important to envision what may happen if something were to happen to one of
your children. Funeral costs are quite expensive and not having insurance means
that those costs would have to be paid out of your pocket. You're looking at
anywhere between $5,000 to $15,000 in out-of-pocket expenses.

Losing a child is horrible enough without the worry of how that loss is going to be
paid for monetarily.
Request a quote for minor's life insurance coverage today!
Minor life insurance scenario #2
But here is another scenario to look at: minor life insurance is a great way to save
for college and for other huge events that will happen in regards to your child in
the future. Perhaps you will want to use money built up in your child's life
insurance policy to buy them a brand new car as a high school graduation or
college graduation gift.
The money can also be used to pay college expenses or even pay for the day that
they get married.

The many ways minor life insurance coverage can help

There are so many things that the money built up in a minor life insurance policy
can do. After your child becomes an adult, he or she can decide what they want to
do in regards to life insurance. He or she may decide that they just want to upgrade
the policy that you have had on them to a much higher amount and take it over.
There are just many things that can be done with minor life insurance because
changes are generally made while your child is young, and when life insurance
companies are most flexible.

But you're not going to be able to find the right insurance company for you until
you get quotes from minor life insurance companies.

Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this
important

principle,

which

applies

to

all

forms

of

insurance.

At the time of taking a policy, policyholder should ensure that all questions in the
proposal form are correctly answered. Any misrepresentation, non-disclosure or
fraud in any document leading to the acceptance of the risk would render the
insurance contract null and void.
Protection:
Savings through life insurance guarantee full protection against risk of death of the
saver. Also, in case of demise, life insurance assures payment of the entire amount
assured (with bonuses wherever applicable) whereas in other savings schemes,
only the amount saved (with interest) is payable.
Aid To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can
be made effortlessly because of the 'easy instalment' facility built into the scheme.
(Premium payment for insurance is either monthly, quarterly, half yearly or yearly).

For example: The Salary Saving Scheme popularly known as SSS, provides a
convenient method of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary
Saving Scheme is ideal for any institution or establishment subject to specified
terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally
accepted as security, even for a commercial loan.
Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth
tax. This is available for amounts paid by way of premium for life insurance
subject to income tax rates in force.
Assessees can also avail of provisions in the law for tax relief. In such cases the
assured in effect pays a lower premium for insurance than otherwise.
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can
be effectively used to meet certain monetary needs that may arise from time-totime.
Children's education, start-in-life or marriage provision or even periodical needs
for cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement

from service and used for any specific purpose, such as, purchase of a house or for
other investments. Also, loans are granted to policyholders for house building or
for purchase of flats (subject to certain conditions).
Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter into a valid contract
can insure himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse
or children. While underwriting proposals, certain factors such as the
policyholders state of health, the proponent's income and other relevant factors are
considered by the Corporation.

CHAPTER NO.2
TYPES OF MINOR INSURANCE POLICY

JEEVAN ANURAG
JEEVAN KISHOR
CHILD CAREER PLAN
CHILD FORTUNE PLUS
KOMAL JEEVAN
JEEVAN CHHAYA
CHILD FUTURE PLAN

1) JEEVAN ANURAG:
Benefits :
LICs Jeevan ANURAG is a with profits plan specifically designed to take care of
the educational needs of children. The plan can be taken by a parent on his or her
own life. Benefits under the plan are payable at prespecified durations irrespective
of whether the Life Assured survives to the end of the policy term or dies during
the term of the policy. In addition, this plan also provides for an immediate
payment of Basic Sum Assured amount on death of the Life Assured during the
term of the policy.
Assured Benefit:
Payment of 20% of the Basic Sum Assured at the start of every year during last 3
policy years before maturity. At maturity, 40% of the Basic Sum Assured along
with reversionary bonuses declared from time to time on full Sum Assured for the
full term and the Terminal bonus, if any shall be payable. For example, if term of
the policy is 20 years, 20% of the Sum assured will be payable at the end of the
17th,18th, 19th year and 40% of the Sum Assured along with the reversionary
bonuses and the terminal bonus, if any, at the end of the 20th year.
Death Benefit:
Payment of an amount equal to Sum Assured under the basic plan immediately on
the death of the life assured.

ELIGIBILITY CONDITION AND RESTRICTION:

FOR BASIC PLAN
Age of the Life Assured- 20 to 60 years (age nearest
birthday)

Age at entry

Age of the Life Assured

Maximum 70 years (age nearest birthday)
at maturity
All terms from 10 to 25 years. In case of single premium
Term
mode minimum term shall be 5 Years.
Minimum Sum Assured Rs. 50,000 /No limit. Sum Assured will be in multiples of Rs.5,000 /Maximum Sum assured
only.
Yearly, Half-yearly, Quarterly, Monthly or through salary
Mode
deductions in case of regular premiums.
FOR TERM ASSURANCE RIDER
Age at entry
Age of the Life
Assured
at
maturity
Term
Minimum Sum
Assured

Age of the Life Assured- 20 to 50 years (age nearest birthday)

Maximum 60 years (age nearest birthday)
NIL
Rs. 1,00,000 /-

An amount equal to the Sum Assured under Basic Plan subject to

Maximum Sum the maximum of Rs. 25 lakh overall limit taking all term assurance
assured
riders availed under all existing policies of the life assured and the
term assurance rider under the new proposal into consideration.
Mode
NIL

The Term Assurance Rider Sum Assured will be in multiples of Rs.25,000 /-.

FOR CRITICAL ILLNESS RIDER

Age at entry
Age of the Life
Assured
at
maturity
Term
Minimum Sum
Assured

Age of the life Assured- 20 to 50 years (age nearest birthday)

Maximum 60 years (age nearest birthday)
NIL
Rs. 50,000 /-

An amount equal to the Sum Assured under Basic Plan subject to

Maximum Sum the maximum of Rs. 5 lakh overall limit taking all critical illness
assured
riders availed under all existing policies of the life assured and the
critical illness rider under the new proposal into consideration.
Mode
NIL
The Critical Illness Rider Sum Assured will be in multiples of Rs.10,000 /-.
REBATES/EXTRA FOR MODE OF PREMIUM PAYMENT AND HIGH SUM
ASSURED
Mode rebate: 2% for yearly mode and 1% for half yearly mode on the tabular
premium. There are no rebates for quarterly and SSS modes. For monthly mode,
5% extra will be charged on the tabular premium.
Large Sum Assured Rebate: Rs. 2%o Sum Assured for Sum Assured Rs.1,05,000/and above. No rebate for Sum Assured up to and including Rs.1,00,000/-. No
rebate is available (either made) on the rider premiums.

PREMIUM OPTION:
OPTIONS OF PAYMENT OF PREMIUM
Following premium paying terms are offered:
(i) Single Premium- One Year
(ii) Regular Premium payable during (n-3) Years, where n is the policy term
(iii) Regular Premium payable throughout the policy term
The sample premium rates for the basic plan are as under:SINGLE PREMIUM PER 1000 SUM ASSURED
POLICY TERM
AGE
5
10
15
20
975.45
839.65
718.80
25
975.95
840.45
720.80
30
975.95
842.40
725.30
35
978.45
847.85
735.05
40
982.90
858.05
752.90
45
990.60
876.05
781.20
50
1004.65
904.25
823.75
55
1024.65
944.60
886.00
60
1054.60
1006.80
-

20
614.20
618.10
625.85
641.35
666.85
705.60
763.55
-

LIMITED ANNUAL PREMIUM PER 1000 SUM ASSURED

AGE
POLICY TERM (PREMIUM PAYING TERM)

25
525.70
532.05
544.15
565.40
598.60
598.60
-

20
25
30
35
40
45
50
55
60

10(7)
152.30
152.50
152.85
154.05
156.30
160.30
166.85
176.45
191.55

15(12)
88.90
89.20
89.80
91.25
93.95
98.45
105.55
116.30
-

20(17)
61.30
61.75
62.60
64.45
67.60
72.60
80.55
-

25(22)
45.75
46.35
47.55
49.70
53.25
58.90
-

TABULAR ANNUAL PREMIUM PER 1000 SUM ASSURED

POLICY TERM
AGE
10
15
20
25
20
118.25
76.95
55.55
42.90
25
118.40
77.25
56.00
43.50
30
118.75
77.85
56.85
44.65
35
119.80
79.20
58.60
46.80
40
121.75
81.75
61.65
50.30
45
125.30
86.00
66.50
55.90
50
131.15
92.75
74.30
55
139.80
103.20
60
153.80
-

OTHER BENEFITS:
The plan offers other benefits as follows:

Grace Period:
A grace period of one month but not less than 30 days will be allowed for payment
of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.
15 days Cooling-off period:
If you are not satisfied with the Terms and Conditions of the policy you may
return the policy to us within 15 days.
Paid up Value:
If at least three full years' premiums have been paid in respect of this policy, any
subsequent premium be not duly paid, this policy shall not be wholly void, but the
Sum Assured by it shall be reduced to such a Sum, called the paid-up value, as
shall bear the same ratio to the full Sum Assured as the number of premiums
actually paid shall bear to the total number of premiums originally stipulated in the
policy. The policy so reduced shall thereafter be free from all liability for payment
of the within mentioned premium, but shall not be entitled to the future bonuses.
The existing vested reversionary bonuses, if any, will remain attached to the
reduced paid-up Policy. The Sum Assured so reduced along with existing bonuses,
if any, shall be paid in one single instalment on maturity or on earlier death.
The rider benefits will cease to apply if the policy is in lapsed condition.
Once the payment of assured benefit starts, the policy shall be kept in force till
maturity and the unpaid premiums, if any, will be deducted with interest at
appropriate

rate

out

of

the

next

benefit

payment.

Loan:
Policy Loan is permissible under the policy after it acquires a paid-up value but

before starting of payment of assured benefits. The terms and conditions of loan
and the rate of interest applicable will be as fixed by the Corporation from time to
time. At present, the rate of interest is 9% p.a. compounding half-yearly.
Guaranteed Surrender Value:
This policy can be surrendered for cash after the policy is kept in force by payment
of premiums for at least three years. The guaranteed surrender value allowable
under this plan for all modes, except the single premium mode will be equal to 30
per cent of the premiums paid excluding the premiums paid for the first year and
all extra premiums and the premiums paid for optional / rider benefits. In case of
single premium mode, the guaranteed surrender value will be 90 per cent of the
premiums paid excluding all extra premiums and the premiums paid for optional /
rider benefits. The cash value of any existing vested bonus additions will also be
payable on surrender.
Revival:
Subject to production of satisfactory evidence of continued insurability, a lapsed
policy can be revived by paying arrears of premium together with interest within a
period of five years from the due date of first unpaid premium. The rate of interest
applicable will be as fixed by the Corporation from time to time. At present the rate
of interest is 8% p.a. compounding half-yearly.
OPTIONAL RIDER BENEFITS:
The plan offers following optional riders on payment of additional premium and
subject

to

the

eligibility

Accidental Death and Disability Benefit

conditions

mentioned

below:

Accidental Death and Disability Benefit will be available for an amount not
exceeding the sum assured under the basic plan subject to overall cover of 25 lakh
under all policies of the life assured with the Corporation taken together
Term Assurance Rider Benefit
Term assurance rider benefit will be available for an amount not exceeding the sum
assured under the basic plan subject to overall cover of 25 lakh under all policies of
the life assured with the Corporation taken together.
Critical Illness Rider Benefit
Critical Illness Rider Benefit will be available for an amount not exceeding the
sum assured under the basic plan subject to overall cover of 5 lakh under all
policies

of

the

life

assured

with

the

Corporation

taken

together.

If Premium Waiver Benefit is opted for, then in case of diagnosis by any of the
critical illness conditions covered under the policy, the total future premiums in
respect of the policy will be waived. Sum Assured under such policies will not
exceed Rs 5 lakh.
ACCIDENTAL DEATH AND DISABILITY BENEFIT:
On death arising as a result of accident an additional amount equal to the Accident
Benefit Sum Assured is payable. On total and permanent disability arising due to
accident (within 180 days from the date of accident) an amount equal to the
Accident Benefit Sum Assured will be paid over a period of 10 years in monthly
instalments.
The disability due to accident should be total and such that the Life Assured is

unable to carry out any work to earn the living. Following disabilities due to
accidents are covered :
i) Irrevocable loss of the entire sight of both eyes, or
ii) amputation of both hands at or above the wrists, or
iii) amputation of both feet at or above ankles, or
iv ) amputation of one hand at or above the wrist and one foot at or above the ankle
No benefit will be paid if accidental death or disability arises due to accident in
case of:
i) intentional self-injury, attempted suicide insanity or immorality or the Life
Assured is under the influence of intoxicating liquor, drug or narcotic
ii) engagement in aviation or aeronautics other than that of a passenger in any air
craft
iii) injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting,
mountaineering, steeple chasing or racing of any kind
iv) accident resulting from committing any breach of law
v) accident arising from employment in armed forces or military services or police
organisation.
TERM ASSURANCE RIDER BENEFIT:
An amount equal to Term Assurance Rider Sum Assured will be payable on death
of the life assured during the policy term.

If Premium Waiver Benefit has been opted for , then in case of diagnosis by any of
the critical illness conditions covered under the policy, the total future premiums
payable (total instalment premium) will be waived.

EXCLUSIONS:
This policy shall be void if the Life Assured commits suicide (whether sane or
insane at the time) at any time on or after the date on which the risk under the
policy has commenced but before the expiry of one year from the date of
commencement of risk. In case of death due to suicide during this period, the
Corporation will not entertain any claim by virtue of this policy except to the
extent of a third partys bona-fide beneficial interest acquired in the policy for
valuable consideration of which notice has been given in writing to the office
where this policy is serviced, at least one calendar month prior to death.

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.

Illustration 1:
Age at entry (Life Assured): 35 years
Policy Term: 25 years
Premium paying term: 25 years
Mode of premium payment: Yearly
Sum Assured: Rs.1,05,000/Bonus Assumptions:
Regular Bonus - Rs.21 per thousand S.A at 6% rate of return
Rs.55 per thousand S.A at 10% rate of return
Terminal Bonus - Rs. 170 per thousand S.A at 6% rate of return
Rs. 450 per thousand S.A at 10% rate of return
Annual Premium : Rs.4,606/Additional Benefits:
Benefit payable on earlier death /survival upto end of the
End of Total
Year
22
23
24
25

premium paid
1,01,332
1,05,938
1,10,544
1,15,150

policy term
Guaranteed
21,000
21,000
21,000
42,000

Illustration 2:
Age at entry (Life Assured): 35 years

Variable
Scenario 1
0
0
0
72,975

Total
Scenario 2 Scenario 1
0
21,000
0
21,000
0
21,000
1,91,625 1,14,975

Scenario 2
21,000
21,000
21,000
2,33,625

Policy Term: 25 years

Premium paying term: One
Sum Assured: Rs.1,05,000/Bonus Assumptions:
Regular Bonus - Rs.24 per thousand S.A at 6% rate of return
Rs.92 per thousand S.A at 10% rate of return
Terminal Bonus - Rs.200 per thousand S.A at 6% rate of return
Rs.760 per thousand S.A at 10% rate of return
Single Premium: Rs.59,157 /-

End
Year
1
2
3
4
5
6
7
8
9
10
15
20
25

Benefit payable on death during the year

of Total premium
Variable
Total
Guaranteed Scenario Scenario Scenario Scenario
paid
1
2
1
2
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000
59,157
1,05,000 0
0
1,05,000 1,05,000

Additional Benefits:

Benefit payable on earlier death /survival upto end of the

End of Total
Year
22
23
24
25

premium paid
59,157
59,157
59,157
59,157

policy term
Guaranteed
21,000
21,000
21,000
42,000

Variable
Scenario 1
0
0
0
84,000

Total
Scenario 2 Scenario 1
0
21,000
0
21,000
0
21,000
3,21,300 1,26,000

Scenario 2
21,000
21,000
21,000
3,63,300

Notes :
i) This illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) 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 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.
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.
iv) Future bonus will depend on future profits and as such is not guaranteed.
However, once bonus is declared in any year and added to the policy, the bonus so

added is guaranteed.
The Maturity Benefit is the amount shown at the end of the policy term

EXTRACT from Section 41 of the Insurance Act:

(1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in respect
of any kind of risk relating to lives or property in India, any rebate of the whole or
part of the commission payable or any rebate of the premium shown on the policy
nor shall any person taking out or renewing or continuing a policy accept any
rebate except such rebates as may be allowed in accordance with the published
prospectuses or tables of the insurer : provided that acceptance by an insurance
agent of commission in connection with a policy of life insurance taking out by
himself on his own life shall not be deemed to be acceptance 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 a fine which may extend to Rs.500 / BENEFITS ILLUSTRATION:
Introduction
Insurance Regulatory & Development Authority (IRDA) requires all life insurance

companies operating in India to provide official illustrations to their customers.

The illustrations are based on the investment rates of return set by the Life
Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938)
and is not intended to reflect the actual investment returns achieved or may be
achieved

in

future

by

Life

Insurance

Corporation

of

India

(LICI).

For the year 2004-05 the two rates of investment return declared by the Life
Insurance

Council

are

6%

and

10%

per

annum.

Product summary
This is a with-profits plan under which benefits are payable at prespecified
durations irrespective of whether the Life Assured survives to the end of the policy
term or dies during the term of the policy. The plan also provides for an additional
immediate payment of Sum Assured on death during the term of the policy. This
plan is therefore suitable to take care of the educational and other needs of
children.
Premiums :
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary
deduction, as opted by you, till the end of premium paying term of the policy or till
earlier death. Premium paying term may either be equal to the term of policy or
three years less than it. Alternatively, the premium may be paid in one lump sum
(single premium).
Bonuses :

This is a with-profit plan and participates in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end
of each financial year throughout the term of the plan until final payment has been
made under the policy. Once declared, they form part of the guaranteed benefits of
the plan. A Final (Additional) Bonus may also be payable provided a policy has run
for certain minimum period.
Death Benefit :
The Sum Assured is payable in a lump sum immediately on death of Life Assured
during the policy term. No premiums are payable thereafter. Benefits as per
following table are payable in addition:
Table giving prespecified benefits :
Date on which payable
Three years before date of maturity
Two years before date of maturity
One year before date of maturity

Payable Amount
20% of Sum Assured
20% of Sum Assured
20% of Sum Assured
40% of Sum Assured + vested Simple

On date of maturity

Reversionary

Bonuses

Final

(Additional) Bonus, if any

Survival Benefits :
Benefits as per above table (giving prespecified benefits) are payable on survival
of the policyholder till the end of policy term.
Supplementary/Extra Benefits :

These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender
value is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the premiums under Basic Plan paid
excluding the first years premium and the extra premiums, if any. In case of a
single premium policy the guaranteed surrender value is 90% of the single
premium paid excluding any extra premium.

Corporations policy on surrenders :

In practice, the Corporation will pay a Special Surrender Value which is either
equal to or more than Guaranteed Surrender Value. The benefit payable on
surrender reflects the discounted value of the reduced claim amount that would be
payable on death or at maturity. This value will depend on the duration for which
premiums have been paid and the policy duration at the date of surrender. In some
circumstances, in case of early termination of the policy, the surrender value
payable

may

be

less

than

the

total

premium

paid.

The Corporation reviews the surrender value payable under its plans from time to
time depending on the economic environment, experience and other factors.

Note : The above is the product summary giving the key features of the plan. This
is for illustrative purpose only. This does not represent a contract and for details
please refer to your policy document.
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 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.
ILLUSTRATION 1 :
Age at Entry (Life Assured) : 35
years
Policy Term : 25 years
Premium Paying Term : 1 year
End
year

ofTotal
Premium

Sum Assured (Rs.) : 105000

Single Premium (Rs.) : 59157

Benefit payable on Death during the year

Guarantee Variable
Total
Scenario Scenario Scenario 1 Scenario 2
d

paid
1
2
3
4
5
6
7
8
9
10
15
20
25

till

end of year
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000
59157
105000

1
0
0
0
0
0
0
0
0
0
0
0
0
0

2
0
0
0
0
0
0
0
0
0
0
0
0
0

105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000

105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000

Additional Benefits :
Total

Fixed benefits payable at the end of the specified

Premiums years irrespective of whether the policyholder

paid
End of year

22
23
24
25

end

tilldies or survives during the policy term

of

Variable

Total

year
(Rs.)
101332
105938
110544
115150

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

21000
0
0
21000
21000
21000
0
0
21000
21000
21000
0
0
21000
21000
42000
72975
191625
114975
233625

ILLUSTRATION 2 :
Age at Entry (Life Assured) : 35 years
Policy Term : 25 years
Premium Paying Term : 1 year
Total
End
year

1
2
3
4
5
6
7
8
9
10
15
20
25

of

Sum Assured (Rs.) : 105000

Single Premium (Rs.) : 59157

Benefit payable on Death during the year

Variable
Total

Premium
paid till end
of

year

(Rs.)
59157
59157
59157
59157
59157
59157
59157
59157
59157
59157
59157
59157
59157

Scenario Scenario
Guaranteed
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000

Scenario 1 2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

1
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000

Additional Benefits :
End of

Total

Fixed benefits payable at the end of the

Scenario 2
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000
105000

Premiums specified years irrespective of whether the

paid till
year

22
23
24
25

end of

policyholder dies or survives during the policy term

Variable
Total

year
(Rs.)
59157
59157
59157
59157

Scenario Scenario
Guaranteed Scenario 1 2
21000
0
0
21000
0
0
21000
0
0
42000
84000
321300

1
0
0
0
126000

Scenario 2
0
0
0
363300

This illustration is applicable to a non-smoker male/female standard (from medical,

life style and occupation point of view) 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 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.
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.
iv)Future bonus will depend on future profits and as such is not guaranteed.
However, once bonus is declared in any year and added to the policy, the bonus so
added is guaranteed.

v)The Maturity benefit is the amount shown at the end of the Policy term.
JEEVAN KISHOR:
Features :
Product summary:
This is an Endowment Assurance Plan available for children of less than 12 years
of age. The policy may be purchased by any of the parent/grand parent.
Commencement of risk cover:
The risk commences either after 2 years from the date of commencement of policy
or from the policy anniversary immediately following the completion of 7 years of
age of child, whichever is later.

Premiums:
Premiums are payable yearly, half-yearly, quarterly or monthly throughout the term
of the policy or till earlier death of child, or single premium.
Bonuses:
This is a with-profits plan and participates in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end
of each financial year. Once declared, they form part of the guaranteed benefits of
the plan. A Final (Additional) Bonus may also be payable provided policy has run
for certain minimum period.

BENEFITS:
Death Benefit:
The Sum Assured along with vested bonuses, if any, is payable in a lump sum upon
the death of the life assured after the commencement of the risk. If death occurs
before the commencement of the risk, the premiums paid excluding the premiums
for

the

Premium

Waiver

Benefit,

if

any,

will

be

refunded.

Maturity Benefit:
Sum assured along with all bonuses declared during the policy term is payable in a
lump

sum

on

survival

to

the

end

of

the

policy

term.

Premium Waiver Benefit:

This is an optional benefit that can be added to your basic plan. An additional
premium is required to be paid for this benefit. By payment of this additional
premium, the proposer can secure the benefit of cessation of premiums from
his/her death to the end of the deferment period. The deferment period for this
purpose is to be taken as 18 minus age at entry of child.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
values are available on the policy on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value, if policy is surrendered before the date of

commencement of risk is 90 % of premiums paid excluding premium for the first

year. If policy is surrendered after the date of commencement of risk, the
guaranteed surrender value is 30 % of premiums paid after commencement of risk
together with 90 % of premiums paid before the commencement of risk. Premiums
for the first year and the premiums for Premium Waiver Benefit, if any, will be
excluded.
Corporations policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value which is either
equal to or more than the Guaranteed Surrender Value. The benefit payable on
surrender is the discounted value of the reduced claim amount that would be
payable on death or at maturity. This value will depend on the number of premiums
paid and the duration at which surrender value is calculated. In some
circumstances, in case of early termination of the policy, the surrender value
payable may be less than the total premium paid.
The Corporation reviews the surrender value payable under its plans from time to
time depending on the economic environment, experience and other factors.
Note: The above is the product summary giving the key features of the plan. This
is for illustrative purpose only. This does not represent a contract and for details
please refer to your policy document.
Benefits 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."
Illustration 1 (Table 102)
Age at entry of child : 10 Years
Policy Term : 25 Years
Age of child at Maturity : 35 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /End Total
Of

Benefit Payable On Death/Maturity At The End

Premiums Of Year
Variable
Total
Scenario Scenario Scenario Scenario
Of Guaranteed
1
2
1
2

Year Paid Till

End
1
2
3
4
5
6
7
8
9
10
12
15
20
25

Year
3635
7270
10905
14540
18175
21810
25445
29080
32715
36350
43620
54525
72700
90875

3635
7270
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000

0
0
6300
8400
10500
12600
14700
16800
18900
21000
25200
31500
42000
69500

0
0
16500
22000
27500
33000
38500
44000
49500
55000
66000
82500
110000
182500

3635
7270
106300
108400
110500
112600
114700
116800
118900
121000
125200
131500
142000
169500

Annual
Premium : Rs.
3635 /-

3635
7270
116500
122000
127500
133000
138500
144000
(i) This
149500
155000 illustration is
166000
182500
210000
282500

applicable to a non-smoker male/female standard (from medical and life style point
of view) 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 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.
(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.
(iv) Future bonuses will depend on future profits and as such is not guaranteed.
However, once bonus is declared in any year and added to the policy, the bonus so
added is guaranteed.
(v) The Maturity Benefit is the amounts shown at the end of the policy term.
Child Career Plan
Feature:
Introduction:
This plan is specially designed to meet the increasing educational and other needs
of growing children. It provides the risk cover on the life of child not only during

the policy term but also during the extended term (i.e. 7 years after the expiry of
policy term). A number of Survival benefits are payable on surviving by the life
assured to the end of the specified durations.
Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of
Premium payment and Premium Waiver Benefit.
Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through
Salary deductions over the term of policy. Premiums may be paid either for 6 years
or upto 5 years before the policy term.

Sample Premium Rates:

Following are some of the sample premium rates per Rs. 1000/- S.A.:
For 6 years Premium paying term
Age Maturity Age
23
24
25
0
111.25
107.25
103.35
4
128.35
123.80
119.35
8
148.15
143.05
138.05
12
170.20
164.55
159.05

26
99.60
115.05
133.20
153.65

27
95.95
110.90
128.50
148.40

For 6 years Premium paying term

Age Maturity Age
23
24
25
0
111.25
107.25
103.35
4
128.35
123.80
119.35
8
148.15
143.05
138.05
12
170.20
164.55
159.05

26
99.60
115.05
133.20
153.65

27
95.95
110.90
128.50
148.40

Mode and High S.A. Rebates:

Mode Rebate:
Yearly mode
Half-yearly mode
Quarterly & Salary deduction

- 2% of Tabular Premium
- 1% of the tabular premium
- NIL

Sum Assured Rebate:

Sum Assured
1,00,000 to 2,99,999
3,00,000 to 4,99,999
5,00,000 and above

- Rebate (Rs.)
- Nil
1.5 %o S.A.
- 2 %o S.A.

Benefits:
A. Survival Benefit:
On life assured surviving to the end of the specified durations an amount
specified below is payable:

5 years before the date of 30% of the Sum Assured along with vested
expiry of policy term
Simple Reversionary Bonuses
4 years before the date of
- 15% of the Sum Assured
expiry of policy term
3 years before the date of
- 15% of the Sum Assured
expiry of policy term
2 years before the date of
- 15% of the Sum Assured
expiry of policy term
1 years before the date of
- 15% of the Sum Assured
expiry of policy term
On the date of expiry of 15% of the Sum Assured along with Final
policy term
(Additional) Bonus, if any.
B. Death Benefit:
On

death

(after

the

Date

of

Commencement

of

Risk)

(i) If death occurs within the period from date of commencement of risk to 5
years before the date of expiry of policy term: Sum Assured along with
Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any)
is payable.
(ii) If death occurs within 5 years before the date of expiry of policy term:
Sum Assured along with Final (Additional) bonus (if any) is payable.
On death during the Extended Term - Sum Assured is payable.
On death (before the Date of Commencement of Risk) - All the premiums
paid (excluding extra premium and premium for premium waiver benefit, if
any,) along with interest of 3% p.a compounding yearly shall be payable.

Auto Cover:
If after at least two full years premiums have been paid, and any subsequent
premium be not duly paid, full death cover shall continue for a period of two years
from the due date of the First Unpaid Premium (FUP). During this Auto Cover
Period, one or more instalments of premiums with interest can be paid without
submission of evidence of health. On payment of one or more of the arrears of
instalment premiums with interest, the Auto Cover Period of 2 years shall be
extended from the due date of new FUP. Premium Waiver Benefit shall remain
inforce during the Auto Cover period.
Premium Waiver Benefit:
The proposer can opt for this benefit if aged between 18 and 55 and is medically
fit. It provides waiver of premiums on death of proposer. Further the benefit shall
remain in force during the Auto cover period. Any premiums that have fallen due
and not paid during the Auto Cover period shall also be waived. This benefit shall
not be available in case of suicide by the proposer within one year of policy.
Further, revival of the policy shall be subject to medical fitness of the proposer.
Eligibility Conditions and Other Restrictions:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

Minimum Entry Age

Maximum Entry Age
Minimum Maturity Age
Maximum Maturity Age
Minimum Sum Assured
Maximum Sum Assured
Policy term
Premium Paying term

:
:
:
:
:
:
:
:

0 years (last birthday)

12 years (last birthday)
23 years (last birthday)
27 years (last birthday)
Rs. 1,00,000
Rs. 100,00,000
11 to 27 years
6 years and Policy term less 5 years

Participation in Profits of the Corporation:

Simple Reversionary Bonuses shall be declared per thousand Sum Assured
annually at the end of each financial year depending upon the Corporations
experience, provided the policy is in full force. In case of a paid up policy,
bonuses shall be payable only if, at least, 3 full years premiums have been paid.
On surrender, the discounted value of vested bonuses, if any, (if not paid earlier)
will be payable. Final (Additional) Bonus may also be declared in addition.
Paid-up Value:
Not withstanding the death benefit provided under the Auto Cover period, if at
least three full years premiums have been paid and any subsequent premium be
not duly paid, this policy shall not be wholly void but shall become paid-up.
If policy becomes paid-up before the commencement of risk, then the policy shall
be entitled to receive the Guaranteed Surrender Value. If the policy is not
surrendered, this Guaranteed Surrender Value shall be payable on the expiry of
policy term or on death of Life Assured, if earlier.
If policy becomes paid-up after the commencement of risk, then the sum assured of
policy shall be reduced to such a sum, called paid-up value, as shall bear the same
proportion to the full Sum Assured as the number of premiums actually paid bears
to the total number of premiums stipulated for in the policy. This reduced value
(called paid up value) along with vested bonuses, if any, shall be payable on the
date of expiry of policy term or at Life Assureds prior death. No survival benefit
shall be payable under a reduced paid-up policy. Extended Term cover shall cease
to apply if the policy is in lapsed/ Paid-up condition.

Surrender Value:
You may surrender the policy for cash after at least three full years premiums have
been paid. The Guaranteed Surrender Value will be as under:
i.

Before commencement of risk: 90% of the total amount of premiums

(excluding premiums for the first year ) paid.

ii.

After commencement of risk: 90% of the total amount of premiums

(excluding premium for the first year) paid before commencement of risk
and 30% of premiums paid on and after the commencement of risk.

The Guaranteed Surrender value calculated above will be subject to the deduction
of the total amount of survival benefits that might have become due on or before
the date of surrender. Further all extra premiums and/or any other premium
including premium for Premium Waiver Benefit shall not be considered in the
premiums refunded.
The cash value of any existing vested bonuses, if any, will also be paid if not paid
earlier.
Corporation may, however, pay Special Surrender value as the discounted value of
Paid up value and existing vested bonus, if not paid earlier, as applicable on date of
surrender. The Special Surrender value will be subject to the deduction of the
survival benefits which have become due on or before the date of surrender.
The Special Surrender value will be payable provided the same is higher than
Guaranteed Surrender value.
Grace Period:

A grace period of one calendar month but not less than 30 days will be allowed for
payment of premiums.
Revival:
If the policy is lapsed it can be revived by paying arrears of premium together with
interest within a period of five years, subject to production of satisfactory evidence
of continued insurability. The rate of interest applicable will be as fixed by the
Corporation from time to time.
cooling-off period:
If you are not satisfied with the Terms and Conditions of the policy you may
return the policy to us within 15 days.
Exclusions:
Suicide is excluded for Premium Waiver Benefit for first year. No other exclusions.
Miscellaneous Provisions:
Date of commencement of risk : If age of Life Assured is upto 10 years, risk shall
commence either after 2 years from the date commencement of policy or from the
policy anniversary coinciding with or immediately following the completion of 5
years of age of Life assured, whichever is later. In other cases, risk shall commence
from the policy anniversary coinciding with or next following 12th birthday of the
Life Assured.
Date of Vesting: 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.

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.
Benefit Illustration1
Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 6
Sum Assured(Rs.): 100000
Premium: 10128
Extd Term(Yrs.): 7

END
OF
YEA
R

TOTAL
PREMIUM

BENEFIT ON DEATH DURING THE YEAR

S PAID

GUARANTEE
D
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

10128
20256
30384
40512
50640
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768

10432
21177
32244
43643
55384
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000

VARIABLE
TOTAL
SCENARI SCENARI SCENARI SCENARI
O1
0
0
0
0
0
13200
15400
17600
19800
22000
24200
26400
28600
30800
42000
44800
47600
50400
53200
56000

O2
0
0
0
0
0
45000
52500
60000
67500
75000
82500
90000
97500
105000
150000
160000
170000
180000
190000
200000

O1
10432
21177
32244
43643
55384
113200
115400
117600
119800
122000
124200
126400
128600
130800
142000
144800
147600
150400
153200
156000

O2
10432
21177
32244
43643
55384
145000
152500
160000
167500
175000
182500
190000
197500
205000
250000
260000
270000
280000
290000
300000

21
22
23
24
25
26
27
28
29
30
31
32

60768
60768
60768
60768
60768

100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000

12600
13200
13800
14400
15000
0
0
0
0
0
0
0

52500
55000
57500
60000
62500
0
0
0
0
0
0
0

112600
113200
113800
114400
115000
100000
100000
100000
100000
100000
100000
100000

152500
155000
157500
160000
162500
100000
100000
100000
100000
100000
100000
100000

Benefit Illustration2

Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 6
Sum Assured(Rs.): 100000
Premium: 10128
Extd Term(Yrs.): 7
END
OF
YEA
R

TOTAL
PREMIU

BENEFIT ON DEATH DURING THE YEAR

MS PAID
GUARANTE VARIABLE
TOTAL
SCENARI SCENARI SCENARI SCENARI
ED

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

10128
20256
30384
40512
50640
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768
60768

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30000
15000
15000
15000
15000
15000

Benefit Illustration3
Age of LA (Yrs.): 0
Term(Yrs.): 25

O1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
44000
0
0
0
0
15000

O2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
150000
0
0
0
0
62500

O1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
74000
15000
15000
15000
15000
30000

O2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
180000
15000
15000
15000
15000
77500

Age At Maturity (Yrs.): 25

PPT(Yrs.): 20
Sum Assured(Rs.): 100000
Premium: 4513
Extd Term(Yrs.): 7

END
OF
YEA
R

TOTAL
PREMIU

BENEFIT ON DEATH DURING THE YEAR

MS PAID
GUARANTE
ED

1
2
3
4
5
6
7
8
9
10
11
12
13
14

4513
9026
13539
18052
22565
27078
31591
36104
40617
45130
49643
54156
58669
63182

4648
9436
14368
19447
24679
100000
100000
100000
100000
100000
100000
100000
100000
100000

VARIABLE
TOTAL
SCENARI SCENARI SCENARI SCENARI
O1
0
0
0
0
0
12000
14000
16000
18000
20000
22000
24000
26000
28000

O2
0
0
0
0
0
33000
38500
44000
49500
55000
60500
66000
71500
77000

O1
4648
9436
14368
19447
24679
112000
114000
116000
118000
120000
122000
124000
126000
128000

O2
4648
9436
14368
19447
24679
133000
138500
144000
149500
155000
160500
166000
171500
177000

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

67695
72208
76721
81234
85747
90260
90260
90260
90260
90260
90260

100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000

39000
41600
44200
46800
49400
52000
12600
13200
13800
14400
15000
0
0
0
0
0
0
0

105000
112000
119000
126000
133000
140000
31500
33000
34500
36000
37500
0
0
0
0
0
0
0

139000
141600
144200
146800
149400
152000
112600
113200
113800
114400
115000
100000
100000
100000
100000
100000
100000
100000

Benefit Illustration4
Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 20
Sum Assured(Rs.): 100000
Premium: 4513
Extd Term(Yrs.): 7
END TOTAL
OF

PREMIU

BENEFIT ON DEATH DURING THE YEAR

205000
212000
219000
226000
233000
240000
131500
133000
134500
136000
137500
100000
100000
100000
100000
100000
100000
100000

YEA
R

MS PAID
GUARANTE
ED

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

4513
9026
13539
18052
22565
27078
31591
36104
40617
45130
49643
54156
58669
63182
67695
72208
76721
81234
85747
90260
90260
90260
90260
90260
90260

Notes :

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30000
15000
15000
15000
15000
15000

VARIABLE
TOTAL
SCENARI SCENARI SCENARI SCENARI
O1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
40000
0
0
0
0
15000

O2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
110000
0
0
0
0
37500

O1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
70000
15000
15000
15000
15000
30000

O2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
140000
15000
15000
15000
15000
52500

(i)

This illustration is applicable to a standard (from medical, life style and

occupation point of view) 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 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.
(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.
EXTRACT from Section 41 of the Insurance Act :
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

bonafide insurance agent employed by the insurer.
Any person making default in complying with the provisions of this Section shall
be punishable with a fine which may extend to Rs.500 / -

QUESTIONERIES
OF AVIVA INSURANCE COMPANY
1)What are the insurance products you offered for minor?
- Child plan, Education plan, Etc.

2) What are the documents required for taking out policies for minor?
- Birth Certificate, Photos, Parents age proof, Address proof, Parents
insurance details.

3) What is procedure for claim settlement?

- First inform to the company by Telephone or by letter, Original policy
documents, Death certificate, and Medical Report, Nominee, ID or Age proof.

4) Uniqueness of your policies as compared to other companies?

- Guaranteed Bonus plan, Good fund option in ULIP, Good Child plan.

5) What are the advantages you provide to minor insurance policy holder?
- weaver of Premium, Monthly income, Insurance Cover & maturity

6) Growth of the product is at Growth/Peak

- Infancy, Growth/peak, Maturity, Decline

Conclusion
Insurance is a form is risk management in which the insured transfers the cost
of potential loss to another entity in exchange for monetary compensation
known as the premium.
Insurance works by pooling risks. Because the number of insured individuals
is so large, insurance companies can use statistical analysis to project what
their actual losses will be within the given class. This allows the insurance
companies to operate profitably and at the same time pay for claims that may
arise.
The insurance contract is a legal document that spells out the coverage,
features, conditions and limitations of an insurance policy.