Subject to claim concessions, the net amount payable under a policy in settlement of its claim depends upon its status as on date of death.
In case of a reduced paid-up policy which has not been specifically enclosed for paid-up conversion, LIC will pay the claim for the full sum assured instead of the paid up value provided certain conditions are satisfied:
The life assured died within 6 months from the due date of the first unpaid premium. • Premiums under the policy have been paid for a minimum period of 3 full years.Claims concession is not available on certain policies during the deferment period in case of Children's Deferred Endowment Assurance, Temporary Assurance and Convertible Term Assurance. Extended claims concession is an extension of the regular claims concession. Here, the claim for the full sum assured is payable under a reduced paid-up policy provided two conditions that: • The life assured died within one year from the due date of the first unpaid premium five years after the deferred date in case of CDA policies. • Premiums under the policy have been paid for a minimum of 5 years. However the claims concession is subject to the deduction of: • The premium or premiums unpaid with interest thereon up to the date of death. Unpaid premiums falling due before the next anniversary of the policy (except in Fixed-Term (Marriage) Endowment and Educational Annuity plans).Circumstances : Who should sign the Discharge Form
Policy on own life which has not been assigned : The life assured
Joint Life policy which has not been assigned : Both the lives assured
Policy which has been conditionally assigned : Both the assignor and the conditional assignee
Policy which has been absolutely assigned : The absolute assignee
Every business organisation has a few key members who are vital towards its functioning and its success. Key people are not necessarily among the top management, which runs the company but even high-performing salesmen or production engineers or administrative heads.
In case of the death of one of these individuals, the organisation will suffer a definitely monetary loss in terms of its financial performance as well its creditworthiness. The loss will take some time to recoup before others can be trained and inducted to take their place. Besides the time and money invested in the training can make it an unnecessarily expensive proposition.
If the firm opts to take life insurance policies like the Keyman insurance policy on the lives of such individuals, it would definitely protect the firm from any loss of profits or earnings that would result from the death of any of its key employees. The chaos that might result subsequent to the death of the firm's key employees will also require the expert services and consultations with legal luminaries and experts before the situation can be rectified. Needless to say, lump sum payments for services rendered are not an attractive option considering the fact that a bulk of such payments would be classified as taxes for the receiving individual.
It is advantageous for the firm to buy an Immediate Annuity policy or a Deferred Annuity policy that will provide payment through fixed timely amounts over a number of years. Thus the tax assessment for the outside expert will be charged over a longer period of time instead of the total amount in one and the same year.
In case, a policy document is irrecoverably lost, destroyed or damaged, you can obtain a simple copy of the policy by making the payment of Re.1/- only to LIC. Such a copy will serve the purpose of your obtaining details of the data pertaining to a lost policy, such as the sum assured, the insurance plan, date of maturity, etc. When the policy matures, the claim amount can be obtained on the basis of an indemnity bond. Similarly, you can also surrender a policy even if the original policy document has been lost. However, if you need a loan against your policy, then a proper duplicate policy is necessary against the one that has been lost.
Whenever you shift from one place to another, make sure to notify the change in your address to the relevant office, branch office, which directs your policy so that all your premium notices, receipts, etc will be sent to your new address.
On the other hand, transferring of policies creates a lot of confusion and dislocation within the insurer's offices. Your best bet is to let it remain at a branch office where your agent resides so that in case of any difficulty, his services can be utilised without having to bother yourself unnecessarily.
In event of the death of a policyholder, the claimant - the nominee, the assignee or the next of kin should immediately convey certain information to the insurance branch office where the policy is serviced.
• A statement that the policyholder is dead.• The date of death • The cause of death • The place of death • The policy number (s) • The claimant's relationship with the deceased policyholder
As soon as the insuring company receives these details, the concerned branch office sends the necessary claim forms for completion along with specific instructions regarding the procedure to be followed by the claimant. If you have an agent, he should easily be able to procure the needful for you.
The Form of Discharge (Form 3801) must be signed by:
• The nominee in case a nomination exists in the policy, or
• The assignee if the policy was conditionally or absolutely assigned, or
• The holder (s) of legal representation obtained if the policy was neither nominated nor assigned, or
• All the Class 1 heirs of the deceased policyholder according to the relevant personal law applicable if the Divisional office has waived proof of title.
It is extremely important to safely retain all your premium receipts intact. You may be paying your premium on time but there are chances that the insuring companies' ledgers are not entered with your payment details. At times like this, the insuring company may write to the policyholder asking him to produce the premium receipts and vouch for the payments made. If the payments made are very old, then it may be difficult for the policyholder that is you to prove them without the premium receipts.
Needless to say, it is extremely cumbersome to preserve all the premium receipts. So the next best alternative is to periodically get a certificate from your insuring company confirming that all your premium payments are up-to-date. It is easier for you to preserve such certificates instead of individual premium receipts. The certificate can be obtained from the relevant branch office of LIC that services your policy and accepts the payment of premiums.
Regular and prompt payment of premiums is the single most important requirement of maintaining your policy in full force at all times.
After all, all your plans for the protection of your near and dear ones as well as your investment for your old age could be nullified due to your policy lapsing due to non-payment of premiums. Yet, thousands of policies issued by LIC do lapse after a few years as a result of negligence and carelessness of the policyholders in making regular premium payments.
A grace period of 30 days is allowed for payment of yearly, half-yearly and quarterly premiums and fifteen days, in case of monthly payment of premium.
Please do NOT wait until the last few days of the grace period. The safest way to pay your premiums is on a yearly basis. Even if your policy has commenced on a quarterly premium basis, it is advisable to change it to yearly payment later on. The lesser your transactions with the insuring company, the better. Besides it is easier to remember the due date in a year. The more frequent the payments, the higher are your chances of the policy lapsing.
A lapsed policy can be revived during the lifetime of the assured, but within a period of 5 years from the due date of the first unpaid premium and before the date of maturity.
Revival of a lapsed policy is considered either on non-medical or medical basis depending upon the age of the life assured at the time of revival and the sum to be revived.
If the revival of the policy is completed by payment of over-due premium within 14 days from the expiry of the grace period, only the late fee for one month has to be paid.
Subject to claim concessions, the net amount payable under a policy in settlement of its claim depends upon its status as on date of death. In case of a reduced paid-up policy which has not been specifically enclosed for paid-up conversion, LIC will pay the claim for the full sum assured instead of the paid up value provided certain conditions are satisfied:
• The life assured died within 6 months from the due date of the first unpaid premium.
• Premiums under the policy have been paid for a minimum period of 3 full years. Claims concession is not available on certain policies during the deferment period in case of Children's Deferred Endowment Assurance, Temporary Assurance and Convertible Term Assurance. Extended claims concession is an extension of the regular claims concession. Here, the claim for the full sum assured is payable under a reduced paid-up policy provided two conditions that:
• The life assured died within one year from the due date of the first unpaid premium five years after the deferred date in case of CDA policies.
• Premiums under the policy have been paid for a minimum of 5 years. However the claims concession is subject to the deduction of:
• The premium or premiums unpaid with interest thereon up to the date of death. Unpaid premiums falling due before the next anniversary of the policy (except in Fixed-Term (Marriage) Endowment and Educational Annuity plans).
To begin with, 'nomination' is the process of identifying a person to receive the policy amount in the event of death of the policyholder. The nomination can be done at the start of the policy by providing details of the nominee in the proposal form. However, if the nomination is not given at the beginning, it can be done at a later date. This nomination has to be effected by giving notice in a prescribed form to LIC and getting it endorsed on the Policy Bond.
The policyholder can change the nomination at any time during the term of the policy and for end number of times. For this, the policyholder has to give a notice in a prescribed form to LIC. Further, nomination can be removed any time by the policyholder without giving prior notice to the nominee.
Under nomination, the nominee gets only the right to receive the policy amount in the event of the death of the policyholder; nomination does not pass on the property in the policy. If nominee dies when the policyholder is still surviving then the nomination would be ineffective. If nominee dies after the death of the policyholder but before receiving policy amount, then again the nomination becomes ineffective and only the legal heirs of the policyholder can claim money.
If premiums are paid for at least three consecutive years, the Policy acquires a Surrender Value. The Policy, which has acquired a Surrender Value, can be surrendered for payment in cash. Once the Policy is surrendered the contract is terminated. In the case of ICICI Pru Single Premium Bond the policy can be surrendered after the first year.
If your policy has lapsed on account of non-payment of premium within the specified due date, you can re-apply to reinstate it, if:
You apply within 5 years from the date of the first unpaid premium and before the maturity date
You pay all the required premiums and interest
You give us satisfactory evidence of health at your own expense The reinstatement will take effect only if we accept your application. We will notify our acceptance to you.
Section 39 of the Indian Insurance Act 1938 provides for nomination of a person who would receive the benefits of the claim on the death of the life assured. Nomination establishes a clear title to the policy. This prevents dispute and also prevents delay in settlement of a death claim. In the case where nomination has not been given at the time of proposal, nomination can be made at any time during the term of the policy. Nomination can also be changed, at any time during the tenure of the policy, by intimating respective insurance company
Yes. You can change your nomination at any time till the maturity date. All you need to do is to inform us about the change through a specified form.
You can call our customer service center or notify us through a letter about the change of address. We shall confirm the change to you.
We offer you a grace period for non-payment on due date. This grace period is 30 days from the due date in case premium payments are made on quarterly, half-yearly or yearly basis. It is 15 days from the due date for monthly payments. During this period the policy remains in full force and no interest is charged. If you fail to pay a premium even during the grace period, your policy automatically:
Lapses if there is no surrender value
Converts to a paid up policy if there is enough surrender value
You can apply for a duplicate policy document. To get this document, you will have to send us a letter stating the circumstances under which the policy was lost.
The policy can be assigned. To assign the policy you have to notify us regarding the assignment.
You must send us the:
• Completed claim form
• Policy of Life assurance
• Proof of age, if not submitted earlier
The death claim is paid to:
• The nominee, as declared by you in the proposal form
• The legal heirs, in case you have not specified the nominee
• The appointee named by you, in cases where the nominee is a minor at the time of claim
The claimant (Nominee/Legal heirs) must send us:
• An intimation of the death of the life assured
• Death certificate
• Completed claim forms and other forms as required by the company
• Policy of Life assurance
• Identification that the person is entitled to receive the payment
In addition to the requirements for a death claim, the claimant should submit all the reports (police, hospital etc) pertaining to the accident as required by the company.
You must send us within 6 months of the disability date
Written notification of your disability arising out of the accident
Proof of your disability
You will have to undergo one or more medical examinations conducted by medical practitioner/s appointed by us, if required.
If your policy has a surrender value, you can apply for a policy loan upto 80% of the surrender value. This loan will carry an interest rate as decided by the company from time to time. The interest will be charged starting from the date of the loan. You can repay the interest and the loan at any time.
If the total outstanding amount owed to us under your policy exceeds the surrender value, your policy terminate immediately. The outstanding loan and interest will be deducted from the claim amount at the time of settlement.
If premiums are paid for at least three consecutive years, the Policy acquires a Surrender Value. The Policy, which has acquired a Surrender Value, can be surrendered for payment in cash. Once the Policy is surrendered the contract is terminated. In the case of ICICI Pru Single Premium Bond the policy can be surrendered after the first year.
It is not necessary to have a duplicate policy made in case the policy that you wish to surrender is lost. However these requirements must be fulfilled:
• No advertisement is needed for surrender values up to Rs.1000/-, inclusive of the vested bonus. LIC also holds the discretion to waive off the advertisement requirement depending on the merits of the case where the surrender value stands between Rs.1000/- and Rs.2000/-. However in cases where the surrender value exceeds Rs.2000/- or the sum assured exceeds Rs.25000/-, advertisement in one newspaper is insisted upon.
• Declaration of surety is necessary as in the case of the issue of a duplicate policy.
• An indemnity bond duly stamped and completed by the life assured along with a surety. The stamp duty on the indemnity bond will depend on the amount of the surrender value of the policy.
• Discharge form and form of declaration of no assignment duly completed by the policyholder.
The additional requirements for settling death claims depend upon the duration of the policy. The table set below provides details regarding the requirements (Duration of Policy less than 3 years).
• Policy Document.
• Deeds of assignment or reassignment executed separately, if any.
• Proof of age if age not admitted earlier.
• Claim form "A" (Form No. 3783 revised).
• Certificate of Death OR Claim Form "B1" (Form No.3816) OR Claim Form "E" (Form No. 3787 revised).
• Claim Form "B" (Form No. 3784 revised).
• Claim Form "C" (Form No. 3785 revised).
• Claim Form "E" (Form No. 3787 revised).
• Legal evidence of title if the policy is not assigned or nominated.
• Form of Discharge (Form No.3801) duly executed and properly witnessed.
The additional requirements for settling death claims depend upon the duration of the policy. The table set below provides details regarding the requirements (Duration of Policy between 3 to 5 years).
• Policy Document.
• Deeds of assignment or reassignment executed separately, if any.
• Proof of age if age not admitted earlier.
• Claim form "A" (Form No. 3783 revised).
• Certificate of Death. If the certificate of death is not in the standard form, then one of these forms is required Claim Form "B" (Form No. 3784 revised).
• Legal evidence of title if the policy is not assigned or nominated.
• Form of Discharge (Form No.3801) duly executed and properly witnessed.
The additional requirements for settling death claims depend upon the duration of the policy. The table set below provides details regarding the requirements (Duration of Policy more than 5 years).
• Policy Document.
• Deeds of assignment or reassignment executed separately, if any.
• Proof of age if age not admitted earlier.
• Claim form "A" (Form No. 3783 revised).
• Certificate of Death.
• Legal evidence of title if the policy is not assigned or nominated.
• Form of Discharge (Form No.3801) duly executed and properly witnessed.
The insurance company always attempts to settle maturity claims on or before the due date as long as their requirements are met within the stipulated time. The requirements that you as the policyholder must take care of are:
• The policy document must be submitted unless it is in the insurer's custody as security for a loan.
• Age proof such as the municipal birth certificate or the school leaving certificate need to be submitted in case the age was not admitted when the policy was issued and the sum assured, or the paid-up value is above Rs.15000/-. Where the sum assured or the paid-up value is Rs.15000/- or less, age proof is normally waived.
• If any assignment or reassignment was executed by a separate deed, such deed or deeds must also be submitted.
• Finally, the Form of Discharge should be returned duly signed by the policyholder over a Re. 1/- revenue stamp and duly witnessed.
You must submit an application in the prescribed form available for Rs.5/- only along with
• A non-refundable processing fee of Rs.100/- if the loan amount applied for is Rs.1 lakh. Any sum higher than Rs.1 lakh requires a processing fee of Rs.250/-
• A true copy of the building plan sanctioned by the local authority and certified by a qualified architect or civil engineer.
• If employed, your employers' certificate in the prescribed proforma, both for yourself and your guarantors. In case you and your guarantors are self-employed then certified copies of your income tax returns or assessment orders with statements of income over the last three years are necessary.
• An attested copy of the title deed or agreement for sale along with a detailed title investigation report mentioning the root or abstract of title in chain for a minimum period of 15 years given by the solicitor or advocate of the builder or the society.
• An allotment letter, where the housing cooperative society is already registered indicating the details of the flat or house and its estimated cost.
• Detailed item-wise estimate about the cost of construction from a qualified architect in case of a house. In respect of loans for flats, receipt of the sub-registrar about lodging of the agreement, copies of the receipts made to the builder or society.
When you make a nomination within your life insurance policy, as the policyholder you still continue to be the owner. However after your death, the nominee who did not have any right under the policy while you were alive becomes the rightful recipient who will receive the policy monies. He or she may not be the rightful heir in which case the legal heir can implement his rights and claim the monies from the nominee
An Annuity is an investment you make, either in a single lump sum or through installments paid over a certain number of years, in return for which you receive a specific sum every year, or every month either for life or a fixed number of years. Upon the death of the annuitant, or at the expiry of the period fixed for annuity payments, the invested annuity fund is refunded usually along with a small bonus.
Annuities differ from all other forms of life insurance in one fundamental way - They do not provide any insurance cover but offer a guaranteed income for a certain period or for life. Typically annuities are bought to generate income during one's retired life, which is why they are also called Pension Plans.
Annuities are an investment that offers you an income that you cannot outlive and provides a solution to the biggest financial insecurity of old age that you will outlive your income.
ULIP is a contractual savings-cum-insurance plan that offers the following features:
• High returns
• Maturity bonus
• Life insurance cover
• Free accident cover
• Safety of capital
• Tax rebate
It is open to any resident of India who is above 18 years of age. Individuals less than 55 years and 6 months of age can join the plan for 10 years and those less than 50 years and 6 months for 15 years contributing 1/10th and 1/15th of the target amount every year, respectively
If your intention is that your policy monies should go to a particular person only then you need to assign the policy in that person's favour. Thereafter the insurer will pay the policy monies ONLY to the assignee who becomes its owner, irrespective of whether he or she is your legal heir.
Thanks to assignments, the proceeds of a policy can be protected against the claims of any of the policyholder's creditors. Assignment is a legal instrument and the insurer cannot be held responsible for its legal liability. The insurer will nevertheless register the assignment in its books.
According to LIC rules and regulations, once you pay the premiums on a life insurance policy for 3 full years, the policy does not become wholly void even if no subsequent premiums are paid. Such policies are known as paid-up policies. In such cases, the sum originally assured is reduced to a sum bearing the same ratio to the full sum assured as the number of premiums actually paid to total number of premiums originally stipulated as payable under the policy.
If 6 out of the originally stipulated 30 premiums are paid, the sum assured under a paid-up policy would still be 20 percent of the original sum assured by the policy.
the paid-up value of a policy is the reduced sum assured calculated on a proportionate basis by using a simple formula
Paid-up Value=(No of premiums paid/Total no of premiums payable) x Sum Assured
A paid-up policy loses all the additional benefits attached to the policy:
• Double Accident benefits & • Survival benefit installments in the case of money-back policies
A paid-up policy may be free from payment of further premium but is subject to the payment of interest on any loan and other charges, if any are applicable. The interest on the loan must be paid regularly or LIC will start to write off the policy towards the repayment of loan amount and the interest in terms of the conditions governing the grant of the loan.
NO. Once a policy becomes a paid-up one, the sum assured is reduced to such a pitiful figure that it cannot provide any cover to the policyholder or his dependants. Besides, you should also consider the facts that:
• The cost of insurance goes up with advancing age. The next time you obtain a policy, the terms will not be as advantageous as available earlier.
• The chances of insurability also diminish with the advancement of age despite the fact that insurance is needed more along with increasing age and growing responsibilities.
• The reinstatement of a policy once converted into a paid-up policy requires numerous cumbersome formalities to be completed.
• A paid-up policy cannot participate in the bonus declared by LIC.
• LIC will not issue a fresh policy for at least 3 years in case an earlier policy of yours stands lapsed or was converted into a paid-up one.
It is strongly advised that you should NOT allow any of your policies to become paid-up policies.
The Free Disability Benefit is automatically available to every policyholder without any extra charge. If the life assured is disabled by accident from earning his livelihood, he will be exempted from paying premiums on his policy after the date of his disablement. He will also entitled to received Sum Assured in 10 equal Instalment after the date of his disablement.
To be eligible for this benefit, the policy has to be in full force for the full sum assured when the disability occurs. Also the disability must arise before the policy anniversary and the age of the life assured must not exceed 70. Also the disability must be total and permanent such that there is no work, occupation or profession that the life assured can do or follow to earn or obtain any wages, compensation or profit.
Loss of eyesight in both eyes, amputation of any two limbs, hands above the wrist and legs above the ankle will be deemed to constitute total and permanent liability. And LIC must be furnished within 90 days of the occurrence of the disability.
The risk under which the risk for LIC policies commences is the date of receipt of the first premium in full or the date of acceptance, whichever is later. But if the acceptance of the proposal is conditional upon the proposer's compliance with any requirements, then the risk under the policy will commence on the date on which all requirements are satisfactorily complied with or on the date of receipt of the first premium in full, whichever is later.
There are two types of Annuities - Immediate annuities and Deferred annuities.
Under Immediate annuities, you start receiving annuity payments as soon as you pay the premium usually in a lump sum.
In the case of Deferred annuities, the payments to the annuitant start after a certain deferment period. Typically, the annuitant pays annuity premiums in installments during the deferment period.
Generally, people pay less premium for an annuity that provides future payments because the deferment period allows the insurance company to invest your premiums at a profit, thereby reducing the cost of the annuity to you.
The people who can attest the policyholder's or the assignee's signature on the discharge form are:
• Any agent of the LIC who holds membership of at least the Divisional Manager's club.
• A Block Development officer.
• Any gazetted officer.
• Any magistrate.
• Any Class 1 officer or a Development officer with at least 5 years' services.
• A principal or headmaster of a local government high school or higher secondary school.
• An agent or manager of a nationalised bank.
The manner of payment of premiums under the policy is:
• For Rupee Policies on NRI's.
• By direct remittance from abroad through Banking Channels in approved manner (preferably by Indian Rupee drafts drawn in favour of LIC of India) or by remittances through postal channels like Foreign Money Order.
• By payment out of funds held in Non-Resident (External) Account or Foreign Currency (Non- Resident) Account with a Bank in India.
• By cheques drawn by Non- resident policy holder on Bank Accounts held in India in his own name (either solely or jointly with another member of the family) whether or not the account has been designated as non-resident.
• By cheque drawn on account maintained by resident parent or spouse of policy holder in their own name or joint names with other close relatives.
• By the absolute Assignee in India wherever such policies have been absolutely assigned to a resident in India.
• By the employers in respect of policies issued to their employees who have been deputed abroad by them.
• Premiums can be paid in cash by a resident parent or spouse of the non-resident policyholder subject to his / her submitting a letter stating the relationship with the policyholder.
• Premiums due on policies issued to Indian students who have gone abroad for higher studies may be collected in Rupees out of the Resident Bank Account in India or any of their representatives in India by cash or cheques.
Note: In respect of premiums collected in cash from sources mentioned in the last five instances, it should be noted that the policy moneys cannot be paid abroad in foreign exchange but has to be paid in India only. For policies held on foreign register of LIC: Premiums on foreign currency / Rupee policies issued by overseas of LIC and held on their foreign register should be collected only in foreign currency.
In India, LIC markets only Indian rupee-currency policies. However, clients residing in U.K, Fiji and Mauritius can take Pound Sterling , Fijian Dollars and Mauritian Rupees denominated policies respectively from LIC branch offices in those countries.
Similarly, LIC (International) E C, Bahrain - a subsidiary of LIC operates among NRIs in Bahrain, Saudi Arabia and Kuwait. Clients can take US Dollars, Bahrain Dinars and Saudi Riyal currency policies from them.
All individual schemes marketed by LIC in India are available to the temporary NRIs holding Indian Passports. Foreign Nationals of Indian origin can take LIC policies during their stay in India.
However, joint life plans having term insurance element and plans having health insurance are not allowed.
There are several benefits of buying insurance. Other than the risk cover the most important you receive Income Tax Relief under Section 88 of the Income Tax Act, which means premiums paid by you, reduces your tax liability. Such exemptions are also available for premiums paid on health covers.
There are several benefits of buying insurance. Other than the risk cover the most important you receive Income Tax Relief under Section 88 of the Income Tax Act, which means premiums paid by you, reduces your tax liability. Such exemptions are also available for premiums paid on health covers.
Also through a valid assignment the beneficiaries of the policy are protected from claims of creditors. Life insurance policies can also be a great source of help as a security while availing of loans. One could also surrender his policy in case of emergencies.
For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries.
In addition to the Guaranteed Additions for certain policies the Life Insurance Corporation declares further additions, which benefits the policyholder. This is usually an amount declared per thousand of sum assured every five years, depending on the corporation’s performance. This is known as Loyalty Addition..
When a policyholder wishes to encash his policy due to urgent need of cash he returns back the policy to the insurer for which he is entitled to an amount. This is called surrender of policy or termination of the policy before the stipulated period. Policies can be surrendered provided it is kept in force for atleast 3 years. If it has been in force for five years the bonus is also added to the surrender value.
If the policyholder fails to pay his premium within the days of grace provided after the due date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly modes of payment is one month and in case of the monthly mode of payment, the grace period is 15 days.
Bonus is payable on all profits' policies of LIC.
• The amount of bonus for each Rs.1000/- sum assured in respect of Whole Life with Profits' policies is 125 percent of corresponding bonus amount for Endowment with Profits' Assurance policies.
• Bonus is payable once a policy has been in force for the full sum assured for a period of 5 years from the date of commencement of the policy.
• However, in case of a death claim within 5 years bonus is payable if the policy is in force for the full sum assured. Basically, a policy must be kept in full force for at least 5 years for it to be eligible for bonus unless a death claim were to arise within this period as a result of the death of a policyholder.
Upon payment of an additional premium of only Re.1/- per annum against a sum assured of Rs.1000/-, you could opt for a very attractive Double Accident Benefit.
The benefit provides for the payment of an additional amount equal to the sum assured in the case of death of a policyholder owing to any accident. The death claim under Double Accident Benefit becomes double of the normal claim.
The benefit provides for the payment of an additional amount equal to the sum assured in the case of death of a policyholder owing to any accident. The death claim under Double Accident Benefit becomes double of the normal claim.
To be eligible for this benefit, the policy should be in full force for the full sum assured before the policy anniversary and the life assured must not be over 70 years of age either.
In case of some policies, the Life Insurance Corporation provides the policyholder with the bonus or the profits declared as a certain amount per thousand of sum assured. This assured bonus will be given to the policyholder whatever be the performance of the corporation for the period in question. These are Guaranteed Additions and are paid at the end of the term of the policy or in case of the early death of the policyholder.
