*** LIC’S

JEEVAN SARAL** PLAN NO-165

WITH LOYALTY ADDITION INTRODUCED ON – 16/2/2004 CO/ACT/1934/4 dt. 12/2/2004

WITHDRAWN ON-

Jeevan saral is a unique plan having good features of the conventional plan and the flexibility of Unitlinked plan. This plan contains higher death cover, a smooth return, liquidity and lot of flexibility. In conventional plans, premium rates are given per 1000 sum assured for different entry ages and terms. Under Jeevan Saral plan, the customer has to first decide the amount of premium; he wants to pay per year. Once the premium is chosen, the sum assured payable on death gets automatically determined, whatever be the age and policy term. This is called the sum assured under the policy. In short, death cover will be same irrespective of age at entry and term, but the sum payable at maturity will different for each age at entry and term of policy. Maturity value is defined. Maturity value or death cover will be calculated for Rs.100/- premium payable monthly. Free death cover for 1 year i.e extended claim concession will be available after paying 3 full years premiums and not after 5 years premium as required under conventional plans. Policyholder can choose a maximum term corresponding to his/her age and in future, he can enjoy the benefit of partial surrender. For the first time, concept of partial surrender is introduced under this plan. Due to this, there is no need to surrender the policy for full sum assured. Plan can be taken with term assurance rider. In short, following are the salient features of the plan:
Golden peecook award winner for innovative insurance product.
Combination of good features of conventional plan + flexibility of ULIP plan.
Death cover will be treated as sum assured under the plan and it will be 250 times of basic monthly premium. Hence not related with age at entry and term of plan.
Policyholders with age 50 yrs and above will get more death cover compared to other conventional plans if comparison is made keeping premium fixed.
Maturity sum assured is defined taking in to account age at entry and term of policy.
Auto cover of 1 year i.e. extended claim concession will be available after paying only 3 years premium.( not required to pay 5 yrs premium as under conventional plan)
Auto cover is available for main plan only and not for term rider / Accident benefit rider.
Partial surrender value concept introduced first time in conventional plan.
In full or partial surrender , no surrender charge is applicable. Maturity value corresponding to no of premiums paid for original age at entry = loyalty addition if any will be paid in full.
No reinstatement of surrendered policy.
For the first time, in case of death claim under in force policy, along with death sum assured + loyalty addition, amount of premiums paid will be refunded as death claim.
Loan is allowed, but after granting loan partial surrender is not allowed.

A) SYNOPSIS OF PLAN  1) Age at entry---------- Minimum---- 12 years completed maximum----60 years NBD. 2) Maximum age at Maturity

70 yrs.

3) Policy term------------Minimum ------10 yrs Maximum------35 yrs 4) Sum assured (death) will be 250 times the monthly basic premium excluding term rider, DAB premium and any extra premium Minimum sum assured upto 49 yrs age at entry 62500 Minimum sum assured from 50 yrs & above age at entry 100000 No limit on maximum sum assured. 5) Premium------------- Premium is important factor in this plan. From premium- maturity sum assured, death sum assured will be decided. Minimum premium for age at entry upto 49 yrs—Rs.250/- per month Minimum premium for age at entry 50 to 60 yrs—Rs.400/- per month The premium shall be in the multiple of Rs.50/- per month and no limit on maximum premium.

6) Mode of payment-- Yearly, Half-yearly,Quarterly, SSS ECS-monthly mode is available w.e.f.14/12/2007 ref: co/crm/615/23 Sub to if subsequently the policyholder opts not to continue under ECS Mode of payment, he shall not have option of monthly ord mode. 7) Rebate-

SUM ASSURED-

no rebate

Mode of payment---- yearly---------2% Half-yearly---1% Qly,SSS------ no rebate. 8) CEIS rebate of 10% of the basic premium is available. 9) Standard extra premium rates e.g. for occupational or physically handicapped lives would be as per endowment plan. 10) All underwriting rules for endowment plan will apply. For purpose of suc and underwriting , death benefit sum assured + term assurance SA should be considered. 11) TERM ASSURANCE RIDER(OPTIONAL) plan offer optional rider of Term assurance benefit by payment of additional premium. Term assurance sum assured should not exceed the death benefit sum assured under basic plan. Age at entry-----Minimum---- 18 yrs complete Maximum----50 yrs NBD. Maximum age at maturity -----60 yrs Minimum sum assured ---1 lakh with multiple of 10000. Maximum sum assured ---25 lakh under all LIC plans taken together where term rider taken. The term assurance rider should be offered for the same term as that under the main policy. For term assurance rider premium rates refer co/act/1909/4 dt 24/10/2003.

B) PAID UP VALUE The policy will acquire paid up value after paying at least 3 full years premium. The paid up value payable on death/maturity would depend on the number of years for which premiums have been paid and shall be greater of : 1) No of years premium paid x original Maturity sum assured No of years premiums payable

OR

2) Surrender value as per SSV assuming that the policy has been surrendered on the date of death/ maturity as the case may be. For details of calculating SSV, see relevant portion.

C) LOYALTY ADDITION- PARTICIPATION IN PROFITS A policy will be eligible for loyalty addition only after payment of premium for full 10 years and after completion of 10 years from date of commencement. A loyalty addition is payable on death or maturity or when a policy is surrendered. If a death claim occurs in the 10th year of a policy, provided the policy is in force at that time, it will be eligible for loyalty addition even if the premium for the 10th year has not been paid in full. In short, policies, which are surrendered within 10 years and death claim within 9 years, there will be no question of payment of loyalty addition. Loyalty addition will be based on policy term. In case of death claim, surrender, policies under paid up condition, the period for which premiums have been paid will be taken as policy term. For example DOC- 1/3/2004, policy become paid up in the year 2015 i.e. premiums paid for 11 years. If it is surrendered in January 2017, then loyalty addition under the policy will be that corresponding to term 11 years as declared in the valuation results of 2016. No loyalty addition is available for term rider sum assured. The loyalty addition declared in every years’ actuarial valuation shall be applicable only to polices resulting into surrender, death and maturity before date of next valuation. Loyalty addition shall not remain attached to the policy. In case of surrender (GSV or SSV) loyalty addition is payable in full, no cash value is payable.

D) GUARANTEED SURRENDER VALUE  After paying 3 full years premiums and after policy has completed 3 policy years, the GSV will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all extra premiums and premium for accident benefit/term rider. If premiums have been paid for 10 years and surrender value is being calculated after completing 10 policy years, then loyalty addition is also payable in full for the year for which premiums have been paid.(minimum 10 years). There is no concept of cash value of loyalty addition.

E) SPECIAL SURRENDER VALUE (co/act/2119/4 dt.21/9/2007) The policy can be surrendered after it has been in force for at least 3 full years. The SSV under the policy shall be paid as the sum of (A) + (B) as given below: (A) Discounted value or accumulated value, as the case may be, of the following 1) If 3 years or more premiums paid but less than 4 years then 80% of maturity sum assured. 2) If 4 years or more but less than 5 years premiums paid, then 90% of the matured sum assured. 3) If 5 years or more years’ premiums paid, then 100% of maturity sum assured. The maturity sum assured as stated above will be calculated corresponding to the term for which premiums have been paid under the policy and NOT maturity sum assured of original term of policy. If the premiums have been paid for a fraction of a year, then maturity sum assured shall be worked out by way of mathematical interpolation.

If the date of surrender is less than date of FUP, then above amount of maturity sum assured will be further discounted for a period from (FUP – date of surrender.) If the actual date of surrender is more than the date of FUP, then above amount of maturity sum assured will be accumulated for a period from (Date of surrender - FUP). The period for which the amount is to be discounted or accumulated shall be taken in complete months and fraction of a month will be ignored. The rate of interest for Discounting or accumulation of maturity sum assured will be announced by corporation at the start of financial year. Interest rate will be compounding yearly. As per co/act/2119/4 dt.21/9/2007, the interest rate for the year 2007-08 and 2008-09 will be 7.75% p.a. As per co/act/2162/4 dt.20/4/2009, , the interest rate for the year 2009-10 will be 7.50% p.a.

B) LOYALTY ADDITION loyalty addition, if any payable, for the term for which premiums have been paid in complete no of years announced as per valuation, immediately preceding the date of surrender in full. This means amount of loyalty addition is payable in full. Loyalty addition is payable for no of years premiums paid in completed years only and not for fraction of month. The rate will depend upon actual no of years premiums paid and not original term of policy.

Hence SSV = A + B i.e Discounted or accumulated value of maturity sum assured + loyalty addition in full. In short, for calculation of special surrender value, following steps are to be taken. 1) Find out monthly premium for basic plan i.e. excluding premium for EPDB/term rider / extra and addition of mode rebate which are given while calculating instalment premium. 2) If SSV is being calculated after partial surrender, then find out exact amount of monthly premium, for which policy is being in force. 3) Find out no of years premiums paid. 4) Find out appropriate value of maturity sum assured for Rs.100/- premium per month for age at entry and new term( new term means no of years/ months premium paid) and not original term of policy. 5) Multiply the said maturity sum assured by monthly premium as arrived in step 1. 6) Decide the amount to be used for calculating accumulated or discounted value of maturity sum assured as explained in A) above i.e 80%, 90% or 100%. 7) This value will be further discounted or accumulated depending upon FUP and date of surrender.

8) If premiums have been paid for 10 yrs and surrender value is also calculated after completing 10 policy years, then calculate loyalty addition for new term of policy ( new term means no of years premiums paid and no of months to be ignored.) 9) SSV= Discounted or Accumulated value of maturity sum assured + loyalty addition if any. 10) No reinstatement of surrender policy is allowed. 11) The formulae for calculation of accumulation of discounting value will be calculated as follows. Accumulation factor( 1 +I) ^ (n/12) Discounting factor  ( 1+I) ^ (-) (n/12) Where I= rate of interest per annum and n= is period in complete months from the due date of FUP to Date of surrender.

Accumulation & discounting factors for calculation of SSV under Jeevan Saral plan Rate of interest (I) 7.75 p.a.

Accumulation & discounting factors for calculation of SSV under Jeevan Saral plan Rate of interest (I) 7.50 p.a.

Accumulation factors

Discounting factors

Accumulation factors

Discounting factors

N= period in months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Factor

N=period in months

Factor

N=period in months

1.00624 1.01252 1.01884 1.02519 1.03159 1.03803 1.04450 1.05102 1.05758 1.06418 1.07082 1.07750 1.08422 1.09099 1.09780 1.10465 1.11154 1.11847

1 2 3 4 5 6 7 8 9 10 11

0.99380 0.98764 0.98151 0.97543 0.96938 0.96337 0.95739 0.95146 0.94556 0.93969 0.93387

N= period in months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1.00604 1.01213 1.01824 1.02440 1.03059 1.03682 1.04309 1.04939 1.05574 1.06212 1.06854 1.07500 1.08150 1.08804 1.09461 1.10123 1.10789 1.11458

1 2 3 4 5 6 7 8 9 10 11

0.99400 0.98802 0.98208 0.97618 0.97032 0.96449 0.95869 0.95293 0.94720 0.94151 0.93586

Examples on calculation of Special surrender value under plan 165  EXAMPLE-1= SSV with accumulation value of maturity sum assured i.e date of surrender is more than FUP DOC- 1-3-2002, P &T- 165-35, mode- HLY premium Rs. 11501/- FUP 9/2012, Maturity sum assured- 756459, Death sum assured- 412500, age at entry-35 yrs, policy is accepted with class I (HE) with DAB and term rider for SA of 400000 for 30 yrs term. Calculate special surrender value as on 11/10/2015 ANSWER | Step 1 first find out basic monthly premium out of given premium HLY premium instalment------------------Rs.11501.00 Less- Hly term rider premium for SA 4 lakh Rs.1070.00 Less- class I extra premium for SA 412500 For Half-yearly premium Rs.423.56 Less – Hly DAB premium for SA 412500 Rs.206.25 Net premium Rs. 9801.19 Add- 1% HLY mode rebate 9801.19 / .99 = 9900 hence monthly premium will be 9900 / 6 = Rs.1650/For finding out gross premium after adding mode rebate HLY premium divide by .990 YLY premium divide by .980 STEP 2 find out no of years premiums paid = ( 9/2012 - 3/2002) = 10 yrs 6 months. Step 3 find out Maturity sum assured corresponding to the term for which premiums have been paid as on 1/9/2012 As per maturity sum assured available per Rs.100/- payable monthly for age 35 yrs For RS.100 For Rs.1650 Term 10 yrs 10840 x 16.50 = 178860 Term 11 yrs 12295 x 16.50 = 202868 Hence maturity sum assured by mathematical interpolation as on 1/9/2012 is = 178860 + 6/12 ( 202868 – 178860) = 178860 + 24008 /2 = 190864. STEP 4  since premiums have been paid for more than 5 years , 100% of maturity sum assured is available i.e 190864. since date of surrender(11/10/2015) is more than date of FUP( 1/9/2012), above maturity sum assured will be accumulated at the rate applicable in respective year. Total period for accumulation will be (11/10/2015 - 01/09/2012) = 3 years 1 month 10 days. (to be taken in completed month) = 37 months. Rate of accumulation is 8.25% assumed.( check the actual declared by central office) Find out the factor for accumulation: = (1 + I) ^ (n/12) where I= 8.25 & n= period in months. = (1 + 8.25) x (37/12) = ( 1 + 0.0825)^ 3.6833 (open excel sheet or use scientific calculator) 100 =1.276884 = Accumulated value 190864 x 1.276884 = 243711.19 i.e 243711----------A STEP 5  since premiums have been paid for 10 yrs and more policy is eligible for loyalty addition, which is declared in the year of valuation 3/2014 i.e. valid for the period 1/1/2015 to 31/12/2015. loyalty addition is payable for no of years premiums paid in completed years only and not for part of the year. In this case, premiums have been paid for 10 yrs & 6 months, we have to see loyalty addition for 10 yrs per 1000 death sum assured.( kindly see whether loyalty addition is declared on death sum assured or maturity sum assured) let us assume that rate is 450 per 1000 sum assured. Loyalty addition will be 450 x 412.50 = 185625.-----------------------B. Hence, total special surrender value= A + B= 243711 + 185625 = 429336. GSV will be 30% of (9801.19 x 9.5 yrs) = 27933.39 = loyalty addition in full 185625 = 213558.39

EXAMPLE-2= SSV with discounted value of maturity sum assured i.e date of surrender is less than FUP DOC- 1-3-2002, P &T- 165-35, mode- HLY premium Rs. 11501/- FUP 3/2012, Maturity sum assured- 756459, Death sum assured- 412500, age at entry-35 yrs, policy is accepted with class I (HE) with DAB and term rider for SA of 400000 for 30 yrs term. Calculate special surrender value as on 1-12-2011. ANSWER Step 1 first find out basic monthly premium out of given premium HLY premium instalment------------------Rs.11501.00 Less- Hly term rider premium for SA 4 lakh Rs.1070.00 Less- class I extra premium for SA 412500 For Half-yearly premium Rs.423.56 Less – Hly DAB premium for SA 412500 Rs.206.25 Net premium Rs. 9801.19 Add- 1% HLY mode rebate 9801.19 / .99 = 9900 hence monthly premium will be 9900 / 6 = Rs.1650/For finding out gross premium after adding mode rebate HLY premium divide by .990 YLY premium divide by .980 STEP 2 find out no of years premiums paid = ( 3/2012 - 3/2002) = 10 yrs. Step 3 find out Maturity sum assured corresponding to the term for which premiums have been paid as on 1/3/2012 As per maturity sum assured available per Rs.100/- payable monthly for age 35 yrs For RS.100 For Rs.1650 Term 10 yrs 10840 x 16.50 = 178860 Maturity sum assured will be Rs.178860 STEP 4  since premiums have been paid for more than 5 years, 100% of maturity sum assured is available i.e 190864. Since date of surrender (1/12/2011) is more than date of FUP( 1/3/2012), above maturity sum assured will be discounted at the rate applicable in respective year. Total period for discount will be (1/3/2011 – 1/12/2011) = 3 months. (to be taken in completed month) = 3 months. Rate of accumulation is 9.25% assumed.( check the actual rate declared by central office) Find out the factor for accumulation: = (1 + I) ^ -(n/12) where I= 9.25 & n= period in months. = (1 + 9.25) = ( 1 + 0.0925)^ -(3/12) (open excel sheet or use scientific calculator) 100 =.978126 = Discounted value 178860 x .978126 = 174947.61 i.e 174948/- ----------A STEP 5  since premiums have been paid for 10 yrs. But duration of surrender ( 1/12/2011 – 1/3/2002 ) is less than 10 yrs, loyalty addition is not payable. Hence, total special surrender value= A= 174948. GSV will be 30% of (9801.19 x 9 yrs) = 26463.21 i.e. 26463/-

F) PARTIAL SURRENDER VALUE  This is a unique feature under this plan. Under other conventional plans, if life assured is not able to pay the premiums under the policy, then either he has to surrender the policy wholly or to keep the policy in paid up condition. Any time after completion of 3 years or more from DOC and provided premiums have been paid for at least 3 full years, partial surrender will be permitted. The basic premium under the policy shall be reduced and the surrender value (as explained earlier in SSV) corresponding to the amount by which the basic premium is reduced will be paid sub to 1) Once a partial surrender is made, all benefits payable under the policy will get automatically reduced proportionately. 2) The sum assured under Accident, term rider benefit and the additional premium payable in respect of these benefits will also get correspondingly reduced sub to the satisfaction of restrictive conditions in respect of premium and sum assured. 3) The reduced basic monthly premium after the partial surrender should not be less than Rs.250/per month where age at entry was up to 49 yrs and Rs.400/- per month where the age at entry was 50 yrs and above. 4) The minimum basic monthly premium that can be surrendered at a time is Rs.100/- per month/ Rs.600/- half-yearly/ or Rs.1200/- per annum and should be in multiple of Rs.50/- per month thereafter. 5) A minimum waiting period of 1 year is required between two successive surrenders. 6) No partial surrender will be allowed if loan is outstanding under a policy. 7) Sub to above conditions, any no of partial surrenders will be permitted. 8) Policy will be endorsed as follows:- F. No. JS 165 LIFE INSURANCE CORPORATION OF INDIA ----------DIIVISIONAL OFFICE PLACE---------DATE:RE: POLICY NO----------------------------Consequent to the partial surrender of the policy as on-----------the following Alterations are hereby made in the policy: 1) Instalment premium for main plan stands reduced from-------- to ---------. 2) Instalment accident benefit premium stands reduced from ------to--------. 3) Instalment term rider premium stands reduced from --------to-----------. 4) Total instalment premium stands reduced from --------- to------------. 5) Maturity sum assured stands reduced from -------- to------------. 6) Death benefit sum assured under main plan stands reduced from----- to------. 7) Accident benefit sum assured stands reduced from--------to----------. 8) term rider sum assured stands reduced from-------- to ----------.

The sum of Rs.-------has been paid as surrender value on partial surrender of the policy which is inclusive of loyalty additions of Rs.------------- in respect of the portion of the basic premium withdrawn of Rs.----------. FOR LIC OF INDIA p. Sr/ Branch manager to be deleted where not applicable.

Example on partial surrender:Date of commencement- 15/2/2004 plan & term- 165-18, mode- Qly Rs.12250, FUP- 5/2007 Death sum assured- 10,00,000, Maturity sum assured-516480, policy accepted with DAB and at ordinary rate. Age at entry-52 yrs POLICY HOLDER WISH TO SURRENDER DEATH SUM ASSURED OF Rs.500000 i.e for basic quarterly premium of Rs.6000. Calculate partial surrender value as on 15/1/2008

ANSWER Step 1 first find out basic monthly premium out of given premium Qly premium instalment------------------Rs.12250/Less – Qly DAB premium for SA 10 lakh Rs.250 Net premium Rs. 12000 Hence monthly premium will be 12000/ 3= Rs.4000/For finding out gross premium after adding mode rebate HLY premium divide by .990 YLY premium divide by .980 STEP 2 find out no of years premiums paid = ( 5/2007 - 2/2004) = 3 yrs 3 months. Step 3 find out Maturity sum assured corresponding to the term for which premiums have been paid as on 5/2007 As per maturity sum assured available per Rs.100/- payable monthly for age 52 yrs For RS.100 For Rs.2000 Term 3 yrs 1971 x 20.00 = 39420 Term 4yrs 2798 x 20.00 = 55960 Hence maturity sum assured by mathematical interpolation as on 5/2007 is = 39420 + 3/12 ( 55960-39420) = 39420 + 4135 = 43555 STEP 4  since premiums have been paid for more than 3 years but less than 4 years , 80% of maturity sum assured is available i.e 34844. Since date of surrender (15/1/2008) is more than date of FUP( 15/5/2007), above maturity sum assured will be accumulated at the rate applicable in respective year. Total period for accumulation will be (15/1/2008 - 15/5/2007) = 8 months. (to be taken in completed month) = 8 months. Rate of accumulation is 7.75%.( check the actual declared by central office) Find out the factor for accumulation: = (1 + I) ^ (n/12) where I= 7.75 & n= period in months. = (1 + 7.75) x (8/12) = ( 1 + 0.0775)^ 0.6667 (open excel sheet or use scientific calculator) 100 =1.05102 = Accumulated value 34844 x 1.05102 = 36622----------A STEP 5  since premiums have been paid for less than 10 yrs policy is not eligible for loyalty Hence, total special surrender value= A = 36622 GSV will be 30% of (2000 x 2.3 yrs) = 1380. Pass the endorsement as stated above and confirm from policy master in front end that for balance monthly premium death sum assured, maturity sum assured, instalment premium is appearing correctly.

G) LOAN  Provided policy has acquired paid up value, loan under the policy will be available as per our usual terms & conditions. Presently , the rate of interest is 9% p.a. payable half-yearly. The corporation will determine the rate of interest from time to time. After availing loan under the policy, if policyholder wish to have partial surrender value, then first he has to repay the loan fully.

H) MATURITY CLAIM  1) IN FORCE POLICY Provided all the premiums during policy term have been paid and life assured is alive as on date of maturity, then maturity claim will be Maturity sum assured (not death sum assured) + loyalty addition declared in said valuation year. No maturity claim for Term assurance rider is payable. Before making payment, kindly confirm if any partial surrender payment has taken place.

2) PAID UP POLICY If after at least 3 full years premiums have been paid and any subsequent premiums be not duly paid, then policy will acquire paid up value and same is payable on date of maturity. Paid up value will be greater of A and B as stated below:A ) = a sum that bears the same ratio to the full maturity sum assured as the no of premiums actually paid, shall bear to the total no originally stipulated in the policy. Paid up value= No of premiums paid x Maturity sum assured originally stipulated No of premiums payable or reduced due to partial surrender B) = The special surrender value as explained above, assuming that policy is being surrendered on the date of maturity i.e date of maturity will be treated as date of surrender. In short, SSv will be accumulated value of maturity sum assured proportionate to no of years premiums paid + loyalty addition in respect of no of years premiums paid in completed years.

I) DEATH CLAIM  1) AUTO COVER This is a unique feature under this plan. After paying premiums for atleast 3 years or more and further premium is not paid within days of grace, then risk cover under main plan will be extended for 12 months from the date of FUP. This auto cover is not extended for term rider benefits i.e term assurance benefit rider and Accidental death benefit rider. This benefit of auto cover will be available even if one or more partial surrenders have been made. However, the benefit will be available to the extent of the in-force benefit only. If death occurs within the days of grace or during the period of auto cover, all premiums that have fallen due and up to the next policy anniversary shall be recovered from claim amount. The premiums so deducted shall be considered for refunding the premium in death claim. In short, extended claim concession will be available for main plan after paying 3 years premium only. Auto cover period shall be counted including due date of FUP.

2) DEATH CLAIM UNDER INFORCE OR UNDER AUTO COVER PERIOD  A) WITH OUT TERM ASSURANCE RIDER  If death of life assured takes place before date of FUP or within days of grace period or within auto cover period, then death claim will be =Basic death sum assured + return of premiums excluding the first year premium and extra/rider premiums/EPDB premiums if any + loyalty additions – o/s loan with interest & unpaid premiums if any. The premiums, which will be recovered under auto cover, are also refunded and for deciding no of years premiums paid for loyalty addition, premiums upto next policy anniversary will be considered. During auto cover period, accidental death and disability benefit rider is not available.

B) WITH TERM RIDER  Auto cover is available only for main policy but not available for term assurance rider. Hence , if life assured expired before date of FUP or within grace period(30 days) , then death claim will be = Basic death sum assured + term rider sum assured + return of premiums excluding the first year premium and extra/term rider/EPDB premium if any.+ loyalty addition - o/s loan with interest & unpaid premiums if any.

3) DEATH CLAIM UNDER PAID UP POLICY  term rider benefits both i.e term assurance benefit rider and Accidential death & disability benefit rider is not available. After paying atleast 3 full years premiums if any further premiums be not paid & death of life assured takes place after days of grace or auto cover period, then paid up value will be calculated as per (A) & (B). claim amount will be greater of A ) = a sum that bears the same ratio to the full maturity sum assured as the no of premiums actually paid, shall bear to the total no originally stipulated in the policy. Paid up value= No of premiums paid x Maturity sum assured originally stipulated No of premiums payable or reduced due to partial surrender B) = The special surrender value as explained above, assuming that policy is being surrendered on the date of maturity i.e date of maturity will be treated as date of surrender. In short, SSv will be accumulated value of maturity sum assured proportionate to no of years premiums paid + loyalty addition in respect of no of years premiums paid in completed years.

J) CLAIM CONCESSIONS/ CHAIRMAN’S RELAXATION RULES  Extended claim concession i.e auto cover will be available for 12 months under the main plan and not for term assurance rider or EPDB. Chairman’s relaxation rules are…………..

K) ACCIDENTIAL DEATH AND DISABILITY BENEFIT RIDER  Permanent disability benefit(PDB) is not available under this plan.but accidential death and disability benefit rider is available up to maximum sum assured of 50 lakh. This maximum limit includes all polices issued on the same life. The sum assured for above rider will death sum assured and not Maturity sum assured. This rider is not available in auto cover period.

L) REVIVAL  All underwriting rules for endowment plan will apply. SUC for the purpose of revival will be death benefit sum assured + term assurance sum assured. Policy can be revived with proper evidence of health within a period of 5 years from date of FUP.if policy is accepted with term rider, then policy can not be revived without any evidence of health but on medical report + special report or under non-medical special. The class I extra premium rates are given for Rs.100/- monthly premium i.e for 25000 sum assured( 100 X 250 times) hence before applying this extra factors, we have to derive it for per 1000 sum assured and then apply to death sum assured under the policy. Steps will be : 1) Find out appropriate class I extra for given age & term. 2) Divide extra by 25. 3) Arrived extra will be for Rs.1000 sum assured for Rs.100/-monthly premium.

CHART SHOWING MATURITY SUM ASSURED PER Rs.100/- MONTHLY PREMIUM AGE 18* 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 • •

3 2583 2581 2577 2574 2570 2568 2568 2566 2563 2563 2563 2564 2561 2559 2555 2548 2542 2531 2520 2509 2494 2477 2459 2439 2422 2398 2372 2339 2301 2260 2211 2158 2100 2038 1971 1897 1819 1736 1654 1568 1473 1357 1221

4 3671 3665 3662 3659 3656 3653 3649 3650 3646 3646 3646 3643 3644 3637 3632 3623 3610 3595 3580 3562 3541 3516 3492 3467 3440 3403 3363 3317 3265 3203 3135 3061 2980 2892 2798 2694 2587 2475 2360 2232 2091 1920 1718

5 4765 4757 4753 4749 4745 4741 4737 4737 4738 4733 4733 4730 4726 4718 4711 4695 4680 4665 4641 4614 4587 4560 4524 4489 4450 4404 4349 4286 4215 4136 4045 3945 3841 3724 3599 3465 3325 3181 3025 2851 2651 2416 2139

POLICY TERM 6 7 8 5927 7143 8411 5922 7131 8397 5917 7125 8390 5912 7119 8391 5908 7113 8384 5903 7113 8377 5897 7107 8377 5898 7107 8370 5898 7101 8371 5893 7102 8364 5893 7097 8359 5889 7092 8346 5879 7081 8334 5870 7064 8315 5856 7048 8289 5837 7026 8264 5819 6998 8225 5795 6964 8186 5767 6931 8148 5733 6891 8095 5700 6846 8042 5662 6801 7984 5619 6744 7919 5571 6688 7840 5519 6620 7755 5456 6541 7657 5384 6443 7544 5303 6340 7410 5211 6225 7269 5109 6098 7106 4991 5952 6936 4868 5799 6744 4730 5627 6536 4580 5443 6319 4420 5250 6093 4259 5051 5837 4081 4832 5558 3893 4587 5256 3683 4316 4907 3451 4004 4517 3181 3659 4068 2866 3250 3595 2503 2827 3037

9 9750 9742 9735 9727 9718 9719 9711 9703 9704 9689 9683 9669 9647 9627 9598 9562 9517 9473 9421 9362 9303 9229 9139 9041 8937 8817 8681 8520 8351 8156 7944 7714 7473 7215 6938 6626 6277 5893 5460 4970 4460 3841 3129

10 11174 11165 11156 11147 11147 11138 11129 11121 11113 11107 11091 11076 11053 11020 10979 10939 10889 10840 10773 10707 10623 10531 10431 10313 10187 10033 9870 9679 9479 9248 8998 8726 8442 8128 7794 7408 6979 6508 5969 5407 4744 3971 3059

11 12700 12690 12680 12670 12671 12661 12651 12643 12635 12618 12601 12574 12549 12503 12469 12414 12359 12295 12210 12127 12035 11923 11802 11661 11499 11329 11125 10901 10654 10384 10101 9795 9453 9076 8653 8194 7672 7087 6463 5761 4922 3949 -

12 14241 14230 14218 14219 14208 14198 14189 14180 14160 14142 14112 14085 14046 14009 13960 13899 13828 13747 13655 13553 13442 13308 13164 12998 12809 12596 12373 12113 11827 11513 11173 10807 10401 9957 9459 8892 8266 7598 6841 5945 4915

Maturity sum assured for terms 3 to 9 yrs above are given only for the purpose of surrender value. Maturity sum assured for ages 12 yrs to 17 yrs will be same as that for age 18 yrs for relevant terms.

CHART SHOWING MATURITY SUM ASSURED PER Rs.100/- MONTHLY PREMIUM AGE 18* 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 • •

13 15894 15895 15883 15871 15859 15849 15826 15818 15797 15779 15748 15705 15664 15610 15544 15480 15390 15303 15191 15068 14935 14777 14608 14414 14194 13948 13675 13375 13043 12697 12308 11875 11384 10847 10249 9571 8860 8051 7103 6004 -

14 17699 17685 17672 17659 17648 17622 17614 17591 17571 17537 17490 17460 17401 17344 17274 17191 17080 16973 16854 16708 16551 16365 16152 15927 15673 15390 15076 14728 14365 13936 13477 12969 12395 11752 11037 10287 9409 8394 7230 -

15 19656 19641 19628 19615 19587 19578 19553 19531 19494 19459 19410 19362 19300 19223 19150 19046 18930 18800 18640 18485 18283 18085 17839 17579 17287 16962 16599 16201 15769 15283 14725 14132 13444 12696 11869 10940 9879 8655 -

POLICY TERM 16 17 21296 22965 21281 22951 21249 22918 21237 22908 21228 22879 21201 22853 21177 22810 21137 22770 21100 22733 21065 22678 21014 22626 20947 22558 20883 22475 20786 22376 20964 22262 20587 22134 20448 21971 20296 21794 20130 21602 19931 21376 19720 21135 19474 20858 19195 20544 18902 20214 18573 19841 18204 19428 17797 18975 17353 18462 16852 17888 16294 17251 15657 16527 14959 15711 14175 14852 13329 13851 12350 12723 11252 11406 9978 -

18 24662 24627 24616 24585 24557 24511 24490 24428 24392 24336 24264 24174 24091 23970 23833 23682 23515 23311 23093 22836 22564 22252 21901 21527 21111 20563 20130 19543 18889 18167 17322 16431 15415 14264 12912 -

19 26361 26349 26317 26287 26237 26215 26173 26110 26051 25997 25902 25813 25708 25587 25426 25249 25056 24824 24576 24311 23980 23632 23260 22844 22358 21855 21257 20590 19850 19006 18088 17064 15870 14519 -

20 28106 28071 28039 28012 27963 27918 27876 27814 27731 27655 27586 27474 27345 27200 27012 26834 26614 26351 26071 25747 25405 25012 24598 24111 23606 23001 22351 21596 20733 19819 18765 17562 16164

21 29845 29812 29783 29731 29683 29639 29572 29511 29430 29357 29238 29129 28975 28804 28615 28410 28160 27864 27550 27188 26801 26393 25908 25376 24796 24140 23374 22524 21592 20512 19307 17930

22 31601 31571 31544 31493 31446 31375 31311 31225 31147 31050 30935 30772 30620 30420 30204 29969 29686 29385 29034 28627 28197 27748 27218 26609 25950 25207 24346 23398 22329 21129 19717

Maturity sum assured for terms 3 to 9 yrs above are given only for the purpose of surrender value. Maturity sum assured for ages 12 yrs to 17 yrs will be same as that for age 18 yrs for relevant terms.

CHART SHOWING MATURITY SUM ASSURED PER Rs.100/- MONTHLY PREMIUM AGE 18* 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

23 33402 33344 33290 33240 33196 33127 33036 32954 32851 32729 32587 32426 32247 32049 31802 31536 31219 30881 30485 30066 29593 29070 28463 27804 27058 26188 25263 24212 22991 21584 • •

24 35155 35129 35045 34997 34925 34861 34774 34665 34568 34418 34281 34092 33883 33656 33376 33075 32721 32338 31932 31471 30922 30355 29664 28919 28078 27184 26122 24920 23527 -

25 36945 36889 36839 36763 36695 36603 36488 36385 36261 36116 35917 35732 35492 35233 34952 34615 34214 33824 33342 32839 32246 31597 30854 30014 29079 28048 26873 25501 -

POLICY TERM 26 27 38741 40503 38653 40418 38607 40342 38500 40277 38439 40186 38317 40071 38208 39933 38077 39771 37960 39625 37786 39420 37591 39231 37375 38983 37103 38674 36808 38381 36492 38019 36109 37632 35701 37143 35233 36674 34746 36066 34164 35439 33525 34712 32788 33922 31951 33033 31057 31999 30023 30856 28841 29504 27497 -

28 42263 42183 42114 42018 41897 41751 41620 41466 41289 41091 40830 40546 40238 39900 39495 39067 38577 38027 37374 36658 35878 34998 34012 32870 31559 -

29 44020 43947 43846 43718 43605 43466 43304 43118 42909 42676 42419 42139 41786 41405 41001 40490 39960 39324 38623 37857 36988 36011 34873 33609 -

30 45772 45665 45530 45411 45307 45136 44940 44763 44518 44292 43998 43672 43319 42898 42410 41857 41286 40604 39807 38952 38034 36903 35694 -

31 47472 47375 47248 47095 46959 46797 46565 46353 46115 45852 45511 45187 44747 44332 43803 43209 42547 41768 40979 40028 38957 37758

32 49161 49028 48912 48768 48598 48400 48177 47927 47651 47340 47002 46638 46204 45702 45132 44494 43735 42917 42034 40978 39791 -

Maturity sum assured for terms 3 to 9 yrs above are given only for the purpose of surrender value. Maturity sum assured for ages 12 yrs to 17 yrs will be same as that for age 18 yrs for relevant terms. AGE 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

33 50836 50666 50514 50382 50174 49987 49724 49482 49157 48852 48471 48069 47545 47003 46390 45705 44910 43996 43011 41839

POLICY 34 52446 52286 52145 51927 51729 51503 51248 50959 50638 50291 49870 49429 48864 48279 47621 46851 45959 44995 43841 -

TERM 35 54035 53886 53707 53499 53261 52993 52741 52405 52095 51655 51247 50712 50158 49474 48730 47920 46980 45846 -

ANNUAL CLASS I EXTRA PREMIUM RATES PER 100/- MONTHLY PREMIUM UNDER PLAN 165 I.E. FOR 25000 SUM ASSURED (100 X 250=25000.)

AGE 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

10 10.02 10.08 10.14 10.21 10.27 10.33 10.87 11.40 11.94 12.47 13.01 14.13 15.26 16.38 17.51 18.63 20.70 22.77 24.83 26.90 28.97 32.71 36.44 40.18 43.91 47.65 54.01 60.38 66.74 73.11 79.47 89.37 99.27 109.18 119.08 128.98 138.88 148.78 158.69 168.59 214.65

15 10.23 10.53 10.83 11.13 11.43 11.73 12.31 12.89 13.46 14.04 14.62 16.11 17.60 19.08 20.57 22.06 24.82 27.58 30.35 33.11 35.87 40.59 45.32 50.04 54.77 59.49 67.20 74.91 82.62 90.33 98.04 111.31 124.57 137.84 151.10 164.37 177.64 190.90 204.17 217.43 0.00

POLICY TERM 20 25 10.41 11.86 10.92 12.46 11.43 13.06 11.93 13.67 12.44 14.27 12.95 14.87 13.90 16.14 14.85 17.41 15.81 18.68 16.76 19.95 17.71 21.22 19.65 23.86 21.59 26.49 23.52 29.13 25.46 31.76 27.40 34.40 30.93 38.72 34.47 43.03 38.00 47.35 41.54 51.66 45.07 55.98 50.95 63.33 56.83 70.68 62.71 78.02 68.59 85.37 74.47 92.72 84.34 0.00 94.22 104.09 113.97 123.84 0.00 0.00

30 12.70 13.75 14.79 15.84 16.88 17.93 19.75 21.57 23.40 25.22 27.04 30.11 33.19 36.26 39.34 42.41 47.78 53.16 58.53 63.91 69.28 0.00 0.00

35 15.73 16.85 17.97 19.10 20.22 21.34 23.67 26.00 28.32 30.65 32.98 36.65 40.32 44.00 47.67 51.34 0.00 0.00

P.S. – For finding out Extra premium per 1000 sum assured , divide the amount by 25.

EXAMPLE OF PREMIUM CALCULATION  Mr.A. wish to pay Rs.600/- monthly, Rs.8100 Half-yearly, and RS.19800/- Yearly premium. Age at entry is 35 yrs. Policy term is 35 yrs. He has opted for accidential death cover rider. Policies are accepted with class II extra premium. Calculate 1) net instalment premium 2) policy death sum assured.3) Maturity sum assured. Answer Amount of premium fixed by LA First calculate monthly premium Find out policy sum assured or Death sum assured Maturity sum assured per 100/premium is available in chart

MONTHLY 600 Rs.600/600 x 250= 1,50,000 45846 x 600/100 =275076

Now we will do premium Rs.600 calculation for given amount of - nil premium (A) Rs.600 Less – mode rebate Maturity S.A. is Add- accident cover premium Rs.1/- per1000 death sum assured 1,50,000 means DAB premium will be 150 x 1= 150. monthly mode, hence divide 150/12= =12.50 ( B) Add- calculation of extra premium Policy is accepted with class II extra. In ann II , annual extra premium rates are given per 100/monthly premium i.e for 25000 sum Annual extra assured. ( 100 MLY premium x 250 2.0536 x 150(SA times) For age 35 and term 35 yrs, in thousands) extra premium for Rs100/- monthly = 308.04 / 12( premium will be Rs.51.34 monthly mode) Hence extra premium per 1000 sum = 25.67 class I assured will be 1000/25000 x 51.34 = 25.67 x 2 class = 2.0536 II extra Rs.51.34 ( C) Hence actual premium will be =600 + 12.50 + A + B + C 51.34 = 663.84 i.e. 664/-monthly

HALF-YEARLY 8100 8100/6= Rs.1350 1350 x 250 = 3,37,500 45846 x 1350/100 = 6,18,921 Rs.8100 1% - 81 Rs.8019/-

YEARLY 19800 19800/12=1650 1650 x 250 = 4,12,500 45846 x 1650/100= 7,56,459 Rs.19800 2% - 396 RS.19404

Maturity S.A. is 337500 means DAB premium will be 337.5 x 1= 337.50 HLYmode, hence divide 337.50/2 =168.75

Maturity S.A. is 412500 means DAB premium will be 412.50 x 1=412.50 Yearly mode, hence divide 412.50/1=412.50

Annual extra 2.0536 x 337.50(SA in thousands) = 693.09 / 02( HLY mode) = 346.545 class I = 346.545 x 2 (class II extra ) Rs.693.09 8019 + 168.75 +693.09 = 8880.84 i.e. Rs8881/-HLY

Annual extra 2.0536 x 412.50(SA in thousands) = 847.11 / 1 ( YLY mode) = 847.11 class I = 847.11 x 2 (class II extra) Rs.1694.22 19404 + 412.50 +1694.22 = 21510.72 i.e 21511 YLY