Brief History of Insurance

Brief History Of Insurance The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Cooperative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
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LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of reorganisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
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1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.  Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.  Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.  Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.  Act as trustees of the insured public in their individual and collective capacities.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment.  Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.  Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."
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Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

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Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges. For more details, please contact our branch or divisional office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:  The date of maturity, or  Specified dates at periodic intervals, or  Unfortunate death, if it occurs earlier.
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Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. That of dying prematurely leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support. 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-to-time. 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.
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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 policyholder’s state of health, the proponent's income and other relevant factors are considered by the Corporation. Insurance For Women Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount. In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

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Admission Of Age: Age is the main basis of calculation of premium under life insurance policies. The following are accepted as evidence of age:  Certified extract from Municipal or Local Body’s records made at the time of birth.  Certificate of Baptism or Certified Extract from Family Bible, if it contains age or date of birth.  Certified Extract from School or College records, if age or date of birth is stated therein.  Certified Extract from Service Register in the case of Govt. employees and employees of Quasi-Govt. Institutions or  Passport issued by the Passport Authorities in India. Payment Of Premium: By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office.  The DD and cheques or Money Order may be sent by post.  You can pay your premiums at any of our Branches as 99% of our Branches are networked.  Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months mentioned on your policy bond.  Through Internet : Payment of premiums can be made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk.  Premium payment can also be made through ATMs of Corporation Bank and UTI Bank.  Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa and Nagpur, Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India.  Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques. Days Of Grace:  Policyholder should pay the premiums on due dates. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums.  When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the following working day to keep the policy in force.  If the premium is not paid before the expiry of the days of grace, the policy lapses. Revival Of Lapsed Policy:  If the policy has lapsed, it can be revived during the life time of the life assured, within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions.  The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special Revival and Installment Revival. Policies can also be revived under Loan-cum-Revival and SB7

cum-Revival schemes.  Request for revival may be made to the Branch Office servicing the policy. Change Of Address And Transfer Of Policy Records:  The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. The correct address facilitates better service and quicker settlement of claims.  Policy records can also be transferred from one Branch Office to another for servicing, as requested by the policyholder. Loss Of Policy Document:  The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled.  Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced. Loans:  Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paid-up, inclusive of the cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly.  Loans are not granted for a period shorter than six months. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility. Relief To Policyholders:  The Corporation generally allows concessions on payment of premiums, settlement of claims, issue of duplicate policies, etc when the policyholder are affected by natural calamities such as droughts, cyclones, floods, earthquakes, etc. Nomination:  Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. A nomination may be changed or cancelled by the life assured whenever he likes without the consent of the Nominee. Ensure nomination exists in the policy for easy settlement of claims. Assignment:  Assignment means transfer of rights, title and interest. When an assignment is executed, all rights, title and interest in respect of the property assigned are immediately transferred to the Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition made in the assignment.  Assignment can be either conditional or absolute. On assignment (other than to LIC), Nomination automatically stands cancelled. Hence, when such a policy is reassigned, the policyholder will have to make a fresh nomination to avoid delay in settlement of claim. Survival Benefit/Maturity Claims:  LIC settles survival benefit/maturity claims on or before the due date.  Policyholder are intimated well in advance by the Branch Office which services the policy regarding the payment, and the necessary Discharge Voucher is also sent for execution by the assured. In case the policyholder does not get any intimation from the Branch Office concerned, he/she should contact them, quoting the Policy Number.  Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy Bond and Discharge Voucher. Death Claims:  If the life assured dies during the term of the policy, death claim arises. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy
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is serviced along with the following particulars: 1. The No./s of the policy/ies 2. The name of the policyholder 3. Death Certificate issued by concerned Authority 4. The date of death 5. The cause of death and 6. Claimant’s relationship with the deceased  On receipt of the intimation of death, necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant.  The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements.  The claims that have arisen within a period of two years from the date of commencement of the policy, are treated as early claims and investigation is compulsory in such cases.  The claim is usually payable to the nominee/assignee or the legal heirs, as the case may be. However, if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law.  The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy, in the event of the death of the life assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five years respectively. Claim Review Committee: The Corporation settles a large number of Death Claims every year. Only in case of fraudulent suppression of material information is the liability repudiated. This is to ensure that claims are not paid to fraudulent persons at the cost of honest policyholders. The number of Death Claims repudiated is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The Claims Review Committees of the Central and Zonal Offices have among their Members, a retired High Court/District Court Judge. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants, policyholders and public. Insurance Ombudsman:  The Grievance Redressal Machinery has been further expanded with the appointment of Insurance Ombudsman at different centers by the Government of India. At present there are 12 centres operating all over the country.  Following type of complaints fall within the purview of the Ombdusman a) any partial or total repudiation of claims by an insurer; b) any dispute in regard to premiums paid if payable in terms of the policy; c) any dispute on the legal construction of the policies in so far as such disputes relate to claims; d) delay in settlement of claims; e)non-issue of any insurance document to customers after receipt of premium.  Policyholder can approach the Insurance Ombudsman for the redressal of their complaints free of cost. Initiatives In Policy Servicing Areas:  All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give
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prompt computerized services from new policy introduction, acceptance of renewal premium, revivals, loans, etc to final claims settlement.  Green Channel facility has been introduced for the speedy completion of proposals.  Payment of premiums can be made through internet through service providers, viz., HDFC Bank, ICICI Bank, Times of money, Bill Junction, UTI Bank, Bank of Punjab,Citi Bank, Corporation Bank, Federal Bank and Billdesk. Grievance Redressal Machinery:  A machinery for redressal of policyholders� grievances exist in all the offices of the Corporation. These are headed by designated Officers who are available at their respective Offices every Monday between 2.30 pm and 4.30 pm. except holidays. Policyholder can approach these officers to get their grievances redressed.  The Designated Officers at the various offices of the Corporation are : At Branch Office --- Sr./Branch Manager At Divisional Office --- Marketing Manager At Zonal Office --- Regional Manager (Mktg) At Central Office --- Executive Director (Mktg/IO/CRM) Citizens’ Charter:  Citizens' Charter was presented to the Nation in November, 1997. In the Charter the bench marks were prescribed for 30 servicing areas.

Jeevan Anurag
LIC’s 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.

FOR BASIC PLAN Age at entry

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

Age of the Life Assured at Maximum 70 years (age nearest birthday) maturity
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Term Minimum Sum Assured Maximum Sum assured Mode

All terms from 10 to 25 years. In case of single premium mode minimum term shall be 5 Years. Rs. 50,000 /No limit. Sum Assured will be in multiples of Rs.5,000 /- only. Yearly, Half-yearly, Quarterly, Monthly or through salary deductions in case of regular premiums.

FOR TERM ASSURANCE RIDER Age at entry Age of the Life Assured- 20 to 50 years (age nearest birthday) Age of the Life Assured at maturity Term Minimum Sum Assured Maximum 60 years (age nearest birthday) NIL Rs. 1,00,000 /-

An amount equal to the Sum Assured under Basic Plan subject to the Maximum Sum maximum of Rs. 25 lakh overall limit taking all term assurance riders assured 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- 20 to 50 years (age nearest birthday) Age of the Life Assured at maturity Term Minimum Sum Assured Maximum 60 years (age nearest birthday) NIL Rs. 50,000 /-

An amount equal to the Sum Assured under Basic Plan subject to the Maximum Sum maximum of Rs. 5 lakh overall limit taking all critical illness riders availed assured 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.
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No rebate for Sum Assured up to and including Rs.1,00,000/-. No rebate is available (either made) on the rider premiums.

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 AGE 20 25 30 35 40 45 50 55 60 POLICY TERM 5 975.45 975.95 975.95 978.45 982.90 990.60 1004.65 1024.65 1054.60 10 839.65 840.45 842.40 847.85 858.05 876.05 904.25 944.60 1006.80 15 718.80 720.80 725.30 735.05 752.90 781.20 823.75 886.00 20 614.20 618.10 625.85 641.35 666.85 705.60 763.55 25 525.70 532.05 544.15 565.40 598.60 598.60 -

LIMITED ANNUAL PREMIUM PER 1000 SUM ASSURED AGE 20 25 30 35 40 45 50 55 60 POLICY TERM (PREMIUM PAYING TERM) 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 AGE
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POLICY TERM

10 20 25 30 35 40 45 50 55 60 118.25 118.40 118.75 119.80 121.75 125.30 131.15 139.80 153.80

15 76.95 77.25 77.85 79.20 81.75 86.00 92.75 103.20 -

20 55.55 56.00 56.85 58.60 61.65 66.50 74.30 -

25 42.90 43.50 44.65 46.80 50.30 55.90 -

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, halfyearly 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
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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 conditions mentioned below: Accidental Death and Disability Benefit 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
14

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 party’s 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: 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: End of Year 22 23 24
15

Total premium paid 1,01,332 1,05,938 1,10,544

Benefit payable on earlier death /survival upto end of the policy term Guaranteed 21,000 21,000 21,000 Variable Scenario 1 0 0 0 Scenario 2 0 0 0 21,000 21,000 21,000 Total Scenario 1 Scenario 2 21,000 21,000 21,000

25

1,15,150

42,000

72,975

1,91,625

1,14,975

2,33,625

Illustration 2: Age at entry (Life Assured): 35 years 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 /Benefit payable on death during the year End of Year 1 2 3 4 5 6 7 8 9 10 15 20 25 Total premium paid 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 59,157 Guaranteed 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 Variable 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 Total 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 1,05,000 Scenario 1 Scenario 2 Scenario 1 Scenario 2

Additional Benefits: End of Year 22 23 24 25
16

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

Benefit payable on earlier death /survival upto end of the policy term Guaranteed 21,000 21,000 21,000 42,000 Variable Scenario 1 0 0 0 84,000 Scenario 2 0 0 0 3,21,300 21,000 21,000 21,000 1,26,000 Total Scenario 1 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 / Note: “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office. 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
17

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 Corporation’s 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 On date of maturity Payable Amount 20% of Sum Assured 20% of Sum Assured 20% of Sum Assured 40% of Sum Assured + vested Simple 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 year’s 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. Corporation’s policy on surrenders : In practice, the Corporation will pay a Special Surrender Value – which is either equal to or
18

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 :

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

Sum Assured (Rs.) : 105000 Single Premium (Rs.) : 59157

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

Total Benefit payable on Death during the year Premium Variable Total paid till end of year Guarantee Scenario (Rs.) d 1 Scenario 2 Scenario 1 Scenario 2 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000

Additional Benefits : Total Premiums paid till end of End of year year (Rs.)
19

Fixed benefits payable at the end of the specified years irrespective of whether the policyholder dies or survives during the policy term Variable Total Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

22 23 24 25

101332 105938 110544 115150

21000 21000 21000 42000

0 0 0 72975

0 0 0 191625

21000 21000 21000 114975

21000 21000 21000 233625

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

Sum Assured (Rs.) : 105000 Single Premium (Rs.) : 59157

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

Total Benefit payable on Death during the year Premium Variable Total paid till end of year Scenario Scenario (Rs.) Guaranteed Scenario 1 2 1 Scenario 2 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 59157 105000 0 0 105000 105000 Total Fixed benefits payable at the end of the Premiums specified years irrespective of whether the paid till policyholder dies or survives during the policy term Variable Total end of year Scenario Scenario (Rs.) Guaranteed Scenario 1 2 1 Scenario 2 59157 21000 0 0 0 0 59157 21000 0 0 0 0 59157 21000 0 0 0 0 59157 42000 84000 321300 126000 363300

Additional Benefits :

End of year 22 23 24 25

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
20

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.

Komal Jeevan
Product summary: This is a Children's Money Back Plan that provides financial protection against death during the term of plan with periodic payments on survival at specified durations. This plan can be purchased by any of the parent or grand parent for a child aged 0 to 10 years. 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, monthly or through Salary deductions, as opted by you, up to the policy anniversary immediately after the life assured (child) attains 18 years of age or till the earlier death of the life assured. Alternatively, the premium may be paid in one lump sum (Single premium). Guaranteed Additions: The policy provides for theGuaranteed Additions at the rate of Rs.75 per thousand Sum Assured for each completed year. The Guaranteed Additions are payable at the end of the term of the policy or earlier death of the Life Assured. Loyalty Additions: This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death or maturity benefit. Loyalty addition may be payable depending on the experience of the Corporation.

Survival Benefit: The percentage of sum assured as mentioned below will be paid on survival to the end of specified durations: On the policy anniversary immediately following the Life % of Sum Assured assured attains the age of 18 years 20 years
21

20% 20%

22 years 24 years

30% 30%

Death Benefit: In case of death of the life assured before the commencement of risk, the policy shall stand cancelled and premiums paid (excluding the Premium for Premium waiver Benefit ) under the policy will be refunded. However, if death occurs after the commencement of risk but before the policy matures, the full Sum Assured plus Guaranteed Additions together with Loyalty Additions, if any, is payable. Maturity Benefit: The Guaranteed Additions together with Loyalty Additions, if any, 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 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 before the date of commencement of risk is 90% of the premiums paid excluding the premiums paid during the first year and any extra premium paid. After the date of commencement of risk, the Guaranteed Surrender Value is 90% of the premiums paid before the date of commencement of risk excluding the premiums paid during the first year and any extra premium paid plus 30% of the premiums paid after the date of commencement of risk. Corporation’s policy on surrenders: In practice, the company will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the 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 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.

22

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: 0 years Premium Paying Term: 1 Year Single Premium: Rs. 73,980/Policy Term: 26 years Sum Assured: Rs. 1,00,000/Year Total Benefit on Death during the year (Rs.) Premiums Variable Total Paid Till End Of Guaranteed Scenario Scenario Scenario Scenario 1 2 1 2 Year 1 2 3 4 5 6 7 8 9 10 15 20 26 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 73980 145000 152500 160000 167500 205000 242500 287500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12000 16000 21000 26000 67000 73980 73980 73980 73980 73980 73980 73980

Illustration 2 73980 Age at entry: 0 years 73980 73980 Premium Paying Term: 73980 73980 18 Years Annual Premium: Rs. 7281/145000 157000 Policy Term: 26 Years 152500 168500 Sum Assured: Rs. 1,00,000 /160000 181000 167500 193500 205000 272000

128000 242500 370500 277000 287500 564500 Total

Benefit on Survival / Maturity at the end of Year End of year Variable Guaranteed Scenario Scenario Scenario Scenario 1 2 1 2 20000 20000 30000 30000 195000 0 0 0 0 0 0 0 0 0 20000 20000 30000 30000 20000 20000 30000 30000

18 20 22 24 26

277000 195000 472000

Total Benefit on Death during the year (Rs.) 23 premiums Variable Total Year paid till end of Guaranteed Scenario Scenario Scenario Scenario 1 2 1 2 year

Jeevan Kishore
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 Corporation’s 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.

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
24

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.

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 /Annual Premium : Rs. 3635 /End Total Benefit Payable On Death/Maturity At The End Of Of Premiums Year Year Paid Till Variable Total End Of Guaranteed Scenario Scenario Scenario Scenario Year 1 2 1 2 1 2 3 4
25

3635 7270 10905 14540

3635 7270 100000 100000

0 0 6300 8400

0 0 16500 22000

3635 7270

3635 7270

106300 116500 108400 122000

5 6 7 8 9 10 12 15 20 25

18175 21810 25445 29080 32715 36350 43620 54525 72700 90875

100000 100000 100000 100000 100000 100000 100000 100000 100000 100000

10500 12600 14700 16800 18900 21000 25200 31500 42000 69500

27500 33000 38500 44000 49500 55000 66000 82500

110500 127500 112600 133000 114700 138500 116800 144000 118900 149500 121000 155000 125200 166000 131500 182500

110000 142000 210000 182500 169500 282500

(i) This illustration is 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.

26

Jeevan Chhaya
Product summary: This is an Endowment Assurance plan that provides financial protection against death throughout the term of the plan. Besides payment of Sum Assured immediately on death, onefourth of Sum Assured is payable at the end of each of last four years of policy term whether the life assured dies or survives the term of the policy. Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the term of the policy or till the earlier death. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business. It gets a share of 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. Bonuses for full term on the full Sum assured are paid at the end of the term even if death occurs during policy term. Final (Additional) Bonus may also be payable provided policy has run for certain minimum period.

Benefits on death/survival: One fourth of the sum assured is payable at the end of each of last four years of the policy term. On death/survival all bonuses declared during the term of policy will also be paid along with the last instalment. These benefits are payable whether the life assured survives the policy term or dies during the term of policy. Further, on death during the policy term, an amount equal to Sum Assured is also payable immediately. 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 values are 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 basic premiums paid excluding the first year’s premium and the fixed benefit already paid. Corporation’s 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 premiums paid and the duration at which surrender value is calculated. In some circumstances, in case of early termination of the policy, the surrender
27

value payable may be less than the total premium paid. The Corporation reviews the surrender value 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.

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 103) Age at entry: 35 Years Policy Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 4653 /End Total Benefit on death during the year of premiums Variable Total year paid till end of Guaranteed Scenario Scenario Scenario Scenario 1 2 1 2 year 1 2 3 4 5 6 7 8 9 10 15 20 25 4653 9306 13959 18612 23265 27918 32571 37224 41877 46530 69795 93060 116325 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 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 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000

28

In addition, Benefit payable on death/survival upto the end of Total policy term Premiums Year paid till Variable Total end of Guaranteed Scenario Scenario Scenario Scenario year 1 2 1 2 22 23 24 25 102366 107019 111672 116325 25,000 25,000 25,000 25,000 0 0 0 69,500 0 0 0 182,500 25,000 25,000 25,000 94,500 25,000 25,000 25,000 207,500

(i) This illustration is 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.

Children's Deferred Endowment Assurance Plan vesting at 21
Product Summary: This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child’s life starts from the Deferred Date and is available during the latter period. The Deferred Date in case of Plan No 41 is the policy anniversary date coinciding with or next following the date on which the child completes 21 years of age. In case of Plan No 50 it is the
29

policy anniversary date coinciding with or next following the 18th birthday of the child. Premiums: Premiums are payable yearly, half-yearly, quarterly or monthly and this shall cease on the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business after the deferred date. 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.

Death Benefit: The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded. Maturity Benefit: Sum assured along with all bonuses declared up to maturity date is payable in lump sum. 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 values are 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 minimum surrender value allowable under this policy is as under: (a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year. (b) After the Deferred date: (i) If deferment period is less than 10 years: 90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date. (ii) If deferment period is 10 years or more: 90% of a cash option plus 30% of premiums paid after the deferred date. Corporation’s 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 at death or maturity.
30

This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. 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. Statutory warning: “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on ife 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 41) Age at entry: 10 years Policy Term: 25 Years Deferment period: 11 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 2673 /End Total Benefit payable on death / maturity at the end of of premiums year year paid till Variable Total end of Guaranteed Scenario Scenario Scenario Scenario year 1 2 1 2 1 2 3 4 5 6 7 8 9 10 12 15 20
31

2673 5346 8018 10691 13364 16037 18709 21382 24055 26728 2073 40092 53456

2673 5346 8018 10691 13364 16037 18709 21382 24055 26728 100000 100000 100000

2100 8400 18900

5500 22000 49500

2673 5346 8018 10691 13364 16037 18709 21382 24055 26728

2673 5346 8018 10691 13364 16037 18709 21382 24055 26728

102100 105500 108400 122000 118900 149500

25

66819

100000

46400

122000 146400 222000

Note: The proposer will have the option to take a cash payment of Rs.39,890/- on the Deferred Date on cancellation of the policy contract entirely. Illustration 2 (Table 50) Age at entry: 10 years Policy Term: 25 Years Deferment period: 8 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 2924 /End Total Benefit payable on death / maturity at the end of of premiums year year paid till Variable Total end of Guaranteed Scenario Scenario Scenario Scenario year 1 2 1 2 1 2 3 4 5 6 7 8 9 10 2924 5848 8772 11696 14620 17544 20468 23392 26316 29240 2924 5848 8772 11696 14620 17544 20468 23392 100000 100000 2100 4200 5500 11000 2924 5848 8772 11696 14620 2924 5848 8772 11696

14620 i) This illustration is 17544 17544 applicable to a nonsmoker male/female 20468 20468 standard (from medical, 23392 23392 life style andoccupation 102100 105500 point of view) life.

104200 111000 ii) The non-guaranteed 12 35087 100000 8400 22000 108400 122000 benefits (1) and (2) in 15 43859 100000 14700 38500 114700 138500 above illustration are calculated so that they 20 58479 100000 25200 66000 125200 166000 are consistentwith the 25 73099 100000 46700 124500 146700 224500 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 theProjected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be6% 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 andthe 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 amounts shown at the end of the policy term.
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Children's Deferred Endowment Assurance Plan vesting at 18
Product Summary: This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child’s life starts from the Deferred Date and is available during the latter period. The Deferred Date in case of Plan No 41 is the policy anniversary date coinciding with or next following the date on which the child completes 21 years of age. In case of Plan No 50 it is the policy anniversary date coinciding with or next following the 18th birthday of the child. Premiums: Premiums are payable yearly, half-yearly, quarterly or monthly and this shall cease on the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business after the deferred date. 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.

Death Benefit: The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded. Maturity Benefit: Sum assured along with all bonuses declared up to maturity date is payable in lump sum. 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 values are 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 minimum
33

surrender value allowable under this policy is as under: (a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year. (b) After the Deferred date: (i) If deferment period is less than 10 years: 90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date. (ii) If deferment period is 10 years or more: 90% of a cash option plus 30% of premiums paid after the deferred date. Corporation’s 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 at death or maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. 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.

Statutory warning: “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on ife 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 41) Age at entry: 10 years Policy Term: 25 Years Deferment period: 11 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /-

Annual Premium: Rs. End Total Benefit payable on death / maturity at the end of 2673 /of premiums year

34

year paid till end of year 1 2 3 4 5 6 7 8 9 10 12 15 20 25 2673 5346 8018 10691 13364 16037 18709 21382 24055 26728 2073 40092 53456 66819

Variable

Total

Guaranteed Scenario Scenario Scenario Scenario 1 2 1 2 2673 5346 8018 10691 13364 16037 18709 21382 24055 26728 100000 100000 100000 100000 2100 8400 18900 46400 5500 22000 49500 2673 5346 8018 10691 13364 16037 18709 21382 24055 26728 2673 5346 8018 10691 13364 16037 18709 21382 24055 26728

102100 105500 108400 122000 118900 149500

122000 146400 222000

Note: The proposer will have the option to take a cash payment of Rs.39,890/- on the Deferred Date on cancellation of the policy contract entirely. Illustration 2 (Table 50) Age at entry: 10 years Policy Term: 25 Years Deferment period: 8 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 2924 /End Total Benefit payable on death / maturity at the end of of premiums year year paid till Variable Total end of Guaranteed Scenario Scenario Scenario Scenario year 1 2 1 2 1 2 3 4 5 6 7
35

2924 5848 8772 11696 14620 17544 20468

2924 5848 8772 11696 14620 17544 20468

-

-

2924 5848 8772 11696 14620 17544 20468

2924 5848 8772 11696 14620 17544 20468

8 9 10 12 15 20 25

23392 26316 29240 35087 43859 58479 73099

23392 100000 100000 100000 100000 100000 100000

2100 4200 8400 14700 25200 46700

5500 11000 22000 38500 66000

23392

23392

102100 105500 104200 111000 108400 122000 114700 138500 125200 166000

124500 146700 224500

i) This illustration is applicable to a non-smoker male/female standard (from medical, life style andoccupation point of view) life. ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistentwith 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 theProjected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be6% 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 andthe 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 amounts shown at the end of the policy term.

Marriage Endowment Or Educational Annuity Plan
Product summary: This is an Endowment Assurance plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational expenses of the named child. Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the term of the policy or earlier death. Bonuses: This is a with-profit plan and participates in the profits of the Corporation’s 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. Such bonuses are to be added till maturity even if the life assured dies before the maturity date. Final (Additional) Bonus may also be payable provided a policy is of a certain minimum term
36

Death Benefit: The Sum Assured plus accrued bonuses up to maturity is payable on maturity even though death occurs during policy term. This may be paid in a lump sum or in ten half-yearly instalments at the option of the beneficiary. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable on survival to the end of the term either in a lump sum or in ten half-yearly installments, as opted by you. 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 will be available under 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 basic premiums paid excluding the first year’s premium. Corporation’s 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 reflects the discounted value of the reduced claim amount that would be payable 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.

Statutory Warning: “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance.” Illustration
37

Age at entry: 35 years Policy Term: 25 years Premium paying term: 25 years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000/-

Annual Premium: Rs. End Total Benefit payable on death / maturity at the end of 3727/of premiums year year paid till Variable Total end of Guaranteed Scenario Scenario Scenario Scenario year 1 2 1 2 1 2 3 4 5 6 7 8 9 10 15 20 3,727 7,454 11,181 14,908 18,635 22,362 26,089 29,816 33,543 37,270 55,905 74,540 (i) This illustration is applicable to a nonsmoker male/female standard (from medical, life style and occupation point of view) life.

(ii) The non-guaranteed benefits (1) and (2) in 25 93,175 100000 69,500 182,500 169,500 282,500 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.

38

Child Career Plan
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: For 6 years’ Premium paying term Maturity Age 23 24 25 26 111.25 107.25 103.35 99.60 128.35 123.80 119.35 115.05 148.15 143.05 138.05 133.20 170.20 164.55 159.05 153.65 For 6 years’ Premium paying term Maturity Age 23 24 25 26 111.25 107.25 103.35 99.60 128.35 123.80 119.35 115.05 148.15 143.05 138.05 133.20 170.20 164.55 159.05 153.65 Following are some of the sample premium rates per Rs. 1000/S.A.:

Age 0 4 8 12 Age 0 4 8 12

27 95.95 110.90 128.50 148.40

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 Sum Assured 1,00,000 to 2,99,999 3,00,000 to 4,99,999 5,00,000 and above Benefits: A. Survival Benefit:
39

- 2% of Tabular Premium - 1% of the tabular premium - NIL - Rebate (Rs.) - Nil 1.5 %o S.A. - 2 %o S.A.

Sum Assured Rebate:

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 policy 15% of the Sum Assured along with Final 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) Minimum Entry Age : 0 years (last birthday) (b) Maximum Entry Age : 12 years (last birthday)
40

(c) Minimum Maturity Age : 23 years (last birthday) (d) Maximum Maturity Age : 27 years (last birthday) (e) Minimum Sum Assured : Rs. 1,00,000 (f) Maximum Sum Assured : Rs. 100,00,000 (g) Policy term : 11 to 27 years (h) Premium Paying term : 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 Corporation’s 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 Assured’s 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.
41

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. 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 TOTAL OF PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR

1
42

10128

VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO SCENARIO SCENARIO 1 1 2 2 10432 0 0 10432 10432

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

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

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

0 0 0 0 13200 15400 17600 19800 22000 24200 26400 28600 30800 42000 44800 47600 50400 53200 56000 12600 13200 13800 14400 15000 0 0 0 0 0 0 0

0 0 0 0 45000 52500 60000 67500 75000 82500 90000 97500 105000 150000 160000 170000 180000 190000 200000 52500 55000 57500 60000 62500 0 0 0 0 0 0 0

21177 32244 43643 55384 113200 115400 117600 119800 122000 124200 126400 128600 130800 142000 144800 147600 150400 153200 156000 112600 113200 113800 114400 115000 100000 100000 100000 100000 100000 100000 100000

21177 32244 43643 55384 145000 152500 160000 167500 175000 182500 190000 197500 205000 250000 260000 270000 280000 290000 300000 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 TOTAL OF PREMIUMS PAID YEAR
43

BENEFIT ON DEATH DURING THE YEAR

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

VARIABLE GUARANTEED SCENARIO 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 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 0 0 0 0 0 30000 44000 150000 15000 0 0 15000 0 0 15000 0 0 15000 0 0 15000 15000 62500

TOTAL SCENARIO 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 0 0 0 0 0 0 0 0 0 0 0 0 74000 180000 15000 15000 15000 15000 15000 15000 15000 15000 30000 77500

Benefit Illustration3 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 PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR

VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO SCENARIO SCENARIO 1 2 1 2
44

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 26 27 28 29 30 31 32

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

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

0 0 0 0 0 12000 14000 16000 18000 20000 22000 24000 26000 28000 39000 41600 44200 46800 49400 52000 12600 13200 13800 14400 15000 0 0 0 0 0 0 0

0 0 0 0 0 33000 38500 44000 49500 55000 60500 66000 71500 77000 105000 112000 119000 126000 133000 140000 31500 33000 34500 36000 37500 0 0 0 0 0 0 0

4648 9436 14368 19447 24679 112000 114000 116000 118000 120000 122000 124000 126000 128000 139000 141600 144200 146800 149400 152000 112600 113200 113800 114400 115000 100000 100000 100000 100000 100000 100000 100000

4648 9436 14368 19447 24679 133000 138500 144000 149500 155000 160500 166000 171500 177000 205000 212000 219000 226000 233000 240000 131500 133000 134500 136000 137500 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
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BENEFIT ON DEATH DURING THE YEAR

OF YEAR

PREMIUMS PAID VARIABLE GUARANTEED SCENARIO 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 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 0 0 0 0 0 30000 40000 110000 15000 0 0 15000 0 0 15000 0 0 15000 0 0 15000 15000 37500 TOTAL SCENARIO 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 0 0 0 0 0 0 0 0 0 0 0 0 70000 140000 15000 15000 15000 15000 15000 15000 15000 15000 30000 52500

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 Notes :

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

(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 :
46

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 / -

47

Child Future Plan
introduction:

This plan is specially designed to meet the increasing educational, marriage 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: For 6 years’ Premium paying term Maturity Age 23 24 25 26 27 112.55 108.00 103.65 99.45 95.45 132.35 127.00 121.85 116.90 112.15 156.20 149.90 143.85 138.05 132.45 184.20 176.85 169.75 162.95 156.40 For Premium paying term = Policy Term less 5 years Maturity Age 23 24 25 26 27 53.10 49.45 46.20 43.25 40.60 71.80 66.90 61.65 57.00 52.95 107.80 96.30 86.75 78.75 71.90 184.20 155.40 133.90 117.25 108.05 - 2% of Tabular Premium - 1% of the tabular premium - NIL Following are some of the sample premium rates per Rs. 1000/S.A.:

Age 0 4 8 12 Age 0 4 8 12

Mode and High S.A. Rebates: Mode Rebate:

Yearly mode Half-yearly mode Quarterly & Salary deduction 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.

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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 - 25% of the Sum Assured expiry of policy term 4 years before the date of - 10% of the Sum Assured expiry of policy term 3 years before the date of - 10% of the Sum Assured expiry of policy term 2 years before the date of - 10% of the Sum Assured expiry of policy term 1 years before the date of - 10% of the Sum Assured expiry of policy term 50% of the Sum Assured along with vested Simple On the date of expiry of policy - Reversionary Bonuses and Final (Additional) term Bonus, if any. B. Death Benefit: On death (after the Date of Commencement of Risk) - Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any shall be 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 year’s 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) Minimum Entry Age : 0 years (last birthday) (b) Maximum Entry Age : 12 years (last birthday) (c) Minimum Maturity Age : 23 years (last birthday)
49

(d) Maximum Maturity Age : 27 years (last birthday) (e) Minimum Sum Assured : Rs. 1,00,000 (f) Maximum Sum Assured : Rs. 100,00,000 (g) Policy term : 11 to 27 years (h) Premium Paying term : 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 Corporation’s 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, 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 Assured’s 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. Corporation may, however, pay Special Surrender value as the discounted value of Paid up value and existing vested bonus, 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:
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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.

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: 10158 Extd Term(Yrs.): 7 END TOTAL OF PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR

VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO SCENARIO SCENARIO 1 1 2 2
51

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 26 27 28 29 30 31 32

10158 20316 30474 40632 50790 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948

10463 21239 32339 43772 55548 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000

0 0 0 0 0 13200 15400 17600 19800 22000 24200 26400 28600 30800 42000 44800 47600 50400 53200 56000 58800 61600 64400 67200 70000 0 0 0 0 0 0 0

0 0 0 0 0 54000 63000 72000 81000 90000 99000 108000 117000 126000 180000 192000 204000 216000 228000 240000 252000 264000 276000 288000 300000 0 0 0 0 0 0 0

10463 21239 32339 43772 55548 113200 115400 117600 119800 122000 124200 126400 128600 130800 142000 144800 147600 150400 153200 156000 158800 161600 164400 167200 170000 100000 100000 100000 100000 100000 100000 100000

10463 21239 32339 43772 55548 154000 163000 172000 181000 190000 199000 208000 217000 226000 280000 292000 304000 316000 328000 340000 352000 364000 376000 388000 400000 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
52

Premium: 10158 Extd Term(Yrs.): 7 END TOTAL OF PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO 2 SCENARIO 1 SCENARIO 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 70000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 300000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 120000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 350000

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

10158 20316 30474 40632 50790 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948 60948

Benefit Illustration3 Age of LA (Yrs.): 0 Term(Yrs.): 25 Age At Maturity (Yrs.): 25 PPT(Yrs.): 20 Sum Assured(Rs.): 100000 Premium: 4528
53

Extd Term(Yrs.): 7 END TOTAL OF PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO SCENARIO SCENARIO 1 2 1 2 4664 0 0 4664 4664 9468 14415 19512 24761 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 0 0 0 0 12000 14000 16000 18000 20000 22000 24000 26000 28000 39000 41600 44200 46800 49400 52000 54600 57200 59800 62400 65000 0 0 0 0 0 0 0 0 0 0 0 39000 45500 52000 58500 65000 71500 78000 84500 91000 127500 136000 144500 153000 161500 170000 178500 187000 195500 204000 212500 0 0 0 0 0 0 0 9468 14415 19512 24761 112000 114000 116000 118000 120000 122000 124000 126000 128000 139000 141600 144200 146800 149400 152000 154600 157200 159800 162400 165000 100000 100000 100000 100000 100000 100000 100000 9468 14415 19512 24761 139000 145500 152000 158500 165000 171500 178000 184500 191000 227500 236000 244500 253000 261500 270000 278500 287000 295500 304000 312500 100000 100000 100000 100000 100000 100000 100000

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 26 27 28 29 30 31 32
54

4528 9056 13584 18112 22640 27168 31696 36224 40752 45280 49808 54336 58864 63392 67920 72448 76976 81504 86032 90560 90560 90560 90560 90560 90560

Benefit Illustration4 Age of LA (Yrs.): 0 Term(Yrs.): 25 Age At Maturity (Yrs.): 25 PPT(Yrs.): 20 Sum Assured(Rs.): 100000 Premium: 4528 Extd Term(Yrs.): 7 END TOTAL OF PREMIUMS YEAR PAID

BENEFIT ON DEATH DURING THE YEAR

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

4528 9056 13584 18112 22640 27168 31696 36224 40752 45280 49808 54336 58864 63392 67920 72448 76976 81504 86032 90560 90560 90560 90560 90560 90560

VARIABLE TOTAL GUARANTEED SCENARIO SCENARIO 2 SCENARIO 1 SCENARIO 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 65000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 212500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 115000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 10000 10000 10000 10000 262500

55

Notes : (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 / Note : “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office.

Child Fortune Plus
“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER” LIC’s Child Fortune Plus is a unit linked plan which offers you a solution to meet your child’s educational and other needs. You can insure yourself under this plan if you are the parent of a child upto the age of 17 years last birthday in case of single premium policies and age of 10 years last birthday in case of regular premium policies. The child named under the policy shall be the nominee. There will not be any insurance coverage on the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till you (life assured) attain the age of 75 years nearest birthday, whichever is earlier. You can pay the premiums either in lump sum (single premium) or regularly throughout policy term. The death benefit under the policy shall be the Sum Assured. You can choose the level of cover (Sum Assured) within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, your age and the amount of premium you agree to pay. In addition, for regular premium policies, in case of death of the life assured during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force. You will also have an option to make additional investments under the policy through Top-up
56

premiums. Four types of investment Funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV). 1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid . 2. Eligibility Conditions and Other Restrictions: (a) Minimum Age at entry for Life Assured 18 years (age last birthday) (b) Maximum Age at entry for Life Assured 55 years (age nearer birthday) (c) Minimum Age at entry for child 0 years (age last birthday) (d) Maximum Age at entry for child Regular premium: [10] last birthday Single premium: [17] last birthday (e) Maximum Maturity Age [25] last birthday of child or [75] nearest birthday of life assured, whichever is earlier (f) Policy Term (25 – age last birthday at entry of life assured’s child) or (75 - age nearest birthday at entry of life assured), whichever is lower (g) Minimum Premium – Regular Premium Policies (other than monthly (ECS) mode): Rs. [10,000] p.a Regular premium (for monthly (ECS) mode): Rs. [1,000] p.m Single Premium Policies: Rs. [40,000] p.a. (h) Sum Assured Single Premium : Minimum Sum assured : 1.25 times the single premium. Maximum Sum assured : 5 times of the single premium if age at entry is upto 35 years 2.5 times of the single premium if age at entry is from 36 to 45 years 1.25 times of the single premium if age at entry is 46 years and above Regular Premium : Minimum Sum assured : 5 times the annualised premium. Maximum Sum assured : 25 times of the annualized premium if age at entry is upto 45 years 15 times of the annualized premium if age at entry is 46 years and above Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 250/-. 3. Other Features:  Top-up (Additional Premium): You can pay Top-up premium in multiples of Rs.1,000/- at anytime during the term of the policy without increasing the sum assured. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Topup can be paid only if all due premiums have been paid under the policy. At any point of time, the total of top-up premiums payable cannot exceed 25% of total amount of regular premiums paid up to that date or single premium paid.  Partial Withdrawals: Youmay encash the units partially after the third policy anniversary subject to the following: 1. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units. 2. Under regular premium policies where premiums have been paid for less than 3 years’
57

and further premiums are not paid, the partial withdrawal shall not be allowed. 3. Under regular premium policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value. 4. Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/- in the Policyholder’s Fund or 10% of single premium, whichever is higher. 5. Partial withdrawal from Policyholder’s Fund pertaining to top-up premiums shall be allowed only after completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term. 6. After the death of life assured during the policy term, partial withdrawal may be made by the child named in the policy if he/she is major i.e. after completion of 18 years of age or by the appointee if the child is a minor subject to an undertaking by the appointee that the withdrawal is solely for the benefit of the named child.  Switching: You can switch between any fund types for the entire Fund Value during the policy term. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.  Increase / Decrease of risk covers: No increase of covers will be allowed under the plan. You can, however, decrease any or all of the risk covers within the specified limit once in a year during the Policy term, provided all the premiums due under the Policy have been paid. The reduced levels of cover will be available within the limits specified in para 3 above. Further, once the risk cover has been reduced, the same cannot be subsequently increased/ restored.  Option to continue the cover after the revival period: If atleast three years’ premiums have been paid under the policy, you may opt for continuation of cover even beyond the revival period without reviving the policy and paying any further premiums. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy fund. This option shall be continued till the Policyholder’s Fund Value reaches one annualized premium. No further premiums shall be allowed to be paid after the revival period is over.  Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium. I) Where atleast 3 years’ premiums have been paid, and the policy lapses, the Life Cover and Premium Waiver Benefit cover shall continue during the revival period. During this period, the mortality charges shall be taken, as usual, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for : 1. two years from the due date of first unpaid premium, or 2. till the date of maturity, or 3. till such period that the Policyholder’s Fund Value reduces to one annualized premium, whichever is earlier. Further, the life assured may opt for continuation of cover even beyond the revival period without reviving the policy. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the life cover and cover for waiver of premiums under the policy shall continue by deduction of relevant charges out of policy fund. This option shall continue till the Policyholder’s Fund Value reaches one
58

annualized premium. No further premiums shall be allowed to be paid after the revival period is over. The benefits payable under the policy in different contingencies during the abovesaid period shall be as under: A) In case of death of Life Assured, if the child is alive: Sum Assured shall be paid to the nominee and payment of all future premiums due under the policy (in case of regular premium policies) shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue. B) In case of death of the Life Assured, after the death of the child: Sum Assured plus Policyholder’s Fund Value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be payable to the nominee/ legal heir, as the case may be, at that time and the policy shall terminate. C) In case of death of child before life assured’s death: The policy will continue till maturity or till the life assured survives, which ever is earlier. D) In case of death of child after life assured’s death: An amount equal to the Fund Value of units shall be payable to the legal heir of life assured and the policy shall terminate. E) On maturity: The Policyholder’s Fund Value. F) In case of Surrender (including Compulsory Surrender): The Policyholder’s Fund Value. The Surrender value, however, shall be paid only after the completion of 3 policy years. G) In case of Partial Withdrawals: Partial withdrawals shall be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value. II) Where at least 3 years’ premiums are not paid, and the policy lapses, the Life Cover and Premium Waiver Benefit cover shall cease and no charges for these benefits shall be deducted. However, deduction of all the other charges shall continue. The benefits under such a lapsed policy shall be payable as under: H) In case of Death of Life Assured: The Policyholder’s Fund Value. I) In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary value of units, as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy. J) In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period. Revival: If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before maturity, whichever is earlier. The period during which the policy can be revived will be called “Period of revival” or “revival period”. If premiums have not been paid for atleast 3 full years, the policy may be revived within two


59

years from the due date of first unpaid premium. The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest. If atleast 3 full years’ premiums have been paid and subsequent premiums are not paid, the policy may be revived within two years from the due date of first unpaid premium but before the date of maturity, if earlier. No proof of continued insurability shall be required and all arrears of premium without interest shall be required to be paid. The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder. Irrespective of what is stated above, if less than 3 years’ premiums have been paid and the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall terminate and thereafter revival will not be entertained. If 3 years’ or more than 3 years’ premiums have been paid and the Policyholder’s Fund Value reduces to one annualized premium, the policy shall terminate and Policyholder’s Fund Value as on such date shall be refunded to the Policyholder and thereafter revival will not be allowed.  Settlement Option: When the policy comes for maturity, the life assured, if he/she is alive, otherwise the child named in the policy, may exercise “Settlement Option” and may receive the policy money in instalments spread over a period of not more than five years from the date of maturity. There shall not be any life cover during this period. The value of instalment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund. 4. Reinstatement: A policy once surrendered cannot be reinstated. 5. Risks borne by the Policyholder: a. LIC’s Child Fortune Plus is a Unit Linked Life Insurance products which is different from the traditional insurance products and are subject to the risk factors. b. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. c. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Child Fortune Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. d. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. e. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. f. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time. 6. 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. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under: Value of units in the Policyholder’s Fund
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Plus unallocated premium. Plus PolicyAdministration charge deducted Less charges @ Rs.0.20per thousand Sum Assured under Basic plan Less Actual cost of medical examination and special reports, if any. 7. Loan: No loan will be available under this plan. 8. Assignment: No assignment will be allowed under this plan. 9. Exclusions: In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death.

A) Death Benefit: On death of Life Assured, if the child is alive: The nominee child shall get the Sum Assured. Also, in case of regular premium policy, when the cover is in full force, payment of all future premiums due under the policy including outstanding premiums, if any, shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue. On death of the Life Assured, after the death of the child: Sum Assured plus Policyholder’s Fund Value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be payable to the nominee/ legal heir, as the case may be, at that time and the policy shall terminate. On death of child before life assured’s death: The policy will continue till maturity or till the life assured survives, which ever is earlier. On death of child after life assured’s death: An amount equal to the Fund Value of units shall be payable to the legal heir of life assured and the policy shall terminate. B) Maturity Benefit: On the Life Assured or child surviving the maturity date of the contract, an amount equal to the Policyholder’s Fund Value is payable. 1. Investment of Funds: The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. Various types of fund and their investment pattern will be as under: Fund Type Investment in Short-term Investment in Details and objective of Government / investments Listed Equity the fund for risk
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Government such as money Shares Guaranteed market Securities / instruments Corporate Debt Bond Fund Not less than 60% Secured Fund Not less than 45% Not more than 40% Not more than 40% Nil Not less than 15% & Not more than 55% Not less than 30% & Not more than 70%

/return

Low risk Steady Income –Lower to Medium risk

Balanced Fund

Not less than 30%

Not more than 40%

Balanced Income and growth – Medium risk

Not less than Long term Capital growth 40% & – High risk Not more than 80% The Policyholder has the option to choose any ONE of the above 4 funds. 2. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under: Appropriation price is applied (when fund is expanding): Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated). Expropriation price is applied (when fund is contracting): Market value of investment held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed). Applicability of Net Asset Value (NAV) : The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable. Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, switches etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable
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Growth Fund

Not less than 20%

Not more than 40%

In respect of maturity claim, NAV of the date of maturity shall be applicable. The timing given is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDA. 3. Charges under the Plan: A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below: Single premium: Allocation Charge Premium Band Up to 10,00,000 10,00,001 and above Regular Premium Premium Band (per annum) 10,000 to 1,00,000 1,00,001 to 1,50,000 1,50,001 to 2,00,000 2,00,001 and above 4.25% 4.00% Allocation Charge First year 29.00% 28.50% 28.00% 27.50% 2nd & 3rd year thereafter 5.00% 5.00% 5.00% 5.00% 2.50% 2.50% 2.50% 2.50%

Allocation charge for Top-up: 1.25% B) Charges for Risk Covers: i) Mortality Charge – This is the cost of life insurance cover and, in case of regular premium contract, also the charge to cover the cost of waiver of future premiums including outstanding premiums, if any, on the death of life assured. This charge is age specific and will be taken every month till the life assured is alive. The charges per Rs. 1000/- cover (sum of life cover and cover for waiver of future premiums including outstanding premiums, if any) for some of the ages in respect of a healthy life are as under: Age 25 35 45 55 Rs. 1.42 1.73 3.89 10.76 C) Other Charges: The following charges shall be deducted during the term of the policy irrespective of whether life assured is alive or not: 1. Policy Administration charge - Rs. 60/- per month during the first policy year, Rs 20/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 20/- per month escalating at 3% p.a. shall be levied. 2. Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates: 0.50% p.a. of Unit Fund for “Bond” Fund 0.60% p.a. of Unit Fund for “Secured” Fund 0.70% p.a. of Unit Fund for “Balanced” Fund 0.80% p.a. of Unit Fund for “Growth” Fund 3. Switching Charge – This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in
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that year shall be subject to a switching charge of Rs. 100 per switch. 4. Bid/Offer Spread – Nil. 5. Surrender Charge – Nil. 6. Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as change in premium mode, etc. An alteration may be allowed subject to a charge of Rs. 50/-. 7. Service Tax Charge – A service tax charge, if any, shall be levied on the following charges a) Policy Administration charge, Mortality charge (sum of life cover and cover for waiver of future premiums including outstanding premiums, if any,) by canceling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Policy Administration and Mortality charges are deducted. b) Premium allocation charge- at the time of allocation of premium. c) Fund Management charge– at the time of deduction of Fund Management Charge. d) Switching charge - at the time of effecting switch e) Alteration (as provided under Miscellaneous charge) - on the date of alteration in the policy. The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an educational cess at the rate of 3% thereon and hence effective rate is 12.36%. D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA. Although the charges are reviewable, they will be subject to the following maximum limit exclusive of service tax: - Policy Administration Charge Rs. 150/- per month during the first policy year, Rs. 50/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 50/- per month escalating at 3% p.a. - Fund Management Charge: The Maximum for each Fund will be as follows: 1. Bond Fund: 1.00% p.a. of Unit Fund 2. Secured Fund: 1.10% p.a. of Unit Fund 3. Balanced Fund: 1.20% p.a. of Unit Fund 4. Growth Fund: 1.30% p.a. of Unit Fund - Switching Charge shall not exceed Rs. 200/- per switch. - Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested. In case the policyholder does not agree with the revision of charges the policyholder shall have the option to terminate the contract and withdraw the Policyholder’s Fund Value. 4. Surrender: The Surrender value, if any, is payable only after completion of the third policy anniversary both under Single and Regular Premium contracts. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge. The policy can be surrendered by Life Assured. After the death of Life Assured during the policy term, the policy can be surrendered by the nominee (the child named under the policy) if he/she is major or by the appointee (in case the nominee is a minor) subject to an undertaking given by the appointee that the policy is surrendered solely for the benefit of minor child named in the policy. If you apply for surrender of the policy within 3 years from the date of
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Statutory warning “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance.” PRODUCT FEATURES : Name of the Product:LIC's Child Fortune Plus Unique Identification No.512L251V02 Amount of Instalment Premium: 40000 Policy Term : 20Years Age LA: 35 Premium Paying Term: 1 Age of Child: 5 Mode of Premium Payment : Single Sum Assured : 200000 Funds opted for: Growth Fund Service Tax rate: 10.30%p.a Statement of Various charges alongwith growth of the fund expected over the duration of the policy with assumed rate of interest as mentioned Gross Yield : 10.00% Net Yield: 8.42% (All charges are in Rupees) Death Benefit Amo unt Avail able for inves tmen t ( out of prem ium ) (i) On Pol Dea Add icy Fun th Mor Guar Oth itio Surr Ser Ad d of talit ante er n to F Fun ende vic mi bef LA y e Cha Fun M d at r e n ore whi Char Char rge d (if C End Valu tax Ch FM le ge ge s any e arg C Chil ) e d is aliv e (ii) On Dea th of LA afte r the dea th of Chil d (iii )O n De ath of Chi ld wh ile LA is ali ve (iv) On Dea th of Chil d afte r the dea th of LA

Po lic y Ye ar

Sing le Pre miu m

Pre miu m Alloc ation Char ge

65

1 2 3 4 5 6 7 8 9

400 170 3830 31 72 346 0 00 0 0 7 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 370 398 430 466 514 562 604 650 708 778 860 954 33 24 0 4 0 35 24 0 9 7 38 25 0 5 5 41 26 0 3 2 44 27 0 4 0 47 27 0 6 8 51 28 0 1 7 54 29 0 9 5 58 30 0 9 4 63 31 0 3 3 68 32 0 0 3 73 33 0 0 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0

403 31 400 0 67 4 54 433 33 429 0 09 4 75

200 240 0 000 054 200 242 0 000 975

400 54 429 75 461 18 494 99 531 36 570 38 612 27 657 38 705 93 758 10 814 08 874 07 938 29 100 698 108 039 115 878 124 251 133 189 142 725 152 903

464 35 461 4611 200 246 0 76 9 18 8 000 118 498 38 494 4949 200 249 0 84 5 99 9 000 499 535 41 531 5313 200 253 0 49 3 36 6 000 136 574 44 570 5703 200 257 0 81 4 38 8 000 038 617 47 612 6122 200 261 0 03 6 27 7 000 227 662 51 657 6573 200 265 0 49 1 38 8 000 738 711 54 705 7059 200 270 0 42 9 93 3 000 593 764 58 758 7581 200 275 0 00 9 10 0 000 810 820 63 814 8140 200 281 0 41 3 08 8 000 408 880 68 874 8740 200 287 0 87 0 07 7 000 407 945 73 938 9382 200 293 0 59 0 29 9 000 829 101 78 100 1006 200 300 0 482 3 698 98 000 698 108 84 108 1080 200 308 0 879 0 039 39 000 039 116 90 115 1158 200 315 0 780 2 878 78 000 878 125 96 124 1242 200 324 0 218 7 251 51 000 251 134 10 133 1331 200 333 0 225 36 189 89 000 189 143 11 142 1427 200 342 0 836 11 725 25 000 725 154 11 152 1529 200 352 0 093 90 903 03 000 903

10 0 11 0 12 0 13 0 14 0 15 0 16 0 17 0 18 0 19 0 20 0

106 78 34 0 0 3 2 118 84 35 0 0 0 2 131 90 36 0 2 2 3 145 96 37 0 4 7 4 161 10 38 0 0 36 5 178 11 39 0 0 11 7 196 11 40 0 0 90 9

Gross Yield: 6% (All charges are in Rupees)
66

Death Benefit Amou nt Availa ble for invest ment ( out of premi um ) (i)O n Deat Poli Addi Fun h of Mort cy Guara Othe tion d Fun Ser F Surre PLA ality Ad ntee r to bef d at vice M nder whil Char min Charg Char Fund ore En tax C Value e ge Cha e ges (if FM d SLA rge any) C is aliv e (ii)O n Deat h of PLA afte r the deat h of SLA (iii) On Dea th of SLA whi le PL A is aliv e (iv) On Dea th of SLA afte r the dea th of PL A

Premi um Alloc ation Charg e

1700 38300 346 0 0 0 0 0 0 0 0 370 398 430 466

317 720 0 315 240 0 326 247 0 336 255 0 3

0 0 0 0

0 0 0 0

388 30 385 0 79 7 72 401 31 398 0 59 5 44

200 238 0 000 572 200 239 0 000 844

385 72 398 44 411 39 424 55

414 32 411 4113 200 241 0 65 6 39 9 000 139 427 33 424 4245 200 242 0 91 6 55 5 000 455

67