:
These are Deferred Annuity plans that allow
the policyholder to make provision for regular
income after the selected term.
Premiums are payable yearly, half-yearly, quarterly,
monthly or through Salary deduction, as opted
by you, throughout the term of the policy or
till earlier death. Alternatively, the premium
may be paid in one lump sum (single premium).
Tax relief under Section 80ccc is available
on premiums paid under New Jeevan Suraksha I
(Table No.147). The premiums paid under New
Jeevan Dhara I (Table No.148) qualify for tax
relief under Section 88.
These are with-profit plans and participate
in the profits of the Corporation’s annuity
/ pension business. Policies get 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. Final (Additional) Bonuses
may also be payable provided policy has run
for a certain minimum period.
Benefits
On death of the Life Assured during the term
of the policy the basic premiums paid, excluding
any rider premiums or extra premiums, up to
the date of death accumulated with interest
at such rates as decided by the Corporation
will be payable to the nominee. Currently, the
interest rate is 3%, 4% or 5 % if the death
occurs within the first 10 years, 20 years or
thereafter respectively.
At maturity the policyholder can encash
up to a maximum 25% of the maturity proceeds
as a tax-free lump sum. The balance should be
compulsorily converted to an annuity at the
rates applicable at the time of maturity of
the policy. The policyholder has the choice
of opting for any one of 5 annuity options.
The annuity options available are
(i) annuity payable for remainder of life
(ii) annuity payable for life with guaranteed
period of 5, 10, 15 or 20 years
(iii) Joint life and last survivor annuity
to the annuitant and his/ her spouse under
which annuity payable to the spouse on death
of the purchaser will be 50% of that payable
to the annuitant
(iv) Life annuity with a return of purchase
price on death of the annuitant
(v) Life annuity increasing at a simple rate
of 3% per annum
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.
Buying a life insurance contract is a long-term
commitment. However, surrender value is
available on the plan on earlier termination
of the contract.
The policy may be surrendered after it has been
in force for 2 years or more but before the
vesting date. The guaranteed surrender
value is 90% of the basic premiums paid excluding
the first year’s premium. In case
of a single premium policy the guaranteed surrender
value is allowed after 2 years from the date
of commencement of the policy.
In practice, the company will pay a Special
Surrender Value – which is equal to or
higher than the 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.
