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List of terms associated with LIC Insurance
After the premium payment due date Life Insurance Corporation provides a certain time to the Policyholder to make due premium payment.
The policy will lapse when the policyholder does not pay the premium even after the completion of the grace period.
Life Insurance Corporation gives the 2 consecutive year revival period from the date of first unpaid premium and before the date of maturity to revive the lapsed policy. In the two years of revival period the policy holder may pay the all arrears of premium with interest to make the policy in-force.
Note:- the interest rate fixed by the corporation at the time of payment.
If the policyholder paid premium for minimum three years LIC offers the policyholders to convert their normal policy into paid-up policy.
After that the policyholder unable to pay next premium the policy is not cancelled. Instead, the sum assured of the policy reduced depending on the paid premiums, which is Paid up value.
The paid-up Sum assured is payable on the date of maturity or in case of prior death.
Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.
If the policy holder terminates the policy before the end of the policy term or before the maturity. It is called Surrender.
The amount will be payable to the policy holder after the termination of policy that is Surrender Value is available under this plan.
The Guaranteed Surrender Value allowable shall be percentage of total premium paid excluding service tax, extra premium, if any and premiums for riders, if opted for.
In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses .These factors will depend on the policy term and policy year in which the policy is surrendered.
The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.
Loan facility is available for this plan after the first policy year and subject to the terms and Conditions of Life Insurance Corporation that may specify and vary any time.
Taxes, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of tax payable as per the prevailing rates shall be payable by the policyholder on premiums including extra premiums, if any.
The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.
15 days are the cooling-off period for this plan. If the policyholder is not satisfied with the policy, the policy may be given back