LIC Jeevan Vishwas Scheme : Life Insurance Corporation

Organisation : Life Insurance Corporation
Service Name : Jeevan Vishwas Scheme
Applicable For : Persons with Disabilities
Applicable States/ UTs : All Over India
Home Page : https://www.licindia.in/Home
Details Here : https://www.statusin.in/uploads/37106-Insurance

LIC Jeevan Vishwas Scheme

LIC has introduced a new plan “JEEVAN VISHWAS” for the benefit of the physically/mentally handicapped dependents.

Related : LIC Policies Under Salary Savings Scheme : www.statusin.in/35909.html

Through Karavalamban newsletter, we wish to give hereunder the salient features of the plan for the benefit of those who wish to take this plan for their disabled dependants.

Introduction

For the benefit of handicapped dependants “JEEVAN AADHAR” plan was introduced with effect from 17th January 1996.

The plan was specially designed so that an individual or member of Hindu Undivided Family can take an assurance on his/her own life to provide for lump sum and an annuity to the handicapped dependant.

The provision is in the nature of a limited payment whole life assurance policy. The payment is made to the nominee under the policy, who will be either the handicapped dependent or any other person or a trust, to be utilized for the benefit of the handicapped dependant.

The premiums under Jeevan Aadhar are eligible for tax benefit under Sec. 80DD of Income Tax Act, 1961.

The definition disability under rule 11A of Income Tax Rules, 1962 for this purpose is rather stringent in Jeevan Aadhar as such is thus not catering to the needs of those handicapped dependents whose degree of handicap is lower than the specified levels.

Eligibility

Under this plan, an individual or member of Hindu Undivided Family can take an assurance on his/her own life to provide for payment of a lump sum and an annuity to the handicapped dependent.

The payment will be made to the nominee under the policy, who will be either the handicapped dependent or any other person, The proposer can even create a trust under Marriage Women Property (MWP) Act.

Benefits

A) Maturity Benefits : Basic sum assured together with accrued guaranteed additions and loyalty addition if any will be payable on the life assured (proposer) surviving the life date of maturity of the policy.

B) Death Benefit : On death of the life assured during the term of the policy, Basic sum assured together with accrued guaranteed additions and loyalty addition, if any will be payable.

C) Guaranteed additions : Guaranteed additions at the rate of Rs.60 per thousand of basic sum assured will accrue at the end of each completed policy year while the policy is in force for full sum assured and will be payable on the date of maturity or on earlier death of the life assured.

D) Loyalty addition : On the life assured surviving the date of maturity, or on earlier death after five years, Loyalty addition, if any may be paid at such rates and on such terms as may be declared by the Corporation.

Accident Benefit

Accident benefit can be allowed only under annual premium policies, subject to underwriting restrictions. The accident and disability benefits will be paid as per the usual LIC practice. Bifurcation of the benefits in to 20% and 80% will not be applicable to these benefits.

Manner Of Benefit Payment

Twenty percent of the total of sum assured, accrued guaranteed additions and loyalty addition, if any will be paid in lump sum.

The balance eighty percent will compulsory be utilized to provide an immediate annuity on the life of handicapped dependent, payable as per the chosen mode. The annuity will be at the rates prevailing at the time of claim.

The following are the annuity options under the plan :
i. Annuity for life.
ii. Annuity certain for 5 or 10 or 15 years and life thereafter.

iii. Annuity for life with return of national purchase price (which is 80% of the total of basic sum assured, accrued guaranteed additions and loyalty addition, if any).