LIC Jeevan Balya Policy Review

 Plan no:101

Introduction on LIC Jeevan Balya  Policy

LIC Jeevan Balya policy is especially designed and organised for children . This policy facilitate parents to provide some savings to their children by paying very low premiums. Benefits of LIC jeevan balya policy are extraordinary to meet the educational expenses of children in the presence and absence of parents too.

In addition to this ,on death of proposer (parent) during premium paying term, premium waiver benefit (PWB) and income benefit is also available.

Children of  age group  0 to 17 years can take this policy.

LIC Jeevan balya policy – plan no101  was introduced in 19/01/1989 and withdrawn on 18/07/2004

LIC Jeevan Balya policy Conditions

Sum Assured : Minimum – 25,000 /- upto 31/05/2004

                        Maximum – 1 Crore

                        Minimum  – 50,000/- from 01/06/2004

                        Maximum – 1 Crore

Child Entry age : Minimum  –  0 years

                           Maximum – 17 years

Proposer Age limit : Minimum: 21 years

                                 Maximum: 50 years

Premium paying term     : Minimum: 13 years

                                          Maximum: 50 years

premium payment mode : All mode of payments are accepted except SSS.

                                                 (Yearly, Half Yearly, Quarterly, Monthly)

• No medical examination is required if age of the child is less than 10 yrs.
• Form no 300 + medical report + special reports of proposer is compulsory.
• Standard  lives with overweight up to 50% are acceptable.

• Standard Male & female lives (cat I & II ) with earned income are acceptable as

proposer for supplementary benefits.

• Persons with hazardous occupations extra are not eligible.
• As per co/act/1773/4 dt 29/12/2001 , substandard lives up to EMR-III on build only ( not health ground) are acceptable for premium waiver benefit ( pwb ) purpose.

LIC Jeevan Balya Policy Rebates

Rebates are divided into 2 types

1. sum assured rebate and
2. mode rebate (premium payment mode)

Premium payment mode Rebate: Yearly 1.5% of tabular premium

                                                                Half-yearly Nil

                                                               Quarterly Nil

                                                               Monthly Nil                                                        

Sum Assured rebate for regular premium policies :

Rs 25,000 to 49,999	0.50 Rs
Rs 50,000 & above	1.00 Rs

( No rebate will be allowed for the premium which have add on benefits like PWB & income benefit )

LIC Jeevan Balya Policy Maturity Benefits

Survival benefit : The basic sum assured + attached bonuses shall be paid to the life assured if the policy is in force.

Maturity claim before vested date :

If policy is in lapsed condition before premium paying period date and at least 3 years premiums have been paid , then GSV (Gross surrender value)  is payable as maturity claim.

Maturity claim after vested date :

If policy is in full force as on date of maturity , then paid up value + bonus till vested date is payable as maturity claim.

LIC Jeevan Balya Policy Death claim

Death before Vested date : If all the premiums are paid till date then  sum of money equal to all premiums paid excluding 1st year premium will be payable as death claim.

If policy is in lapsed condition and premiums of 3 years are paid ,then Guaranteed surrender value is payable.

Under CDA plans if  proposer and  child also expire before vested date, not only the actual premiums paid , but premiums which were waived  till the date of death of the child should also be refunded. Further premiums up to the date of vesting can not be refunded.  

This type of claim will be paid to legal hairs.

Death after vesting ( when the policyholder starts receiving the policy benefits)date :

                                                 = Sum assured  +  Bonus
LIC Jeevan Balya policy guaranteed Surrender Value

Policy can be surrendered after paying premiums for at least of 3 full years.

In above condition Guaranteed surrender value = 90% of  all the premiums paid – 1st year premium

LIC Jeevan balya policy Paid up value :

Before vesting date:

  =  Cash option     x    no of premiums actually paid during deferment period

                                        No of premiums payable during deferment period

Minimum cash option should be Rs 250/-

If policy do not have cash option, then GSV will be allowed after paying at least 3 years premium. Bonus will not include during deferment period.

After vesting date:

The paid up value for the premiums paid after date of vesting will be initially calculated as:

= sum assured x ( 1 – p/ p’)——————A

Where

P = the existing rate of annual premium per 1000 sum assured while issue of policy

P’ = Modified rate of annual premium per 1000 sum assured as per table

The paid up value for the premiums paid after date of vesting will be calculated as:

= sum assured x    N    x p / P’ —————–B

 M-Y

Where

M = Maturity age of life assured

Y = Vesting age as per plan ( for plan 41- age is 21 yrs, for plan 50- 18 yrs

N = No of years premiums paid after date of vesting

P = the existing rate of annual premium per 1000 sum assured while Issue of policy

P’ = Modified rate of annual premium per 1000 sum assured as per table

Bonus will be added from date of vesting and not from date of commencement of policy.

Hence total paid up value will be A + B as defined above.

Riders Available in LIC  Jeevan Balya policy

ACCIDENT BENEFIT

DAB/EPDB (Extended Permanent Disability Benefit ) for the life assured – will be equivalent to the basic sum assured from date. Sum assured under this plan will be counted for overall limit of accident benefit.

Bonus on Jeevan Balya plan

In jeevan balya plan With effect from.31/3/2005’s( co/act/ /4) valuation the Bonus rate will be determined with reference to the policy term counted from the date of commencement of risk only.