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Life FAQs
What is the Free Disability Benefit?
The Free Disability Benefit is automatically available to every
policyholder without any extra charge. If the life assured is disabled
by accident from earning his livelihood, he will be exempted from
paying premiums on his policy after the date of his disablement.
The benefit is granted only on the first Rs.20000/- of assurance
on any one life.
To be eligible for this benefit, the policy has to be in full force
for the full sum assured when the disability occurs. Also the disability
must arise before the policy anniversary and the age of the life
assured must not exceed 70. Also the disability must be total and
permanent such that there is no work, occupation or profession that
the life assured can do or follow to earn or obtain any wages, compensation
or profit.
Loss of eyesight in both eyes, amputation of any two limbs, hands
above the wrist and legs above the ankle will be deemed to constitute
total and permanent liability. And LIC must be furnished within
90 days of the occurrence of the disability.
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What is the date of commencement of risk
for LIC policies?
The risk under which the risk for LIC policies commences is the
date of receipt of the first premium in full or the date of acceptance,
whichever is later. But if the acceptance of the proposal is conditional
upon the proposer's compliance with any requirements, then the risk
under the policy will commence on the date on which all requirements
are satisfactorily complied with or on the date of receipt of the
first premium in full, whichever is later.
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What is an Annuity?
An Annuity is an investment you make, either in a single lump sum
or through installments paid over a certain number of years, in
return for which you receive a specific sum every year, or every
month either for life or a fixed number of years. Upon the death
of the annuitant, or at the expiry of the period fixed for annuity
payments, the invested annuity fund is refunded usually along with
a small bonus.
Annuities differ from all other forms of life insurance in one fundamental
way - They do not provide any insurance cover but offer a guaranteed
income for a certain period or for life. Typically annuities are
bought to generate income during one's retired life, which is why
they are also called Pension Plans.
Annuities are an investment that offers you an income that you cannot
outlive and provides a solution to the biggest financial insecurity
of old age that you will outlive your income.
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When do you receive Annuity payments?
There are two types of Annuities: Immediate annuities and Deferred
annuities
Under Immediate annuities, you start receiving annuity payments
as soon as you pay the premium usually in a lump sum.
In the case of Deferred annuities, the payments to the annuitant
start after a certain deferment period. Typically, the annuitant
pays annuity premiums in installments during the deferment period.
Generally, people pay less premium for an annuity that provides
future payments because future payments because the deferment period
allows the insurance company to invest your premiums at a profit,
thereby reducing the cost of the annuity to you.
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What is the Unit-Linked Insurance Plan (ULIP)?
The Unit Trust of India (UTI) operates a Unit-Linked Insurance Plan
(ULIP) in collaboration with LIC and the General Insurance Corporation
(GIC) of India.
ULIP is a contractual savings-cum-insurance plan that offers the
following features:
- High returns
- Maturity bonus
- Life insurance cover
- Free accident cover
- Safety of capital
- Tax rebate
It is open to any resident of India who is above 18 years of age.
Individuals less than 55 years and 6 months of age can join the
plan for 10 years and those less than 50 years and 6 months for
15 years contributing 1/10th and 1/15th of the target amount every
year, respectively.
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Who can attest the discharge vouchers for matured
or death claims?
The people who can attest the policyholder's or the assignee's signature
on the discharge form are:
- Any agent of the LIC who holds membership of at least the Divisional
Manager's club
- A Block Development officer
- Any gazetted officer
- Any magistrate
- Any Class 1 officer or a Development officer with at least 5
years' services
- A principal or headmaster of a local government high school
or higher secondary school
- An agent or manager of a nationalised bank
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Who should sign the Form of Discharge?
The Form of Discharge (Form 3801) should be signed by:
- The nominee in case a nomination exists in the policy or
- The assignee if the policy was conditionally or absolutely assigned
or
- The holder(s) of legal representation obtained if the policy
was neither nominated nor assigned or
- All Class 1 heirs of the deceased policyholder according to
the relevant personal law applicable if LIC' s Divisional office
has waived proof of title
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How can an
NRI pay the premium under the policy?
The manner of payment of premiums under the policy is
For Rupee Policies on NRI's
- By direct remittance from abroad through Banking Channels in
approved manner (preferably by Indian Rupee drafts drawn in favour
of LIC of India) or by remittances through postal channels like
Foreign Money Order
- By payment out of funds held in Non-Resident (External) Account
or Foreign Currency (Non- Resident) Account with a Bank in India
- By cheques drawn by Non- resident policy holder on Bank Accounts
held in India in his own name (either solely or jointly with another
member of the family) whether or not the account has been designated
as non-resident
- By cheque drawn on account maintained by resident parent or
spouse of policy holder in their own name or joint names with
other close relatives
- By the absolute Assignee in India wherever such policies have
been absolutely assigned to a resident in India
- By the employers in respect of policies issued to their employees
who have been deputed abroad by them
- Premiums can be paid in cash by a resident parent or spouse
of the non-resident policyholder subject to his / her submitting
a letter stating the relationship with the policyholder
- Premiums due on policies issued to Indian students who have
gone abroad for higher studies may be collected in Rupees out
of the Resident Bank Account in India or any of their representatives
in India by cash or cheques
Note:
In respect of premiums collected in cash from sources mentioned
in the last five instances, it should be noted that the policy moneys
cannot be paid abroad in foreign exchange but has to be paid in
India only.
For policies held on foreign register of LIC
Premiums on foreign currency / Rupee policies issued by overseas
of LIC and held on their foreign register should be collected only
in foreign currency.
Click here for a list of LIC offices
operational abroad.
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Can NRIs
take Foreign-Currency policies of LIC?
In India, LIC markets only Indian rupee-currency policies. However,
clients residing in U.K, Fiji and Mauritius can take Pound Sterling
, Fijian Dollars and Mauritian Rupees denominated policies respectively
from LIC branch offices in those countries.
Similarly, LIC (International) E C, Bahrain - a subsidiary of LIC
operates among NRIs in Bahrain, Saudi Arabia and Kuwait. Clients
can take US Dollars, Bahrain Dinars and Saudi Riyal currency policies
from them.
Click here for a list of LIC offices
operational abroad.
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What are
the types of schemes offered by LIC to NRIs ?
All individual schemes marketed by LIC in India are available to
the temporary NRIs holding Indian Passports. Foreign Nationals of
Indian origin can take LIC policies during their stay in India.
However, joint life plans having term insurance element and plans
having health insurance are not allowed.
Click here for a list of LIC offices
operational abroad.
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