JEEVAN SURABHI (25 YEAR POLICY) – (Table No.

108)

Benefit Illustration:

Introduction:

Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies
operating in India to provide official illustrations to their customers. The illustrations are based
on the investment rates of return set by the Life Insurance Council (constituted under Section
64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns
achieved or may be achieved in future by Life Insurance Corporation of India (LICI).

For the year 2004-05 the two rates of investment return declared by the Life Insurance
Council are 6% and 10% per annum.

Product summary: This is a with-profits plan available for terms of 25 years with premium
paying terms 18 years. The plan provides a specified percentage of Sum Assured on survival
up to specified durations. A life insurance cover is available throughout the term of the plan
which increases after every five yearly intervals.

Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through salary
deductions as opted by you throughout the premium paying term of the policy or till the earlier
death.

Bonuses: This is a with-profit plan and participate in the profits of the Corporation’s life
insurance business. It gets 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. A Final (Additional)
Bonus may also be payable provided policy has run for certain minimum period.

Death Benefit: The Sum Assured along with the additional cover, if any, plus all bonuses
declared till death is payable in a lump sum upon the death of the life assured during the
policy term. The survival benefits paid prior to death will not be deducted from the claim
amount.

Survival Benefit: A percentage of sum assured as mentioned below will be paid on your
survival to the end of specified durations:

Percentage of Sum Assured payable at the end of

specified duration
Plan and Term ( Premium Paying Term )
Duration 108/25 (18)
4 20%
8 20%
12 20%
15 20%
18 20%
Maturity Benefit:
The policy matures on your survival to the end of the policy term. All bonuses declared up to
maturity date will be paid in a lump sum.

Supplementary/Extra Benefits: 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.

Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are
available under the plan on earlier termination of the contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more. The guaranteed
surrender value is 30% of the basic premiums paid excluding the first year’s premium in case
no survival benefit payment has already fallen due. Where one or more survival benefits have
fallen due, the guaranteed surrender value will be 30% of the premiums paid on or after the
due date of payment of latest survival benefit.

Corporation’s policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value – which is either equal to or
more than the Guaranteed Surrender Value. The benefit payable on surrender is the
discounted value of the reduced claim amount that would be payable on death or at maturity.
This value will depend on the number of premiums paid and the duration at which surrender
value is calculated. 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 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.

Benefit Illustration:

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on the
future performance of your insurer carrying on life insurance business. If your policy offers
guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on
this page. If your policy offers variable returns then the illustrations on this page will show two
different rates of assumed future investment returns. These assumed rates of return are not
guaranteed and they are not the upper or lower limits of what you might get back as the value
of your policy is dependent on a number of factors including future investment performance.”
Illustration (Table 108)
Age at entry : 35 years
Policy Term : 25 Years
Premium Paying Term : 18 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 8776 /-

Total
premiums Benefit on death during the year
Year paid till Variable Total
end of Guaranteed
year Scenario 1 Scenario 2 Scenario 1 Scenario 2

1 8776 100000 2800 6500 102800 106500

2 17552 100000 5600 13000 105600 113000
3 26328 100000 8400 19500 108400 119500
4 35104 100000 11200 26000 111200 126000
5 43880 100000 14000 32500 114000 132500
6 52656 150000 16800 39000 166800 189000
7 61432 150000 19600 45500 169600 195500
8 70208 150000 22400 52000 172400 202000
9 78984 150000 25200 58500 175200 208500
10 87760 150000 28000 65000 178000 215000
12 105312 200000 33600 78000 233600 278000
15 131640 200000 42000 97500 242000 297500
18 157968 250000 50400 117000 300400 367000
20 157968 250000 56000 130000 306000 380000
25 157968 300000 70000 162500 370000 462500

Total
premiums Benefit on survival / maturity
Year paid till Variable Total
end of Guaranteed
year Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 8776 0 0 0 0 0
2 17552 0 0 0 0 0
3 26328 0 0 0 0 0
4 35104 20000 0 0 20000 20000
5 43880 0 0 0 0 0
6 52656 0 0 0 0 0
7 61432 0 0 0 0 0
8 70208 20000 0 0 20000 20000
9 78984 0 0 0 0 0
10 87760 0 0 0 0 0
12 105312 20000 0 0 20000 20000
15 131640 20000 0 0 20000 20000
18 157968 20000 0 0 20000 20000
20 157968 0 0 0 0 0
25 157968 0 93000 220500 93000 220500
i) This illustration is applicable to a non-smoker male/female standard (from medical, life
style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they
are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario
1) and 10% p.a.(Scenario 2) respectively. In other words, in preparing this benefit illustration, it
is assumed that the Projected Investment Rate of Return that LICI will be able to earn
throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The
Projected Investment Rate of Return is not guaranteed.

iii) The main objective of the illustration is that the client is able to appreciate the features
of the product and the flow of benefits in different circumstances with some level of
quantification.

iv) Future bonus will depend on future profits and as such is not guaranteed. However,
once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

v) The maturity benefit is the amount shown at the end of the policy term.