INFORMATION TO BE PROVIDED IN SALES BROCHURE

LIC’s New Pension Plus (UIN: 512L347V01)

(A Unit Linked, Non-Participating, Individual Pension Plan)

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE

POLICYHOLDER.

THE UNIT LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE
FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDERS WILL NOT BE ABLE TO
SURRENDER OR WITHDRAW THE MONIES INVESTED IN UNIT LINKED INSURANCE
PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF FIFTH YEAR.

THIS IS A PENSION PRODUCT. BENEFITS BY WAY OF SURRENDER, COMPLETE

WITHDRAWAL OR VESTING SHALL BE AVAILABLE IN THE FORM OF ANNUITIES EXCEPT
TO THE EXTENT OF COMMUTATION OF SUCH BENEFITS AS ALLOWED UNDER
APPLICABLE REGULATIONS.

LIC’s New Pension Plus is a Unit Linked, Non-Participating, Individual Pension plan which helps to
build corpus by systematic and disciplined savings which can be converted into regular income. The
plan can be purchased either as Single Premium or Regular Premium payment frequency.

You can buy this plan Offline (through an intermediary) as well as Online. To purchase this plan Online,
kindly log on to www.licindia.in.

You shall have option to choose the amount of premium payable, policy term subject to minimum and
maximum limits of Premium, Policy Term and Vesting Age as specified in Para 5 below. Under a
Regular Premium policy, the Premium shall be payable over the term of the policy. On Vesting (i.e. at
the end of the Policy Term), Options as specified in Para 2.B).ii below shall be available to you to utilize
the proceeds of the Policy. An Option shall also be available to you to extend the accumulation period
or deferment period within the same policy with the same terms and conditions as the original policy
subject to the conditions specified in Para 4.b) below.

You have a choice of investing premiums in one of the four types of investment funds available. Each
Premium paid, after deduction of Premium Allocation Charge, shall be utilized to purchase units of the
Fund chosen. The Unit Fund Value shall be subject to deduction of various other charges either as
cancellation of number of units or by adjusting the Net Asset Value (NAV). The value of units may
increase or decrease, depending on NAV.

Under an in-force policy, the Guaranteed Additions as a percentage of Annual Premium/Single

Premium as mentioned in Para 3 below shall be added to the Unit Fund at the end of specified policy
durations and shall be utilized to purchase units.

1. Premiums:

a) Payment of premiums: You can choose frequency of premium payment either as a Single
Premium or as Regular Premium. In case of Regular Premium, the mode of premium payment
can be Yearly, Half-yearly, Quarterly or Monthly (through NACH only).

The mode of premium payment has to be chosen at commencement. The Option (between

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 various regular premium payment modes) can be changed at any subsequent policy
anniversary during the term of the policy subject to the provisions of Minimum Premium and
Premium multiples as mentioned in Para 5.ii) & iii).

b) Grace Period: A grace period of 30 days will be allowed for payment of yearly or half-yearly or
quarterly premiums and 15 days for monthly (NACH) premiums.

2. Benefits payable under an in-force policy (where all due premiums have been paid):

A) Benefits payable on death:

i. On death of the Life Assured before the date of Vesting:

An amount equal to higher of the following shall be payable:

 Unit Fund Value as on the date of intimation of death; or
 Assured Death Benefit

Where,
Assured Death Benefit is 105% of the Total Premiums received upto the date of death
reduced by Partial Withdrawals (as specified in Para 4.a.) made during two-year period
immediately preceding the death of the Life Assured.

Any charges other than Fund Management Charges (FMC) and tax on FMC (viz. Policy
Administration charges and Tax thereon), recovered subsequent to the date of death shall
be added back to the Unit Fund Value as available on the date of intimation of death and
shall be paid to the nominee or beneficiary along with death benefit. The Guaranteed
Additions, if any added subsequent to the date of death shall be recovered from the Unit
Fund.

The Nominee or Beneficiary shall utilize the proceeds of the Policy as per provision
mentioned in Para 2.A).ii) below.

ii. Utilization of the proceeds of the Policy on death of the Life Assured:

In case of death of the Life Assured before the date of Vesting, the Nominee or Beneficiary
shall exercise one of the following options:

a. Withdraw the entire proceeds of the policy. A settlement option shall be available
subject to conditions as specified in Para 4.d).
or
b. Utilize the entire proceeds or part thereof for purchasing immediate or deferred
annuity at the then prevailing annuity rates from the Corporation. The Nominee or
Beneficiary shall also have an option to purchase annuity from other Insurer at the
then prevailing annuity rate to the extent of percentage, stipulated by the Authority,
currently 50% of the entire proceeds of the policy net of commutation.

The purchase of the annuity shall be subject to terms and conditions of the then available
annuity product(s).

In case the proceeds of the policy are not sufficient to purchase minimum annuity as defined
in Regulation 3(a) of IRDAI (Minimum Limits for Annuities and Other Benefits) Regulations,
2015, as amended from time to time, the proceeds may be paid to the Nominee or
Beneficiary as lump sum.

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 B) Benefit payable on Vesting (i.e. at the end of Policy Term):

i. On survival of the Life Assured till the date of Vesting:

An amount equal to Unit Fund Value shall vest on the date of vesting and shall be utilized
as per annuitisation provision mentioned in Para 2.B).ii below.

ii. Annuitisation of the proceeds of the Policy on Vesting/on Surrender/ on

Discontinuance:

The following Options shall be available to the Life Assured:

a. To utilize the entire proceeds to purchase immediate or deferred annuity at the then
prevailing annuity rates from the Corporation. The Life Assured shall also have an
option to purchase annuity from any other Insurer at the then prevailing annuity rate
to the extent of percentage, stipulated by the Authority, currently 50% of the entire
proceeds of the policy net of commutation.

Or

b. To commute upto 60% and utilize the balance amount to purchase immediate or
deferred annuity at the then prevailing annuity rates from the Corporation. The Life
Assured shall also have an option to purchase annuity from any other Insurer at the
then prevailing annuity rate to the extent of percentage, stipulated by the Authority,
currently 50% of the entire proceeds of the policy net of commutation.

In addition to the Options available as mentioned in Para 2.B).ii..a. & b. above, you will also
have Option to extend Vesting date as detailed under Para 4.b).

The purchase of the annuity shall be subject to terms and conditions of the then available
annuity product(s).

In case the proceeds of the policy are not sufficient to purchase minimum annuity as defined
in Regulation 3(a) of IRDAI (Minimum Limits for Annuities and Other Benefits) Regulations,
2015, as amended from time to time, the proceeds may be paid to you as lump sum.

If the policyholder opts to purchase annuity from any other life insurance Company, he/she
will have to inform his/her intention to the Corporation before the date of vesting.

3. Guaranteed Additions:

Guaranteed Additions shall be payable only under an in-force policy i.e. if all due premiums have
been paid. The Guaranteed Additions as a percentage of Annual Premium (in case of Regular
Premium policy) or Single Premium, as mentioned in the table below shall be added to the Unit
Fund at the end of 6th, 10th and each policy year from 11th year and onwards till the expiry of policy
term provided all due premiums have been paid and the policy is in-force.

End of Policy Guaranteed Additions per annum Guaranteed Additions per annum
Year (as a percentage of one Annual (as a percentage of Single
Premium) Premium)
6th 5.00% 4.00%
10th 10.00% 5.00%
11 to 15th
th
4.00% 1.25%

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 16thto 20th 5.50% 1.50%
21stto 25th 7.00% 2.00%
26thto 30th 8.75% 2.50%
31stto 35th 10.75% 3.00%
36thto 40th 13.00% 3.75%
41stto 42nd 15.50% 4.50%

The ‘Annual Premium’ or ‘Annualized Premium’ for all modes of premium payment shall be
calculated as installment (periodic) premium amount multiplied by frequency of premium payment in
a policy year.

The allocated Guaranteed Additions shall be converted to number of units and shall be credited to
the opted fund type on the due date of payment of Guaranteed Additions. For policies which are not
in-force but revived subsequently, the Guaranteed Additions from the date of Discontinuance till the
date of Revival shall be credited on the date of revival of the policy.

Note: Guaranteed Additions shall not be payable if the policy is in reduced paid-up status.

Special cases where the Guaranteed Additions shall be reduced on pro-rata basis:

i. In case of an in-force policy where Partial Withdrawal(s) have been availed by you as
specified in Para 4.a), the Guaranteed Additions to be attached after the date of Partial
Withdrawal(s) shall be reduced on pro-rata basis. The modified rate of Guaranteed Additions
in each of the future policy years under such polices shall be calculated by using the formula:

(Original rate of Guaranteed Additions applicable for the respective year) multiplied by
(Fund Value at the end of the year)
(Fund Value at the end of the year) plus (amount of total Partial Withdrawal(s)).

ii. In case of Option to extend Vesting date is availed by you as specified in Para 4.b). without
payment of further premiums under regular premium policies, the Guaranteed Additions
to be attached shall be reduced on pro-rata basis as applicable for in-force policy
corresponding to the modified policy term. The modified rate of Guaranteed Additions in each
of the future policy years under such policies shall be calculated by using the formula:

(Original rate of Guaranteed Additions applicable for the respective year) multiplied by
(Number of Policy years for which premiums were paid)
(Total number of Policy years as on date of attachment of Guaranteed Additions)

However, any Guaranteed Additions added subsequent to the date of death shall be
recovered from the Unit Fund.

4. Optional benefits:

a) Partial Withdrawals:

You may partially withdraw the units at any time after the 5 years’ lock-in period (i.e. a period
of 5 years from the date of commencement of policy) subject to the following:

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 i. It is allowed only against the following stipulated reasons:
 Higher education of children.
 Marriage of children.
 For the purchase or construction of residential house.
 For treatment of critical illnesses of self or spouse.
 Any other reason as per the IRDAI Circular/Guidelines/Regulations issued from time
to time.

ii. It is allowed only up to 3 times during the entire term of the policy term.

iii. The maximum quantum of each Partial withdrawal shall not exceed the following percentage
of Unit Fund Value at the time of Partial withdrawal:

For Regular Premium policies:

Annual Premium % of Unit Fund Value

Less than Rs. 50,000/- 10%
Rs.50,000/- and above but less than Rs. 1,00,000/- 15%
Rs.1,00,000 and above 25%

For Single Premium policies:

Single Premium % of Unit Fund Value

Less than Rs.2,00,000/- 10%
Rs.2,00,000/- and above but less than Rs. 5,00,000/- 15%
Rs.5,00,000 and above 25%

iv. Any Partial Withdrawal which would result in Unit Fund Value less than one Annualized
Premium in case of Regular Premium or 30% of Single Premium in case of Single Premium
policies shall not be allowed.

This condition has been incorporated to ensure that Partial Withdrawal shall not result in
termination of the Policy.

v. Partial Withdrawal Charge as specified in Para 9.h) shall be deducted from the Unit Fund
Value.

vi. The Guaranteed Additions to be attached after the date of Partial Withdrawal shall be
reduced on pro-rata basis as specified in Para 3.

In case of death within 2 years from the date of Partial Withdrawals, the Assured Death
Benefit of 105% of the Total Premiums received upto the date of death shall be reduced by
Partial Withdrawals made during two-year period immediately preceding the death of the Life
Assured.

b) Options to extend date of Vesting:

An Option shall also be available to you to extend the accumulation period or deferment period
(i.e. policy term) within the same policy with the same terms and conditions as the original policy
subject to the following conditions:

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  At the time of exercising this option, your age shall be less than 60 years.
 Extension of accumulation or deferment period shall be upto the maximum Vesting age
under the plan.
 In any case the sum of original policy term and extended policy term shall not be more than
42 years.
 The request for extending accumulation or deferment period is submitted before the original
Vesting date.

You can choose to extend the date of Vesting either by payment of further premiums or without
payment of further premiums. Once you decide to exercise this Option and intimate the same to
the Corporation, the policy shall continue by deducting the applicable charges as in case of an
in-force policy. However, the Guaranteed Additions shall be attached as per the following
provisions:

i. Date of Vesting extended under Single premium policies and regular premium
policies (with payment of further premiums):
In this case the applicable rate of Guaranteed Additions shall remain the same as applicable
for in-force policy corresponding to the modified policy term.

ii. Date of Vesting extended without payment of further premiums under regular
premium payment policies:
In this case the applicable rate of Guaranteed Additions shall be reduced on pro-rata basis
as specified in Para 3.

The date of Vesting wherever referred to in this document includes extended date of Vesting, if
applicable.

If the policyholder opts to extend the Date of Vesting, he/she will have to inform his/her intention
to the Corporation at least three month prior to the vesting date.

c) Switching:

You have an Option to switch between any of the four funds as specified in Para 6 during the
policy term. On switching, the entire amount is switched to the new Fund opted for. During a
given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be
subject to a switching charge of Rs.100 per switch as specified in Para 9.e).

d) Settlement Option:

Settlement Option is an option to receive the Death Benefit in instalments. This Option can be
exercised by Nominee or Beneficiary on death of the Life Assured before the date of Vesting, if
the Nominee/Beneficiary has opted for withdrawal of entire proceeds as mentioned in Para
2.A).ii.a. The Nominee/Beneficiary has to specify the mode of paying the Death Benefit (i.e.
yearly, half yearly, quarterly or monthly instalments) spread over a period of not more than five
years from the date of intimation of death of Life Assured.The death claim amount shall then be
paid to the Nominee/Beneficiary as per the chosen mode of payment.

The Unit Fund under such policy will continue to be invested as per the fund type existing as on
the date of intimation of death.

Each instalment (in number of units) shall be the total number of units as on the date of
intimation of death divided by total number of instalments (i.e. 5, 10, 20 and 60 for yearly, half-
yearly, quarterly and monthly instalments in 5 year period respectively). The number of units

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 arrived at in respect of each instalment will be multiplied by the NAV of the applicable fund type
as on the date of instalment payment to arrive at the amount paid out in each instalment. The
instalment payment shall be made by redeeming the units from the Unit Fund. The first payment
will be made corresponding to the date of intimation of death and thereafter based on the mode
opted by the Nominee/Beneficiary i.e. every month or three months or six months or annual
from the date of intimation of death, as the case may be.

During the Settlement Option Period, no charges other than the Fund Management Charge
shall be deducted. The value of instalment payable on the date specified shall be subject to
investment risk i.e. the NAV may go up or down depending upon the performance of the fund.
The investment risk during the settlement period shall be borne by the Nominee/Beneficiary.
There will not be any risk cover or guaranteed benefits during the settlement period.

On death of the Nominee/Beneficiary after the commencement of the Settlement Option Period,
the value of the outstanding units held in the Unit Fund shall become payable to the legal heir in
lump sum.

No partial withdrawal or switching of fund by the Nominee/Beneficiary shall be allowed during

the subsistence of the period of settlement option.

However, the Nominee/Beneficiary shall have option to withdraw the Unit Fund value at any
time during the settlement period. In such case, the Unit Fund value shall be calculated as the
total number of outstanding units in the policy multiplied by the unit price as on the date of
complete withdrawal.

5. Eligibility conditions and other restrictions:

i) Minimum/Maximum Basic Sum Assured: Not Applicable

ii) Minimum Premium:
Mode/Premium
Single Premium (Rs.) Regular Premium (Rs.)
Payment Frequency
Yearly 30,000
Half-Yearly 16,000
1,00,000
Quarterly 9,000
Monthly (NACH) 3,000

iii) Maximum Premium: No limit

However, the maximum Premium allowed to each individual will be subject to the financial
underwriting as per the underwriting policy of the Corporation.

The Regular Premiums shall be payable in multiples of Rs. 1,000/- for all modes other than
monthly (NACH). For monthly (NACH), the premium shall be in multiples of Rs. 250/-. The
Single Premium shall be payable in the multiples of Rs. 10,000/-.

iv) Minimum Entry Age : [25] years (last birthday)

v) Maximum Entry Age : [75] years (last birthday)
vi) Premium Paying Term:
S.No. Premium Payment Frequency Premium Paying Term
1. Single Premium Single Premium
Regular Premium (Yearly, Half-yearly,
2. Same as Policy Term
Quarterly and Monthly)

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 vii) Minimum/Maximum Policy Term:
Premium Payment Frequency Minimum (Years) Maximum (Years)
Single/Regular Premium 10 42

The minimum/maximum policy term shall be subject to minimum/maximum Vesting age as

specified in Para 5.viii) and 5.ix) below.

viii) Minimum Vesting Age : [35] years (last birthday)

ix) Maximum Vesting Age : [85] years (last birthday)

6. Investment of Funds:
Unit Fund: You will have the option to choose any One of the following 4 funds to invest your
premiums initially and at the time of switching. The allocated premiums shall be utilized to
purchase units as per the chosen fund type. The details of the available funds and broadly their
investment pattern are as under:
Fund Investment in Short-term Investment Objective Risk SFIN
Type Government/ investments in Listed Profile
Government such as money Equity
Guaranteed market Shares
Securities/ instruments
Corporate
Debt
To provide relatively Low ULIF001
safe and less Risk 01/02/22
volatile investment LICPENF
Pension
option mainly BND
Bond
60% to 100% 0% to 40% Nil through 512
Fund
accumulation of
income through
investment in fixed
income securities.
To provide steady Lower to ULIF002
Pension income through Medium 01/02/22
Secured 50% to 90% 0% to 40% 10% to 50% investment in both Risk LICPENF
Fund equities and fixed SEC
income securities. 512
To provide Medium ULIF003
balanced income Risk 01/02/22
Pension and growth through LICPENF
Balanced 30% to 70% 0% to 40% 30% to 70% similar proportion BAL
Fund investment in both 512
equities and fixed
income securities.
To provide long High ULIF004
Pension term capital growth Risk 01/02/22
Growth 0% to 60% 0% to 40% 40% to 100% through investment LICPENF
Fund primarily in equities. GRW
512

Pension Discontinued Fund (SFIN:ULIF00501/02/22LICDPFPENS512): This fund shall be a

segregated Unit Fund and shall comprise of all the discontinued policy funds of all the policies
offered under the Unit Linked Pension products.

The investment pattern of the Pension Discontinued Fund shall have the following asset mix:

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 Asset Type Range (in %)
Short-term investments such as money market instruments 0% to 80%
Investment in Government / Government Guaranteed Securities 20% to 100%

If any of the following funds, which are attached to this Product and are approved by the Board, do
not comply with Regulation 8 of Schedule I of the IRDAI (Investment) Regulations, 2016 read
with the Master Circular – Investment issued there under, the policyholder will be given a free
switch to the funds detailed below.

i) Fund Name: Pension Bond Fund, SFIN No: ULIF00101/02/22LICPENFBND512

(Low Risk)

Free Switch shall be allowed to one of the following funds:

Fund Name SFIN Risk Profile

Pension Secured ULIF00201/02/22LICPENFSEC512 Lower to Medium
Fund Risk
Pension ULIF00301/02/22LICPENFBAL512 Medium Risk
Balanced Fund

ii) Fund Name: Pension Secured Fund, SFIN No:ULIF00201/02/22LICPENFSEC512

(Lower to Medium Risk)

Free Switch shall be allowed to one of the following funds:

Fund Name SFIN Risk Profile

Pension Bond Fund ULIF00101/02/22LICPENFBND512 Low Risk
Pension Balanced Fund ULIF00301/02/22LICPENFBAL512 Medium Risk

iii) Fund Name: Pension Balanced Fund, SFIN No:

ULIF00301/02/22LICPENFBAL512 (Medium Risk)

Free Switch shall be allowed to one of the following funds:

Fund Name SFIN Risk Profile

Pension Secured ULIF00201/02/22LICPENFSEC512 Lower to
Fund Medium Risk
Pension Growth Fund ULIF00401/02/22LICPENFGRW512 High Risk

iv) Fund Name: Pension Growth Fund, SFIN No: ULIF00401/02/22LICPENFGRW512,

(High Risk)

Free Switch shall be allowed to one of the following funds:

Fund Name SFIN Risk Profile

Pension Secured ULIF00201/02/22LICPENFSEC512 Lower to Medium
Fund Risk
Pension Balanced ULIF00301/02/22LICPENFBAL512 Medium Risk
Fund

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 Fund Closure:
Although the Funds are open ended, we may close any of the existing funds with prior approval
from the IRDAI. You will be notified at least 3 months prior to the closure of the Fund. You can
switch to other existing Fund options without switching charges during these 3 months. In case you
do not switch during this period, Corporation shall switch the units to any other Funds with similar
asset allocation and risk profile considering NAV as on the date of Switch.

7. Method of calculation of Unit Price:

Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of
allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to
the NAV). The NAV will be computed on daily basis and will be based on investment performance
and Fund Management Charge of each type of fund and shall be computed as:

[Market value of investment held by the fund + Value of Current Assets – Value of Current
Liabilities & Provisions, if any]
Number of Units existing on Valuation Date (before creation / redemption of Units)

Where, Valuation Date is the date of calculation of NAV.

8. Applicability of Net Asset Value (NAV):

i. The allocation and redemption of units for various transaction will be at the NAV as described
below:

Type of Transaction Applicable NAV (Where transaction is

received before cut off Time)
First Premium received: NAV of Date of underwriting acceptance of risk
 In case of Offline sale: by way of a local i.e. Date of commencement of policy.
cheque or a demand draft payable at par
at the place where premium is received.
 In case of Online sale: by any digital
payment mode.
Renewal premium received through NACH NAV of the date of our receipt of instruction or
or by any digital payment mode. transaction realization date or the due date of
premium whichever is later.
Renewal premium received by way of a NAV of the date of our receipt of instrument or the
local cheque or a demand draft payable at due date of premium, whichever is later.
par at the place where the premium is
received.
Partial withdrawal, Switching between NAV of the date of our receipt of the request
available Fund types, or Free-look online or in writing.
cancellation
Surrender NAV of the date of our receipt of surrender
request in writing
Death claim NAV of the date of our receipt of the intimation of
death in writing along with death certificate.
Guaranteed Additions NAV of the date of allocation
Revival NAV as on date of revival, where date of revival is
the date of adjustment of all due premiums after
underwriting acceptance has been received.
Settlement Option NAV of date of instalment payment under

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 settlement option.
Vesting Benefit NAV of the date of Vesting.
Discontinuance NAV as on the date of discontinuance.
Termination NAV of date of termination.
Policy Alteration NAV of date of alteration in the policy.

ii. Currently, the cut-off time is 3.00 p.m. as per the existing IRDAI guidelines and changes in this
regard shall be as per the instructions from IRDAI. In case of new business the cut- off time of 3
p.m. for determination of NAV shall be in reference to the date of acceptance of risk i.e. date of
commencement of Policy.
iii. If the transaction request is received before the cut-off time in respect of:
a) Premium Payments, at any branch office of the Corporation or other authorized office for
premium collection or by any digital payment mode or through NACH;
b) Other transaction, by servicing branch of the Corporation;
c) Successful Registration of Service Requests as and when made available on LIC’s Customer
Portal
the closing NAV of that day shall be applicable.
iv. If the transaction request is received after the cut-off time in respect of:
a) Premium Payments, at any branch office of the Corporation or other authorized office for
premium collection or by any digital payment mode or through NACH;
b) Other transaction, by servicing branch of the Corporation;
c) Successful Registration of Service Requests as and when made available on LIC’s Customer
Portal
the closing NAV of the next business day shall be applicable.
In case of offline sale, Premium paid by CTS 2010 cheque/demand draft drawn on a bank which
is participating in local/CTS/speed clearing house shall only be accepted. Cheques /demand draft
not coming under above category shall not be accepted.
9. Charges under the Plan:
The details of Charges are as under. These Charges are subject to GST as mentioned in Para 9.i).
below:

a) Premium Allocation Charge: This is the percentage of the premium appropriated towards
charges from the premium received. The balance known as allocation rate constitutes that part
of the premium which is utilized to purchase units of the chosen fund in the policy.

The Premium Allocation Charges are as below:

For Regular Premium policies:

Offline Online
Annual Premium (AP)
Annual Premium (AP)
greater than or equal to Rs.
less than Rs. 50,000/-
Year 50,000/-
As a % of Instalment As a % of Instalment As a % of
Premium Premium Instalment
Premium
1st 7.00% 7.00% 2.50%
2 to 5th
nd
4.50% 4.00% 1.50%
th
6 and onwards 3.50% 3.00% 1.00%
Instalment Premium is a Premium to be paid by Policyholder as per the premium payment
frequency opted by the Policyholder.

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 For Single Premium (SP) policies:
Offline Online
Year
As a % of SP As a % of SP
1st 3.30% 1.50%
2ndand onwards Nil Nil

The cap on Premium Allocation Charge shall be as per Section 9.k) below.

b) Mortality Charge: Nil

c) Policy Administration Charge: This Charge shall be levied at the beginning of each policy
month from the Unit Fund by cancelling units for equivalent amount. This Charge shall be
deducted in first 5 years only and shall be based on Instalment Premium (Inst_Prem) with a cap
on maximum amount to be deducted from a policy:

For Regular Premium policies:

During Policy Admin Charge per month (Rs.)

1st policy year Minimum of [(0.190%*Inst_Prem*k) or 57]
2nd policy year Minimum of [(0.184%*Inst_Prem*k) or 55]
3rd policy year Minimum of [(0.177%*Inst_Prem*k) or 53]
4th policy year Minimum of [(0.170%*Inst_Prem*k) or 51]
5th policy year Minimum of [(0.164%*Inst_Prem*k) or 49]
th
6 policy year and onwards NIL

Value of k is as under:

Premium Payment Mode Value of k

Yearly 1.00
Half-yearly 1.44
Quarterly 2.35
Monthly 5.95

For Single Premium policies:

During Policy Admin Charge per month (Rs.)

1st policy year 80
2ndpolicy year 76
3rdpolicy year 73
4thpolicy year 70
5thpolicy year 67
th
6 policy year and onwards NIL

The overall cap on Policy Administration Charges shall be as per Section 9.k) below.

d) Fund Management Charge:This is a charge levied as a percentage of the value of assets and
shall be appropriated by adjusting the NAV. Fund Management (FMC) Charge shall be as
under:

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  1.35% p.a. of Unit Fund for all the four Funds available under an in-force policy i.e.
Pension Bond Fund, Pension Secured Fund, Pension Balanced Fund and Pension
Growth Fund.
 0.50% p.a. of Unit Fund for “Pension Discontinued Fund”.
This is a charge levied at the time of computation of NAV, which will be done on daily basis. The
NAV thus declared will be net of FMC.
e) Switching Charge: This is a charge levied on switching of monies from one fund to another and
will be levied at the time of executing a switch by cancelling appropriate number of units out of
Unit Fund Value. Within a given policy year, 4 switches shall be allowed free of charge.
Subsequent switches, if any, shall be subject to a Switching Charge of Rs. 100 per switch.
f) Bid/Offer Spread: Nil.

g) Discontinuance Charge: The Discontinuance Charge shall be deducted by cancelling

appropriate number of units out of Unit Fund Value as on the date of discontinuance of Policy
and is as under:
For Regular Premium policies:
Where the policy Discontinuance Charges for the Discontinuance Charges for the
is discontinued policies having annualized policies having annualized
during the policy premium up to Rs. 50,000 premium above Rs. 50,000
year
Lower of 20% * (AP or FV) Lower of 6% * (AP or FV) subject
1
subject to maximum of Rs. 3000/- to maximum of Rs. 6000/-
Lower of 15% * (AP or FV) Lower of 4% * (AP or FV) subject
2
subject to maximum of Rs. 2000/- to maximum of Rs. 5000/-
Lower of 10% * (AP or FV) Lower of 3% * (AP or FV) subject
3
subject to maximum of Rs. 1500/- to maximum of Rs. 4000/-
Lower of 5% * (AP or FV) subject Lower of 2% * (AP or FV) subject
4
to maximum of Rs. 1000/- to maximum of Rs. 2000/-
5 and onwards NIL NIL

For Single Premium policies:

Where the policy Discontinuance Charges for the Discontinuance Charges for the
is discontinued policies having Single Premium policies having Single Premium
during the policy up to Rs. 3,00,000 above Rs. 3,00,000
year
Lower of 2% * (SP or FV) subject Lower of 1% * (SP or FV) subject
1
to maximum of Rs. 3000/- to maximum of Rs. 6000/-
Lower of 1.50% * (SP or FV) Lower of 0.70% * (SP or FV)
2
subject to maximum of Rs. 2000/- subject to maximum of Rs. 5000/-
Lower of 1% * (SP or FV) subject Lower of 0.50% * (SP or FV)
3
to maximum of Rs. 1500/- subject to maximum of Rs. 4000/-
Lower of 0.50% * (SP or FV) Lower of 0.35% * (SP or FV)
4
subject to maximum of Rs. 1000/- subject to maximum of Rs. 2000/-
5 and onwards NIL NIL
Where
AP - Annualized Premium
SP -Single Premium
FV - Unit Fund Value on the date of discontinuance of policy.

LIC’s New Pension Plus- Final Sales Literature Page 13 of 25

 h) Partial Withdrawal Charge: This is a charge levied on the Unit Fund Value at the time of each
Partial Withdrawal of the Fund and shall be a flat amount of Rs. 100/- which will be deducted by
cancelling appropriate number of units out of Unit Fund Value and the deduction shall be made
on the date on which Partial Withdrawal takes place.

i) Tax Charge: Tax charges, if any, shall be levied on all or any of the charges applicable to this
plan at the rate of tax as applicable as per prevailing Tax laws/notification etc. as issued by
Government of India or any other Constitutional Authority of India from time to time in this regard
without any reference to the Policyholder.

j) Miscellaneous Charge: This is a charge levied for an alteration during the contract, such as
change in premium mode under a Regular Premium policy after the issue of the policy, and shall
be a flat amount of Rs. 100/- which will be deducted by cancelling appropriate number of units
out of Unit Fund Value and the deduction shall be made on the date of alteration in the policy.

The Corporation reserves the right to accept or decline an alteration in the policy. The alteration
shall take effect from the policy anniversary coincident with or following the alteration only after
the same is approved and accepted by the Corporation.

k) Right to revise charges: The Corporation reserves the right to revise all or any of the above
charges. The modification in charges will be done with prospective effect with the prior approval
of IRDAI and after giving the policyholders a notice of 3 months which shall be notified through
our website.

Although the charges are reviewable, these shall be subject to the maximum charges as
declared by IRDAI from time to time. The current cap of charges is as under:
- Premium Allocation Charge shall not exceed 12.50% of Annualized Premium in any year.
- Policy Administration Charge shall not exceed Rs. 500 per month.
- Fund Management Charge shall not exceed the limit specified by IRDAI which is currently
the same as specified in Para 9.d).
- Partial Withdrawal Charge shall not exceed Rs. 500/- on each withdrawal.
- Switching Charge shall not exceed Rs. 500/-per switch.
- Discontinuance Charge shall not exceed the limits specified by IRDAI, which are currently
same as specified in Para 9.g).
- Miscellaneous Charge shall not exceed Rs. 500/- each time when an alteration is requested.

In case you do not agree with the revision of charges, you shall have the option to withdraw the
Unit Fund Value. If such revision in charges is made during the lock-in-period of 5 years,
withdrawal shall be allowed only after the expiry of 5 years’ lock-in-period.

The Life Assured shall utilize the proceeds of the above withdrawal by exercising one of the
Options as mentioned in Para 2.B).ii.

10. Plan purchased as QROPS (Qualifying Recognized Overseas Pension Scheme):

This plan can be purchased as QROPS, through transfer of UK tax relieved assets subject to listing
and terms and conditions prescribed by HMRC (Her Majesty Revenue & Customs) such as:
i. Minimum Vesting Age shall be 55 years.
ii. If the policy is cancelled during the Free Look Period, the proceeds from cancellation shall
only be transferred back to the fund house from where the money was received.
iii. In addition to the eligibility conditions and restrictions of the plan as specified in Para 5, all
other terms and conditions of HMRC shall also apply as applicable from time to time.

LIC’s New Pension Plus- Final Sales Literature Page 14 of 25

11. Surrender: A policy can be surrendered anytime during the policy term and the surrender value, if
any, shall be payable as under:

a. If the policy is Surrendered during the 5 years’ lock-in-period:

If you apply for surrender of the policy during the 5 years’ lock-in-period, the Unit Fund Value,
after deducting the applicable Discontinuance Charges, shall be transferred to the Discontinued
Policy Fund as specified in Para 13.A.
The policy shall continue to be invested in the Discontinued Policy Fund till the end of the lock-in
period. Only Fund Management Charge (FMC) as specified in Para 9.d) shall be deducted from
this fund and no risk cover shall be available on such policy during this period.
The Proceeds of the Discontinued Policy Fund in respect of the Policy as on the date of expiry
of lock-in period as specified in Para 13.B shall be utilized as per annuitisation provision
mentioned in Para 2.B).ii at the end of lock-in period.
However, in case of death of the Life Assured after the date of surrender but before the end of
the 5 years’ lock-in-period, the Proceeds of the Discontinued Policy Fund in respect of the Policy
shall be payable immediately to the Nominee or Beneficiary. The Nominee or Beneficiary shall
utilize the proceeds of the Policy as per the provision mentioned in Para 2.A.ii) subject to the
terms and conditions mentioned therein.
b. If the policy is Surrendered after the 5 years’ lock-in-period:
If you apply for surrender of the policy after 5 years’ lock-in-period, then the Unit Fund Value as
on the date of intimation of surrender shall be utilized as per annuitisation provision mentioned
in Para 2.B).ii on surrender. There will be no Discontinuance Charge under the policy.

Further, Reinstatement of a surrendered policy shall not be allowed even if a request for
reinstatement is received from the policyholder during the 5 years’ lock-in-period.
In case of QROPS, the surrender provisions shall be further subject to any specific provisions
regarding procedures as per Rules and Regulations of the HMRC.
12. Discontinuance under a Regular Premium policy: If premium due under the Regular Premium
policy has not been paid before the expiry of Grace Period, then the policy shall be in a state of
discontinuance.
During the grace period, the policy shall be treated as in-force and the benefits payable under the
policy during the grace period shall be same as that under an in-force policy. All charges, if
applicable shall be deducted from Unit Fund as specified in Para 9.
The treatment of such a discontinued policy shall be as under:
I) If the policy is discontinued during the 5 years’ lock-in-period:
Upon expiry of the grace period, the Unit Fund Value after deducting the applicable
Discontinuance Charges as specified in Para 9.g. shall be transferred to the Discontinued Policy
Fund as stated in Para 13.A and the risk cover shall cease. In such case, only Fund
Management Charge of 50 basis points per annum shall be deducted from the Discontinued
Policy Fund.
On such discontinuance, a communication shall be sent to you within three months of the date
of first unpaid premium, communicating the status of the policy and the option to revive the
policy during the revival period of three years from the date of First Unpaid Premium.

In such cases, the following provisions shall apply:

LIC’s New Pension Plus- Final Sales Literature Page 15 of 25

 A. If you opt to revive and thereafter exercise the Option to revive the policy at any time
during the Revival Period of 3 years, the policy shall be revived as specified in Para 15.iii).
B. In case you opt to revive but do not revive the policy during the Revival Period of 3 years,
the Proceeds of the Discontinued Policy Fund in respect of the Policy as specified in Para
13.B, shall be utilized as per annuitisation provision mentioned in Para 2.B).ii at the end of
the Revival period or lock-in period, whichever is later. In respect of Revival period
ending after lock-in period, the policy will remain in Discontinued Policy Fund till the end of
Revival period.

C. In case you do not exercise the Option to revive the policy, the policy shall continue
without any risk cover and the policy shall remain invested in Discontinued Policy Fund. The
Proceeds of the Discontinued Policy Fund in respect of the Policy as on the date of expiry
of lock-in period as specified in Para 13.B shall be utilized as per annuitisation provision
mentioned in Para 2.B).ii at the end of lock-in period.

D. However, you also have an Option to surrender the policy anytime and the Proceeds of the
Discontinued Policy Fund in respect of the Policy as on the date of expiry of lock-in
period or as on the date of surrender, as specified in Para 13.B shall be utilized as per
annuitisation provision mentioned in Para 2.B).ii at the end of lock-in period or date of
surrender whichever is later.

E. In case of death of the Life Assured during the Revival Period or lock-in-period, as the case
may be, the Proceeds of the Discontinued Policy Fund in respect of the Policy as on the
date of intimation of death, as specified in Para 13.B shall be payable as death benefit
immediately to the Nominee or Beneficiary.
The Nominee or Beneficiary shall utilize the proceeds of the Policy as per the provision
mentioned in Para 2.A.ii) subject to the terms and conditions mentioned therein.

II) If the policy is discontinued after the 5 years’ lock-in- period:

Upon expiry of the grace period, in case of discontinuance of a Regular Premium policy due
to non-payment of premium after the 5 years’ lock-in period, the policy shall be converted into a
reduced paid-up policy with Paid-up sum assured equal to 105% of Total Premiums received
upto the date of First Unpaid Premium (FUP) reduced by Partial Withdrawals made during the
two year period immediately preceding the death of the Life Assured. The policy shall continue
to be in reduced paid-up status. In such case, all applicable charges, as specified in Para 9 shall
be deducted from the Unit Fund.

On such discontinuance, a communication shall be sent to you within three months of the date
of first unpaid premium, communicating the status of the policy and the options (a) to revive the
policy during the Revival Period of three years from the date of First Unpaid Premium or upto
the date of Vesting, whichever is earlier; or (b) complete withdrawal of the policy:

In such case, the following situations may arise:

i) If you opt to revive and thereafter exercise the Option to revive the policy anytime during
the Revival Period or upto the date of Vesting, whichever is earlier, then the policy shall be
revived as specified in Para 15.iii).

LIC’s New Pension Plus- Final Sales Literature Page 16 of 25

 ii) In case you opt to revive but do not revive during the Revival period or upto the date of
Vesting, whichever is earlier, or do not exercise any Option, then the policy shall subsist
as a reduced paid up policy till the end of the revival period or upto the date of Vesting,
whichever is earlier.
In such case, the Unit Fund Value as on the date of expiry of Revival Period or as on the
date of Vesting, whichever is earlier, shall be utilized as per annuitisation provision
mentioned in Para 2.B).ii at the end of Revival Period or date of Vesting, whichever is
earlier.

iii) However, in case you opt for complete withdrawal or surrender the policy at anytime in
such case an amount equal to Unit Fund Value shall be utilized as per annuitisation
provision mentioned in Para 2.B).ii.

iv) In case of death of the Life Assured before the end of Revival Period or date of Vesting,
whichever is earlier, the higher of the following shall be payable as death benefit:

 Unit Fund Value as on the date of intimation of death; or

 Paid up Sum Assured

Where,
Paid up Sum Assured is 105% of Total Premiums received received upto the date of First
Unpaid Premium (FUP) reduced by Partial Withdrawals made during the two year period
immediately preceding the death of the Life Assured.

The Nominee or Beneficiary shall utilize the proceeds of the Policy as per the provision
mentioned in Para 2.A.ii) subject to the terms and conditions mentioned therein.

13. Treatment of the policy while the policy money is in Discontinued Policy Fund:

During the 5 years’ lock-in-period if a policyholder applies for surrender (under a Regular/ Single
Premium policy) or in case of non-payment of premium before the expiry of the Grace Period under
a Regular Premium policy, the policy shall be in a state of discontinuance.

A. Conversion of Unit Fund into monetary amount and allocation of units in Discontinued
Policy Fund:

On discontinuance of the policy, the Unit Fund Value as on the date of discontinuance of
policy after deducting the applicable Discontinuance Charges as specified in Para 9.g shall
be transferred to the Discontinued Policy Fund and the risk cover shall cease. Where, Unit Fund
Value shall be calculated by multiplying the NAV with the number of units in the Unit Fund as on
the date of discontinuance.

The number of units of Discontinued Policy Fund shall be allocated to the policy considering the
NAV of the Discontinued Policy Fund as on the date of discontinuance.

“Date of Discontinuance of the Policy” shall be the date on which the intimation is received
from the Life Assured/Policyholder about the surrender of the policy or on the expiry of the
Grace Period (in case of non-payment of contractual regular premium due during the Grace
Period), whichever is earlier.

LIC’s New Pension Plus- Final Sales Literature Page 17 of 25

 B. The Proceeds of the Discontinued Policy Fund :

The Discontinued Policy Fund (SFIN: ULIF00501/02/22LICDPFPENS512) is a segregated unit

fund and shall comprise of all the discontinued policy fund of all the policies offered under the
Unit Linked Pension plans. Only Fund Management Charges (FMC) as specified in Para 9.d
shall be applicable on this fund.

The Unit Fund Value which is transferred to the Discontinued Policy Fund as mentioned in Para
9.g shall continue to be invested therein from the date of discontinuance till the Policy exits from
the Discontinued Policy Fund either by death, surrender, revival, policy termination at the end of
5 years’ lock-in-period or on completion of 3 years’ revival period (if revival period extends
beyond the 5 years’ lock-in- period), whichever is applicable.

The Proceeds of the Discontinued Policy Fund in respect of the Policy shall be higher of:
 Unit Fund Value of the Discontinued Policy Fund; or
 Guaranteed amount calculated using minimum guaranteed interest rate.

Where, Unit Fund Value shall be calculated by multiplying the NAV with the number of
units of Discontinued Policy Fund on the date of exit of the Policy from the Discontinued
Policy Fund.

The Guaranteed amount is the accumulation of amount transferred into the Discontinued Policy
Fund at the guaranteed interest rate from the date of discontinuance till the Policy exits from the
Discontinued Policy Fund.

The minimum guaranteed interest rate applicable to the ‘Discontinued Policy Fund’ shall be as
per the prevailing Regulations. Currently this guaranteed interest rate is 4% p.a. and shall be
subject to change from time to time as declared by IRDAI.

14. Compulsory termination:

If the policy has run for at least 5 years provided 5 full years’ premiums have been paid and the
balance in the Unit Fund is less than one Annualized Premium in case of Regular Premium or 30%
of Single Premium in case of Single Premium, the policy shall be compulsorily terminated and the
balance amount in the Unit Fund, if any, shall be refunded to the Life Assured and the proceeds
shall be utilized to purchase annuity by exercising one of the Options as mentioned in Para 2.A.ii)
subject to the terms and conditions mentioned therein.

This shall be applicable irrespective of whether the policy is in-force or paid-up during the revival
period.

15. Other features:

i) Top-up: No Top-up shall be allowed under the plan.

ii) Increase / Decrease of risk covers: Not applicable.

iii) Revival:

A. Revival of a Discontinued Policy during lock-in Period:

In case you opt to revive the policy during the Revival Period of 3 years, the policy shall be
revived subject to the following:

LIC’s New Pension Plus- Final Sales Literature Page 18 of 25

 i. On payment of all due and unpaid premiums without interest. All outstanding applicable
Premium Allocation Charges, Policy Administration Charges and Tax charges thereon
due since the date of discontinuance shall be deducted from the Unit Fund.
ii. Discontinuance Charge deducted from the Unit Fund, if any, at the time of
discontinuance of the policy along with the Proceeds of the Policy’s Discontinued Policy
Fund, if any, shall be added back to the Unit Fund.

B. Revival of a Discontinued Policy after lock-in Period:

In case you opt to revive the policy during the Revival Period of 3 years from the date of first
unpaid premium or up to the date of Vesting, whichever is earlier, the policy shall be revived
subject to the following:

i. On payment of all due and unpaid premium without interest.

ii. All outstanding applicable Premium Allocation Charges and Tax charge thereon due
since the date of discontinuance shall be deducted from the Unit Fund.

The Corporation reserves the right to accept at original terms, accept with modified terms or
decline the revival of a discontinued policy as per the Underwriting Policy of the Corporation.
The Revival shall be subject to satisfaction of Continued Insurability of the Life Assured on the
basis of information, documents and reports that are already available and any additional
information in this regard if and as may be required in accordance with the Underwriting Policy
of the Corporation at the time of revival, being furnished by the Policyholder/Proposer / Life
Assured. The revival of a discontinued policy shall take effect only after the same is approved,
accepted and revival receipt is issued by the Corporation.

Units of the segregated fund originally chosen by the Policyholder or as chosen in the last
switch, or the fund chosen at the time of revival, as the case may be, shall be allotted based on
the NAV as on the date of revival.

The Guaranteed Additions from the date of Discontinuance till the date of Revival shall be
credited on the date of revival of the policy.

Irrespective of what is stated above, if the Unit Fund Value is not sufficient to recover the
charges during the revival period, the policy shall terminate and thereafter revival will not be
allowed.

iv) Reinstatement:
Reinstatement of a surrendered policy shall not be allowed even if a request for reinstatement is
received from the policyholder during 5 years’ lock in period.

v) Policy Alteration (applicable in case of Regular Premium):

During the contract, alteration in premium mode after the issue of policy may be allowed subject
to minimum Premium and Premium multiples as mentioned in Para 5.ii.& iii). For such alteration
a miscellaneous charge of Rs. 100/- will be deducted by cancelling appropriate number of units
out of the Unit Fund Value and the deduction shall be made on the date of alteration in the
policy. The alteration will be effective from the policy anniversary coincident or following the
alteration.

The Corporation reserves the right to accept or decline the alteration in the policy as per the
Underwriting Policy of the Corporation. The alteration shall take effect only after the same is

LIC’s New Pension Plus- Final Sales Literature Page 19 of 25

 approved by the Corporation and is specifically communicated in writing to the Proposer/Life
Assured.

16. Risks factors and Disclaimers :

i) LIC’s New Pension Plus is a Unit Linked Pension product, which is different from the
traditional insurance products.
ii) The premiums paid in Unit Linked Pension policies are subject to investment risks
associated with capital markets and the NAVs of the units may go up or down based on the
performance of fund and factors influencing the capital market and the Life Assured is
responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s
New Pension Plus is only the name of the unit linked pension contract and does not in any
way indicate the quality of the contract, its future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your Insurance agent or
the Intermediary or policy document of the insurer.
v) It is recommended that you read and understand this brochure & customized benefit
illustration and understand what the plan is, how it works and the risks involved before you
purchase.
vi) The various fund types offered under this contract are the names of the funds and do not in
any way indicate the quality of these plans, their future prospects and returns.
vii) All benefits under the policy are also subject to the Tax Laws and other financial enactments
as applicable from time to time.
d) The actual value of units under your policy in the IRDAI prescribed FORM D02 can be
viewed through a secured login on LIC’s Customer Portal provided on the Corporation’s
website (www.licindia.in).

17. Free look period:

If you are not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to
the Corporation within a period of 30 days from the date of receipt of the Policy Document (from
receipt of first of the electronic/physical mode) stating the reasons of objections. On receipt of the
same, the Corporation shall cancel the policy and the amount to be refunded shall be as under:

Value of units in the Unit Fund as on the date of receipt of request

Plus Premium Allocation Charge and Policy Administration Charge which have been deducted, if
any and applicable taxes thereon,
Less Actual cost of medical examination and special reports, if any,
Less Stamp duty@ Rs.0.20 per thousand of maximum Assured Death Benefit, if any.

If this policy has been purchased as QROPS as detailed in Para 10 above, the proceeds from
cancellation shall only be transferred back to the fund house from where the money was received.
In case of QROPS, above provisions shall be further subject to any specific provisions regarding
procedures as per Rules and Regulations of the HMRC in this regard.

18. Loan: No Loan facility shall be available under this plan.

19. Taxes: Statutory Taxes, if any, imposed on charges of such insurance plans by the Government of
India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of
tax as applicable from time to time.
Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this
plan, please consult your tax advisor for details.

LIC’s New Pension Plus- Final Sales Literature Page 20 of 25

20. Nomination and Assignment:
Nomination shall be as per Section 39 of the Insurance Act, 1938, as amended from time to time.
Assignment shall be as per Section 38 of the Insurance Act, 1938, as amended from time to time.
21. Exclusions:
Suicide Clause:
Notwithstanding the provision of benefits payable on death mentioned in Para 2.A., the provisions
related to claim payment in case of death due to Suicide shall be subject to the conditions as
specified herein under:
 In case of death due to suicide, within 12 months from the date of commencement of the policy
or from the date of revival of the policy, the Nominee or Beneficiary of the policyholder shall be
entitled to the Unit Fund Value available on the date of intimation of death immediately.
The Nominee or Beneficiary shall utilize the proceeds of the Policy as per the provision
mentioned in Para 2.A.ii) subject to the terms and conditions mentioned therein. The
Corporation will not entertain any other claim by virtue of this policy.
 Any charges and Tax levied thereon other than Fund Management Charges (FMC) and Tax
charges levied on FMC recovered subsequent to the date of death shall be added back to the
Unit Fund Value as available on date of intimation of death.
 Any Guaranteed Additions added subsequent to the date of death shall be recovered from the
Unit Fund.

22. Benefit Illustration:

Illustration 1: A Regular Premium policy
Age of Life Assured (last birthday in years) 30
Policy Term (in years) 42
Premium Payment Term (in years) 42
Premium Payment Option and Mode Regular Premium payable Annually
Premium (Rs.) 30,000
Distribution Channel Offline Sale
Type of Fund Bond/Secured/Balanced/Growth

Benefits under Plan:

Particulars Benefits @ 4% p.a.(Rs.) Benefits @ 8% p.a.(Rs)

Total Maturity Benefit (Fund Value) 21,83,069 59,92,991
Annuity per annum 2,55,397 7,06,928
Net Yield= 6.53%

Note: The above annuity payable p.a. is based on the current immediate annuity plan of the
Corporation under life annuity option with considering 2% rebate on purchase price along with
existing rebate for higher purchase price, assuming policyholder shall opt to purchase annuity from
the Corporation at vesting without taking any commutation value from the accumulated fund.
Further, in arriving above annuity amount no GST is considered. However, any applicable taxes at
the time of vesting shall be considered as per the prevailing tax laws and rates. The annuity
payment shall be subject to terms and conditions of the prevailing annuity plan(s) at the time of
vesting.

LIC’s New Pension Plus- Final Sales Literature Page 21 of 25

 Benefits @ 4% p.a.(Rs) Benefits @ 8% p.a.(Rs)
End of Cumulative Cumulative Fund Value Death Fund Value Death
Policy premium Guaranteed (Rs) Benefit (Rs) Benefit
Duration (Rs) Additions (Rs) (Rs)
(Year) (Rs)
6 1,80,000 1,500 1,81,880 1,89,000 2,08,147 2,08,147
10 3,00,000 4,500 3,24,719 3,24,719 4,03,143 4,03,143
15 4,50,000 10,500 5,25,610 5,25,610 7,27,433 7,27,433
20 6,00,000 18,750 7,53,770 7,53,770 11,70,186 11,70,186
25 7,50,000 29,250 10,12,580 10,12,580 17,73,743 17,73,743
30 9,00,000 42,375 13,06,233 13,06,233 25,96,005 25,96,005
35 10,50,000 58,500 16,39,444 16,39,444 37,15,569 37,15,569
40 12,00,000 78,300 20,17,509 20,17,509 52,39,125 52,39,125
42 12,60,000 87,300 21,83,069 21,83,069 59,92,991 59,92,991

Illustration 2: A Single Premium policy

Age of Life Assured (last birthday in years) 30
Policy Term (in years) 42
Premium Payment Option Single Premium
Premium (Rs.) 1,00,000
Distribution Channel Offline Sale
Type of Fund Bond/Secured/Balanced/Growth

Benefits under Plan:

Particulars Benefits @ 4% p.a.(Rs.) Benefits @ 8% p.a.(Rs)

Total Vesting Benefit (Unit
3,69,948 14,55,283
Fund Value)
Annuity per annum 42,808 1,70,253
Net Yield= 6.85%

Note: The above annuity payable p.a. is based on the current immediate annuity plan of the
Corporation under life annuity option with considering 2% rebate on purchase price along with
existing rebate for higher purchase price, assuming policyholder shall opt to purchase annuity from
the Corporation at vesting without taking any commutation value from the accumulated fund.
Further, in arriving above annuity amount no GST is considered. However, any applicable taxes at
the time of vesting shall be considered as per the prevailing tax laws and rates. The annuity
payment shall be subject to terms and conditions of the prevailing annuity plan(s) at the time of
vesting.

Benefits @ 4% p.a.(Rs) Benefits @ 8% p.a.(Rs)

End of Cumulative Cumulative Fund Value Death Fund Value Death
Policy premium Guaranteed (Rs) Benefit (Rs) Benefit
Duration (Rs) Additions (Rs) (Rs)
(Year) (Rs)
6 1,00,000 4,000 1,08,933 1,08,933 1,36,184 1,36,184
10 1,00,000 9,000 1,24,611 1,24,611 1,78,900 1,78,900
15 1,00,000 15,250 1,46,615 1,46,615 2,49,933 2,49,933
20 1,00,000 22,750 1,72,658 1,72,658 3,47,773 3,47,773

LIC’s New Pension Plus- Final Sales Literature Page 22 of 25

 25 1,00,000 32,750 2,04,551 2,04,551 4,83,420 4,83,420
30 1,00,000 45,250 2,43,020 2,43,020 6,70,385 6,70,385
35 1,00,000 60,250 2,88,880 2,88,880 9,27,013 9,27,013
40 1,00,000 79,000 3,44,359 3,44,359 12,79,621 12,79,621
42 1,00,000 88,000 3,69,948 3,69,948 14,55,283 14,55,283

Disclaimer

i) Above illustrations are applicable to a standard life (from medical, life style and occupation point
of view) for a policy purchased offline.
ii) In these benefit illustrations 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 4% p.a. or 8% p.a., as the case may
be. The Projected Investment Rate of Return is not guaranteed and they are not 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.
iii) The above illustrations have been given considering the prevailing Tax Charge (GST) of 18%
which is subject to change from time to time.
iv) 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.
v) LIC does not authorize its agents/intermediaries, staff and officials to express their opinion on
the future performance of the “ULIP” fund, excepting the above illustrative rate of 4% and 8%
growth.

23. SECTION 45 OF THE INSURANCE ACT, 1938

The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time to time. The
simplified version of this provision is as under:

Provisions regarding policy not being called into question in terms of Section 45 of the Insurance
Act, 1938 are as follows:

1. No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of
3 yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.

2. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.

For this, the insurer should communicate in writing to the insured or legal representative or
nominee or assignees of insured, as applicable, mentioning the ground and materials on which
such decision is based.

3. Fraud means any of the following acts committed by insured or by his agent, with the intent to
deceive the insurer or to induce the insurer to issue a life insurance policy:

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 a. The suggestion, as a fact of that which is not true and which the insured does not believe to
be true;
b. The active concealment of a fact by the insured having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent.

4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the
insured or his agent keeping silence to speak or silence is in itself equivalent to speak.

5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the
Insured/beneficiary can prove that the misstatement was true to the best of his knowledge and
there was no deliberate intention to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge of the insurer. Onus of disproving is upon
the policyholder, if alive, or beneficiaries.

6. Life insurance Policy can be called in question within 3 years on the ground that any statement
of or suppression of a fact material to expectancy of life of the insured was incorrectly made in
the proposal or other document basis which policy was issued or revived or rider issued. For
this, the insurer should communicate in writing to the insured or legal representative or nominee
or assignees of insured, as applicable, mentioning the ground and materials on which decision
to repudiate the policy of life insurance is based.

7. In case repudiation is on ground of mis-statement and not on fraud, the premium collected on
policy till the date of repudiation shall be paid to the insured or legal representative or nominee
or assignees of insured, within a period of 90 days from the date of repudiation.

8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by the
insurer. The onus is on insurer to show that if the insurer had been aware of the said fact, no life
insurance policy would have been issued to the insured.

9. The insurer can call for proof of age at any time if he is entitled to do so and no policy shall be
deemed to be called in question merely because the terms of the policy are adjusted on
subsequent proof of age of life insured. So, this Section will not be applicable for questioning
age or adjustment based on proof of age submitted subsequently.

[Disclaimer: This is not a comprehensive list of Section 45 of the Insurance Act, 1938 and only a
simplified version prepared for general information. Policy Holders are advised to refer to the
Section 45 of Insurance Act, 1938, for complete and accurate details.]

24. Prohibition of Rebates (Section 41 of the Insurance Act, 1938):

1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission payable or any
rebate of the premium shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed in accordance with
the published prospectuses or tables of the insurer.

2) Any person making default in complying with the provisions of this section shall be liable for a
penalty which may extend to ten lakh rupees.

Various Sections of the Insurance Act, 1938 applicable to LIC to apply as amended from time to
time.

LIC’s New Pension Plus- Final Sales Literature Page 24 of 25

 This product brochure gives only salient features of the plan. For further details please refer to the
Policy document on our website www.licindia.in or contact our nearest Branch Office.
To purchase the policy online please log on to www.licindia.in.

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS

IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment
of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai-400021
Website: www.licindia.in
Registration Number: 512

LIC’s New Pension Plus- Final Sales Literature Page 25 of 25