The Eligibility Conditions and benifits of LIC User


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The following are the Eligibility Conditions and restrictions for one to open LIC account

The below chart would gives the details about the basic plan for standard healthy lives without undergoing any medical examination.

a) Minimum Basic Sum Assured per life*: Rs. 75,000
b) Maximum Basic Sum Assured per life*
(The Basic Sum Assured shall be in multiples of Rs. 5000/-)
: Rs. 200,000
c) Minimum Age at entry: 8 years (completed)
d) Maximum Age at entry: 55 years (nearest birthday)
e) Minimum Policy Term: 10 years
f) Maximum Policy Term: 20 years
h) Maximum Age at Maturity: 70 years (nearest birthday)

* The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed Rs. 2 lakh.

If one met with an accident

The following will be LIC’s Accident Benefit Rider
a.) Minimum Accident Benefit Sum Assured                                        : Rs. 75,000
b.) Maximum Accident Benefit Sum Assured                                       : An amount equal to the Basic Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh overall limit taking all existing policies of the Life Assured under individual as well as group schemes including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.
The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000.
c.) Minimum Entry Age                                                                        : 18 years (completed)
d.) Maximum Entry Age                                                                       : The cover can be opted for at any policy anniversary during the policy term
e.) Maximum Cover Ceasing Age                                                        : Same as under the Basic Plan.


The payments and Premiums 

  • Premiums can be paid according to the plan, either regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy.
  • Moreover, a grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

Accident Benefit Rider does not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.

Some of the Annual premium rates
Following are some of the sample tabular annual premium rates (exclusive of service tax) per Rs. 1000/- Basic Sum Assured:


























Revival of Accident Benefit rider, if opted for, will be considered along with revival of the Basic Policy, and not in isolation.

Information about paid-up value

  • If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy.
  • The Basic Sum Assured under the policy shall be reduced to such a sum, called Paid-up Sum Assured and shall bear the same ratio to the Basic Sum Assured as the no. of premiums paid bears to the total number of premiums i.e. Basic Sum Assured *(no. of premiums paid / no. of premiums payable).This Paid-Up Sum Assured is payable on expiry of the policy term or on Life Assured’s prior death.

    The Surrender Value

  • The policy can be surrendered for cash provided atleast three full years’ premiums have been paid.
  • The Guaranteed Surrender Value shall be a percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for Accident Benefit rider, if opted for.
  • This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as below:

The policy loan.
The loans are valid under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify accordingly from time to time.

Know about the taxes

  • The Tax laws and the rate of tax is applicable from time to time.
  • The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.Some of the exclusion of LIC
  • Suicide: – This policy shall be void
    (i)  If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and Accident Benefit rider premium, if any, provided the policy is inforce.(ii) If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and Accident Benefit rider premium, if any,) or the surrender value, shall be payable. The Corporation will not entertain any other claim under this policy.


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