. Introduction: • This is a Standard Immediate Annuity plan as per the guidelines of Insurance Regulatory and Development Authority of India (IRDAI), which offers same terms and conditions across all the life insurers. • The Policyholder has an option to choose type of annuity from two available options on payment of a lump sum amount. • The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the life time of Annuitant(s). • This plan can be purchased offline as well as online through LIC’s website www.licindia.in. 2. Annuity Options: The available annuity options under this plan are as under: Option I: Life Annuity with Return of 100% of Purchase Price. Option II: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor. Annuity option once chosen cannot be altered. 3. Benefits: Benefits payable under above options are: Option Benefits Option I • The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. • On death of the annuitant, the annuity payment shall cease immediately and 100% of Purchase Price shall be payable to nominee(s)/legal heirs. Option II • The annuity amount shall be paid in arrears for as long as the Annuitant and/or spouse are alive, as per the chosen mode of annuity payment. • On death of the last survivor, the annuity payments will cease immediately and 100% of Purchase Price shall be payable to the nominee(s)/legal heirs. 4. Eligibility Criteria: i. Minimum Age at Entry: 40 years (completed) ii. Maximum Age at Entry: 80 years (completed) iii. Minimum Annuity: Annuity Mode Monthly Quarterly Half-yearly Annual Minimum Annuity `1,000 per month `3,000 per quarte ` 6,000 per half year `12,000 per annum iv.Minimum Purchase Price: Minimum Purchase price shall depend on the Minimum Annuity as specified in (iii) above, Option chosen and age of the Annuitant. v. Maximum Purchase Price: No Limit Note: 1) The Joint Life Annuity, i.e. Option II, can be taken with spouse only. 2) For Joint life annuity options, age of spouse shall also be subject to Minimum Entry age as specified in (i) and Maximum Entry Age as specified in (ii) above. 5. Mode of Annuity payment: The modes of annuity available are yearly, half-yearly, quarterly, and monthly. The Annuity shall be payable in arrears i.e. the annuity payment shall be after 1 year, 6 months, 3 months and 1 month from the date of commencement of policy depending on whether the mode of annuity payment is Yearly, Half yearly, Quarterly and Monthly respectively. 6. Incentives: The following incentives are available under this plan: i. Incentive for higher purchase price by way of increase in the annuity rate is as under: Mode of Annuity For ` 1000/-Purchase price (in `) Less than 5,00,000 5,00,000 to 9,99,999 10,00,000 to 24,99,999 25,00,000 and above Yearly Nil 0.80 1.45 1.80 Half Yearly Nil 0.75 1.40 1.75 Quarterly Nil 0.70 1.35 1.70 Monthly Nil 0.65 1.30 1.65 ii. Incentive for Online Sale by way of increase in the annuity rate is as under: A rebate of 2% by way of increase in annuity shall be available for policies purchased Online. 7. Illustration: Purchase Price : `. 10 lakh (excluding applicable taxes) Annuity Mode : Yearly Age of Annuitant at entry : 60 years (completed) Age of Spouse at entry : 55 years (completed) (applicable for Option II only) Annuity Option Annuity Amount (`) Option I: Life Annuity with Return of 100% of Purchase Price 51,650 Option II: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor. 51,150 For death benefit under above options, please refer to Para 3 above. 8. Surrender Value: The policy can be surrendered at any time after six months from the date of commencement, if the annuitant or spouse or any of the children of the annuitant is diagnosed as suffering from any of the specified critical illnesses as Annexure, based on the documents produced to the satisfaction of the medical examiner of the Corporation. On approval of the surrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of any outstanding loan amount and the loan interest, if any. On payment of the surrender value, all other benefits shall cease and the policy shall terminate. Any change in the surrender value calculation method shall be applicable only after the prior approval of IRDAI. Note: The insurance policy being a long term contract should be taken from the long term perspective of continuing the policy. While there is provision for surrender, it may be noted that there can be significant loss on surrender of a policy and hence, it is advisable to continue the policy. 9. Loan: The Policy loan shall be allowed at any time after six months from the date of commencement of the policy. Under joint life annuity option, the loan can be availed by the Annuitant and on death of Annuitant the same can be availed by the spouse. The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount payable under the policy. Loan interest will be recovered from annuity amount payable under the policy. The Loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the due date of annuity. The loan outstanding shall be recovered from the claim proceeds under the policy. However, the annuitant has the flexibility to repay the loan principal at any time during the currency of the annuity payments. The loan interest rate for all the loans commencing during the 12 months’ period from 1st May to 30th April, shall be annual effective rate equal to 10 year G-Sec rate p.a. plus 200 basis points. The 10 year G-Sec rate shall be as at 1st April of relevant financial year. The calculated interest rate shall be applicable for full term of Loan. For the loan sanctioned during the 12 months’ period commencing from 1st May, 2021 to 30th April, 2022, the applicable interest rate is 8.44% p.a. effective for entire term of the loan. Any change in basis of determination of interest rate for policy loan shall be subject to prior approval of IRDAI 10. Tax: Statutory Taxes, if any, imposed on such insurance plans by the Govt. 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. The amount of any applicable taxes (such as GST), payable as per the prevailing rates, shall be payable by the policyholder on Premium payable under the policy, which shall be collected separately in addition to the Premium payable by the policyholder. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan. 11. Free Look Period: If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the Premium paid after deducting the charges for stamp duty and annuity paid, if any. The treatment of the policy shall be as below: a) For standalone immediate annuity policies: The proceeds from cancellation shall be returned to the policyholder. b) If this policy is purchased out of proceeds of a deferred pension plan of any other insurance company: The proceeds from cancellation will be transferred back to the insurance company. 12. SECTION 45 OF 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 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. 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: 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. Policyholders are advised to refer Section 45 of the Insurance Act, 1938, for complete and accurate details.] 13. Prohibition of rebates Section 41 of Insuran

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