Women's Life Insurance Policies

There are customised life insurance policies for women, whether they are working, working
from or at home or are housewives. Know more about these policies and the coverage
provided.

Bienu M Vaghela
22 Apr 2008
Over the ages, traditionally, women have been home makers in India. The scenario has
changed drastically in recent times. The Indian woman's transition from home maker to
bread winner has been phenomenal. Moreover, they have taken a march over their male
counterparts by juggling with aplomb multidimensional roles - professional, home-maker,
mother, financial planner...

With this in mind, we turn our sights on women's life insurance.

In this country, in the early years of the insuranceindustry, the trend was to insure only male
lives. The logic was that the female of the species was home-bound anyway, wasn't exposed
to any risk, and consequently didn't need any sort of insurance. The bread winner was the
male and it was against his lost income that cover was required. A major additional
disincentive was the extra risk to female lives that was an inevitable part of the childbirth
process.

All that has changed with women rivaling men at the workplace (and frequently doing a
better job than them). In addition, better education for the female child, increased economic
contribution by women, better medical facilities for safer childbirth and post-natal care have
all contributed to more and more insurance products that are women-specific.

In life insurance terms, women are broadly divided into three categories:

• Working women
• Women with income by way of interest, dividend, rent, etc., that are taxable
• Housewives/home-makers who (in purely technical terms) do not have an income

The first two categories are no different from their male counterparts i.e. they are treated on
par with them for insurance purposes. A housewife, on the other hand, has her insurability
tied to adequate life insurance cover for her husband as well as his income. For instance, a
housewife's life insurance cover cannot exceed her husband's.

Apart from this caveat, all basic covers such as life, personal accident, mediclaim, critical
illness etc. form a part of women's life insurance policies too.

There are also some special covers afforded in women's life insurance policies that include:
• Cover for certain female critical illnesses
• Occurrence of certain congenital disabilities in new-borns
• Cradle care - covers the newly born child's defects, deformity, malformation,
congenital abnormality of any kind at time of delivery

Now come the exclusions to the above-mentioned special covers:

• Post delivery complications
 • Still-born child
• Death of the mother during childbirth
• Miscarriage, infanticide
• Any defect that is not congenital
• Malfunctioning of any organ (as opposed to malformation)
• Any defect, which manifests itself after 200 days of the delivery

Most of these policies are benefit-only policies i.e., they come to effect on the specified event
happening. Another important point - most pre-natal and birth-related policies have to be
taken not later than the 20th week of pregnancy.

Womankind carries the future of the race, literally. They can never be thanked enough for
the commitment, pain, and dedication they bring to their various avatars as home-maker,
mother, wife, and professional. Having said that, these insurance policies can go a fair bit in
reducing the monetary impact of the loss of the woman in a home.
JEEVAN BHARATI INSURANCE POLICY BY LIC (table: 160)

Features of plan
This is an exclusive Money back policy for women only with female critical Illness (FCI)
and congenital disability benefit (CDB). This plan encourages women to save for safety. it
provides free insurance cover for three years if first two years premium has been paid. It
has an option to en cash the survival benefit as and when needed. Flexibility to pay
premium in advance and avail premium rebate of 4% per annum option to receive
maturity proceed in the form of an annuity.
This plan is not allowed for pregnant ladies and the proposers who already have children
with congenital disabilities. Waiting period will be 6 months for FCI Benefits & 1 years for
CDB Benefit. Lives attracting EMR class II (by build only) will be accepted female lives
with physical disability attracting std. extra of Rs.2 per 1000 S.A. under group "A" only
will be eligible.

Female critical (FCI) benefit: a benefit equal to the S.A. (subject to a maximum of
Rs.2Lacs, will be available on the occurrence of any of the following critical Illnasses.
Breast cancer; ovarian/ fallopian tube cancer; cervical cancer; uterine cancer; vaginal/
vulval cancer

Congenital disability benefit (CDB): if a child born to the policyholder, suffers from
any of the congenital disabilities listed below, a benefit equal to 50 % of the S.A. (subject
to a maximum of Rs.1Lac) will be available for two children. Conditions apply. The list of
congenital disabilities: downs syndrome; spina bifida; Tetralogy of fallot; oesophageal
atresia & tracheo-oesaphageal
Fistula, anal atresia, imperforate anus, cleft palate with or with or without cleft Lip.

Paid-up/ Guaranteed special surrender value: it is eligible after the expiry of 3 yrs.
If the premium have been paid fully.

Plan parameters
Age at entry: Min.18 yrs Max. 50 yrs
Maturity age: Max. 70 yrs
Term allowed: 15 & 20 yrs
Sum assured: Min.50,000 Max.25 Lac
S.A. in multiples: 5,000
Mode of payment: YLY only
Accident benefit: Rs.1 extra per
(Max. 50 Lac inclusive 1000 SA
All plans)
Policy loan: N.A.
Housing loan: N.A.
Assignment: yes
Revival: yes
Surrender of policy: yes
 Term rider: N.A.
CIR: N.A.

Underwriting condition
Form no: 300+ addendum
Age proof: std/NSAP-1
Female lives category: I/II/III
Medical exam: must (female medical examiner only)
Actual sum assured: 1.5 times SA
Risk coverage: SA+GA +Bonus (bonus after 1st 5 yrs)
Dating back @ 8%: Allowed

BENEFIT
Survival benefit: 20% of the S.A. at the and of 5/10/15 years for 20 years term
(balance payable on maturity plus guaranteed addition plus bonus if any)

Maturity benefit: for policy term of years: 60% of the S.A. + G.A and bonus after 1st
yrs. As declared, will be paid.

Death benefit: on death within the 1st policy years S.A.+G.A will be paid on death after
5 policy years S.A.+ G.A.+ Bonus, if any irrespective of all earlier survival benefit paid is
payable.

Example: Mrs. Ambani aged 30 yrs. Is a working woman. she opts for jeevan bharati plan
for term 20 yrs. And SA Rs.2 Lac She pays an annual premium of Rs.14910. after 5,10,15
years each she will get 20% of S.A. i.e. Rs.40,000. at the end of 20 yrs. She will get
Balance S.A. + G.A Bonus if any i.e. Rs.80,000 +50 x 20 x 200 (bonus assured as 50 per
1000 SA)
= 80,000 +1000 SA terminal bonus, if any
= 2,80,000+ terminal bonus, if any

on death after 4 years her nominee will get S.A + G.A

= 2,00,000 + 50 X 4X 200
= 2,00,000 + 40,000
= 2,40,000 + Terminal Bonus, if any.

pecial Money Back Plan for Women

LIC Jeevan Bharati 1 Table No. 192
Summary:

LIC’s Jeevan Bharati –I Plan no.192 has been designed exclusively for females. This is a money
back plan having optional Accident Benefit, Critical Illness Benefit and Congenital Disability Benefit
as Riders.
Benefits:

a) Death Benefit:
An amount equal to the Sum Assured under the basic plan along with Reversionary Bonuses, and
Final Addition Bonus, if any, will be payable.

b) Survival Benefits:
Survival benefits will be payable as given below:

% Of SA under the Basic plan

Survival to 15-year 20-year
end of plan plan
5 yrs 20% 20%
10 yrs 20% 20%
15 yrs - 20%

c) Maturity Benefit:

For policy term of 15 years: 60% of the Sum Assured under the basic plan along with vested
Reversionary Bonuses and Final Additional Bonus, if any, will be payable.

For policy term of 20 years: 40% of the Sum Assured under the basic plan along with vested
Reversionary Bonuses and Final Additional Bonus, if any, will be payable.

Optional Benefits:

a) Critical Illness Benefit Rider :

An amount equal to the Critical Illness Rider Sum Assured will be payable in case of diagnosis of
defined categories of Critical Illness subject to certain terms and conditions, provided the Critical
Illness Benefit cover is opted for and is in force. The maximum cover for this rider will be Rs.5 lakh
under all policies of the Life Assured with the Corporation taken together including the new proposal
under consideration. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured
under the Basic Plan.

b) Accident Benefit Rider :

Accident Benefit as optional rider will be available under the plan for an amount equal to the
Accident Benefit Rider Sum Assured subject to the maximum of Rs.50 lakh overall limit considering
the Accident Benefit Sum Assured in respect of all existing policies on the life of the Life Assured
under individual and group policies including the policies taken from Life Insurance Corporation of
India and other Insurance companies and the Accident Benefit Rider Sum Assured under new
proposal into consideration.
c) Congenital Disability Benefit Rider : An Amount equal to 50% of the Congenital Disability
Benefit Rider Sum Assured will be payable if the Life Assured gives birth to a child with specified
congenital disabilities. This benefit is payable for a maximum of 2 such congenitally disabled
children.

Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Riders under all policies of the
life assured including the new proposal into consideration.

Special Features:

i. Encashment of survival benefits as and when needed:

A policyholder can take the survival benefits on or after the due dates, but before the date of
maturity. In case of deferment of a due survival benefit, the Corporation will pay increased survival
benefit and the increment will be at such rate as decided by the Corporation from time to time
compounding yearly for complete number of months, a fraction of a month being ignored. This
option shall be required to be exercised six months before the due date of the Survival Benefit. To
start with, the rate of increment will be 4% p.a. compounding yearly for complete number of
months, ignoring fraction of a month.

ii. Flexibility to pay premiums in advance:

A policyholder will have the flexibility to pay the next yearly premium in advance (in maximum
three installments). The policyholder will be eligible for a premium rebate at such rate as may be
decided by the Corporation from time to time. The premium mentioned above will also include
premiums for Critical Illness Rider, Congenital Disability Benefit Rider and Accident Benefit Rider, if
opted for. She will be eligible for a premium rebate of 5% p.a. for complete number of months on
the portion of premium paid.

iii. Option to receive maturity benefits in the form of an annuity:

The policyholder will have the option (to be exercised 6 months before the date of maturity) to
receive the maturity proceeds (including bonuses) in the form of an annuity. The immediate annuity
rates prevalent at the time of maturity will be applicable.

iv. Auto cover :

Provided at least two years’ premiums have been paid under a policy, full death cover will be
admissible for a period of three years from the date of first unpaid premium. If death of Life
Assured occurs during the Auto Cover period, then death benefit after deducting unpaid premiums,
with interest will be payable along with the vested bonuses and Final Additional Bonus, if any.
However, claims under the Critical Illness Rider, Congenital Disability Benefit Rider and Accident
benefit will not be admissible during Auto Cover period. Further,

(a) If Critical Illness Rider is not opted for:

If any survival benefit falls due during the above 3-year auto cover period the same will be paid
after deduction of unpaid premiums with interest thereon until the due date of the survival benefit,
provided it is more than the unpaid premiums with interest thereon. If the survival benefit is
insufficient to cover the arrears of premiums with interest thereon up to the due date of such
survival benefit, then the survival benefit will be payable only on payment of such arrears of
premiums with interest thereon, during the period of the aforesaid 3 years or on revival of the
policy thereafter.

(b) If Critical Illness Rider is opted for:

If any survival benefit falls due during the above 3-year auto cover period the same will be paid
only on revival of the policy.

Loans:
Loan facility will be available under this plan after the policy acquires paid up value. The rate of
interest charged for this loan amount would be determined from time to time by the LIC Of India.

Eligibility Conditions and Restrictions Basic Plan

a) Minimum Sum Assured : Rs.50,000/-

b) Maximum Sum Assured : Rs 25,00,000/-
c) Minimum age at entry : 18 years completed.
d) Maximum age at entry : 55 years nearest birthday
e) Maximum age at maturity : 70 years nearest birthday
f) Policy Term : 15 & 20 years

The Sum Assured shall be in multiples of Rs. 5,000.

Accident Benefit Rider:

a) Minimum Sum Assured : Rs. 50,000
b) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic Plan subject to
the maximum of Rs.50 lakh overall limit considering the Accident Benefit Sum Assured in respect of
all existing policies on the life of the Life Assured under individual and group policies including the
policies taken from Life Insurance Corporation of India and other Insurance companies and the
Accident Benefit Rider Sum Assured under new proposal into consideration.

The Sum Assured shall be in multiples of Rs. 5,000.

c) Minimum Entry Age : 18 years completed
d) Maximum Entry Age : 55 years nearest Birthday
e) Policy Term : 15 & 20 years
f) Maximum Maturity Age : 70 years nearest Birthday.

Critical Illness Rider:

a) Minimum Sum Assured : Rs. 50,000
b) Maximum Sum Assured: An amount equal to Critical Illness Rider Sum Assured subject to the
maximum of Rs.5 lakh overall limit taking all critical illness riders under all existing policies of the
life assured and the critical illness rider option under the new proposal into consideration.

The Sum Assured shall be in multiples of Rs.10,000/-.

c) Minimum Entry Age : 18 years completed
d) Maximum Entry Age : 50 years nearest Birthday
e) Policy Term : Same as basic plan or till age 60 years nearest birthday whichever is earlier. If
PWB is opted for, then the term of the rider should be same as that of the term of the basic plan.
f) Maximum Maturity Age : 60 years nearest Birthday. If PWB (under the Critical Illness Rider) is
opted for, then the following conditions apply:
(i) The term of all the riders opted for must be same as that of the basic plan.
(ii) The Sum Assured of all the riders opted for must be same as that of the basic plan.

Congenital Disability Benefit Rider:

a) Minimum Sum Assured : Rs.50,000
b) Maximum Sum Assured : Rs 500,000
Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Rider under all policies of the
life assured including the new proposal into consideration.
c) Minimum Entry Age : 18 years completed
d) Maximum Entry Age : 35 years nearest birthday
e) Maximum Benefit Ceasing Age : 40 years nearest birthday
f) Terms allowed : Same as the basic plan or till age 40 years (nearest birthday, whichever is
earlier.)
Sum Assured will be in multiples of Rs 5000 only.

Mode of Premium Payment :

Only Yearly mode of Premium Payment is allowed under Jeevan Bharati 1 plan.

Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy
to Life Insurance Corporation Of India within 15 days.

The Unique Identification Number (UIN) for LIC’s Jeevan Bharati – I plan is 512N247V01.