Page 24 - Life Insurance Today February 2018

9. Paid-up: be payable for the completed policy years for which
If less than one year’s premium has been paid and any the policy was inforce, provided the premiums have
subsequent premium be not duly paid, all the benefits been paid for atleast 5 full years and after completion
under the policy shall cease after the expiry of grace of 5 policy years.
period and nothing shall be payable. Rider(s) shall not acquire any paid-up value and the

However, after atleast one full year’s premium has rider benefit(s) cease to apply, if policy is in lapsed
been paid and on completion of one policy year and condition.
any subsequent premiums be not duly paid, the policy
shall not be void but shall continue as a paid-up policy 10. Revival:
till the end of policy term. If premiums are not paid by the end of the grace
The Sum Assured on Death under a paid-up policy period then the policy will lapse. A lapsed policy can
shall be reduced to such a sum, called “Death Paid- be revived within a period of 2 consecutive years from
the date of first unpaid premium by paying all the
up Sum Assured” and shall be equal to [Sum Assured
on Death * (Number of premiums paid / Total arrears of premium together with interest
Number of premiums payable)]. In addition to the (compounding half-yearly) at such rate as fixed by the
Death Paid-up Sum Assured the Guaranteed Additions Corporation at the time of the payment, subject to
accrued upto the date of First Unpaid Premium along submission of satisfactory evidence of continued
with Loyalty Addition, if any, shall also be payable on insurability.
death. The Corporation reserves the right to accept at
original terms, accept at modified terms or decline
The Sum Assured on Maturity under a paid-up policy
the revival of a discontinued policy. The revival of
shall be reduced to such a sum called “Maturity Paid-
discontinued policy shall take effect only after the
up Sum Assured” and shall be equal to [Sum Assured
same is approved by the Corporation and is
on Maturity * (Number of premiums paid / Total
Number of premiums payable)]. In addition to the specifically communicated in writing to the Life
Maturity Paid-up Sum Assured.
Assured, the Guaranteed Additions accrued upto the If the revival period falls beyond the premium paying
term and the policy is revived after the due date of
date of First Unpaid Premium along with Loyalty
survival benefit, then the difference between full
Addition, if any, shall also be payable on maturity.
Survival Benefit payable under inforce policy and
The survival benefits payable under a paid-up policy
Survival Benefit already paid considering paid-up
shall be equal to [(survival benefit payable under policy shall be paid.
inforce policy) * (Number of premiums paid / Total
Number of premiums payable)] and shall be payable Revival of rider(s), if opted for, will be considered
on Life Assured surviving to each of the specified along with revival of the Base Policy, and not in
duration during the policy term. isolation.

However, if option to defer the Survival Benefit(s) has 11. Surrender Value:
been exercised and payment of such Survival The policy can be surrendered at any time provided
Benefit(s) have not yet been made, these increased one full year’s premium has been paid and after
Survival Benefit(s) as specified in Para 4.II above shall
be payable on termination of policy in the form of completion of one policy year. On surrender of the
death or maturity or surrender. policy, the Corporation shall pay the Surrender Value
equal to higher of Guaranteed Surrender Value and
The inbuilt Critical Illness Benefit under a paid-up Special Surrender Value.
policy, provided the same has not been admitted The Special Surrender Value is reviewable and shall
earlier, shall be equal to (10% of Basic Sum Assured) be determined by the Corporation from time to time
*(number of premiums paid / total number of subject to prior approval of IRDAI.
premiums payable) and shall be payable on first
diagnosis of any of the specified critical illnesses. The Guaranteed Surrender Value payable during the
policy term shall be equal to the total premiums paid
Under a Paid-up policy, Loyalty Addition , if any, shall
multiplied by the Guaranteed Surrender Value factor
24 February 2018 Life Insurance Today

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