LIC Digi Term Plan

LIC’s Digi Term is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan,
which provides financial protection to the insured’s family in case of his/
her unfortunate death during the policy term.
This is a non-par product under which benefits payable on death are
guaranteed and fixed irrespective of actual experience. Hence the policy is
not entitled to any discretionary benefits like bonus etc. or share in Surplus.

1. LIC Digi Term Plan KEY FEATURES:
• Flexibility to choose from two Death Benefit options: Level Sum
Assured and Increasing Sum Assured.
• Flexibility to
o Choose from Single Premium, Regular Premium and Limited
Premium Payment
o Choose the Policy Term/Premium Paying Term
o Opt for payment of benefit in instalments.
• Special rates for women.
• Benefit of attractive High Sum Assured Rebate.
• Two categories of premium rates namely (1) Non-Smoker rates and
(2) Smoker rates. The application of Non-Smoker rates shall be based
on the findings of the Urinary Cotinine test. In all other cases, the
Smoker rates will be applicable.

2. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:
a) Minimum Age at entry : [18] years (Last Birthday)
b) Maximum Age at entry : [45] years (Last Birthday)
c) Minimum Age at Maturity : [33] years (Last Birthday)
d) Maximum age at Maturity : [75] years (Last Birthday)
e) Minimum Basic Sum Assured : Rs. 50,00,000/-.
f) Maximum Basic Sum Assured : Rs. 5,00,00,000*
(*The Basic Sum Assured above Rs. 5,00,00,000 (Five Crore) may be considered
on case to case basis in accordance with underwriting decision as per the
Board Approved Underwriting Policy subject to the decision of Reinsurer on
acceptance/ Terms and Conditions for acceptance of such case.)

The Basic Sum Assured shall be in multiples of amount specified
below:
Basic Sum Assured range Sum Assured Multiple
From Rs. 50,00,000/- to Rs. 75,00,000/- Rs. 1,00,000/-
Above Rs. 75,00,000/- to Rs. 1,50,00,000/- Rs. 25,00,000/-
Above Rs. 1,50,00,000/- to Rs. 4,00,00,000/- Rs. 50,00,000/-
Above Rs. 4,00,00,000/- Rs. 1,00,00,000/-
g) Policy Term and Premium Payment Term:
• Premium Payment Term: Regular, Limited Premium of 10 years,
Limited Premium of 15 years, Single Premium
• Policy Term: 15 to 40 years under Regular/Single/Limited Premium of
10 years
• Policy Term: 20 to 40 years under Limited Premium of 15 years
h) Minimum Premium : The minimum instalment premium will be
Rs. [3,000] for Regular/ Limited premium
payment policies
Rs. [30,000] for Single premium payment
policies

3. LIC Digi Term Plan BENEFITS:
Benefits payable under an in-force policy shall be as under:
A. Death Benefit: Death benefit payable on death of the Life Assured
during the policy term after the date of commencement of risk but
before the date of maturity, provided the policy is inforce and claim is
admissible shall be “Sum Assured on Death”.
Under Regular premium and Limited premium payment, “Sum Assured
on Death” is defined as the highest of:
• 7 times of Annualised Premium; or
• 105% of “Total Premiums Paid” upto the date of death; or
• Absolute amount assured to be paid on death.
Under Single premium payment, “Sum Assured on Death” is defined as
the higher of:
• 125% of Single Premium; or
• Absolute amount assured to be paid on death.
Where,
i. “Annualized Premium” shall be the premium amount payable in a year,
excluding the taxes, rider premiums, underwriting extra premiums and
loadings for modal premiums,

ii. “Total Premiums Paid” means total of all the premiums paid under the
base product, excluding any extra premium, and taxes.
iii. “Single Premium” shall be the premium amount payable, excluding the
taxes, rider premiums, underwriting extra premiums.
Absolute amount assured to be paid on death shall depend on Death
Benefit Option chosen at the time of taking this policy and is as under:
o Option I: Level Sum Assured
Absolute amount assured to be paid on death shall be an amount equal
to Basic Sum Assured, which shall remain the same throughout the
policy term.
o Option II: Increasing Sum Assured
Absolute amount assured to be paid on death shall remain equal to Basic
Sum Assured till completion of fifth policy year. Thereafter, it increases
by 10% of Basic Sum Assured each year from the sixth policy year till
fifteenth policy year till it becomes twice the Basic Sum Assured. This
increase will continue under an inforce policy till the end of policy term;
or till the Date of Death; or till the fifteenth policy year, whichever is
earlier. From sixteenth policy year and onwards, the Absolute amount
assured to be paid on death remains constant i.e. twice the Basic Sum
Assured till the policy term ends.
For example, Absolute amount assured to be paid on death under a
policy with Basic Sum Assured of Rs. X will be Rs. X till the end of fifth
policy year, Rs. 1.1X during the sixth policy year, 1.2X during seventh
policy year, increasing so on by 10% of Basic Sum Assured each year till
it becomes 2X in fifteenth policy year. From sixteenth policy year and
onwards, the Absolute amount assured to be paid on death will be 2X.
The Death Benefit Option once chosen cannot be changed later:

B. LIC Digi Term Plan Maturity Benefit:
On survival of the life assured to the end of the policy term, no maturity
benefit is payable.
4. LIC Digi Term Plan OPTIONS AVAILABLE:
Option to take Death Benefit in instalments:
This is an option to receive Death Benefits in instalments over a
period of 5 or 10 or 15years instead of lump sum amount under an
inforce policy. This option can be exercised by Life Assured during
his/her lifetime; for full or part of Death benefits payable under the
policy. The amount opted by the Life Assured (i.e. Net Claim Amount)
can be either in absolute value or as a percentage of the total claim
proceeds payable.

The instalments shall be paid in advance at yearly or half-yearly or
quarterly or monthly intervals, as opted for, subject to minimum
instalment amount for different modes of payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-
If the Net Claim Amount is less than the required amount to provide
the minimum instalment amount as per the option exercised by the Life
assured, the claim proceed shall be paid in lump sum only.
For all the instalment payment options commencing during the 12
months’ period from 1st May to 30th April, the interest rate used to
arrive at the amount of each instalment shall be annual effective rate
not lower than the 10 year semi-annual G-Sec yield p.a. minus 2%;
where, the 10 year semi-annual G-Sec yield shall be as at last trading
day of previous financial year.
Accordingly, for the 12 months period commencing from 1st May, 2024
to 30th April, 2025, the applicable interest rate for the calculation of
the instalment amount shall be 5.07% p.a. effective.
For exercising option to take Death Benefit in instalments, the Life
Assured can exercise this option during his/her lifetime while in
currency of the policy, specifying the Net Claim Amount for which the
option is to be exercised. The death claim amount shall then be paid
to the nominee as per the option exercised by the Life Assured and no
alteration whatsoever shall be allowed to be made by the nominee.

5. LIC Digi Term Plan PAYMENT OF PREMIUMS:
Regular Premium payment, Limited Premium payment or Single
Premium payment options are available under this plan. In case of
Regular and Limited Premium payment, the premium can be paid
regularly during the Premium Paying Term with modes of premium
payment as Yearly or Half Yearly.
The premium payable will depend on the age at entry of the life to
be assured, smoking status, gender, policy term, Premium Paying
Term and Death Benefit Option chosen. Under Single Premium,
minimum premium shall be Rs 30,000/-. Under Regular and Limited
Premium mode, the minimum instalment premium shall be Rs 3,000/-.

If calculated instalment premium is less than the minimum premium
amount, any of the proposed policy parameters shall be modified in
such a way that the revised instalment premium shall be greater than
or equal to minimum instalment premium.
6. GRACE PERIOD (Applicable For Regular And Limited Premium Payment):
A grace period of 30 days shall be allowed for payment of yearly or
half-yearly premiums from the date of First Unpaid Premium. During
this period, the policy shall be considered inforce with the risk cover
without any interruption as per the terms of the policy. If the premium
is not paid before the expiry of the days of grace, the Policy lapses.
All the benefits shall cease after the expiry of grace period from the
date of First Unpaid Premium under such policies and nothing shall be
payable.
7. SAMPLE ILLUSTRATIVE PREMIUM:
The sample illustrative premiums for both Option I (Level Sum Assured)
and Option II (Increasing Sum Assured) for Basic Sum Assured of Rs.
50 Lakh for Non-Smoker, Male, Standard lives under different Premium
Payment options are as under:
Option I (Level Sum Assured):
Age (Last
Birthday)
Policy
Term
Regular
Annual
Premium
(in Rs.)
Annual
Premium
for Limited
Premium
Paying Term
of 15 Years
(in Rs.)
Annual
Premium
for Limited
Premium
Paying Term
of 10 Years
(in Rs.)
Single
premium
(in Rs.)
20 20 3600 4100 5200 37750
30 20 4700 5400 6950 50850
40 20 9400 10850 14050 104900
The above premiums are exclusive of taxes.

Option II (Increasing Sum Assured):
Age (Last
Birthday)
Policy
Term
Regular
Annual
Premium
(in Rs.)
Annual
Premium
for Limited
Premium
Paying Term
of 15 Years
(in Rs.)
Annual
Premium
for Limited
Premium
Paying Term
of 10 Years
(in Rs.)
Single
premium
(in Rs.)
20 20 4650 5350 6850 50100
30 20 6600 7650 9850 72950
40 20 14400 16750 21700 163250
The above premiums are exclusive of taxes.

8. REBATES:
The following rebates shall be applicable:
(i) High Sum Assured Rebate (Applicable for Regular, Limited & Single
Premium payment:
The rebates for High Basic Sum Assured (BSA) as a percentage of tabular
Annual/ Single Premium are as under:
a) Under Option I: Level Sum Assured
Regular/ Limited Premium:
Age Band
(Last
Birthday)
High SA rebate as a % of Tabular Annual Premium
for different BSA
Rs. 50 Lakh
to less than
Rs. 1 Crore
Rs. 1 Crore
to less than
Rs. 2 Crore
Rs. 2 Crore
to less than
Rs. 5 Crore
Rs. 5 Crore
and above
Up to
30 years Nil 18% 30% 37%
31 to 45
years
Nil 16% 28% 33%
Single Premium:
Age Band
(Last
Birthday)
High SA rebate as a % of Tabular Single Premium
for different BSA
Rs. 50 Lakh
to less than
Rs. 1 Crore
Rs. 1 Crore
to less than
Rs. 2 Crore
Rs. 2 Crore
to less than
Rs. 5 Crore
Rs. 5 Crore
and above
Up to
30 years Nil 17% 27% 30%
31 to 45
years
Nil 15% 25% 27%

b) Under Option II: Increasing Sum Assured
Regular/ Limited Premium:
Age Band
(Last
Birthday)
High SA rebate as a % of Tabular Annual Premium
for different BSA
Rs. 50 Lakh
to less than
Rs. 1 Crore
Rs. 1 Crore
to less than
Rs. 2 Crore
Rs. 2 Crore
to less than
Rs. 5 Crore
Rs. 5 Crore
and above
Up to
30 years Nil 16% 26% 33%
31 to 50
years
Nil 14% 24% 29%
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Single Premium:
Age Band
(Last
Birthday)
High SA rebate as a % of Tabular Single Premium
for different BSA
Rs. 50 Lakh
to less than
Rs. 1 Crore
Rs. 1 Crore
to less than
Rs. 2 Crore
Rs. 2 Crore
to less than
Rs. 5 Crore
Rs. 5 Crore
and above
Up to
30 years Nil 15% 24% 27%
31 to 45
years
Nil 14% 23% 25%

(ii) Premium Conversion rate (applicable for Regular and Limited
Premium payment):
The modal premium for other than yearly mode shall be based on
annual equivalent premium. Annual equivalent premium is tabular
annual premium rate (after allowing for any other rebate) increased
by corresponding Premium Conversion rate as given below. The
modal premium is arrived by dividing the annual equivalent
premium by corresponding Modal frequency of the chosen mode of
premium payment.
Mode Premium Conversion rate Modal frequency
Yearly Nil 1
Half-Yearly 2% 2
9. REVIVAL (Applicable for Regular and Limited Premium Payment):
If the premiums are not paid within the grace period, then the
policy will lapse. A lapsed policy can be revived, within a period of 5
consecutive complete years from the date of First Unpaid Premium
and before the date of Maturity, as the case may be. The revival shall
be effected on payment of all the arrears of premium(s) together with
interest (compounding half yearly) at such rate as may be fixed by
the Corporation from time to time and on 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/Life Assured.

The Corporation reserves the right to accept at original terms, accept
with modified terms or decline the revival of a discontinued policy. The
revival of the discontinued policy shall take effect only after the same is
approved, accepted and revival receipt is issued by the Corporation
The rate of interest applicable for revival under this product for every 12 months’ period from 1st May to 30th April shall not exceed 10 year
G-Sec yield p.a. compounding half yearly as at the last trading day of
previous financial year plus 3% or the yield earned on the Corporation’s
Non-Linked Non-Participating Fund plus 1%, whichever is higher. For
the 12 month’s period commencing from 1st May, 2024 to 30th April,
2025, the applicable interest rate shall be 9.50% p.a. compounding half
yearly. The basis for determination of interest rate for policy revival is
subject to change.
If a lapsed policy is not revived within the revival period but before
the Date of Maturity, the policy will automatically terminate. In case of
Regular Premium Payment policies, nothing shall be payable. However,
in case of Limited Premium Payment policies, an amount equal to
Unexpired Risk Premium Value, if any, shall be payable and the policy
will terminate.

10. PAID-UP:
There is no paid-up value available under this plan.
11. SURRENDER :
No surrender value will be available under this Plan. However on
surrender of policy in the following cases (for both Level Sum Assured
(Option I) as well as Increasing Sum Assured (Option II) options),
an amount equal to Unexpired Risk Premium Value, if any,
shall be payable:
a) Regular Premium Payment policies: Nothing shall be payable.
b) Single Premium Payment Policies: The applicable Unexpired
Risk Premium Value, if any, shall be payable anytime during the
Policy Term.
c) Limited Premium Payment: The applicable Unexpired Risk
Premium Value, if any, shall only be payable if full premiums
have been paid for at least three consecutive years.
In case of a lapsed policy, on surrender of policy during the revival
period, applicable Unexpired Risk Premium Value, if any, shall
be payable. However, on expiry of revival period, the policy shall
terminate and Unexpired Risk Premium Value, if any, shall be paid
to the policyholder.
In case of death of the life Assured under a lapsed policy, during
the revival period, applicable Unexpired Risk Premium Value, if any,
shall be payable.

12. POLICY LOAN:
No loan will be available under this plan.
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13. FORFEITURE IN CERTAIN EVENTS:
In case it is found that any untrue or incorrect statement is contained
in the proposal, personal statement, declaration and connected
documents or any material information is withheld, then and in every
such case the policy shall be void and all claims to any benefit by virtue
thereof shall be subject to the provisions of Section 45 of the Insurance
Act, 1938 as amended from time to time.
14. TERMINATION OF POLICY:
The policy shall immediately and automatically terminate on the
earliest occurrence of any of the following events:
a) The date on which lump sum death benefit / final instalment of
death benefit is paid; or
b) The date on which Unexpired Risk Premium Value, if any, is settled,
in case of surrender of policy; or
c) The date of maturity; or
d) On expiry of Revival Period, if the policy has not been revived within
the revival period; or
e) On payment of free look cancellation amount; or
f) In the event of forfeiture as specified in Para 13 above.

15. TAXES:
Statutory Taxes, if any, imposed on 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.
The amount of any applicable taxes, as per the prevailing rates, shall
be payable by the policyholder on premium(s) (for Base Policy and
Rider, if any) including extra premiums, if any) which shall be collected
separately over and above in addition to the premium(s) payable by the
policyholder. The amount of Tax paid shall not be considered for the
calculation of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid and
benefits payable under this plan, please consult your tax advisor
for details.

16. 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
30 days from the date of receipt of the electronic or physical mode
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of the Policy Document , whichever is earlier, stating the reasons for
objections. On receipt of the same, the Corporation shall cancel the
policy and return the amount of premium deposited after deducting
the proportionate risk premium (for Base Policy ) for the period of
cover, expenses incurred on medical examination (including special
reports, if any) and stamp duty charges.

17. SUICIDE EXCLUSION:
i) Under Regular/Limited Premium Policy:
If the Life Assured (whether sane or insane) commits suicide at any
time within 12 months from the date of commencement of risk under
the policy or from the date of revival of the policy, as applicable, the
nominee or beneficiary of the Life Assured shall be entitled to 80% of
the total premiums paid (excluding any extra premium, rider premium
and taxes, if collected explicitly) till the date of death, provided the
policy is in force.
This clause shall not be applicable for a lapsed policy as nothing is
payable under such policies.
ii) Under Single Premium Policy:
If the Life assured (whether sane or insane) commits suicide at any time
within 12 months from the date of commencement of risk under the
policy, the Nominee or beneficiary of the Life Assured shall be entitled
to 80 % of the Single Premium paid excluding any extra premium, rider
premium and taxes, if collected explicitly.

18. Grievance Redressal Mechanism:
Of the Corporation:
The Corporation has Grievance Redressal Officers (GROs) at Branch/
Divisional/ Zonal/ Central Office to redress grievances of customers.
The customers can visit our website (https://licindia.in/web/guest/
grievances) for names and contact details of the GROs and other
information related to grievances.
For ensuring quick redressal of customer grievances the Corporation
has introduced Customer friendly Integrated Complaint Management
System through our Customer Portal (website) http://www.licindia.
in, where a registered policy holder can directly register complaint/
grievance and track its status. Customers can also contact at e-mail id
co_complaints@ licindia.com for redressal of any grievances.
Claimants not satisfied with the decision of death claim repudiation
have the option of referring their cases for review to Zonal Office
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Claims Dispute Redressal Committee or Central Office Claims Dispute
Redressal Committee. A retired High Court/ District Court Judge is
member of each of the Claims Dispute Redressal Committees.