- If the policyholder dies before the risk commencement date, only the premiums paid so far are returned to the nominee.
- If the policyholder dies after the risk commencement date, the Sum Assured on Death + Loyalty Additions are paid to the nominee.
So it is important to understand from when the risk is covered.
- In case the age of the policyholder is less than 8 years at the time of taking the policy - The risk cover benefits will only start one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age.
- In case the age of the policyholder is 8 years or more - The risk cover starts immediately.
Let us understand the “Risk Commencement” date in LIC Jeevan utkarsh Plan with the help of a few examples. The policy term by default is 12 years.
Example 1
Suppose policy start date = 12th September, 2017
Age of Policyholder = 6 years (Date of Birth being 30th March 2012)
The policyholder will be 8 years of age on 29th March 2019.
So, Risk Commencement date = 11th September, 2019
Example 2
Suppose policy start date = 12th September, 2017
Age of Policyholder = 7 years (Date of Birth being 30th March 2012)
The policyholder will be 8 years of age on 29th March 2018.
So, Risk Commencement date = 11th September, 2018
Example 3
Suppose policy start date = 25th July, 2017
Age of Policyholder = 8 years
Risk Commencement date = 25th July, 2017
Hope this makes it absolutely clear when the risk cover starts for the policyholder. If you have any queries regarding this, please add a comment below and we would be happy to help.
Read the Review of LIC Jeevan Utkarsh Plan.