Table and Term

Each Plan of life insurance is represented by a ‘Table’ of premium and other features / properties of the Plan. Premiums given in the tables are office premiums. Reductions by way of rebates (example: mode rebate, sum assured rebate) and additions by way of extra premiums or rider premiums (examples: occupation extra, Accident Benefit rider, Critical Illness rider etc) are done on this tabular premium. The mention of Table number shows the Plan for which the policy is issued. There are fixed term Plans and there are Plans that allow choice of a term by the policyholder. To cite examples from the Life Insurance Corporation of India’s Plans if the Table and Term in the schedule of a policy shows ‘11-15’ it means Endowment Plan (Without Profit) for a term of 15 years. Similarly ’14-15’ shows  Endowment Plan (With Profit) for a term of 15 years. Table and Term 93-25 shows that it is a Money Back Plan for twenty five years. Money back Plans are fixed term Plans. Generally premium is payable during the term. But there are Plans where premium can be paid in a shorter period than the term. Thus in a Limited Payment Whole Life Plan the premium paying period can be chosen by the policyholder. Here premium paying period is generally shown in brackets, after the term. In Jeevan Surabhi Plans there are fixed terms and fixed premium payment periods too. In a Jeevan Surabhi Plan of 15 years, premium payment is fixed for 12 years. This is generally shown as 106-15(12). Note that two items in the schedule of the policy are linked to these, viz. date of maturity and date of last premium.

Key words:

Schedule of policy
Tabular premium
Endowment plan
With profit