Take LIC Policyholder’s Death Claim amount in instalments

This is an option to receive Death Claim Benefit of a policyholder of LIC of India, in installments over the chosen period of 5 or 10 or 15 years instead of the lump-sum amount under an in force as well as Paid-up policy.

This option can be exercised by the Policyholder during the minority of the  Life Assured or by Life Assured aged 18 years and above during his/her lifetime, for full or part of the Death proceeds payable under the policy. The amount opted by the Policyholder/Life Assured (i.e. net claim amount including the payment for deferred Survival Benefit(s), if any) can be either in absolute value or as a percentage of the total claim proceeds payable.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Mode of Installment payment	Minimum installment 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 installment amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall be paid in lump sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising an option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the currency of the policy, specifying the period of Instalment payment and 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 Policyholder/Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee.