This policy covers the risk as long as the policyholder is alive. The premium is also payable throughout your lifetime. If the payment of premiums ceases after three years, a free paid-up policy for such reduced sum will be automatically secured provided the reduced sum assured, exclusive of any attached bonus is not less than Rs.250/- Such a reduced paid-up policy is not entitled to participate in the profits declared thereafter but the bonuses already declared on the policy will remain attached, provided the policy is converted into a paid-up after premiums are paid up for 5 years. 

This is the cheapest "With Profits" policy available from LIC. Starting at 2.3 percent, the effective premium goes down to 0.7% in the 25th year of the policy (Table 7.1). The catch is that the premium payment term is indefinite: you must pay premium all your life and this can cause problems in one's older age when earnings and income fall. The Bonus rate is calculated at 125 percent of the endowment with profit plan.

However under LIC's latest guidelines, premiums under this policy are payable up to the age of 80 or for a 35 years term whichever is earlier. The claim is also paid on completion of age 85 without waiting for the Life Assured's death. 

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