STATE TIMES NEWS
MUMBAI: LIC of India on Wednesday introduced its guaranteed return plan, Jeevan Utsav. It is a non-linked, non-participating, individual savings, whole life insurance plan, LIC said in a regulatory filing.
It is a Limited Premium plan with Guaranteed Additions throughout Premium Paying Term Identification Number (UIN) for LIC.
This plan is available for ages starting from 90 days to 65 years, LIC said in a statement.
It gives guaranteed life-long income and life-long risk cover and the minimum premium paying term is five years and the maximum premium paying term is 16 years, it said.
For each policy year for which premium is paid, the Guaranteed Additions at a rate of Rs 40 per thousand Basic Sum Assured would accrue at the end of each policy year during the premium paying term, it said.
On survival of the life assured after premium paying term, the policyholder can choose one of two options available.
The first option -Regular Income Benefit – provides for 10 per cent of the Basic Sum Assured, payable at the end of each policy year, starting after 3 to 6 years of the deferment period. The second option- Flexi Income Benefit – allows policyholder 10 per cent of the Basic Sum Assured payable can be accumulated and withdrawn later, subject to the terms and conditions of the policy.
LIC would pay interest on such Deferred Flexi Income payments at the rate of 5.5 per cent p.a., compounding yearly.
As the Policyholder is offered life cover for the whole life, the Death Benefit will be payable as follows-on death of the Life Assured after the date of commencement of risk, Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed payable, provided the policy is in 105% of total premiums paid up to the date of death. “Sum Assured on Death” is ‘Basic Sum Assured’ or ‘7 times of Annualized Premium and Maturity benefit is not available under this plan continued for life as per option exercised.
Additional Liquidity is available through loan, attractive High Sum Assured Rebate is available and this product satisfies the long pending demand of lower and flexible Premium Paying Term.
Five optional riders are available under this plan. The policyholder can opt for either LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider and/or the remaining three riders, i.e. LIC’s New Term Assurance Rider, LIC’s New Critical Illness Benefit Rider and LIC’s Premium Waiver Benefit Rider are also available by paying additional premium subject to the eligibility conditions.