LIC launches single-premium life insurance plan
The announcement follows a dramatic day that saw confusion prevail over numbers.
The Life Insurance Corporation of India (LIC) on Thursday launched a new plan ’Jeevan Vriddhi’, a single premium, non-linked insurance plan. The 10-year term plan offers a risk cover equivalent to five times the premium, with guaranteed returns at maturity.
The plan, which has a one-time premium payment facility, is available for only up 120 days. There is no upper limit on investment for eligible lives, and policy loan is available after one year.
The guaranteed maturity sum will depend on the size of the premium and the age of the insured.
A loyalty addition, if any, shall also be payable at the time of maturity. Eligibility for loyalty addition will be considered during the last year of the policy, depending on LIC’s experience with the customers; rates and terms will also be decided by LIC.
The minimum age at entry for the plan is 8 years (completed) while the maximum is 50 years (nearer birthday). The minimum sum assured is Rs 1.5 lakh while there is no upper limit. The minimum premium payable is Rs 30,000, and can be raised in multiples of Rs 1000.
Customers will also be eligible for tax benefits on the premium under section 80C as per prevailing rules.