LIC’s Jeevan Aastha
Life Insurance Corporation of India (LIC) has launched its close-ended single premium product, Jeevan Aastha, which offers guaranteed benefits to customers. The plan has a maximum shelf life of 45 days and offers five and ten year maturities to customers
The plan offers guaranteed addition of Rs100 for every thousand of maturity sum assured for 10 years term and Rs90 per annum for policies with five year term.
Terms and conditions:-
1. Age for entry-minimum 13years [completed] and maximum 60 years
2.Minimum basic sum assured-Rs.1.5lakh and shall be available in multiples of Rs.30,000 3.Policy term-5 and 10 years ,guaranteed 10% and 9% per annum of maturity sum respectively.
4. Mode of Payment-Single premium only
5. Closing date-21,January, 2009.
“The policy holder can also avail the benefits of tax exemption and has the options of surrendering the policy or to raise loan under the policy,” LIC Chairman T.S.Vijayan said.
Loan facility will be available to you under this plan, after completion of one policy year.
The policy can be surrendered for cash after the policy has run for at least one year. The minimum Guaranteed Surrendered Value allowable is equal to 90% of the Single premium paid excluding all extra premiums.
Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the guaranteed Surrender Value.
The Special Surrender Value will be the discounted value of the Maturity Sum Assured and Guaranteed Additions accrued as on date of surrender.
Cooling-off period
In case one is not satisfied with the "Terms and Conditions" of the policy , the same can be returned to us within 15 days
Benefits
A) Death Benefit:
On death during the first policy year: Basic Sum Assured with Guaranteed Addition.
On death during the policy term after first policy year, excluding last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition.
On death during last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition along with loyalty addition, if any
B)Maturity Benefit:
On maturity, the maturity Sum Assured along with Guaranteed Addition and Loyalty Addition, if any, shall be payable.
Maturity Sum Assured shall be 1/6th of Basic Sum Assured.
C) Guaranteed Addition:
The policy provides for Guaranteed Addition at the following rates:
· Rs. 100 per thousand Maturity Sum Assured per year for a policy of 10 years term.
· Rs. 90 per thousand Maturity Sum Assured per year for a policy of 5 years term.
D) Loyalty Addition:
Depending upon the Corporation's experience the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the Corporation.
LIC is expecting Rs 3,500 crore from the new product from Andhra Pradesh and Karnataka zones.
