Life Insurance Corporation of India has
launched a limited-offer single-premium policy Jeevan Vriddhi this plan
promises to nearly double the premium amount at the end of 10 years. As
life insurance plan it gives risk cover up to five times the Premium.
This plan will be available only for next 6 months.
Benefits of Jeevan Vriddhi Plan:-
1) Death benefit: On death, Basic Sum
Assured shall be payable. The Basic Sum Assured shall be 5 times the
Single Premium excluding extra premium, if any.
2) Maturity Benefit: On maturity, the Guaranteed Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
3) Loyalty Addition: This policy will be
eligible for Loyalty Addition on date of maturity, Rate and terms as
may be declared by the LIC.
4) Incentive for Higher premium: If your
premium is between Rs 50000.00 to Rs 99000, there is a 1.25% Increase
in Guaranteed Maturity Sum Assured. If your premium is above Rs
100000.00, there is a 3% Increase in Guaranteed Maturity Sum Assured.
5) Liquidity: This plan provides
facility same like fix deposit you can surrender this policy after 1
year. The minimum Guaranteed Surrender Value allowable is equal to 90%
of the Single premium paid excluding extra premium, if any. You can to
take loan on this plan after 1 year.
6) Tax Benefit: You can avail tax
benefit under 80 C for premium paid under this plan. Similar to other
plan maturity amount is tax free.
Eligibility:-
Minimum entry age for this plan is 8
years and maximum is 50 years. Term of this policy is fixed 10 years.
The Minimum sum assured is 1.5 lakh no upper limit on maximum sum
assured. The minimum premium under the policy is Rs 30,000 and shall
increase in multiples of Rs 1,000.
Review Returns:-
Guaranteed Maturity Sum Assured for each
age at entry per Rs.1000/- Single Premium (inclusive of Service Tax
1.545%) is as under:
So over all this policy also gives same
kind of return 5-7% like any other endowment plan. Look at another
example given by LIC on website.
If you purchase this policy at the age
of 35 years with basic sum assured as Rs 5 Lakh, you need to pay Rs 1
Lakh as annual premium. At the end of 10 years you will get guaranteed
return of Rs 1.97 Lakh or Rs 2.21 lakh Take a look at example given by
LIC in following figure.
Premium shown in below example is
exclusive of service tax if you make actual calculation with service tax
than premium will be Rs. 101545 /- (@1.545% service tax). Effective
yield in this case will be around 6.85%.
You must have some good reason/ Goal for purchasing this policy:-
Risk Cover:-
Risk cover by Jeevan Vriddhi policy is
just five times of premium paid which may not be sufficient considering
your income. Adequate insurance cover must be five to six times of your
income. So, If you decide to purchase this policy for risk cover premium
value will be huge it will be difficult to manage it every year. For
Risk cover Term plan is more suitable option.
Tax saving:
Insurance is not product for tax
saving. There are many other option like ELSS which can provide you
better return than Jeevan Vriddhi with tax saving.
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