Life Insurance Corporation of India (LIC) introduces new policies for customers from time to time. Now in this series, LIC has introduced a great policy. This is a non-participating money-back policy named 'Jeevan Utsav'. In this policy, customers get the promise of guaranteed returns.
'Jeevan Utsav' policy is a non-participating, non-linked, personal savings and pure insurance plan. 10 percent income benefit is available on this policy of LIC. The minimum sum insured under this policy is Rs 5 lakh. In this, the time limit for premium payment ranges from five years to 16 years. The minimum age to invest in this is five years, while the maximum age limit is 65 years. Payment can be made in two ways in this policy. In this, one gets the benefit of regular income and flexible income. In this, you can choose anyone and pay the premium.
You get the benefit of the policy after the stipulated time. Life Insurance Corporation of India has informed that the premium payment of 10 percent of the basic sum assured chosen by the policyholders starts from the 11th year depending on the term.
Suppose you have chosen to pay the premium for five years to eight years, then the payments will start from the 11th policy year, but if you choose a longer-term i.e. 10 years, then the income benefits will start from the 13th policy year.
Under the Jeevan Utsav policy, if the policy benefit is not paid in a lump sum or on maturity, then the money-back scheme works under this policy. This means that lump sum payments will not be made, but payments are made periodically.
In the case of the Flexi Income Benefit option, customers will be paid 10 percent of the Basic Sum Assured at the end of every policy year depending on the premium payment term. The premium payment term and income payment matrix apply to this option.
You will get this percentage of annual interest
Under LIC's Jeevan Utsav policy, the customer has the facility of postponing two payment options and taking interest on the remaining shares. LIC will pay interest at the rate of 5.5 percent per annum on deferred benefits. This will be compounded interest annually from the date of withdrawal to the date of death, whichever is earlier.
In this policy, you can withdraw up to 75 percent of the total amount along with interest at one time. After this, interest of 5.5 percent per annum will be available on the remaining amount. In case of the death of the policyholder, the family member or nominee receives it. LIC gives a death benefit equal to the sum assured and also gives an additional guarantee of the benefit received till then.
Guarantee extra payment at the rate of Rs 40 per thousand of the basic sum assured will be given at the end of every policy year during the term. According to the insurance regulator's order, the sum assured on death will be at least seven times the annual premium, while the death benefit will be 105 percent of the total premium paid.
(PC: iStock)
