Insurance coverage behemoth LIC, on Wednesday, launched its assured return plan, Jeevan Utsav.
It’s a non-linked, non-participating, particular person financial savings, entire life insurance coverage plan, LIC mentioned in a regulatory submitting.
LIC chairman Siddhartha Mohanty, in an interview to PTI had not too long ago mentioned policyholders can count on a lifelong advantage of 10 per cent of the sum assured after the coverage matures.
Mohanty had mentioned the brand new product is poised to disrupt the market and that there’s a widespread curiosity amongst insurance coverage patrons in understanding the clear price construction and returns over a interval of 20-25 years.
Moreover, he had talked about that the brand new product would come with options resembling a mortgage facility and the choice for untimely withdrawal.
This plan is on the market for ages ranging from 90 days to 65 years, LIC mentioned in an announcement.
It offers assured life-long revenue and life-long danger cowl and the minimal premium paying time period is 5 years and the utmost premium paying time period is 16 years, it mentioned.
For every coverage 12 months for which premium is paid, the Assured Additions at a fee of Rs 40 per thousand Fundamental Sum Assured would accrue on the finish of every coverage 12 months throughout the premium paying time period, it mentioned.
On survival of the life assured after premium paying time period, the policyholder can select one in all two choices out there.
The primary possibility -Common Earnings Profit – supplies for 10 per cent of the Fundamental Sum Assured, payable on the finish of every coverage 12 months, beginning after 3 to six years of the deferment interval.
The second option- Flexi Earnings Profit permits policyholder 10 per cent of the Fundamental Sum Assured payable might be collected and withdrawn later, topic to the phrases and circumstances of the coverage.
LIC would pay curiosity on such Deferred Flexi Earnings funds on the fee of 5.5 per cent p.a., compounding yearly.
