New Delhi- Insurance behemoth LIC on Wednesday launched its guaranteed return plan, Jeevan Utsav.
It is a non-linked, non-participating, individual savings, whole life insurance plan, LIC said in a regulatory filing.
LIC Chairman Siddhartha Mohanty, in an interview to PTI had recently said policyholders can expect a lifelong benefit of 10 per cent of the sum assured after the policy matures.
Mohanty had said the new product is poised to disrupt the market and that there is a widespread interest among insurance buyers in understanding the transparent cost structure and returns over a period of 20-25 years.
Furthermore, he had mentioned that the new product would include features such as a loan facility and the option for premature withdrawal. This plan is available for ages starting from 90 days to 65 years, LIC said in a statement. It gives guaranteed life-long income and life-long risk cover and the minimum premium paying term is five years and the maximum premium paying term is 16 years, it said.
For each policy year for which premium is paid, the Guaranteed Additions at a rate of Rs 40 per thousand Basic Sum Assured would accrue at the end of each policy year during the premium paying term, it said. On survival of the life assured after premium paying term, the policyholder can choose one of two options available. The first option -Regular Income Benefit – provides for 10 per cent of the Basic Sum Assured, payable at the end of each policy year, starting after 3 to 6 years of the deferment period. The second option- Flexi Income Benefit – allows policyholder 10 per cent of the Basic Sum Assured payable can be accumulated and withdrawn later, subject to the terms and conditions of the policy. LIC would pay interest on such Deferred Flexi Income payments at the rate of 5.5 per cent p.a., compounding yearly. (PTI)