Let us look at the key features, eligibility criteria and benefits –
It is a single premium payment plan with a policy term of 12 years. It is a close ended plan.
|
Item
|
Description
|
|
Key Features
|
|
|
Entry Age
|
|
|
Sum Assured
|
|
|
Taxation Benefits
|
|
|
Other Options/Riders
|
Accidental Death and Disability Benefit Rider are available for payment of additional premium.
|
|
Other Features
|
– First year: 70% of the Single premium |
|
Premium Payable
|
For a policy of Rs. 5,00,000, the premium payable would be around Rs. 2,80,000 for a 30 year old male.
The sum assured paid might be more if loyalty additions are declared. |
If death occurs within 5 years of the date of payment of the premium the nominee will receive the refund of premium paid without interest.
If death occurs between 5 years and 12 years of the date of payment of premium, the nominee will receive the sum assured and loyalty addition (if any). Sum assured is on death is the highest of –
- 10 times of annualised premium
- 125% of the single premium or
- guaranteed sum assured value on maturity i.e basic sum assured.
If there are any riders in force, the amount payable for the same will be paid too.
At the time of policy maturity, the sum assured plus the loyalty additions if any is payable. If there are any riders in force, the amount payable for the same will be paid too.
Loyalty additions will accrue if they have been announced by LIC.
Conclusion
The policy is more like an endowment plan. It insures you and at the same time acts like an investment product that gives a return of 5%-7%. If you want life insurance, it is better to buy a term plan. As far as investments are concerned there are other products that can give better returns like PPF, Debt Mutual Funds, Equity Mutual Funds etc. It might be a good option for people who want to save some more tax.
0 Comments