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No beating about the bush.
Many are stuck with wrong life insurance plans. Financial planners often advice you to surrender the policy and use the money for better investments. Raj Pradhan finds that is wrong advice in most situations. Find out when and how you should surrender life policies
Many people are unhappy with their life insurance choices. They want to get out of the policy and even whine about having...
Allows only one consumer representative who has to be IRDA-nominated
IRDA has finalised the structure of the much-awaited health insurance forum. The forum will provide assistance and advice to IRDA on issues relating to health insurance. It will help in evolving policies, standard processes and definitions for health insurance. Collection and maintenance of information for efficient...
Jeevan Vriddhi is designed to attract money from the tax-savers who are desperately seeking avenues to park up to Rs1 lakh. While there are other similar plans in the market, it is LIC’s product that will command attention because of its muscle power
Life Insurance Corporation of India (LIC) has launched Jeevan Vriddhi, a single premium traditional plan offering guaranteed maturity sum assured (SA) along with loyalty addition (if any) after completion of policy term which is 10 years. The guaranteed maturity SA will depend on the age of policyholder from eight to 50 years; it reduces with age.
The insurance component is fixed at five times the premium excluding extra premium (based on one’s health) and service tax. In short, the plans works like bank fixed deposits along with insurance thrown in to make it an insurance product. For younger persons, it would almost double your money in 10 years. With interest rates at its peak today, LIC is willing to offer good returns, but it is for the exact same reason the plan is available only for a maximum of 120 days.
The minimum premium is Rs30,000, for an SA of Rs150,000. If the policyholder dies during the term, the nominee will get Rs150,000. If the policyholder survives till maturity, the guaranteed benefit will depend on the policyholder’s age at the time of taking the policy.
For example, if the policyholder would have paid single premium of Rs30,000 (excluding service tax), for a child of eight the maturity amount will be Rs59,538. If the person is aged 35, the maturity amount will be Rs57,385. The return on investment (excluding mortality charges) will be approximately 7% p.a. in this case. If someone is 50 at the time of entry, the plan will give Rs47,467 after 10 years.
Advantages of Jeevan Vriddhi
Disadvantages of Jeevan Vriddhi