The Jeevan Vridhi Plan from Life Insurance Corporation of India (LIC) is a one-time premium payment life insurance policy, wherein the risk cover provided to the policyholder will be a multiple of the single premium amount chosen at the time of purchasing the policy. In addition to the risk cover, this policy also provides a maturity benefit if the life assured survives till the completion of the policy tenure.
The insurer also offers loyalty additions along with the maturity benefit, thus increasing the amount that one is eligible to receive at the end of the policy term. As per this policy, the minimum premium payable is Rs.30,000. Policyholders will be entitled to claim tax benefits as per prevailing laws of the Income Tax Act, 1961.
In order to purchase a life insurance policy, it is necessary that the buyer meets the eligibility criteria set by the insurer.
|Parameters||Criteria for eligibility|
|Minimum age at entry||8 years|
|Maximum age at entry||50 years|
|Maximum age at maturity||60 years|
The sum assured is a certain amount of money that the policy buyer will have to choose when purchasing the policy. Provided all premiums are paid as per schedule, the insurer will pay this amount of money to the nominee/policyholder upon the occurrence of a certain eventuality. The sum assured does not include any bonuses or guaranteed additions. For the Jeevan Vridhi Plan, the Guaranteed Maturity Sum Assured will vary based on the on the policyholder’s age at entry and the single premium amount.
|Minimum Sum Assured||Rs.1.5 lakh|
|Maximum Sum Assured||No Limit|
When you purchase a life insurance policy, you will have to pay the insurer a fee in return for the life cover provided by the policy. This fee is called the premium amount. Premiums will have to be paid as per the premium payment mode.
|Policy Tenure||10 years|
|Premium Payment Mode||Single Premium|
|Minimum Single Premium Amount||Rs.30,000|
*Premiums vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If the policyholder passes away during the policy tenure, the nominee will receive 5 times the single premium amount as the death benefit.|
|Maturity Benefit||At the completion of the policy tenure, the Guaranteed Maturity Benefit with Loyalty Additions will be paid to the nominee.|
If the life assured commits suicide within a year of purchasing the Jeevan Vridhi Plan, the insurer will not pay the death benefit to the nominee. However, the insurer will return 90% of the premium amount paid or the third-party beneficial interest that has been acquired by the policy. Post this, the policy will cease to exist.
|Free-Look Period||Policy buyers who don’t find the policy terms and conditions to be satisfactory have the option of returning the policy to the insurer within 15 days of purchasing it.|
|Higher Premium Incentive||Policy buyers who pay a premium higher than Rs.50,000 will receive an incentive in the form of an increase in the Guaranteed Maturity Benefit amount.|
|Loan||Policyholders can avail a loan against this policy, after the end of the first policy year.|
|Surrender Value||If the policy has been in force for a minimum of 1 year, the life assured can surrender the policy. The insurer will pay the policyholder the higher of the Guaranteed Surrender Value or the Special Surrender Value. The minimum Guaranteed Surrender Value payable will amount to a sum that equals 90% of the premium paid.|
By purchasing this policy, you also have the added benefit of saving on tax. Policyholders can claim tax benefits for the single premium paid and the benefits received through the policy under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Having a comprehensive life insurance policy is a must at all times. The Jeevan Vridhi Plan from LIC provides a risk cover to the life assured, thus helping you secure the lives of your loved ones against unfortunate eventualities. The policy also provides other benefits like a maturity benefit and loyalty additions, which will help you meet milestones in yourss future.
Life Insurance Corporation of India (LIC) is a prominent insurance firm in the country. The insurer has a varied product portfolio, thus helping customers purchase their desired insurance policy. The insurer has reported a high claim settlement ratio and grievances resolved ratio of 98.33% and 100% for FY15-16.
Note: This plan has been withdrawn by LIC.