Life Insurance Corporation of India (LIC) has introduced a new insurance policy. India’s largest insurance company promises money back guaranteed returns. In this, annual interest will be given at 5.5 percent.
Life Insurance Corporation of India (LIC) has given a big gift to the customers. Insurance Company has introduced a new non-participating money back policy. The name of this scheme is Jeevan Utsav, which promises guaranteed returns and is a non-participating, non-linked, personal savings and completely an insurance plan. This policy of LIC gives the benefit of 10 percent income benefit.
The minimum sum insured under Jeevan Utsav Insurance Scheme (LIC Jeevan Utsav) is Rs 5 lakh. Premium payment ranges from five to 16 years. If your age is 8 years then you can invest in it, whereas the maximum limit is 65 years. There are two types of payment options in this policy, in which regular income and flexi income benefit is available. You can pay the premium by selecting any one of these. The benefit of the policy is given after the stipulated period.
According to the information given by Life Insurance Corporation of India, payment of 10 percent of the basic sum assured chosen by the policy holders starts from the 11th year depending on the selected premium. For example, if you have chosen to pay the premium for five to eight years, then the payment will start from the 11th year. However, if you have chosen a longer term i.e. 10 years, then the income benefit will start from the 13th policy year.
There will be no lump sum payment
Under Jeevan Utsav, policy benefits are not paid in lump sum or on maturity, whereas a money back scheme works under this policy. This means that instead of making a lump sum payment, payments are made from time to time. In the case of Flexi Income Benefit option also, you will get a payment of 10 percent of the basic sum assured at the end of every policy year depending on the premium payment period. The premium payment term and income payment matrix is applicable to this option also.
5.5 percent annual interest
Under the new life policy of LIC, you will have the facility to postpone these two payment options and take interest on the remaining shares. LIC will pay interest on these deferred benefits at the rate of 5.5% per annum, compounded annually from the date of withdrawal to the date of death, whichever is earlier. Under this policy, you can request to withdraw up to 75 percent of the total amount along with interest once. Then interest of 5.5 percent per annum will be available on the remaining amount.
Death benefit under this policy
In case of death of the policy holder, this benefit will be given to the family member or nominee. On death, you will get benefit equal to the sum assured and along with this, additional guarantee of the benefit received till then will also be given. LIC will pay Guarantee Extra at the rate of Rs 40 per thousand of Basic Sum Assured at the end of every policy year during the premium payment period. According to the insurance regulator’s order, the sum assured on death will be at least seven times the annual premium, while the death benefit will be 105 percent of the total premium paid.
