LIC has introduced ‘Jeevan Pragati,’ a non-linked, with-profits plan that offers a combination of protection and savings.
This plan provides for automatic increase in risk cover after every five years during the term of the policy. In addition, it also takes care of liquidity needs through loan facility.
This is a unique plan where risk cover increases over the term, said Shaji M Shankar, Senior Divisional Manager, LIC, Thiruvananthapuram. Loan facility and optional rider for accident benefit are also available.
Sum assured on maturity equal to basic sum assured, along with vested simple reversionary bonuses and final additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums are paid.
In case of death during the policy term, provided all due premiums are paid, death benefit, defined as sum of sum assured on death, vested simple reversionary bonuses and final additional bonus, if any, shall be payable.
The plan is available from ages 12 years to 45 years. Maximum maturity age will be 65 years (nearer birthday), Shankar said.
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS or through salary deductions) over the term of policy.
Minimum maturity sum assured is ₹1.5 lakh with maximum basic sum assured having no limit. Maturity sum assured shall be in multiples of ₹10,000 only. The policy term will be for 12 to 20 years.
(This article was published on February 4, 2016 in Business Line)