The Life Insurance giant, Life Insurance Corporation of India announced the launch of a conventional close ended plan “ Jeevan Sugam” . LICJeevan Sugam Plan is another product in the bouquet of Single Premium plans of LIC with a 10 times life coverage for the period. This plan is available for sale only for 45 days from 25th February 2013.
The unique selling features of this plan is that it is a conventional single premium payment plan, which provides risk cover of ten times the single premium paid for a fixed period of 10 years. Death benefit will depend on, if death occurs within 5 years from the date of purchase of policy, than 10 times of the premium paid and if death occurs after 10 years than 10 times of the premium paid plus loyalty addition (if any) which will depend again on LIC’ s claim experience with regard to policies issued under this plan. On survival maturity benefit will be the guaranteed maturity sum assured plus loyalty addition.
This is a onetime investment plan with a minimum sum assured of Rs. 60,000 and no upper limit and sum assured shall be in multiple of Rs. 5,000. The minimum entry age for this plan is 8 years and maximum entry age is 45 years.
Other features of this conventional plan are that, payment of premium shall be eligible for deduction under section 80C of the income tax act. This plan also has an increased maturity for higher maturity sum assured as under:
Maturity Sum Assured
Increase in maturity sum assured
Below Rs. 150,000
Rs. 150,000 to Rs. 399,999
Rs. 400,000 and above
This unique plan also provides with an easy liquidity option. It provides Guaranteed Surrender Value as under:
· First year: 70% of the single premium excluding extra premium, if any.
· Thereafter: 90% of the single premium excluding extra premium, if any
Loan facility is also available under this plan. Loan will be available on this policy from day 1 @ 10.45% compounded half yearly and the same would be subject to review from time to time. Eligible loan amount will be 60% of the surrender value as on the date of the sanction of the loan. Also back dated interest is allowed with the financial year on payment of interest @ 10%. In addition to the above, no foreclosure action will be taken under this plan even if there is a default in payment of loan interest.