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LIC Jeevan Sugam Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

LIC Jeevan Sugam Plan 

LIC Jeevan Sugam Plan is a Single Premium non-Participating Endowment Plan. It is a Traditional Plan without Bonus facility. This is a close ended plan available for a short period of time only.
 
How it works – In this plan, premium needs to be paid upfront as this is a Single Premium Plan. The Death Benefit provided in this plan is 10 times the single premium paid. The Policy Tenure in this plan is also fixed at 10 years. There is Loyalty Additions available in this plan as well.
 
The Maturity Sum Assured is different in this plan from the Death Sum Assured. The Maturity Sum Assured is the Maturity Benefit opted for in this plan. The Death Sum Assured is fixed at 10 times the Single Premium paid and is paid to the nominee if the Life Insured dies within the Policy Tenure. If the Life Insured dies after the first 5 policy years, even the Loyalty Additions would be paid along with Death Sum Assured.
 
According to the Maturity Sum Assured chosen, the premium is calculated as per age at entry of the Life Insured. On survival till Policy Maturity, the Maturity Sum Assured + Loyalty Additions would be paid to the policyholder as Maturity Benefit and the policy terminates.

Let us understand the working of this plan diagrammatically with an example of a 30 year old man opting for Maturity Sum Assured of Rs 60,000.
LIC Jeevan Sugam Plan Example

Key Features of LIC Jeevan Sugam Policy

  • It is an Endowment Plan without Bonus facility
  • This is a Single Premium Plan
  • The Policy Tenure in this plan is fixed at 10 years
  • There is Loyalty Additions in this plan as well
  • The Death Sum Assured is 10 times the single premium paid at policy inception
  • On survival till Policy Maturity, the Maturity Sum Assured chosen at the time of policy inception +Loyalty Additions would be paid to the policyholder as Maturity Benefit
  • There is an incentive for higher Maturity Benefit for Maturity Sum Assured more than Rs 1,50,000

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Benefits you get from LIC Jeevan Sugam Policy

Death Benefit – In case of death of the Life Insured within the first 5 years of the Policy Tenure, the nominee gets the Death Sum Assured as Death Benefit and the policy terminates. However, if the Life Insured dies after the first 5 policy years but within the Policy Tenure, then the Death Sum Assured + Loyalty Additions are paid as Death Benefit to the nominee.
Death Sum Assured= 10 X Single Premium Paid
 
Maturity Benefit – On survival till Policy Maturity, the Maturity Sum Assured + Loyalty Additions would be paid to the policyholder as Maturity Benefit and the policy would terminate.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 
 

Eligibility conditions and other restrictions in LIC Jeevan Sugam Insurance Policy

 
 
Minimum
Maximum
Death Sum Assured (in Rs.)
10 X Single Premium
Maturity Sum Assured (in Rs.)
60,000
No Limit
Policy Term (in years)
10
Premium Payment Term (in years)
Single
Entry Age of Life Insured (in years)
8
45
Age at Maturity (in years)
-
55
Single Premium (in Rs.)
32,058
No Limit
Payment modes
Only Single
 
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Sample illustration of LIC Jeevan Sugam Plan

The below illustration is for a healthy male of 20, 30 and 40 years respectively opting for Maturity Sum Assured of Rs 1,00,000

LIC Jeevan Sugam Insurance Plan Sample Premiums

 

Additional Features and Benefits of LIC Jeevan Sugam Plan

Riders – There are no additional riders in this plan

 

What happens if?

You stop paying the premium – Being a single premium plan, there is no requirement of further payment of premium.

You want to surrender the policy – There are surrender benefits in this plan

Surrender Benefit = 70% of Single Premium in 1st policy year and then 90% of Single Premium thereafter

You want a loan against your policy – Loan facility is available in this plan upto 42% of the Surrender Value in the 1st policy year and upto 60% of the Surrender Value from the 2nd policy year onwards as on the date of sanction of loan.

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