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.
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
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
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.
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.
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.
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
|Death Sum Assured (in Rs.)
|10 X Single Premium
|Maturity Sum Assured (in Rs.)
|Policy Term (in years)
|Premium Payment Term (in years)
|Entry Age of Life Insured (in years)
|Age at Maturity (in years)
|Single Premium (in Rs.)
There are no additional riders in this plan
There are surrender benefits in this plan
Surrender Benefit = 70% of Single Premium in 1st policy year and then 90% of Single Premium thereafter
Being a single premium plan, there is no requirement of further payment of premium.
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.