LIC Jeevan Vriddhi policy - Review, benefits, returns, premium calculations, features and drawbacks
LIC Jeevan Vriddhi policy is limited option policy and covers more risks and is a single premium LIC policy. See details about benefits, returns, premium options and calculations and limitations of LIC Jeevan Vriddhi plan.
Life Insurance Corporation (LIC) of India has introduced a limited-offer single-premium policy Jeevan Vriddhi which promises to nearly double the investment amount at the end of 10 years. Being a life insurance plan, it gives risk cover up to five times of entire premium.Benefits and return of LIC Jeevan Vriddhi Policy
● Death benefit: On death if policyholder, the Basic Sum Assured will be payable. The Basic Sum
Assured will be 5 times of the Single Premium excluding any additional premium, if any.
● Tax Benefit: You can avail tax benefit in section of 80 C for premium paid in this plan. Similar to other insurance plans of LIC, maturity amount receivable is tax free.
● Maturity Benefit: On maturity, the Guaranteed Maturity Sum Assured plus Loyalty Addition shall be payable, if any.
● Liquidity: This plan offers facility similar to fix deposit where one can surrender this policy after one year. The minimum Guaranteed Surrender Value permitted is equal to 90% of the premium paid excluding any extra premium, if any. The policyholder can apply for loan on this plan after 1 year.
● Loyalty Addition: The policyholder will be eligible for Loyalty Addition on the date of maturity.
Rate and terms are as may be declared by the LIC.Eligibility and rate of premium of LIC Jeevan Vriddhi policy
Minimum entry age for this plan is eight years and maximum is fifty years. Term of this policy is fixed ten years. The Minimum sum assured is 1.5 lakh where no upper limit on maximum sum assured is applicable. The minimum premium in the policy is Rs 30,000 which shall increase in multiples of Rs 1,000.Important features of LIC Jeevan Vriddhi plan
●This is a single premium payment plan
●The Sum Assured is offered as Death Benefit
●Guaranteed Maturity Sum Assured plus Loyalty Additions would be paid in the form of Maturity Benefit
● This plan offers incentive for High Premium of
● Rs 50,000 - Rs 99,000 - There would an increase of 1.25% on the Maturity Sum Assured.
● Rs 1,00,000 and more – An increase of 3% on the Maturity Sum Assured
● The Guaranteed Maturity Sum Assured would be estimated as per the entry age of the Life Insured.Drawbacks and limitations of LIC Jeevan Vridhhi policy
● This is a Traditional Plan without Bonus Facility and offers only death and maturity benefit.
● This plan will be available only for limited time.LIC Jeevan Vriddhi policy review and calculations
Certainly on the face of it, Jeevan Vriddhi of LIC looks quite attractive, but when it's matter of finances one should be very careful. Let's analyze what guarantee they are actually providing. You might be more interested in guaranteed maturity benefit as compared to the loyalty additions which may or may not be offered. The illustrative chart given on the website of LIC clearly shows the guaranteed maturity value one will get by investing a premium of Rs 1000/- in this plan. Using premium calculator you can estimate the actual premium outgo after adding Service tax and what would be the annualized yield during the time of Maturity.