The Life Insurance Corporation (LIC) of India, on October 17, introduced a new non-linked, non-participating Life Insurance Plan
The Life Insurance Corporation (LIC) of India has recently introduced a new non-linked, non-participating Life Insurance Plan. The individual, savings, single premium plan offers a combination of savings and insurance coverage. Not only does the plan ensures financial support for the family in case of the unfortunate passing away of the insured person, but it will also provide a lump sum amount on the date of maturity of the plan for the surviving life assured. The plan is close-ended (meaning your money will be locked in) and will only be available for sale until March 31, 2023– the end of the current financial year.
While there is no upper limit to the sum assured of the plan, the minimum Basic Sum Assured (BSA) under this plan is Rs 1.25 lakh. The minimum age for subscribing to the insurance plan is 3 years, while the maximum is 60 years. The minimum age of maturity is 18 years, while the maximum is 75 years. This implies that the plan will have to be held for at least 15 years.
The clients will have two options to pick from when it comes to the sum assured on death. They can either opt for this amount to be 1.25 or 10 times Tabular Premium for the chosen BSA.
LIC is also offering two optional riders, Accidental Death and Disability Benefit Rider and New Term Assurance Rider, under this plan.
Apart from the sum assured on death, the plan’s benefit also includes accrued guaranteed additions. It will be payable on the death of the Life Assured during the policy term. Guaranteed additions are computed per every thousand of the sum assured. They accrue at the end of each policy year, throughout the policy term. In the case of this plan, it will depend on the option chosen, BSA, and the policy term. According to Financial Express, the rates vary from 25 to 75 per 1000/- BSA.
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In the event of the subscriber surviving till the date of maturity of the plan, the BSA, along with accrued guaranteed additions will be payable.
The client will also be eligible for tax benefits under Section 80C of the Income Tax Act, 1961, on buying a policy for themself and their spouse.
