LIC Jeevan Nischay

by Gopal Gidwani on December 29, 2009 · 1 comment

in Insurance,Uncategorized

LIC Jeevan Nischay – Product Review

Introduction
Companies listed on the stock exchange coming out with rights issues, wherein new shares are offered to existing shareholders in some ratio based on their existing share holding, is very common. But this is not a common scenario among insurance companies, wherein companies come out with a new policy / product which can be bought only by the existing policy holder’s. On 29th October 2009 India’s largest life insurance company came out with something which can be compared to a listed company coming out with a right’s issue. You guessed it right; yes we are talking about Jeevan Nischay. Riding on the high success of Jeevan Aastha last year, this is the latest guaranteed return product from LIC which has been launched on 29th October 2009 for its existing policy holders. Let’s have a closer look at the product.

Features
Jeevan Nischay is a single premium closed ended (open for subscription for a limited time period) product for existing policy holders who have atleast one risk bearing policy in force. This is a guaranteed return plan. The global economy is slowly recovering from financial mess left behind by the subprime crisis. Stock markets are volatile. People are scared to take risks because many of them burnt their fingers in the stock market crash in October 2008. With such a gloomy economic scenario, LIC’s guaranteed return plan couldn’t have come at a better time. This plan gives investors an opportunity to invest their money into a product which not only protects their capital but also assures them guaranteed returns on maturity.
As per the LIC website following are the features of the policy:

Minimum Age at Entry18 Years
Maximum Age at Entry50 Years
Minimum PremiumRs 10,000 and in multiples of Rs 1000 thereafter
Maximum PremiumRs 10,00,000
Policy tenure can be 5 Years, 7 Years or 10 Years

Also the amount that a person can invest in this product depends on the insurance that he already bought from LIC.

Benefits:
The maturity amount depends on the premium paid, age and the tenure chosen. For higher premiums, Rs 25000 and above, the policy holder will be eligible for incentives, which will result in higher maturity amount. The policy holder can avail a loan against the policy after completion of 1 year. The policy can be surrendered after completion of 1 year.
If death happens during the 1st year of the policy, five times the single premium is payable as death benefit. If death happens after 1st year then the maturity sum assured amount is paid. If the policy holder survives the entire tenure of the policy then the maturity sum assured along with loyalty bonuses, if any, is paid. So this product provides insurance cover only in the 1st year and in the subsequent years it becomes an investment product.
The plan is open for subscription till 31st March 2010.

Please do let us know your comments on the article at gopal_gidwani@yahoo.com
Other Product Reviews that you might be interested in reading about:
Capital Guarantee Products
Aegon Religare iTerm Plan – Term Insurance Product Review
Aegon Religare Invest Maximiser Plan – ULIP Product Review
HDFC Young Star Super – ULIP Product Review
ICICI Advantage Deposit – Fixed Deposit cum Mutual Fund Mix Product Review
Basic Information on Public Provident Fund
Basic Information on Tax Saver Bank Fixed Deposit
National Savings Certificates (VIII) Issue
Kisan Vikas Patra (KVP)
Senior Citizen Saving Scheme (SCSS)
Post Office Monthly Income Scheme (POMIS)


{ 1 comment… read it below or add one }

Mickey August 3, 2010 at 6:27 am

Good articles and research – however, it would be helpful if you could give examples in each article – like for a 35-year-old if he invests in LIC products or PPF, then how much the yearly installments would grow to after 10 yrs and 15 yrs. This would give a good idea as to the amount accumulated under different schemes after a long period of time.

Also – can you compare about LIC’s jeevan saral and jeevan tarang policies? Are these really good investment tools for a 35-year-old individual planning for retirement and children;s education.

Thanks and regards

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