LIC Jeevan Nischay – Product Review
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.
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 Entry||18 Years|
|Maximum Age at Entry||50 Years|
|Minimum Premium||Rs 10,000 and in multiples of Rs 1000 thereafter|
|Maximum Premium||Rs 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.
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.
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Other Product Reviews that you might be interested in reading about:
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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)
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