LIC’s new fixed-return plan offers 11% return

With stock markets taking a plunge, insurance companies are now launching more and more guaranteed return products.

The latest product on the block is Life Insurance Corporation’s (LIC) Jeevan Aastha. It’s a closed-ended single premium product, which offers guaranteed benefits to customers on maturity and death.

The scheme offers risk cover equal to the basic sum assured, which will be six times the maturity sum assured, plus guaranteed additions in the first year of the policy. In case of death after the first year, double the maturity sum assured and a guaranteed addition will be payable. However, in case of death in the last year of the policy, twice the maturity sum assured along with guaranteed additions and loyalty addition, if any, will be paid to the nominees.

The plan offers a guaranteed addition of Rs 100 per annum for every thousand of the maturity sum assured for a 10-year term and Rs 90 per thousand for policies with a five-year term.

The minimum risk coverage for the first year -- the basic sum assured -- is Rs 1.5 lakh. There is no upper limit to this.

Income-tax benefits under Section 80C and Section 10 (10D) are

available under the plan. Returns with income-tax benefit can be around

11 per cent or even more, depending on the age

at entry.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Need to rein in profligate promoters in low margin airline business

    With the media and industry searchlight trained hard on SpiceJet, it is easy to forget that it may be, at worst, a symptom, not the real malaise itsel

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture