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.