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E-mail ID will not be published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

  • The world is moving away from fast food like never before

    Despite spending $1.8 billion every year on worldwide advertising and promotion, McDonald’s sales are plummeting.

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 Schoettli

It’s time for Japan to step out of its shell

The execution of a Japanese hostage by ISIS has sho­cked ...

Zehra Naqvi

The urge to tell stories

One wants to tell a story, like Scheherzade, in order ...

Bubbles Sabharwal

Truth about truth

The question to ponder is, “is it the truth because ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture