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.

EDITORIAL OF THE DAY

  • Census shows urgent steps are needed to dispel rural despair

    The much delayed Socio-Economic and Caste Census, 2011, has finally seen the light of day, and going by its conclusions, it couldn’t have come a day

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture