With IRDA's proposed changes in traditional insurance products to be effected from the beginning of the new year, several mainstream products of LIC will be phased out including, Jeevan Anand, Jeevan Tarang, Bima Bachat, Jeevan Saral, Komal Jeevan, Jeevan Madhur & Jeevan Anurag among others. Such plans are available for sale only until December 31, 2013.
Among these popular plans of LIC, Jeevan-Bharti I, a money-back policy, catering specifically to the women segment will be closed from December 21, 2013. This plan comes with a couple of exclusive features that include option in respect of obtaining maturity proceeds as annuity; encashment of survival benefit upon requirement, premium payment in advance and auto cover among others.
Other integral plans of the company, Jeevan Anand and Jeevan Tarang, providing extended free life cover will also be closed for sale. So, individuals who want to leverage benefits of such exclusive offerings of LIC have the option to deploy their surplus income towards these plans until December 31, 2013.
The new regulations already resulted in the discontinuation of Jeevan Amrit from December 7 and Jeevan Surabhi will go off-the-shelf from December 14. Earlier in November, the insurer discontinued 14 policies that include Children Deferred Endowment Assurance and Convertible Term Assurance as part of the regulatory compliance. So, in all Life Insurance Corporation of India will phase off as many as 34 insurance plans beginning new year.