LIC launches Jeevan Sugam; single premium plan

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LIC launches Jeevan Sugam; single premium plan
India's largest insurance company, LIC, has launched a new plan called LIC Jeevan Sugam, which is a single premium plan launched earlier on Feb 25, 2013.

It is a close ended plan which is available for the next 45 days. The plan provides for high level of death cover during the policy term and a Maturity Sum Assured along with Loyalty Addition, if any, on maturity.

Click to know more about LIC's latest pension plan - New Jeevan Nidhi

Highlights of the plan

* Risk cover: 10 times the Single Premium Paid
* Maturity Benefits : Maturity Sum Assured + Loyalty addition if any
* Loyalty addition: as per LIC's exprerience
* Income Tax benefit u/s 80C as per existing provision of I.T. Act
* Tax Free Maturity after 10 years
* Age Eligibility: 8 to 45yrs
* Policy Term : 10 years
* Loan available

Benefits of the plan

Death Benefit

On death during first five policy years:

Basic Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged shall be payable.

On death after completion of five policy years:

Basic Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged along with loyalty addition, if any, shall be payable.

Maturity Benefit:

On maturity, the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.

Loyalty Addition:

Depending upon the Corporation's experience with regard to policies issued under this plan, this policy will be eligible for Loyalty Addition.

The Loyalty Addition, if any, is payable on death after completion of five policy years, on surrender during the last policy year and on maturity, at such rate and on such terms as may be declared by the Corporation.

Loan

Loan can be availed under this plan any time during the policy term. Loan shall be equal to 60% of the surrender value as on the date of sanction of loan.

Surrender Value

The policy can be surrendered for cash at any time during the policy term. The minimum Guaranteed Surrender Value allowable shall be as under:

First year: 70% of the Single premium (net of service tax) excluding all extra premiums, if any.

Thereafter: 90% of the Single premium (net of service tax) excluding all extra premiums, if any.

Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.

Service tax

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time. The amount of service tax as per the prevailing rates shall be payable by the policyholder on the premium.

Unique Indentification of the LIC's JEEVAN SUGAM is UIN: 512N273V01

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Read more about: lic, jeevan sugam, jeevan nidhi
Story first published: Wednesday, February 27, 2013, 10:31 [IST]
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