It's now a feature for the Life Insurance Corporation to regularly launch endowment plans and one more called LIC Jeevan Lakshya Table No 833 has been launched.
Finer Points of the LIC Jeevan Lakshya 2015 Plan
The Plan is an endowment plan that comes with certain other benefits like accidental death and disability benefit.
|Age Limit||Minimum of 18 and Maximum of 50 years|
|Maximum Age During Policy maturity||65 Years|
|Term of Policy||13 to 25 years|
|Maximum Sum insured||No limit|
|Minimum Sum insured||Rs 1 lakh|
|Bonus Payable||Simple Revisionary Bonuses and Additional Final Bonus|
|Death Benefit||Not less than 105 per cent of premium paid|
|Grace Period For Making Premium Payment||30 Days|
|Accidental Death Benefit||Yes|
What this means is that in case of accidental death to you, an extra amount is paid, provided you pay the extra premium that is involved. The benefit is nothing extra ordinary as one can get accidental cover these days on even specific debit cards applied from your bank. Almost several financial products offer accidental coverage. The minimum accidental death cover is Rs 10,000, while the maximum is restricted to Rs 1 crore.
There is also the disability rider, which again can be bought from a host of other insurance companies.
Should You Buy The Lic Jeevan Lakshya 2015 Plan?
Most of the endowment plans can offer you return of a small 6 to 7 per cent. This is because they come with life cover. Now, the problem with mixing life cover and investment is you get superior returns from none. For example, if you go for a term insurance policy, you get much superior insurance cover as compared to an endowment insurance plan.
On the other hand if you want to invest, you can get much superior investment products that can offer you returns of as much as 10 per cent annually.
If you take an endowment plan, you do not necessarily get the best of both the worlds. Therefore, opinions might differ the facts is that those who are looking at a decent cover can go for this product. Those who are looking at a super insurance protection for their family should avoid this product and go for a term plan.