LIC Jeevan Chhaya: A quick review

Insurance

oi-Roshni

By Roshni Agarwal

Published: Monday, August 19, 2013, 10:31 [IST]

LIC Jeevan Chhaya is an endowment assurance child plan that provides life cover against the death of the insured for the entire term of the policy. The policy like other conventional LIC plans allows the policyholder to choose the payment mode which can be either monthly, quarterly, annually or via ECS mode.

This policy serving as a child plan provides 25% of the S.A value towards the end of each of the last 4 years of the policy term irrespective of the survival status of the insured. The % amount could be utilized by parents for different financial needs of their child pertaining to school fees, coaching for different competitive exams, higher studies etc.

Survival Benefit

An assured benefit that accrues to the customer of this policy irrespective of the survival status of the insured is a percentage of the sum assured value equal to 25% towards the end of each of the last four years of the policy term. Also, regardless of the survival or death of the insured, the policy pays out theaccumulated bonus declared from time to time at the maturity of the policy.

Death Benefit

In case the policyholder or the insured does not survives through the term of the policy and unfortunately dies, then the nominee of the policy is entitled to receive a sum equivalent to sum assured value on an immediate basis.

Bonus payable at policy maturity

Being a with-profits child plan, LIC Chhaya offers accumulated bonus at the maturity of the policy term which it receives as reversionary bonuses declared on every S.A value of Rs. 1000 towards the end of each of the financial year. Additional bonus is also paid out to the policyholder in case the policy completes certain specified tenure with the institution.

Additional Protection at extra cost

Certain optional benefits could also be enrolled for by the policyholder depending upon their financial needs. However, to avail and be entitled to receive such benefits one needs to dole out extra cost.

Policy Surrender available on early surrender and policy continuation for at least years

In case the policy has been continued for at least 3 years, policyholder can apply for surrender if required.

Guaranteed S.V= 30% of basic premium excluding bonuses paid and first premium payment

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