LIC's New Insurance Plan Offers Up To Rs 15 Lakh Minimum Sum Assured; Premium Starts At Rs 3,000

The largest life insurer in India, LIC has launched a new insurance plan 'Jeevan Kiran' offering life cover with the return of premium. The plan is a non-linked, non-participating, individual, savings life insurance aiming to provide financial support to the family in case of unfortunate death of the life assured during the policy term and returns. The minimum premium instalment under the new plan is Rs 3,000, while the minimum sum assured is up to Rs 15 lakh.

The eligibility for opting for this plan is from 18 years of age and till the age of 65. The policy term varies from 10 years to 40 years.

Among the key benefits of this plan is:

- Life insurance coverage in case of unfortunate death

- Return of total premiums paid (excluding any extra premium, any rider premium and taxes) in case of survival till maturity.

- Choice from Single Premium and Regular Premium Payment

- The premium rates are different for Non-Smokers and Smokers.

- Premium payment can be made by way of a Single Premium or by way of a regular premium which is payable for the policy term.

Further, the minimum sum assured of the plan is Rs 15 lakh. However, for Sum Assured more than Rs.50 lakhs, rebates are available on Tabular Premium.

It needs to be noted that the minimum instalment premium will be Rs 3,000 for Regular premium policies and Rs 30,000 for Single premium policies.

Under the maturity benefit, this term assurance plan allows a refund of Total Premiums paid/Single Premium paid excluding any extra premium, any rider premium and taxes paid.

Further, under the death benefit, the plan offers the following benefits:

- For regular premiums: 7 times of Annualized Premium; or 105% of "Total Premiums Paid" up to the date of
death; or Basic Sum Assured.

- For single premium: 125% of Single Premium; or Basic Sum Assured.

Notably, the 'Annualized Premium' will be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if
any. Meanwhile, "Total Premiums Paid" means the total of all the premiums received, excluding any extra premium, any rider premium and taxes.

Further, LIC's new plan offers two types of optional Riders viz. Accidental Death & Disability Benefit Rider and Accident Benefit Rider are available by paying an additional premium.

As per the policy plan details, under a single premium policy, this rider can be opted at inception only and under an in-force regular premium policy, this rider can be opted at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the Base plan as well as the Rider is at least 5 years but before the policy anniversary on which the age nearer birthday of the Life Assured is 65 years.

While in the regular premium option, the Accidental Benefit Rider option can be available at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the Base plan as well as the Rider is at least 5 years but before the policy anniversary on which the age nearer birthday of the Life Assured is 65 years.

Lastly, there is a settlement option also available to receive the maturity/death benefit over a period of 5 years.

The new policy was launched on July 27, 2023.