LIC JEEVAN SUGAM
Public insurer Life Insurance Corporation (LIC) on 25th February, 2013 launched single premium plan ‘Jeevan Sugam’, which provides for a risk cover of 10 times the premium for a fixed 10 – year term.
It is a close ended plan available only for the next 45 days (till 10th April, 2013) for those between the age of 8 and 45 years.
It is a non-linked conventional plan, which provides tax benefits with added advantage of premature surrender of policy.
“The policy provides minimum sum assured of Rs 60,000 with no upper limit for investment,” LIC marketing manager Raj Vir Singh told the media here.
For maturity sum assured of over Rs 1,50,000, an additional maturity sum assured of 3.5 per cent is provided to the policyholder. For maturity sum of over Rs 4,00,000, higher additional maturity sum assured of 4.5 per cent is provided.
Jeevan Sugam Features
Asked why the policy was close ended, Singh said since it provided assured rate of return, providing a longer period of entry to subscribers could have posed challenges due to the regular changes in key policy interest rates of late.
Meanwhile, the policy provides maturity sum assured along with loyalty addition after 10 years of subscription. In event of death during first five policy years, the policy provides 10 times the single premium as claim amount. The death occurring after five years, the nominee gets loyalty additions, if any.
You can avail the tax benefit under Section 80C during the period of investment (For insurance policies issued on or after April 01 2012, deduction is allowed for only so much of the premium payable as does not exceed 10% of the actual capital sum assured). Also you can avail the tax benefit under Section 10(10D) post maturity also under current income tax laws (For insurance policies issued on or after April 01 2012, exemption would be available for policies where the premium payable for any of the years during the term of the policy does not exceed 10% of the actual capital sum assured).