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Thursday, May 21, 2015

LIC Jeevan Sangam plan to be available up to June 1

The close-ended Jeevan Sangam (Plan 831) introduced by the Life Insurance Corporation will be available in the market for subscription up to June 1.

Jeevan Sangam is a participating, non-linked, savings-cum-protection, single-premium plan that provides for a high-level risk cover.

The proposer has an option to choose the maturity sum assured, said Shaji M Shankar, Senior Divisional Manager, LIC, Thiruvananthapuram.

The single premium payable (exclusive of service tax) will depend on the chosen amount of maturity sum assured and age of the life assured.

Priority of an assured varies with the stage of life of the individual. Some are concerned with building a corpus for pension on retirement, while some others may like to fund children’s education and marriage.

The plan provides for a death benefit ten times of the tabular single premium along with loyalty addition. Maturity sum assured shall be payable along with loyalty addition.

Loyalty addition

Loyalty addition refers to participation in surplus (profit) and the policy is eligible for this after the completion of five policy years.

The minimum and maximum years for entry are six and 50 respectively and the minimum basic sum assured is Rs.75,000. There is no limit to the maximum sum assured. The policy term is for 12 years and premium payable, single.

Tax benefits include guaranteed exemption under Section 80C and tax-free Maturity under Sec 10 (10) D.

For a maturity sum assured of Rs.4 lakh, a single premium of Rs.1,80,540 paid at age eight will add up to insurance cover of Rs.18,85,400 (loyalty additions extra kicking in after five years).

Amount of premium eligible for rebate is Rs.1.5 lakh. A single premium of Rs.1,81,080 paid at age 10 will provide for an insurance cover of Rs.18,90,800 with applicable loyalty additions and eligible rebate.

Similarly, a single premium of Rs.1,82,220 paid at age of 12 will return an insurance cover of Rs.19,02,200; and Rs.1,84,100 paid at age 15 will make available Rs.19,21,000.

Source : Thehindubusinessline


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