As usual, LIC is launching a limited period plan called Jeevan Shikhar (Table No.837). This will be available from January, 2016 to the maximum period of 120 days.
You notice the LIC history, they always launch limited period endowment plans in January and closes in March. The reason is to trap the tax saving salaried individuals. The biggest loser in such unplanned blind tax saving investments are INVESTORS only but not agents or LIC. So to utilize this opportunity, every year LIC launches new plans during this tax saving season.
Below are the features of this plan
- It is a single premium plan.
- Insurance cover will be 10 times of your premium. If your premium is Rs.1,00,000, then the sum assured will be Rs.10,00,000.
- It is a typical endowment plan.
- Minimum maturity sum assured must be Rs.1,00,000. There is no maximum limit.
- Minimum entry age is 6 years.
- Maximum entry age is 45 years.
- Premium paying mode-ONLY SINGLE.
- Term of policy is 15 years.
- You have an option to chose the Maturity Sum Assured (MSA). Based on this MSA and age, your premium will be fixed.
- This plan offers a rebate in terms of a tabular premium on per Rs.1,000 MSA. This rebate is Rs.15 for MSA between Rs.2 lakh to Rs.4.8 lakh. Rs.20 for MSA between Rs.5 lakh to Rs.9.8 lakh. Rs.25 for MSA of Rs.10 lakh and above.
- Agent’s commission will be 2% of the premium.
- This plan offers loan facility but depends on how old the policy is and your age.
If you survive till the policy period, then you will receive the MSA (Maturity Sum Assured)+Loyalty Addition.
a) If death occurs during first 5 policy years-Refund of single premium without interest.
b) If death occurs after 5th policy year-10 times of your single premium.
I tried to simplify the plan by explaining as below.
This is the plan which yet to be launched. But going by available features, I felt is one more worst plan LIC launching. I feel buying a term insurance and PPF is best. I am referring PPF again and again. Because PPF offers same tax benefit as that of LIC endowment products.
I will review it once I will get more updates of the same.