Sunday, March 1, 2009

Jeevan Varsha

After Jeevan Aastha, LIC has come out with another insurance plan - Jeevan Varsha. LIC’s Jeevan Varsha is a close ended Money Back Plan with Guaranteed Additions. The plan provides for periodical payments of a proportion of Sum Assured at specified durations, on survival during the term of the policy and on maturity. The Plan provides for payment of Sum Assured on death. Guaranteed Additions are payable on death and Maturity. Loyalty Additions may also be payable during the last year of the policy on both maturity and death.

The plan will be open for purchase from 16th February, 2009 to 31st March, 2009.

ELIGIBILITY CONDITIONS- Minimum Entry Age: 15 years (completed)
- Maximum Entry Age: 66 years (Nearest Birthday) for 9 years term policy. 63 years (Nearest Birthday) for 12 years term policy
- Policy Term : 9 years & 12 years
- Premium Paying Term: 9 years
- Maximum Maturity Age: 75years (Nearest Birthday)
- Minimum Sum Assured: Rs. 75,000/- for monthly ECS mode, Rs. 50,000/- for other modes
- Maximum Sum Assured: No limit (Sum Assured shall be in multiples of Rs.5,000/-)

PREMIUM PAYMENT MODES:
Yearly, Half-Yearly, Quarterly, Monthly (by ECS mode only).

MODE REBATEYearly mode: 2% of Tabular Premium
Half-yearly mode: 1% of the tabular premium

HIGH SUM ASSURED REBATESSum Assured (in Rs) Rebate per thousand Sum Assured
Less than Rs.1, 00,000/- Nil
Rs 1,00,000 and above but less Rs 2.00
than Rs.200000
Rs 2,00,000 and above but less Rs 3.50
than Rs.500000
Rs. 500000 and above Rs 5.00

Survival Benefits:For 9 Years Policy Term
15% of the Sum Assured is payable at the end of 3 years.
25% of the Sum Assured is payable at the end of 6 years.
60% of the Sum Assured is payable together with Guaranteed Additions, and Loyalty Addition, if any, at the end of 9 years.

For 12 Years Policy Term
10% of the Sum Assured is payable at the end of 3 years.
20% of the Sum Assured is payable at the end of 6 years.
30% of the Sum Assured is payable at the end of 9 years
40% of the Sum Assured is payable together with Guaranteed Additions, and Loyalty Addition, if any, at the end of 12 years.

Death Benefit:In case of death of the life assured during the policy term, the full sum assured is payable irrespective of the survival benefits paid earlier.
On death during the policy term excluding last policy year: Sum Assured with accrued Guaranteed Additions
On death during last policy year: Sum Assured with accrued Guaranteed Additions along with Loyalty Addition, if any.

Guaranteed Addition:
The policy provides for Guaranteed Addition at the following rates:
Rs. 65 per thousand Sum Assured per year for a policy of 9 years term.
Rs. 70 per thousand Sum Assured per year for a policy of 12 years term.

Loyalty Addition:Depending upon the Corporation’s experience the policy will be eligible for Loyalty Addition on the Life Assured surviving the stipulated date of maturity or on the Life Assured’s death during the last policy year at such rate and on such terms as may be declared by the Corporation.

Our viewpoint:
Very low rate of return. Not worth investing if you are looking for a rate of return on investment - hardly 3 to 3.5% rate of return. As we said with Jeevan Aastha, it is better to keep insurance separate from investment plans. It is better to take a separate term insurance policy for safegaurding family's future and invest in other instruments like FDs, PPF etc for investment returns.

For other information on Loan, Grace Period, Revival, Paidup value, Surrender value, Exclusions and Cooling off period please refer to http://www.licindia.com/


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