LIC's Jeevan Azad plan launch. (Photo by arrangement)
HYDERABAD: "This is a non-participating, individual, savings life insurance plan which offers an attractive combination of protection and savings. This is a limited premium payment endowment plan which provides financial support for the family in case of unfortunate death of the life assured during the policy term and also takes care of liquidity needs through loan facility. It also provides guaranteed lumpsum amount to the surviving life assured on the date of maturity," the country's top life insurer said in a statement.
"Death benefit payable on death of the life assured during the policy term after the date of commencement of risk but before the date of maturity, shall be "Sum Assured on Death" where "Sum Assured on Death" is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’. This Death Benefit shall not be less than 105% of "Total Premiums Paid" up to the date of death," the insurer said.
On life assured surviving the stipulated date of maturity, LIC of India said sum assured on maturity which is equal to basic sum assured will be payable. The plan also provides an option to receive death/maturity benefits in instalments subject to certain conditions. Three optional riders shall be available under this plan by payment of additional premium.
The minimum basic sum assured per life is Rs 2 lakh and the maximum basic sum assured per life is Rs 5 lakh. The policy can be taken for term of 15 to 20 years with premium paying term calculated policy term minus eight years. The minimum age at entry is 90 days completed and maximum age at entry is 50 years (nearer birthday).
The insurer also said that premiums can be paid regularly at Yearly, Half Yearly, Quarterly or Monthly intervals.