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Millennium Post

Public sector LIC comes to aid of working class

Keeping the working class’s investment needs in mind (both current and post-retirement) Life Insurance Corporation of India (LIC) has launched two new products 'New Jeevan Nidhi', a deferred pension plan and 'Flexi Plan' a unit linked assurance plan at a press conference held in the capital.  A P Singh, Zonal Manager LIC of India (Northern Zone), did the honour of launching the two beneficial plans for the citizens of India.

 New Jeevan Nidhi is a conventional scheme with profit pension plan that provides for death cover during deferment period and offers annuity on survival to the date of vesting. Guaranteed addition at Rs 50 per thousand, sum assured for first five years, participation in profits in the form of Bonus, sixth year onwards are some of the benefits under the policy. Candidates falling under the age bracket of 20 to 60 years can apply for the LIC policy for a term of five to 35 years. The policy also provides accident benefit rider. In case of death during the first five policy years, Basic Sum Assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee at the then prevailing immediate annuity rates, provided the policy is in full force.

 In case of death after first five policy years,Basic Sum Assured along with accrued Guaranteed Addition, vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be paid as lump sum or in the form of annuity or partly in lump sum and balance in the form of an annuity to the nominee at the then prevailing immediate annuity rates, provided policy is in full force.

 Provided, the policy be in full force, on vesting an amount equal to the Basic Sum assured along with the accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Final Additional Bonus, if any shall be made available to the Life Assured. The proceeds available on vesting shall be payable as per one of the following options.  The optiond available to Life Assured for utilisation of the benefit amount are purchase of an immediate annuity and purchase of a new Single Premium deferred pension product from LIC.

There is a dearth of good deferred pension products in the market and hence the product was developed specially keeping in mind the needs of the people. It is ideal for people who are earning well today and can keep aside funds for securing the future. This will ensure regular income in the form of annuity or at any time in future as opted by the policyholder. LIC’s Flexi Plus is a Unit linked Insurance product. This plan not only provides a lump sum benefit on death but also the maturity benefit irrespective of survival of the policyholder. The policyholder can choose the amount of premium he/she desires to pay, depending on which equivalent level of cover will be provided. The plan aims at steady income carrying lower to medium risk.

 As the name suggests there is flexibility to choose policy term, mode of payment and fund type.

One has facility to make partial withdrawals and switch fund type. The policyholder will have the option to choose from Debt Fund or Mixed Fund. The Debt Fund is a low risk option with no investments in equity shares but only in Govt./govt. guaranteed securities/ Corporate debts and short term investment such as money market instruments. The Mixed Fund has 15 to 25 per cent investments in listed equity shares and investment of not less than 45 per cent in government or govternment-guaranteed securities/ corporate debts and short-term investment such as money market instruments.
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