Mumbai: Life Insurance Corporation of India (LIC) has launched a new Jeevan Utsav Single Premium plan, offering guaranteed lifelong income with life cover.
The plan was unveiled by LIC’s Chief Executive Officer and Managing Director, R. Doraiswamy, and will be available for purchase nationwide from January 12. It is a non-par, non-linked, individual savings plan that requires a one-time premium payment with accrual of guaranteed additions during the guaranteed additions period. The policy is open to individuals aged between 30 days and 65 years, with a minimum basic sum assured of Rs 5 lakh. There is no upper limit on the sum assured, subject to underwriting norms. Guaranteed additions accrue at the rate of Rs 40 per thousand of basic sum assured at the end of each policy year during the guaranteed addition period.
Policyholders can choose between two income options — a regular income benefit, under which 10% of the basic sum assured is paid annually after a deferment period of 7 to 17 years, or a flexi income benefit that allows income to be accumulated and withdrawn later with interest at 5.5% per annum, compounded yearly.