The life Insurance Corporation of India (lIC) has launched 'Jeevan Sugam', a new non-linked single premium plan w e f 25th Ferb'2013 for 45 days.
The new plan, which is available for a limited period, is a conventional close-ended plan with guaranteed returns. The plan provides a risk cover of 10 times the single premium paid for a fixed term of ten years. On survival, the maturity amount assured along with the loyalty addition will be paid to the policyholder.
The amount of loyalty addition will depend on lIC's claim experience. The policy is also eligible for tax benefit under section 80 C as per existing provisions of the Income Tax Act.
The latest policy is available for those between 8 and 45 years. The minimum sum to be invested is Rs60000, while there is no upper limit for the investment.
For a maturity sum of more than 1.50 lakh, an additional 3.5 % maturity sum assured(MSA) will be paid to the policyholder at the time of maturity and for a maturity sum of Rs400000 and above 4.5per cent of the MSA along with the MSA is payable at maturity.
If policy holders die during first five policy years then the 10 times the single premium will be given as the claim amount, and the same is applicable even if the policy holder passes away five years after the first five policy years.
Star Union Dai-Ichi has a similar product to offer, which is giving a lower guarantee and a less rate of interest than lIC on Rs1 lakh single premium paid by a policyholder. Both are single premium endowment products with a fixed term of 10 years.