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Guaranteed Maturity Sum Assured Plan

Monday, April 09, 2012

LIC Jeevan Vriddhi Plan is a Single Premium Endowment Plan with Guaranteed Maturity Sum Assured. Thus, this plan is a Traditional Plan without Bonus Facility. The Sum Assured is 5 times the Basic Single Premium paid. This plan has a fixed tenure of 10 years although there is Surrender Facility and Loan Facility after 1 policy year.
If the Life Insured dies within the Policy Tenure, the Sum Assured is paid as Death Benefit. However, if the Life Insured survives till the end of the policy tenure, Guaranteed Maturity Sum Assured + Loyalty Additions would be paid as Maturity Benefit. The Guaranteed Maturity Sum Assured would be calculated as per the age of entry of the Life Insured.

Key Features

  •    Single premium policy
  •    Offers Bonus Facility
  •    Sum Assured is paid as Death Benefit
  •    Guaranteed Maturity Sum Assured + Loyalty Additions would be paid as Maturity Benefit
  •    Provides incentive for High Premium of Rs. 50,000 to Rs. 99,000 - There would an increase of 1.25% of the Maturity Sum Assured, Rs. 1,00,000 and more - There would an increase of 3% of the Maturity Sum Assured.

Death Benefit – In case of death of the Life Insured within the policy tenure, the nominee receives the basic Sum Assured as Death Benefit.
Maturity Benefit – At the maturity of the policy, the Life Insured will get Sum Assured + Loyalty Additions as declared by the company as Maturity Benefit.
Loyalty Additions – Depending upon LIC’s experience, the policy will be eligible for Loyalty Addition on date of maturity at such rate and on such terms as may be declared by LIC.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D).
Incentive for Higher Premium - Incentive for higher single premium by way of increase in the Guaranteed Maturity Sum Assured is as under:
Premium    Increase in
(excluding extra     Guaranteed Maturity premium)    Sum Assured   
Below Rs. 50,000    Nil   
Rs. 50,000 to Rs. 99,000    1.25%   
Rs. 1,00,000 and above    3.00%   
Eligibility conditions
    Minimum    Maximum   
Sum Assured (in Rs.)     1,50,000    No Limit   
Policy Term (in years)    10       
Premium Payment Term
(in years)    Single   
Entry Age of Life Insured
(in years)    8    50   
Age at Maturity (in years)    -    60   
Single Premium (in Rs.)    30,000    No Limit   
Payment modes    Only Single   

Surrender the policy

Loyalty Addition: The policy can be surrendered for cash after the policy has run for at least one year. The minimum Guaranteed Surrender Value allowable is equal to 90% of the Single premium paid excluding extra premium, if any. LIC may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value. The Special Surrender Value will be the discounted value of the Guaranteed Maturity Sum Assured as on date of surrender.

Loan: Loan facility is available under this policy after 1 policy year.

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