Good news for 29 crore LIC policyholders. Now you will be able to deposit your LIC policy anywhere in the country. If your policy is maturing or already matured you can submit your maturity claim in your nearest LIC office.
The service is being run on a trial basis till 31st March 2021. Anywhere claim would be beneficial for policyholders who are stuck in different cities due to lockdown.
LIC has instructed its 2048 branches across the country about this new change.
How will this work?
The facility will run in the background and the maturity payment will be made by the servicing branch only as usual. The Branch where you deposit your maturity claim will digitally transfer the policy documents to your servicing branch. In short, you can claim your maturity from anywhere in India and your servicing branch will process your claim after receiving digital documents from your nearest branch.
Life Insurance Corporation of India (LIC) has 113 div. Offices across the country and 2048 branches. Also, note that you will be able to claim only if your policy is maturing on or before 31 March. This facility is very convenient and LIC should make it a permanent facility.
If you are planning to buy any of these 19 LIC policies, you must opt-in before 31st January 2020. These Insurance policies are being discontinued due to new guidelines of insurance regulatory IRDA which will come into effect from 1st February 2020.
Insurance Regulatory and Development Authority (IRDA) has created new guidelines for linked and non-linked life insurance policies. IRDA has asked all insurance companies to prepare all their policies under the new guidelines. All Insurance companies will have to follow the new guidelines from 1st February 2020. So if you want to buy these old plans you can buy them before 31st January 2020.
Also, note there will be no change in old policy premiums and benefits post these new guidelines.
If the policyholder dies within 5 years, the Basic sum assured i.e 10 times of your single premium would be payable to the nominee.
In case, the policyholder dies after 5 years, the Basic sum assured would be paid to the nominee ie. 10x of your single premium plus loyalty addition, if any.
If the policyholder survives till the end of the specific policy year, the following benefits will be payable.
At the End of the 10th Policy year: 15% Of the Maturity Sum Assured (MSA)
At the end of the 11th policy year: 20% of the Maturity Sum Assured
At the end of the 12th Year (On Maturity) remaining 65% of Maturity Sum Assured along with Loyalty addition (if any) will be paid to the policyholder.
Eligibility condition and other restriction for Jeevan Shagun:
Minimum Entry Age: 8 Years (Completed)
Maximum Entry Age: 45 Years ( Nearest Birthday)
Policy Term: 12 years
Sum Assured: 10 times of Tabular Premium
Minimum Maturity SA: Rs.60,000/-
Maximum Maturity SA: No Limit
Premium Paying Mode: One-time Premium (Sum Assured will be in multiples of Rs.5000/-)
High Sum Assured Rebate: Sum Assured (SA) Rebate (Rs.) Below Rs.1,50,000/- Nil Rs.1,50,00 – 3,95,000/- Rs.15 per 1000 on MSA 4 lacs and above Rs.20 per 1000 on MSA
Loan Facility: Policyholders can avail of loans after completing one policy year.
1st Year = No Loan
2nd to 3rd year: 50% of Surrender Value.
4th to 6th year: 60% of Surrender Value.
7th to 9th year: 70% of Surrender Value.
10th to 12 years: 90% of Surrender Value.
How much will you get if you surrender your policy?
If you want to surrender your policy, you are eligible for the Minimum Guarantee Surrender value as follows:
First-year: 70% of single premium excluding extra premium and taxes, if any.
2nd year onward: 90% of single premium excluding extra premium and taxes, survival benefit paid if paid earlier.
LIC may pay a higher surrender value calculated at the time of surrendering the policy. If a policy is being surrendered after completing 5 policy years, LIC shall also pay Loyalty addition, if any, based on surrender value.
Cooling Off Period: If you don’t like the policy you have 15 days to cancel your policy.
Lic Jeevan Shagun Policy Premium Calculator Age 8 Yrs MSA Rs.1 lac= Rs.50,880. Age 20 Yrs MSA Rs.1 lac= 52,390. Age 25 Yrs MSA Rs.1 lac= Rs.52,803. Age 30 Yrs MSA Rs.1 lac= Rs.53,736. Age 35 Yrs MSA Rs.1 lac= Rs.56,019. Age 40 Yrs MSA Rs.1 lac= Rs.61,380. Age 45 Yrs MSA Rs.1 lac= Rs.74,106
Benefit illustration: Age: 30 SA: 1 lac Single Premium: Rs.53,736 (52,125+ 1611 Tax) Approx. Maturity return: Risk cover: Rs.5,21,250 (10 times of premium paid) End of 10 year 15% MSA: 15,000/- End of 11 year 20% MSA: 20,000/- Loyalty addition: 5000/- approx. 12th year Maturity: 70,000 (SA + IB+ final Bonus) approx.
Summary: Jeevan Shree 1 Table No.162 is an Endowment Assurance plan. Jeevan Shree-I is offering the choice of many convenient premium paying terms. It provides financial protection against death throughout the term of the plan with the payment of the maturity amount on survival to the end of the policy term. Jeevan Shree-I is suitable for high-worth individuals i.e Corporate Executives, Professionals, Software Engineers, Industrialists, Consultants, Estate owners, Builders, NRIs, Models, Film stars, etc.
Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the premium paying term or till earlier death. Alternatively, the premium may be paid in one lump sum (Single premium).
Guaranteed Additions: Jeevan Shree 1 comes with Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for the first five years of the policy. The Guaranteed Additions are payable along with the Basic Sum Assured at the time of claim.
Bonuses: The policy participates in the profits of corporations business from the 6th year onwards. Jeevan Shree-I will get a share of the profits in the form of bonuses. Also, a Simple Revisionary Bonuses will be declared per thousand Basic Sum Assured annually at the end of each financial year. Bonuses once declared, will form part of the guaranteed benefits of the plan and will be included on maturity.
Maturity Benefit: The Sum Assured along with guaranteed additions and reversionary bonuses if any is payable in a lump sum on survival to the end of the policy term.
Death Benefits: Sum Assured plus Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for the first five years of the policy. And Death after first 5 years, S.A. + vested G.A. of Rs.50/- per 1000 S.A. per year for the first 5 years + accrued Reversionary Bonuses declared from 6th year onwards.
Accidental Benefit: Accident benefit is available under Jeevan Shree-I up to a maximum of Rs.25 lakhs (inclusive of all other life insurance plans) An additional amount equal to the accident benefit sum assured is payable on death. In case of total and permanent disability arising due to an accident (within 180 days) this amount is paid over a period of 10 years in monthly installment.
Surrender Value: Buying a life insurance policy is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract. The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In the case of a single premium policy, the guaranteed surrender value is 90% of the single premium paid excluding any extra premium
Jeevan Shree 1 Eligibility Conditions and Restrictions:
Minimum age at entry: 18 years completed
Maximum age at entry: 65 years
Maximum maturity age: 75 years
Minimum Term: 5 years
Maximum Term: 25 years
Minimum Sum Assured: Rs.5,00,000/-
Maximum Sum Assured: No Limit
Sum Assured should be in multiples of Rs.1,00,000/-
Accident Benefit per 1000/- S.A.: Allowed (With extra Premium)
Loan Available: Yes
Rebates: Jeevan Shree -I is eligible for rebates depending on the mode of premium payment chosen and the extent of cover.
The yearly premium payment option entitles the policyholder to a 2% rebate on premiums; a sum assured of Rs 50 lakh entitles the insuree a Rs 0.50 per thousand sums assured rebate.
15-Days Cooling-Off Period: If you are not satisfied with this policy, you have an option to return the policy within 15 days.
Revival: The policyholder can revive his lapsed policy within 5 years from the date of the first unpaid premium by paying arrears of premium together with interest to be decided by the corporation from time to time subject to satisfactory evidence of health.
Update: Jeevan Shree 1 Plan No. 162 Has Been Discontinued.
Note: The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.
LIC Jeevan Sugam (Table No. 813) is the latest addition to a single premium investment plan in LIC’s portfolio. This is a non-ULIP guaranteed maturity plan. Anyone between 8 years to 45 years of age can invest in this insurance cum investment plan. The plan term is 10 years, but you can surrender it anytime or even you can take a loan on the policy the next day itself at an attractive rate. Plan no.813 is suitable for anyone who needs a guaranteed return along with high-risk cover without any market risk, unlike other ULIP based investments.
Jeevan Sugam Offer period: 25 Feb 2013 to 10 April 2013
Features at glance:
Guaranteed Maturity Sum Assured
Single-Premium with No maximum restrictions
Loyalty addition, if any
Easy liquidity: Loan available from the second day
Death within the first 5 years: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions. Death on or after 6th year: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions + Vested Bonuses & Final Additional Bonus (if any).
The death benefit will be given to the nominee as lump sum OR In the form of Annuity OR Partly in a lump sum and balance in the form of Annuity at the then prevailing Immediate annuity rates.
Benefit on Vesting:
Basic Sum Assured
Accrued Guaranteed Additions
Vested Simple Reversionary Bonuses & Final Additional Bonus (if any)
Guaranteed Additions: Payable for the first five years @ Rs.50/- per thousand Basic Sum Assured for each completed year.
Participation in profits: Simple Reversionary Bonus will be added from the 6th policy year onward till the end of the deferment period. Bonus will be announced by LIC every year.
Final Additional Bonus will be given either on vesting or on earlier death at the rates announced by LIC.
Accident Benefit Rider:
Death due to Accident: Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the Basic plan. Disability due to Accident: All Future Premiums are waived and An amount equal to the Accident Benefit Sum Assured will be paid in monthly installments spread over 10 years.
Eligibility Condition for Accident Benefit Rider:
Age at Entry: 20-60 years
Sum Assured: 25,000 to max 50 lakh overall limit incl. all policies.
Backdating: allowed within the same financial year
Revival: In case, you missed a few year’s premium, you will still have the option to revive the policy within 5 years from the date of the First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.
Surrender: Don’t want to continue the policy? No problem. You can surrender the policy at any time on payment of at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable would be the higher of Guaranteed Surrender Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.
Premium (excl. Service charge
Guaranteed Vested Benefit
Assuming Investment Return @8%
Refer to Old Jeevan Nidhi if you are looking for an old plan.
Update: LIC New Jeevan Nidhi Plan No.812 Has Been Discontinued.