Mumbai: Life insurance giant Life Insurance Corporation (LIC) on Tuesday launched a long-term endowment policy Jeevan Umang, that covers up to 100 years and offering a combination of income and protection including an assured 8% annual return.
The plan provides for annual survival benefits from the end of the premium paying term till age 99 and a lump sum payment at the time of maturity or on death of the policyholder during the policy term, LIC chairman V.K. Sharma said in Mumbai.
The USP of the plan is that guaranteed survival benefit is payable on the life assured surviving to the end of the premium paying term, provided all due premia have been paid or the paid up value, for instance Rs2 lakh if the policyholder has paid three premium.
The survival benefit will be equal to 8% per annum of basic sum assured and paid up sum assured respectively, LIC’s appointed actuary Dinesh Pann said.
The first survival benefit payment is payable at the end of premium paying term and thereafter on completion of each subsequent year till the life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.
The plan is available from age 90 days to 55 years and there is no upper limit to the basic sum assured but shall be in multiples of Rs25,000 with premium paying terms having option of 15, 20, 25 and 30 years.
The maturity benefit is payable on the life assured surviving to the end of the policy term being age 100 years, provided all due premiums have been paid, being sum assured on maturity which is equal to basic sum assured.
Meanwhile, LIC said in a separate statement that its market share in terms of number of policies currently is 76.09%, garnering over 20 million new policies in FY17. It was revealed during the three-day All-India senior divisional managers’ conference, which is the annual strategy meeting of the corporation that began here yesterday.
The Corporation has registered a 27.22% growth in the new business premium in terms of the first-year premium in fiscal 2017. It garnered total first-year premium of Rs1.24 trillion in FY17 as against Rs98,000 crore in the previous fiscal, helping it improve its market share to 71.07%.