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LIC Launching Jeevan Shikhar, a Close-ended Plan

... Business Standard:

Life Insurance Corporation of India (LIC) is launching 'Jeevan Shikhar', a closed-ended plan which would be open for sale from January 11 up to March 31. It is a non-linked, with profits, single plan, wherein the risk cover is 10 times of tabular single premium providing a combination of savings and risk cover.

Under this plan, the proposer/life assured will have an option to choose the maturity sum assured, and the single premium payable will depend on the chosen amount of maturity sum assured and the age of the assured. The plan is available from ages six to 45 years.

Minimum maturity sum assured is Rs 1 lakh, with maximum basic sum assured having no limit. The maturity sum assured can be in multiple of Rs 20,000 only, with a policy term of 15 years. Loan facility is also available under this single premium plan.

On the policyholder surviving to the end of the policy term the maturity sum assured along with loyalty addition , if any, shall be payable. In case of death of the life assured  during first  five policy years and after commencement of risk 'sum assured on death' equal to 10 times the tabular single premium will be payable.

On death before commencement of risk, single premium without interest after deducting extra charged, if any, will be refunded. On death after completion of five policy years but before the stipulated date of maturity "sum assured on death" equal to 10 times the tabular single premium along with loyalty addition, if any,will be payable.           

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