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September 4, 2014

Single Premium Policy

LIC Jeevan Shagun Policy Table No 826

Policy launched on 01 Sept 14 and is open for subscription for 90 days i.e till 30th Nov 14.

Minimum Entry Age                                         : 8 years (completed)
Maximum Entry Age                                         : 45 years (nearest birthday)
Policy Tenor                                                      : 12 years
Premium payment mode                                   : Single premium only

Basic Sum Assured                                            : 10 times of single premium paid
(As the sum assured is 10 times of the premium paid the premium paid is eligible u/s 80C deduction and the maturity amount will be exempt u/s 10(10D))

Assured Maturing Sum(AMS)                             : 1.92 times of single premium paid
(On Simple basis 0.92 times return; spread over 12 years works out to be 7.66% p.a return, ignoring the compounding effect/technicalities.)

In addition to assured maturing sum after 12 years you may also get loyalty additions if any declared by LIC.  

You 1.92 times matured sum will be paid as follows:-
@ 15% AMS at the end of 10th year
@ 20% AMS at the end of 11th year
@ 65% AMS on Maturity along
 loyalty additions.
Minimum Maturity Sum Assured                      : Rs. 60,000/-
Maximum Maturity Sum Assured                      : No Limit
Maturity Sum Assured shall be available in multiples of Rs. 5,000/-.

The policy can be surrendered for cash at any time during the policy term.  The minimum Guaranteed Surrender Value allowable shall be as under:
    1. First year: 70% of the Single premium excluding extra premiums and taxes, if any.
    2. Thereafter: 90% of the Single premium excluding taxes, any extra premium paid and survival benefits, if paid earlier.
Agents/Brokers will get 2% commission on premium paid by you  whereas development officer will get 5% commission.

LIC’s Accident Benefit Rider is available under the plan.

Main Benefit of this plan
1.    One time premium payment assures you cover for 12 years. No annual payment obligation.

2.    Unlike Pure Term Plan the premium paid by you is not zero rather come backs to you with a assured post tax return of 7.66% (Tax impact is nil as maturity proceeds are exempt u/s 10(10D). 

3.    Non ULIP Plan.

4.    The assured return of 7.66% is much better than return of FD whose interest of 8% can be reduced to 5.6% post tax. Plus this plans also give you life coverage which FD won’t. 

5.    If you are going for long run period of 12 years it better to opt for LIC than any other private players. With the kind of asset base LIC have, we can be really sure that it will be there to repay you at the end of 12 years.

LIC has eallier launched a similar 10 year product in Mar-13 under the name of  LIC’s Jeevan Sugam (Plan No.813 ) the details of that policy can be seen  at

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