Jeevan vriddhi-single premium with multiple benefits
Jeevan Vriddhi is the latest scheme of Life insurance co-operation of India. It is available at the market from 2012 March onwards. Jeevan Vriddhi is a single premium policy which provides high insurance coverage along with income tax benefits. Observers remarked that this non linked life insurance policy is meant for those who had made a tremendous income in this financial year. Onetime payment is the main specialty of LIC's Jeevan Vriddhi . There is no doubt in the fact that convenience for onetime payment will attract the policy holders easily. There is no necessity of further premium payment in this scheme.
Specialties of Jeevan Vriddhi
Jeevan Vriddhi provides security of 5 times of single premium as risk cover. Thus tax benefits will get for the whole insurance amount. Despite all these another main specialty is the higher claim rate given to the nominee in case of the death of the policy holder. Policy term of Jeevan Vriddhi is 10 years. If the policy holder needs certain amount as emergency this scheme provides liquidity. Loan facility is available after just one year. Instead of Liquidity there may facility for surrender also. Policy holder can surrender the plan whenever he needs. Company assures of 90% of the guaranteed surrender value at the initial year itself. Surrender charge will rise after the initial year. Jeevan Vriddhi also provides income tax benefits. Income tax benefits under section 80C and 10 D are available for this scheme.
Maturity benefits - A sum of guaranteed maturity sum assured and loyalty addition will get at policy maturity.
Death benefits - Insurance amount will get in the case of the death of the policy holder. 5 times of single premium is the insurance amount. Infact, 25 lakh rupees will get in the case of the death of the policy holder with premium payment of 5 lakhs rupees.
Loyalty addition - Profit of this scheme will get as loyalty addition at the tenth year.
Terms and conditions
The age at entry is 8 years up to 50 years. Premium term is 10 years. The minimum insurance amount is 1, 50,000 rupees. There no limits for the maximum insurance amount. 30000 rupees is the minimum premium amount. After that minimum premium amount will be the multiples of 10. Loan facility is available just after one year. Surrender facility is also available after one year. 90% of the premium is the minimum surrender value of Jeevan vriddhi. Service tax should be given to premium. 1.25% to 3 % is the rebate for higher amount.