Purchasing a life insurance is one of the smartest decisions an individual can make as far as investments are concerned. It protects not only the policyholder but also their near and dear ones from any and all unforeseen mishap that may occur to and around them.
Keeping this basic motive of any person for purchasing a life insurance policy, LIC has introduced the LIC Jeevan Pragati Plan, which is an endowment policy that provides an assured sum of money at the demise of the policyholder. Explained below are the various details and benefits associated with the LIC Jeevan Pragati Plan.
Launched by the Life Insurance Corporation of India (LIC), the LIC Jeevan Pragati Plan was introduced on February 3rd, 2016. It is a variant of the non-linked endowment policies, according to the terms of which the assured sum to the policyholder at the time of his/her demise increases every five years. Following the launch of other LIC policies such as LIC Jeevan Labh and LIC Jeevan Shikhar, the LIC Jeevan Pragati is the third insurance policy of its kind.
Key details about the LIC Jeevan Pragati Plan include:
- The LIC Jeevan Pragati life insurance policy can be claimed by anyone from the age of 12 years up to 45 years.
- The minimum term duration for the LIC Jeevan Pragati Plan is 12 years, and the maximum term duration for the policy is 20 years.
- At the time of purchase of the LIC Jeevan Pragati Policy, the policyholder has the option to choose how they wish to pay the premium amount of the policy: monthly, quarterly, half-yearly or yearly.
- The LIC Jeevan Pragati life insurance policy also provides cover against accident to the policyholder which is available as a rider with the policy.
Features and Facts of LIC Jeevan Pragati
There are several benefits associated with the LIC Jeevan Pragati life insurance policy, the most important one of them being suitable inflation risk cover. Other equally important features of the LIC Jeevan Pragati plan include:
- The basic amount of the assured sum to any policyholder at the culmination of the policy is Rs. 1.5 lakhs.
- Maximum age of the policyholder at the time of maturity of the policy should not exceed 65 years.
- The assured sum amount payable to the policyholder at the end of the policy period is always in multiples of 10,000.
- Maximum entry age for the rider is 18 years.
- The policyholder also has the option to surrender the LIC Jeevan Pragati life insurance policy, provided the premium for the said policy has been paid for three years.
- The amount received by the policyholder upon maturity of the policy is tax free under section 10(10D), which provides tax benefits.
- Policyholders can also vail tax benefits on the premium paid under section 80C.
- Following the date of receipt of policy bond, the policyholder is granted a free look period of 15 days, during which they may opt out of the policy without spending extra money.
Benefits of LIC Jeevan Pragati
The LIC Jeevan Pragati life insurance policy provides the following benefits to the policyholder, according to its terms and conditions:
- Death Benefit: In case of death of the policyholder, the assured sum is given out to the nomination. The assured sum is either 10 times the basic premium amount paid, or the absolute amount paid on death, whichever is higher.
- The amount paid to the nominee on the death of the policyholder also includes the final additional bonus and/or other revisionary bonuses. The final additional bonus, however, is not applicable before 15 years.
- Maturity benefit: should the policyholder survive the policy term, the sum payable to the policyholder at the end of the policy term is paid in lump sum.
- The assured sum at maturity is includes final additional bonus, any and all revisionary bonuses, as well as other bonuses, provided all the premiums relating to the policy are paid and there are no outstanding debts.
- Optional rider: Cover against accidental death and disability is available as an optional rider with the LIC Jeevan Pragati plan. An important thing to note here is that the rider sum assured can never exceed the basic sum assured.
Why LIC Jeevan Pragati?
As far as long term life insurance policies go, LIC’s Jeevan Pragati plan is as good as any. It is ideal for people who are looking for comprehensive life cover, as well as a convenient savings option. The LIC Jeevan Pragati life insurance policy provides protection against inflation.
Policyholders also get to enjoy services such as online premium payment, view detailed claim history as well as premium history, and so on. Apart from all this, this policy comes with the LIC promise of great customer service.