Buyer's Guide to LIC Jeevan Kiran New Term Plan: A Close Look
Considering a new term plan from LIC? Let's take a close look at Jeevan Kiran, examining its offerings and benefits to help you decide if it's the right choice for you.
This insurance plan falls under the category of Non-Linked, Non-Participating, Individual, Savings, and Life Insurance. It's designed to blend protection with savings, offering a financial safety net for your family in the event of the policyholder's untimely demise. Additionally, if you outlive the policy term, the plan ensures the return of all the premiums paid.
Eligibility for LIC Jeevan Kiran
Let's explore the eligibility details for LIC Jeevan Kiran:
- Minimum and maximum age at entry: Between 18 years and 65 years.
- Minimum and maximum age at maturity: From 28 years to 80 years.
- Policy Term:** You can choose a policy term ranging from 10 years to 40 years.
- Minimum Basic Sum Assured: Rs. 15,00,000.
- Maximum Basic Sum Assured: There is no upper limit.
- Premium Payment Options: You have the flexibility to opt for a Single premium or Regular premium (equal to the term of the policy). For regular premiums, payment options include Yearly or Half-Yearly.
- Loan: Not applicable.
- How to buy: You can purchase the policy either online or offline through agents.
- Riders:
- For single premium policies, the available rider is the Accidental Death Benefit.
- For regular premium policies, you have the option of choosing either the Accidental Death Benefit rider or the Disability Benefit Rider.
These features provide a comprehensive overview of the eligibility criteria, policy terms, premium payment options, and additional riders associated with LIC Jeevan Kiran.
Benefits Of LIC Jeevan Kiran
Let's delve into the benefits provided under LIC Jeevan Kiran:
a) Death Benefit:
In the unfortunate event of the life assured's demise during the policy term after the commencement of risk but before maturity, the death benefit, known as "Sum Assured on Death," is payable. For regular premium policies, this sum is determined as the higher of the following:
- 7 times the Annualized Premium,
- 105% of the "Total Premiums Paid" up to the date of death, or
- Basic Sum Assured.
For single premium policies, the Sum Assured on Death is the higher of:
- 125% of the Single Premium, or
- Basic Sum Assured.
The nominee has the flexibility to receive the death benefit over 5 years in yearly, half-yearly, quarterly, or monthly installments. The choice of installment distribution needs to be made three months before the maturity date, and it must be selected during the policy period. Additionally, the policyholder has the option to receive part of the benefit as a lump sum and part as installments for the nominee.
b) Maturity Benefits:
If the life assured survives until the stipulated Date of Maturity, the "Sum Assured on Maturity" becomes payable. For Regular Premium Payment policies, this sum is equal to the "Total Premiums Paid," and for Single Premium Payment policies, it is equivalent to the "Single Premium Paid."
These benefits provide financial security to the policyholder and their nominees in both unfortunate circumstances and upon reaching the maturity of the policy.
Certainly, let's elaborate on the terms "Total Premiums Paid" and "Single Premium Paid," as well as the options available for receiving the maturity benefit:
a) Total Premiums Paid:
This term refers to the sum of all premiums received by the insurance company, excluding any extra premium, rider premium, and taxes. It represents the total amount of money the policyholder has paid for the insurance coverage.
b) Single Premium Paid:
This term specifically applies to policies with a single premium payment option. It represents the total amount of the single premium received by the insurance company, excluding any extra premium, rider premium, and taxes. Single premium policies involve a one-time lump sum payment for the entire policy duration.
Options for Receiving Maturity Benefit:
Upon surviving until the stipulated Date of Maturity, the policyholder is entitled to receive the maturity benefit. This benefit can be received in installments over a period of 5 years, and the policyholder can choose from various frequency options:
- Yearly
- Half-yearly
- Quarterly
- Monthly
The policyholder must make the choice regarding the installment frequency three months before the maturity date. This flexibility allows the policyholder to tailor the receipt of the maturity benefit according to their financial preferences and needs.
These features provide additional flexibility and customization for policyholders, ensuring that the insurance plan aligns with their individual circumstances and preferences.
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