LIC Jeevan Pragati is one such endowment plans in which savings and Protection; both are offered at the same time under one plan. At the Buyonline Insurance Agency, we believe in helping you make the right decision based on your lifestyle and needs.
By law, all Life`s in operation in the state of India are required to be insured or bonded.
How Jeevan Pragati Plan works:
- LIC’s Jeevan Pragati Plan is a non-linked, with – profits plan which offers a combination of protection and savings. This plan provides for automatic increase in risk cover after every five years during the term of the policy. In addition, this plan also takes care of liquidity needs through loan facility.
- Death benefit: In case of death during the policy term, provided all due premiums have been paid, Death benefit, defined as sum of “Sum Assured on Death “, vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as the higher of 10 times of annualised premium or Absolute amount assured to be paid on death i.e. 100% of the Basic Sum Assured during first 5 policy years, 125% of the Basic Sum Assured during 6th to 10th policy years, 150% of the Basic Sum Assured during 11th to 15 th policy years and thereafter 200% of the Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as on date of death. Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium, if any.
- Maturity Benefit: “Sum Assured on Maturity” equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.
- Participation in Profits : The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in force. The Bonuses shall be declared on the Basic Sum Assured. Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.
- Optional Rider: The policyholder has an option of availing LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01). Rider sum assured cannot exceed the Basic Sum Assured.
- The Perks You Get Out of This Plan: Death Benefit = Sum Assured on death + Vested simple Reversionary Bonus + Final Additional Bonus. The Sum Assured on death is relative to the Life Risk rates provided above. The final Death Benefit will never be less than 105% of all the premiums paid regardless of the exact tenure of the policy. The premium paid during the decided tenure does not include any extra tax. The only extra amount needs to be paid for Rider Premium, if applicable. Maturity Benefit: Upon completing the tenure of the policy, Maturity benefit is provided to the survivor. The key here is all the premiums should be paid for the entire term. The Maturity benefit is calculated as follows: Maturity Benefit = Sum Assured on maturity + Vested simple Reversionary Bonus + Final Additional Bonus.Here the Sum Assured on maturity is nothing but Basic Sum Assured. This lump sum amount is paid on the maturity of the policy.
- Profit of Participation: Your policy should be eligible, and it should incur profit for the Corporation. Then the policy is entitled to Simple Reversionary Bonus. For this, the policy should be active and in force. The Reversionary bonus will be calculated based on the Basic Sum Assured. Final Additional Bonus depends upon the year of policy maturity or the year in which it is claimed under death of policyholders. Rider Benefit:This Accidental Death and Disability Benefit Rider can be added by the policyholder as an option. For this, the policyholder has to pay the extra cost along with the usual premium.