LIC's “Jeevan Astha”

Life Insurance Corporation of India is launching new plan “Jeevan Astha” on 08th December 2008.The plan will be available only for a period of 45 days and closes on 25th January 2008.

Features:
· Minimum entry age 13 years.
· Maximum entry age 60 years.
· Minimum Single Premium is Rs. 25,000.
· No Limit for maximum Premium.
· Minimum Basic Sum Assured is Rs. 1,50,000
· Only Single Premium payment mode is allowed.
· Rebates for higher Sum Assured.
· Minimum term is 5 year and Maximum term is 10 year.

Maturity benefit would be Maturity Sum Assured along with guaranteed addition of 9% for 5 years term and 10% for 10 years term on Maturity Sum Assured along with the Loyalty addition.Here Maturity Sum Assured is the amount of single premium paid.Premium paid in this plan is eligible for tax deduction as well as maturity benefit is tax free.

Death Benefit:
· Basic Sum Assured along with guaranteed addition in first year.
· After first year 1/3rd of Sum Assured is paid along with the guaranteed addition.
· In last year 1/3rd of Sum Assured along with guaranteed addition and loyalty addition.

Policy provides high risk cover only in the first year and thereafter it reduces to 1/3rd of the Basic Sum Assured.

Plan offer a great level of liquidity with guaranteed surrender value of 90% of premium paid (This excludes any extra premium amount).

Policy also has a provision of loan facility after completion of 1st year.

Main aim of this policy is to attract those people who want fixed return on their investment in addition to it policy also has a provision of loyalty addition and above all it provides insurance cover. This policy would serve as a better alternative for fixed deposit as policy comes with a minimum term of 5 years.

In a time when people are looking for a investment instrument with fixed return, this plan is surely going to attract a large group of people.