 "LIC, Life Insurance Corporation")
The Life Insurance Corporation of India (LIC) has announced the launch of a new non-linked, non-participating individual savings whole life insurance product - Jeevan Utsav.
The product is expected to cater to the domestic market.
The minimum sum assured under the policy is Rs 5 lakh. The premium paying terms range from five to 16 years. The minimum age at entry is eight years, while the maximum limit is 65 years. The income benefit, that is, the survival benefit, will start flowing in after the periods specified in the policy that are, in turn, linked to the premium paying term.
The plan offers the choice to choose between two payout options – regular income and flexi income benefits.
In the case of the first one, 10 percent of the basic sum assured chosen by the policyholder will be paid at the end of each policy year, starting after 3 to 6 years from the deferment period.
In the case of the second one, policyholders can opt for flexi income benefit under which 10 per cent of the basic sum assured payable can be accumulated and withdrawn later, subject to terms and conditions. LIC shall pay interest on such Deferred Flexi Income payments at 5.5% per annum, compounding yearly.
Recently, during an interaction with Business Standard, LIC Chairman Siddhartha Mohanty said new products are part of the insurer’s key strategies to gain market share in the current financial year. LIC’s market share declined to below 60% in 2023-24, which the insurer is looking to regain.
