Exploring the New Jeevan Kiran Policy by LIC: A Comprehensive Overview
The Life Insurance Corporation of India (LIC) has introduced a new non-linked, non-participating life insurance policy known as Jeevan Kiran.
This policy brings a unique feature to the forefront – it 'returns' the premiums paid by policyholders upon maturity.
This novel offering has garnered attention in the insurance landscape for its distinct approach to providing financial security.
In this article, we delve into the intricacies of the Jeevan Kiran policy, its features, benefits, and considerations.
Understanding the Core Feature
Jeevan Kiran sets itself apart by focusing on the principle of returning premiums paid upon maturity.
To break it down simply, if policyholders survive the term of the policy, they will receive the total premium they paid under the policy.
However, this does not include additional premiums for riders, taxes, or any extra charges.
This unique proposition resonates with individuals who value the idea of receiving a return on their investment if they outlive the policy term.
Comprehensive Coverage at Maturity
In cases where policyholders outlive the policy tenure, the policy ensures a comprehensive return.
The total premium paid by policyholders (excluding additional premiums) becomes accessible.
This demonstrates LIC's commitment to providing a balanced approach to life insurance, wherein individuals can benefit from their policy even if they don't encounter an unfortunate event during the policy term.
Protection in the Face of Adversity
Despite the return feature, Jeevan Kiran doesn't compromise on its fundamental purpose – providing protection to policyholders and their dependents.
In the unfortunate event of the policyholder's demise within the policy tenure, a substantial amount is disbursed to their dependents. The policy offers:
- Basic Sum Assured
- An amount equal to seven times the annual premium or 105 percent of total premiums paid (whichever is higher)
For single premium plans, nominees receive the Basic Sum Assured or 125 percent of the single premium (whichever is higher). This provision ensures that policyholders' loved ones are financially supported, even in times of unexpected adversity.
Flexibility and Inclusivity
The Jeevan Kiran policy extends its benefits to a wide range of individuals. It caters to policyholders between the ages of 18 and 65 years. The policy's tenures span from 10 to 40 years, offering flexibility to align with policyholders' varying needs and preferences. With a minimum sum assured of Rs 15 lakh, the policy maintains a commitment to providing substantial coverage.
Additional Covers: Bolstering Protection
To enhance the policy's coverage, Jeevan Kiran offers two optional covers:
1. Accidental Death & Disability Benefit Rider: This rider further secures policyholders and their families by providing additional coverage in cases of accidental death or disability.
2. Accident Benefit Rider: This rider provides extra financial support in the event of an accident, offering a comprehensive safety net.
Return-of-Premium Plans: A Shift in Perspective
Return-of-premium plans, like Jeevan Kiran, cater to individuals who seek more from their insurance policies. While traditional pure-term plans offer protection without any maturity payout, return-of-premium plans provide an element of 'return' on the investment. However, it's important to note that return-of-premium plans are typically costlier than regular-term policies. For those considering such plans, it's advisable to weigh the cost against the potential returns and explore alternative investment avenues that may offer higher yields.
Making Informed Decisions
Selecting the right insurance policy requires a comprehensive understanding of its features, benefits, and costs. Jeevan Kiran presents a unique proposition with its return-of-premium approach. While it caters to those who value receiving premiums back, it's essential to evaluate the financial implications against potential alternatives. Each individual's financial goals, risk appetite, and investment preferences will guide their decision.
Key Takeaways: Exploring the LIC Jeevan Kiran Policy
1. Premium Return at Maturity: The standout feature of the Jeevan Kiran policy is its promise to return the total premiums paid by policyholders at maturity, excluding additional charges like rider premiums and taxes.
2. Comprehensive Maturity Benefit: Surviving the policy term ensures that policyholders receive the entire premium amount paid during the policy's tenure, offering a financial cushion and added value.
3. Dependent Protection in Case of Demise: In the unfortunate event of the policyholder's death within the policy tenure, dependents receive the Basic Sum Assured or a percentage of premiums paid, ensuring financial support during challenging times.
4. Flexibility and Inclusivity: The Jeevan Kiran policy caters to a wide age range (18-65 years) and offers flexible policy tenures (10-40 years), accommodating various needs and preferences.
5. Optional Rider Covers: Enhance coverage with optional rider covers, such as the Accidental Death & Disability Benefit Rider and Accident Benefit Rider, providing extra protection against unforeseen circumstances.
6. Return-of-Premium Concept: Jeevan Kiran represents a return-of-premium plan, catering to individuals seeking both protection and the potential for return on investment. These plans, however, may be costlier than regular-term policies.
7. Informed Decision-Making: Carefully assess the policy's features, benefits, and costs against your financial goals and preferences. Consider alternative investment options for better returns on the additional premium.
8. Policy Evaluation: Evaluate the policy's suitability based on your financial aspirations, risk tolerance, and investment strategies. Determine whether the policy's return-of-premium feature aligns with your long-term objectives.
9. Balancing Protection and Returns: Jeevan Kiran exemplifies the evolution of insurance, striking a balance between protection and financial returns. Make sure your choice aligns with your priorities and needs.
The launch of the Jeevan Kiran policy by LIC brings a fresh perspective to life insurance. Balancing the concept of protection with the desire for return, this policy caters to a diverse audience. It's a testament to the evolving landscape of insurance, where innovation meets the needs of policyholders. As individuals consider this policy, they must assess their financial aspirations, delve into the intricacies, and make an informed decision that aligns with their future goals and financial well-being.