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.
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