The Life Insurance Corporation of India (LIC) has taken a significant step in the insurance industry by introducing the all-new Jeevan Kiran policy. This innovative non-linked, non-participating life insurance policy has garnered immense attention due to its remarkable feature of ‘returning’ premiums paid by policyholders at the time of maturity. In this article, we will delve into the key highlights and benefits of this policy.
One of the most attractive aspects of the Jeevan Kiran policy is the guaranteed return for policyholders. If the policyholders survive the term, they will receive the total premium amount they paid under the policy, exclusive of any additional premium, rider premium, or taxes. This unique feature provides policyholders with peace of mind, knowing that their investment will be returned to them in due course.
In unfortunate circumstances where the policyholder passes away during the policy tenure, the policy ensures financial security for the dependents. The basic sum assured, which is equal to seven times the annual premium or 105 percent of total premiums paid until then (whichever is higher), will be given to the policyholders’ dependents. This ensures that the family of the policyholder is protected and supported during challenging times.
The Jeevan Kiran policy offers policyholders the flexibility to choose how they receive their maturity benefit. They can opt to receive it over a period of five years in a staggered manner. This option allows policyholders to plan their financial goals effectively and make the most out of their returns. Furthermore, this choice extends to the death benefit payable to their nominees as well, adding an extra layer of convenience.
The policy comes with a range of coverage options, making it accessible to a broader audience. The minimum sum assured under the Jeevan Kiran policy, which is available for tenures of 10-40 years, is Rs 15 lakh. For the regular premium option, the minimum instalment is Rs 3,000, while for the single premium variant, it is Rs 30,000.
The Jeevan Kiran policy takes into account the health habits of the policyholders, differentiating between smokers and non-smokers when it comes to premiums. Smokers may have to pay higher premiums compared to non-smokers. Additionally, policyholders who decline medical check-ups will be charged premiums equivalent to smokers. It’s essential for individuals to consider their health and lifestyle choices while making policy decisions.
The Jeevan Kiran policy is designed to cater to the financial needs of individuals in a specific age group. It can be purchased by individuals between the ages of 18 and 65 years. This age bracket ensures that the policy is available to the working population, allowing them to secure their future and protect their loved ones.
For those seeking additional coverage beyond the basic protection provided by the policy, LIC offers two optional covers: the Accidental Death & Disability Benefit Rider and the Accident Benefit Rider. These add-on covers provide policyholders with extra financial protection against unforeseen accidents or disabilities, ensuring comprehensive coverage.
The launch of Jeevan Kiran by LIC marks a significant milestone in the life insurance sector. This unique policy stands out with its ‘return of premium’ feature, giving policyholders the assurance of their investment’s safety. With flexible maturity benefit options, age-appropriate eligibility, and optional covers for enhanced protection, the Jeevan Kiran policy caters to the diverse needs of individuals. It presents a valuable opportunity for people to secure their financial future and safeguard their families.