LIC's New Jeevan Kiran Policy Launched: Saving Benefits with Life Insurance

 

Life Insurance Corporation of India (LIC) has recently introduced its latest offering, the Jeevan Kiran policy. This policy is designed to provide not only life insurance coverage but also attractive saving benefits to policyholders. In this article, we will delve into the details of the new Jeevan Kiran policy, its key features, benefits, and how it can serve as an excellent financial planning tool for individuals and families.

Understanding the Jeevan Kiran Policy

The Jeevan Kiran policy is a non-linked, non-participating life insurance plan offered by LIC. It is designed to offer financial security and wealth accumulation to policyholders. The policy's primary objective is to provide life cover, ensuring that the family's future remains protected in case of an unfortunate event. Additionally, it serves as a savings instrument, allowing individuals to create a corpus for their long-term financial goals.

Key Features of Jeevan Kiran Policy

1. Flexible Policy Term Options

The Jeevan Kiran policy offers policyholders the flexibility to choose the policy term according to their specific requirements. Policyholders can opt for a term ranging from 10 years to 25 years, depending on their financial goals and affordability.

2. Life Cover with Saving Benefits

One of the significant advantages of this policy is its dual nature. It not only provides life insurance coverage but also ensures wealth creation through saving benefits. This makes the Jeevan Kiran policy an attractive option for those seeking both protection and financial growth.

3. Limited Premium Payment

The Jeevan Kiran policy offers limited premium payment options, which means policyholders need to pay premiums only for a specified duration. This feature is especially beneficial for individuals who wish to build substantial savings over a shorter period.

4. Maturity Benefits

Upon the policy's maturity, the policyholder is entitled to receive the maturity benefit, which includes the sum assured along with any accrued bonuses, if applicable. This lump sum amount can be used to fulfill various financial goals or secure the policyholder's retirement.

How the Jeevan Kiran Policy Works

Let's understand how the Jeevan Kiran policy works with an example:

Mr. Sharma, a 35-year-old working professional, decides to purchase the Jeevan Kiran policy. He chooses a policy term of 20 years and a sum assured of Rs. 20 lakh. The premium payment term is fixed at 10 years.

1. Premium Payment Phase

During the first 10 years, Mr. Sharma diligently pays the premiums. In case of any unfortunate event during this phase, the policy's death benefit will be paid to his nominee, ensuring financial security for his family.

2. Accumulation Phase

Once the premium payment phase is complete, the policy enters the accumulation phase. Here, the policy continues to be in force, and Mr. Sharma's money continues to grow with guaranteed additions and any applicable bonuses.

3. Maturity Phase

Upon the policy's maturity after 20 years, Mr. Sharma will receive the maturity benefit, which includes the sum assured and accrued bonuses. He can utilize this amount to meet his long-term financial goals, such as buying a house, funding his child's education, or ensuring a comfortable retirement.

Benefits of Jeevan Kiran Policy

1. Life Coverage

The primary benefit of the Jeevan Kiran policy is the life coverage it provides. In the unfortunate event of the policyholder's demise during the policy term, the sum assured is paid to the nominee, ensuring financial stability for the family.

2. Savings and Wealth Accumulation

With its dual benefit of life insurance and savings, the Jeevan Kiran policy offers a systematic approach to wealth accumulation. Policyholders can secure their future by building a substantial corpus over time.

3. Tax Benefits

The premiums paid towards the Jeevan Kiran policy are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity proceeds are tax-exempt under Section 10(10D), making it a tax-efficient investment option.

Conclusion

LIC's new Jeevan Kiran policy is a well-rounded financial product that combines life insurance protection with attractive savings benefits. The policy's flexibility, limited premium payment term, and tax benefits make it an appealing choice for individuals looking to secure their family's future while simultaneously building wealth. Before purchasing the policy, it is crucial to assess individual financial needs and consult with LIC's expert advisors to make an informed decision.

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FAQs

Q1: Can I take a loan against the Jeevan Kiran policy?

Yes, after the policy has acquired a surrender value, you can avail of a loan against the Jeevan Kiran policy.

Q2: Is the premium amount fixed throughout the policy term?

Yes, the premium amount is fixed for the entire premium payment term, providing financial stability and predictability.

Q3: Can I surrender the policy before its maturity?

Yes, you can surrender the policy before maturity. However, the surrender value will depend on the number of premiums paid and the policy's duration.

Q4: What happens if I stop paying premiums?

If you stop paying premiums after the grace period, the policy will lapse, and its benefits will cease. However, you can revive the policy within the revival period by paying the due premiums.

Q5: Can I add riders to the Jeevan Kiran policy?

Yes, you can enhance your coverage by adding riders such as accidental death benefit or critical illness rider to the Jeevan Kiran policy. Riders provide additional protection for specific contingencies.

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