New Delhi. Just before the tax filing season India’s largest insurance company, Life Insurance Corporation of India (LIC) has recently launched a new policy called Navjeevan. As per the data on the website, it is a non-linked “with profit” endowment assurance scheme and premium can be paid either as a lump sum, as a premium or under a limited premium option with a payback period of five years. is.
LIC’s Navjeevan scheme is available for purchase both online and offline. Under the limited premium payment option, if you are 45 years or older, you get two options in terms of death benefit – either 10 times the annual premium or 7 times the annual premium. But if the proposed life is less than 45 years, only 1 option, or 10 times the annual premium as death benefit, is available. The minimum age to avail the scheme is 90 days and maximum age is 65 years.
Benefits under Navjeevan Yojana
If the policyholder survives till the end of the policy term, assuming that all the due premiums have been paid, he will receive the assured amount, if any, at maturity along with the ‘Loyalty Addition’. This benefit is payable in case of death of the policyholder before the policyholder’s maturity date is determined. If the death occurs during the first five policy years before the date of commencement of risk, LIC will refund all the premiums paid without interest. The sum assured will be payable on or after the date of commencement of the risk.
If the policyholder dies after five policy years, but before the maturity date is set, the nominee will receive a waiver of any kind of loyalty along with the death.
Optional benefits
The plan also provides accidental death and disability benefit rider of LIC. According to the website, “In case of accidental death, the accident benefit will be payable in a lump sum along with the death benefit under the Rider Sum Assured Aadhar Scheme.” The maximum amount to be found here is Rs 1 lakh.
Calculating Returns According to Zee Business, if you choose the limited premium option for an amount of Rs 10 lakh, you will have to pay a monthly premium of around Rs 9,628 in the first year, and Rs 9,430 from the second year. On maturity after 15 years, you will be eligible for Rs 10 lakh with Loyalty Addition. Under the single premium payment option for the same term and even assured amount, the person has to make a lump sum payment of about Rs 5,01,287.
But in terms of returns according to Basavaraj Tanagatti, who is one of the leading personal finance bloggers, Navjeevan Yojana offers returns of around 5- 6%. So you need to think carefully whether it is sufficient for long term investment.
