Bima Nivesh Return Cut Fourth Time To 6.5%

The Life Insurance Corporation of India (LIC) will re-launch Bima Nivesh 2002, its single premium scheme, from Wednesday.

This makes it the fourth revision in the plan over a period of 14 months. LIC has also announced the launch of a new money back plan - Jeevan Samriddhi, replacing the earlier withdrawn Jeevan Sanchay.

The revised Bima Nivesh plan offers a lower guaranteed return of Rs 60 per Rs 1,000 sum assured for both a five-year and 10-year cover, giving an effective yield of 6.5 per cent per annum.

LIC has increased the premium chargeable by around 6.5 per cent. That means for a policyholder taking out a 10-year Rs 50,000 sum assured cover, he would have paid a one-time premium of Rs 45,939. In the earlier plan that closed yesterday, he would have paid Rs 42,969.

The assured has the option of also taking a term rider benefit equal to twice the basic sum assured, subject to a maximum of Rs 5 lakh on payment of appropriate additional premium and subject to usual terms and conditions.

Under the money back plan, the assured can opt for four different terms, according to which a percentage of the sum assured is given at internals of four to five years.

For instance, a 25-year term plan would give the insured 15 per cent of the sum assured at every five-year interval. The balance sum assured along with the accrued guaranteed additions at Rs 65 per thousand sum assured and loyalty addition, depending on the corporation's experience payable on maturity.

Jeevan Samriddhi has also added two more riders -- accident benefit and additional term rider options. LIC has in its stable money back plans for 20 and 25 years under which reversionary bonus depends upon the corporation's experience. Jeevan Samriddhi widens the scope of choices to the insurable public, craving for guaranteed returns.