Lic Unveils New Life Cover, Relaunches Pension Plans

The Life Insurance Corporation of India (LIC) has unveiled a new life insurance plan, Jeevan Anand, and has relaunched its individual pension plans -- New Jeevan Akshay, New Jeevan Dhara and Jeevan Suraksha. These plans will be offered from February 1.

Jeevan Anand will be a combination of endowment assurance and whole life plans, providing a sum assured and a bonus amount on survival of the policyholder at the end of the selected term period. The risk cover for the full sum assured will, however, continue as long as the policyholder is alive. His nominees will get an amount equal to the sum assured on his death. The premium paying term ranges from 5 to 57 years and the minimum amount for which one can insure oneself is for Rs 1 lakh.

LIC will also relaunch its pension plans, with modifications. These pension plans were withdrawn as of December 24, 2001. The new plans being launched are New Jeevan Akshay I, New Jeevan Dhara I and New Jeevan Suraksha I.

New Jeevan Akshay I, an immediate annuity plan, offers a pension immediately after purchase of the policy. The purchaser has five different options -- pension for life, pension certain for 5, 10, 15 or 20 years and for life thereafter, pension for life with return of purchase price, pension for life with an annual increase of three per cent, and pension for life with a provision for 50 per cent pension to the spouse after the death of the pensioner. This plan is available to individuals in the age group of 40 to 79 years.

New Jeevan Suraksha I and New Jeevan Dhara I, which are deferred annuity plans, offer a pension after a specified period. They too provide five different options as in the case of New Jeevan Akshay I. In addition, a term assurance rider is made available on payment of a nominal extra premium. This facility provides life insurance cover to the purchaser as long as the policy is in force. On death, the amount insured for along with all premiums paid (excluding the term rider cost) up to the date of death and interest on premiums at a rate to be decided by the LIC will be paid to the nominee. These plans will be offered to individuals in the age group of 18 to 65 years, with the pension being available from 50 onwards.