LIC Jeevan Pragati Insurance Plan No 838 – What is new?
LIC Jeevan Pragati Insurance Plan No 838 Review
Yesterday, LIC of India has launched a new endowment policy, LIC Jeevan Pragati – Table no. 838. LIC Jeevan Pragati is a non linked endowment insurance plan. Generally LIC launches insurance plans during tax season, i.e. Jan to Mar. During this season this is the third insurance plan from LIC after LIC Jeevan Labh and LIC Jeevan Shikhar. What are the features of LIC Jeevan Pragati Insurance plan? What are the benefits of LIC Jeevan Pragati Plan? Should you consider such endowment plans?
Features of LIC Jeevan Pragati Insurance Plan
- LIC Jeevan Pragati refers to “progress”.
- The plan was launched yesterday, i.e. 3rd February, 2016.
- It is a non-linked endowment plan.
- This insurance plan is available for 12 to 20 years tenure.
- Min age of entry is 12 years and maximum age of entry is 45 years.
- Maximum age at maturity is 65 years.
- The minimum basic sum assured is Rs 1.5 Lakhs.
- Maximum basic sum assured – No upper limit
- Loan facility available in this plan after payment of 3 years of full premium.
- Policy can be surrendered after payment of 3 years of full premium.
- Like any other insurance plan, it offers various payment period options i.e. monthly, quarterly, half-yearly and yearly.
What are the benefits available in this plan?
Death Benefit: In case of death of the insured before the completion of the tenure of the insurance plan, the nominee would get Sum Assured on Death + Vested simple reversionary Bonuses + Final Additional Bonus (if any).
Sum Assured on Death is computed as follows:
a) 10 times of annualized premium or
b) Absolute sum assured which is
- During 0 to 5 years of policy period: 100% of Basic sum Assured (BSA)
- During 6 to 10 years of policy period: 125% of Basic sum Assured (BSA)
- During 11 to 15 years of policy period: 150% of Basic sum Assured (BSA)
- During 16 to 20 years of policy period: 200% of Basic sum Assured (BSA)
Death benefit shall not be less than 105% of total premiums paid as on date of death.
The premiums mentioned above exclude taxes, extra charges, and Rider Premiums, if any.
Maturity Benefit: At the maturity, policy holder would get Basic Sum Assured + vested simple reversionary Bonuses + Final Additional Bonus (if any).
Are there any Riders available in LIC Jeevan Pragati?
Currently there is only one optional benefit / rider available in this plan with additional premiums which is Accidental death and disability benefit rider.
What are the rebates available in LIC Jeevan Pragati Insurance Plan?
There are two rebates available. Premium payment mode rebate and High Basic Sum Assured Rebate.
Premium payment mode rebate
High Basic Sum Assured Rebate
Should you consider LIC Jeevan Pragati?
Like I indicated earlier, I am against money back plans or endowment plans. All such plans from LIC would give an approx return of 4% to 6% per annum. One unique feature in this plan is increasing risk after every 5 years. However, it is not that good plan in initial years. After 10 years, your risk coverage is increased to 150% of basic sum assured. Apart from this, I could not see anything new in this plan. If you are a low risk taker and does not believe in investing in financial markets or does not willing to take the risk from stock markets, it is safe to invest in such endowment plans from LIC.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
LIC Jeevan Pragati Insurance Plan No 838
- Axis Special Situations Fund NFO – Is there something special? - November 28, 2020
- Burger King IPO – Loss making + Hit with Pandemic effect – Should you subscribe then? - November 28, 2020
- 5 Small-Cap Mutual Funds with 1 Year Return up to 60% - November 27, 2020