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Nath Balakrishnan

JEEVAN Samriddhi from LIC's stable is a regular money-back plan that envisages paying out a certain predefined portion of the sum assured during the premium paying term.

The added attraction of this plan is that additions are guaranteed at the rate of Rs 65 per thousand sum assured throughout the policy's duration.

Plan features

The policyholder would be required to pay premiums over the entire policy term. The policy years during which the payouts are made and the quantum of the payouts are a function of the policy duration.

For example, in the case of a 15-year-term plan, the payout would be 20 per cent of the sum assured each at the end of year 4 and year 8.

The remaining 60 per cent of the sum assured, guaranteed additions and loyalty additions (if any) are paid out on the survival of the policyholder to maturity (year 15).

If the policyholder dies during the premium paying term, the sum assured and the guaranteed additions along with any loyalty additions would be paid out to the beneficiary, irrespective of any of the earlier payouts made.

Riders

The accident benefit rider can be attached to the basic plan.

This is a change compared to what Jeevan Samriddhi offered in its earlier avatar, under which a term rider could be appended to the base plan. The accident benefit rider can be utilised by paying a premium of Re 1 per thousand sum assured.

Should the policyholder meet with death due to an accident, the beneficiary would receive the sum assured under this rider, over and above the basic sum assured and guaranteed additions.

On suffering a disability due to an accident, the sum assured under the rider would be paid out in monthly instalments over 10 years and payment of future premiums will be waived.

Loan

As the essence of a money-back plan is to make regular payouts during the policy term to meet the policyholder's financial needs, it obviates the need for one to seek a loan under this policy. Hence, no loans are offered against this policy.

Suitability

These plans can come in handy if they are chosen in such a way that the intermediate payouts coincide with milestones such as funding the college education of one's child or meeting marriage expenses.

For those seeking stability of returns, the guaranteed additions also serve as an attraction.

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