The Life Insurance Corporation of India (LIC), a name synonymous with trust and reliability, has once again stepped into the limelight with its groundbreaking offering, Jeevan Kiran. This new addition to LIC’s portfolio is a return-of-premium term life insurance policy that not only assures financial security for your loved ones but also presents the possibility of reclaiming your premiums. LIC’s Jeevan Kiran will be thoroughly examined in this in-depth blog, along with its many advantages and the reasons why the insurance industry is buzzing about it.
Dependents of policyholders who pass away during the term of the policy will get the basic sum insured, which is equal to seven times the annual premium or 105 percent of all premiums paid up until that point, whichever is larger.
In the case of single premium plans, the basic sum assured, or 125 percent of the single premium, whichever is larger, will be paid to the nominees.
The maturity benefit can be distributed to policyholders over a five-year period in a phased fashion. The death benefit paid to their nominees may also be selected using this option.
Unveiling Jeevan Kiran
Jeevan Kiran is a term insurance plan that comes with a unique twist: it offers policyholders the opportunity to recoup all the premiums paid during the policy term if they survive the entire duration. Here’s a closer look at the key features and benefits of this policy:
1. Term Insurance with Maturity Benefits:
At its core, Jeevan Kiran provides the quintessential benefit of term insurance – financial protection for your family in case of your untimely demise. However, what truly sets it apart is the added advantage of a maturity benefit. Should you, as the policyholder, live through the entire policy term, LIC will refund all the premiums you’ve paid over the years.
2. Flexibility in Policy Terms:
Jeevan Kiran offers policyholders the freedom to choose from a range of policy term options. LIC provides term durations of 15, 20, or 25 years, allowing you to select the one that aligns perfectly with your financial goals and life plans.
3. Varied Premium Payment Modes:
This policy offers flexibility in premium payment modes. You can opt for regular annual premiums or choose limited premium payment terms. The latter enables you to pay premiums for a limited number of years while ensuring coverage for the entire policy term.
4. Survival Benefit:
The standout feature of Jeevan Kiran is its survival benefit. If you outlive the policy term, LIC returns all the premiums you’ve diligently paid over the years. This feature not only provides financial protection but also serves as a savings mechanism.
5. Death Benefit:
In the unfortunate event of the policyholder’s demise during the policy term, the sum assured is paid to the nominee, offering crucial financial support to the family.
6. Tax Benefits:
Like other LIC insurance plans, Jeevan Kiran also offers tax benefits under Section 80C for premium payments and Section 10D for maturity and death benefits, subject to prevailing tax laws.
Why Jeevan Kiran Is Gaining Prominence
LIC’s Jeevan Kiran is gaining prominence and garnering attention for several compelling reasons:
1. Dual Financial Security:
The policy combines the benefits of term insurance protection with the added advantage of a return of premiums if the policyholder survives the term. It provides not only peace of mind but also robust financial security.
2. Premium Payment Flexibility:
Jeevan Kiran caters to a wide spectrum of individuals by offering both regular and limited premium payment options. This ensures accessibility for those with diverse income levels.
3. Trusted Insurance Giant:
LIC is renowned for its reliability and unwavering commitment to policyholders. The trust factor associated with LIC elevates the appeal of Jeevan Kiran.
4. Tax-Efficient Investment:
The tax benefits associated with Jeevan Kiran make it an attractive instrument for tax planning, further enhancing its appeal for individuals seeking tax-efficient financial solutions.
LIC’s Jeevan Kiran is a distinctive insurance product that seamlessly blends the advantages of term insurance with the unique proposition of a maturity benefit. It provides essential financial protection for your loved ones in the event of your untimely demise, while also ensuring that your hard-earned premiums are not lost if you survive the policy term. This innovative offering, coupled with the rock-solid reputation of LIC, is catapulting Jeevan Kiran into the spotlight as a noteworthy and sought-after insurance solution for individuals and families looking to secure their financial future. It’s not just insurance; it’s an investment in peace of mind and financial well-being.