Recently LIC has come with a new plan named LIC Jeevan Vriddhi. Since the plan has been launched by LIC, it is already making a lot of buzz among the Indian people looking to get insured. Everyone wants to know the merits and demerits of this plan and whether it will be a nice choice to invest in this plan. I also noticed advertisements related to this plan in newspapers and it means that LIC is also promoting the plan quite well. Actually, the smart investors are now moving to term plans provided by other providers. However, the conventional people still want to stick to LIC as the name itself has been attached to security for years.
If you are also curious to know about the details of LIC jeevan vriddhi, this post will certainly help. I have explained in detail the features, merits and demerits of the plan here.
Features of LIC Jeevan Vriddhi Plan
- This is a single premium plan which provides a guaranteed maturity. You are also eligible for loyalty bonuses as well if any at the time of maturity( will talk about it in demerits later).
- The insurance provided by the insurance plan is 5 times of the premium. For instance, if you choose to pay Rs 50000 as premium, you will get insurance of Rs 250000.
- In order to apply for this plan, the age of the person should be between 8-50 yrs.
- The minimum premium allowed in this plan is Rs 30000, it means that the minimum possible sum assured is Rs 150000.
- The duration of the policy is of 10 years.
Benefits of LIC Jeevan Vriddhi Plan
- The most important benefit is that it offers guaranteed maturity benefits. If you invest in term plans, you are not provided with any maturity benefit. You are also entitled for loyalty bonuses if any at the time of maturity.
- Another benefit of the plan is that it is a single premium payment plan. At such, you need not worry about arranging funds for future premiums.
- You can also avail tax benefits for the amount paid as premium as per section Section 80C. Moreover the maturity amount is also tax free as per Section 10(10)d.
- When you do all the maths, you can find that for a 30 year person, the policy give return of 7% which is certainly better in comparison to the other conventional plans of LIC.
Demerits of LIC Jeevan Vriddhi Plan
This plan offers loyalty bonuses at the time of maturity. But seeing the present performance of LIC regarding the investment made in disinvestment stocks, I do not think that you can expect anything more than maturity amount. In fact, LIC has made huge losses in these investments and the scenario is expected to worsen in future.
Final Verdict about the LIC Jeevan Vriddhi plan
If you are thinking from the point of insurance, you should go for a term plan. On the other hand if you are thinking from the point of investment, this can be termed as a good option. There are various tax saver fixed deposits that give upto 9% interest (5 year lock in period as well), but the point is that they do not offer any insurance.
I hope this post helped you to answer questions like “Can I go for LIC jeevan vriddhi plan?” Or “Is LIC jeevan vriddhi better than other plans present in the market ?” . If you are still confused, you can post a comment below and I will answer your queries.