In order to provide financial support to the family in the event of the life-assured’s untimely death during the policy term and to return all premiums paid, Life Insurance Corporation of India (LIC) had earlier introduced Jeevan Kiran, a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan.
Who should buy a term insurance
Term insurance plans are most suited for working people who have dependents (children, parents) and want to protect themselves against life’s uncertainties (death) at a reasonable cost.
Term insurance plans achieve the essential purpose of every life insurance policy by providing financial security to the applicant and his family.
Also read: LIC Jeevan Utsav: New life insurance plan launched with lifetime guaranteed returns
Death benefits under LIC’s Jeevan Kiran
Death benefits can be paid as per given below as per choice of policyholder,
1.Lumpsum- Amount will be paid in lumpsum to nominee.
2.In Installments-This is an option to receive Death Benefit in installments over the chosen period of 5 years instead of lump sum amount under an inforce policy. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for.
This option can be exercised by the Life Assured during his/her life time; for full or part of Death benefits payable under the policy.
Also read: 5 new products launched by Life Insurance Corporation in 2023
What are the options available under the base plan?
Settlement option for maturity benefit
Under an active and paid-up policy, the Settlement Option allows you to receive the Maturity Benefit in payments over a five-year period rather than in one lump sum.
The payments must be paid in advance at quarterly, monthly, half-yearly, or annual intervals, depending on the option selected. The minimum installment amount is as follows:
Mode of Installment paymentMinimum installment amountMonthlyRs 5,000/-QuarterlyRs 15,000/-Half-YearlyRs 25,000/-YearlyRs 50,000/-
Option to take death benefit in installments
This is an option to receive the Death Benefit under an active and fully paid-up insurance in payments over a period of five years as opposed to a lump sum amount.
The payments must be paid in advance at quarterly, monthly, half-yearly, or annual intervals, depending on the option selected. The minimum installment amount is as follows:
Mode of Installment paymentMinimum installment amountMonthlyRs 5,000/-QuarterlyRs 15,000/-Half-YearlyRs 25,000/-YearlyRs 50,000/-
Is there any option for death claim payment?
Death benefits will be paid as per given below as per choice of policyholder;
1.Lumpsum
Amount will be paid in lump sum to the nominee.
2.In Installments
This is an option to receive the death benefit in installments rather than a lump sum payment under an active policy for a selected term of five years. Depending on the chosen frequency, the payments must be paid in advance at annual, half-yearly, quarterly, or monthly intervals.
The life assured may use this option at any point in their lifetime to receive all or a portion of the death benefits that are available under the terms of the policy.
(Your legal guide on estate planning, inheritance, will and more.)
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