Life Insurance provides a financial security (in the form of sum assured) to the family of insured in case of his/her untimely demise or other miss-happenings covered in the insurance contract. It is the fastest growing finance segment in India.
Life cover with no savings / profits component. Most affordable form of life insurance as premiums are cheaper. A fixed sum of money – the sum assured – is paid to the beneficiaries if the policyholder expires over the policy term. If the policyholder survives, there is no pay out.
However, these days there are companies offering Term Plans with Return of Premiums (TROPS), where insurance companies payback all the paid premium amount in case the life assured outlives the term period. But, such plans are costlier than the vanilla term insurance plan.
A premium is to be paid on a monthly or annual basis. A portion of the premium goes towards life insurance whereas rest of the amount is invested in stock/debt market like mutual funds.
Unit Linked Insurance Plan (ULIP) is linked to markets and thus, it is a form of the traditional endowment plan in which the sum assured is paid on death/maturity.
LIC is launching a new plan from 2nd March 2020. This LIC Nivesh Plus (Plan No.849) is a ULIP Single Premium Plan.
LIC is launching a ULIP product LIC SIIP (Plan No.852) from 2nd March 2020.
The Indian Government launched a pension scheme and it can be taken from 4 May 2017 to 31 March 2020. In the 2018-2019 Budget Speech, the Government of India increased the maximum limit to Rs.15 lakh under the Pradhan Mantri Vaya Vandana Yojana scheme. The scheme can be bought via online and offline modes from Life Insurance Corporation (LIC) of India. The main aim of the scheme is to provide senior citizens with a regular pension during the time when there is a fall in interest rates
Given below are the eligibility criteria that individuals must meet in order to be eligible for the PMVVY scheme:
Individuals can buy the scheme by paying the purchase price in a lump sum. The pensioner can either choose the purchase price amount or the pension amount he/she will receive. Under the different modes, the minimum and maximum pension prices are mentioned in the table below:
|Pension mode||Minimum Purchase Price (Rs.)||Maximum Purchase Price (Rs.)|
The Purchase Price will be rounded to the nearest rupee when it is being charged.