Before speaking about this jeevan aastha policy, there are a few things one should keep in consideration. For this policy, basic sum assured is six times the maturity sum assured. LIC has presented a new single premium plan called as jeevan aastha. The plan has a maximum shelf life of 45 days and offers five and ten year maturities to customers. The biggest attraction of the scheme was said to be the tax-free nature of investment thus making it suitable for those in the higher income tax brackets. Some of the benefits of the jeevan aastha policy are as follows:
2. Guaranteed returns plus loyalty additions.
3. Broad risk cover.
4. Tax rebate and tax free maturity.
5. Convenient terms (guaranteed addition at two rates for 5 and 10 years).
Benefit in case of death: on the first year of the policy, the benefits offered is the basic sum assured along with the guaranteed addition. If death occurs after the first policy year excluding the last policy year, the benefits offered is one-third of the basic sum assured with guaranteed additions. Death that occurs during the last policy year, the benefits offered is one third of the basic sum assured with the guaranteed addition along with loyalty addition.
Maturity benefit: on the maturity of the policy, the maturity sum assured along with guaranteed addition and loyalty addition, shall be payable.
Loyalty addition: the policy will be eligible for loyalty addition on death during the last policy year or on the life assured surviving the stipulated date of maturity at such rate.
Guaranteed additions: for the policy of ten-year terms, Rs. 100/- per thousand maturity sum assured. And for the policy of five-year terms, Rs. 90/- per thousand maturity sum assured.
Loan: after the completion of one policy year, the policy holder can avail for loan facilities.
The policy can be surrendered for cash after the policy has run for at least one year. The minimum guaranteed surrendered value permissible is equal to 90% of the single premium paid excluding all extra premiums. Corporation may, however, pay special surrender value as applicable on the date of surrender provided the same is higher than the guaranteed surrender value. The special surrender value will be the discounted value of the maturity sum assured and guaranteed additions accrued as on the date of surrender. In case if you are not satisfied with the terms and conditions of the policy, you can return it within fifteen days.
No demand under the policy shall be paid except to the extent of 90% of the single premium paid, in case the life assured act suicide at any time within one year from the date of commencement of risk and the corporation will not entertain any other claim by the virtue of this policy except to the extent of a third party’s bonafide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the branch where the policy is being serviced at least one calendar month prior to death.
