Term plans usually don’t come with return benefits, but this plan does. And that’s what struck me about it.
Salient features of this policy are:
a. its a single premium policy wherein the minimum amount is Rs.30,000.00 and no limit on maximum amount
b. sum assured is 5 times the premium
c. the term is fixed at 10 years
d. age of entry is between 8 & 50
e. policy can be surrendered after 1 year
a. minimum return is almost 90% of the premium amount, if surrendered after a year
b. between premium amount of Rs.50,000.00 and Rs.99,000.00; there is an increase in guaranteed sum assured by 1.25%
c. beyond premium amount of Rs.1,00,000.00; there is an increase in guaranteed sum assured by 3%
d. policy ie eligible for section 80c exemptions in IT
e. you can avail loans at 10.25% against this policy
There are very few policies that give return benefit and sum assured. Its specially beneficial for someone in their late 40’s who want to take an insurance policy with minimum fuss and maximum gains. Even for people in their 30’s, this is a good enough plan where return of interest is about 7-8%. We can get the benefit of protected investment as well as life insurance. And since its single premium, there is no need to bother about tracking the due dates!
Update 1 on 22-Mar: I just called my insurance agent and have created a proposal for a single premium of Rs.60,000/-. So, the SA is about Rs.3,00,000/-. That’s when it struck me that the premium was much lesser than what I was paying for a Jeevan Saral plan [yearly premium of more than Rs.6,000/- for 10 years and SA of Rs.1,50,000.00], and the SA was twice that of Jeevan Saral.