Jeevan Pragati plan is a non-linked, with-profits plan that offers a combination of security and savings. During the term of this policy, there is a provision for self-increase in risk cover after every five years. Apart from this, the scheme also takes care of the semblance of liquidity through loan facility.
How much is the Premium Discount in Jeevan Pragati Yojana
- Premium Mode Discount at 2% p.a.,
- 1% p.a. half yearly,
- zero on quarterly and monthly
- High Sum Assured Rebate
- (Per 1000 Sum Assured) 0% up to Rs.2,90,000
- 3,00,000 to 4,90,000 1.50%
- 5,00,000 to 9,90,000 2.00%
- 10,00,000 and above 2.25%
- loan after 3 years
Why is it called the cheapest brand
The cheapest brand is said to be one of the world’s largest insurance authority in terms of customer base, LIC is one of the least weighted in the Indian market. Relating to being the largest single investor in Government securities, LIC is the backbone of Indian industry.
Is Monthly Free
No exemption from taxation on maturity of policies, where the premium paid exceeds 10% of the sum assured. Any money received from a life insurance policy where the premium exceeds 10% or 20%, as the case may be, is fully taxable.
What are the benefits of Jeevan Pragati Yojana
Death Benefit
In case of death during the policy term, provided all due premiums have been paid, the Death Benefit, which is defined as the sum of the Sum Assured on Death, vested Simple Reversionary Bonuses and Final Extra Bonus, if any, shall be payable.
Where Sum Assured on Death is defined as 10 times of Annualized Premium or Absolute amount payable on death i.e. 100% of Basic Sum Assured during first 5 policy years, 125 of Basic Sum Assured during 6th % Up to 10th policy year, 150% of Basic Sum Assured during 11th to 15th policy year and 200% of Basic Sum Assured thereafter.
This death benefit shall not be less than 105% of all premiums paid as on the date of death.
The premium referred to above shall not include any extra amount chargeable under the policy on account of taxes, underwriting decisions and rider premium, if any.
Maturity Benefit
On maturity, a Sum Assured equal to the Basic Sum Assured, vested Simple Reversionary Bonuses, and Final Additional Bonus, if any, shall be payable in a lump sum on survival to the end of the Policy Term, provided all payable Premium payment has been done.
Profit sharing
The policy shall participate in the profits of the corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the corporation, provided the policy is in force. Bonus will be declared on Basic Sum Assured.
Final Additional Bonus can also be declared under the policy in the year when the policy makes a claim due to death or maturity.
Optional Rider :- The policyholder has the option of availing LIC’s Accidental Death and Disability Benefit Rider. Rider insurance amount cannot exceed the basic insurance amount.
jeevan pragati plan (838) understand with example Mr. Dikshant buys Jeevan Pragati policy with the following details.
- Sum Assured :- Rs 10,00,000
- Policy term :- 20 years
- Policy Purchase Year :- 2023
- Age :- 12 Years.
The annual premium as per the above details will be Rs 96,274 (Premium Calculator shown).
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