Tag Archives: LIC Jeevan Pramukh premium

LIC Jeevan Pramukh: Features, Benefits & Illustration

LIC Jeevan Pramukh: This is an Endowment Assurance plan offering the choice of three premium paying terms. It provides financial protection against death throughout the term of the plan with the payment of maturity amount on survival to the end of the policy term.

Premiums :
Premiums are payable yearly, half-yearly, quarterly or monthly, as opted by you, throughout the premium paying term or till earlier death.

Guaranteed Additions: 
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Sum Assured at the time of claim.

Bonuses : 
The policy participates in the profits of the Corporation’s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the policy.

Benefits of Jeevan Pramukh:

Death Benefit : 

The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on survival to the end of the policy term.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract.

Guaranteed Surrender Value :
The policy may be surrendered for cash after more than one year’s premium have been paid. The guaranteed surrender value will be 30% of the total amount of premiums paid excluding the first year’s premium and the extra premiums, if any.

Loan:
Subject to Terms and Conditions loan is permissible after the policy has acquired paid-up value. The rate of interest charged on such loan amount would be determined from time to time. The present rate is 9% p.a. payable half-yearly.

Payment of premium :
Premiums under this policy are payable over a period of 3, 4 or 5 years. The following modes of payment of premium are allowed – Yearly, Half-yearly, Quarterly or Monthly.
Policy Term: 5, 10, 15, 20 or 25 years

ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

Minimum Age at entry
18 years completed
Maximum Age at entry
65 years (age nearer birthday)
Maximum Maturity Age
75 years (age nearer birthday)
Policy Term
5, 10, 15, 20 or 25 years
Sum Assured
Minimum Rs.10 lakh. Thereafter in
multiples of Rs.1,00,000

Rebate for Mode of Premium Payment:

Yearly
2% of tabular premium
Half-Yearly
1% of tabular premium
Quarterly
Nil
Monthly
5% extra of tabular premium

Sum Assured Rebate:

Up to and including Rs.50 lakh
Nil
Above Rs.50 lakh
Rs. 0.50 per thousand Sum Assured

Illustration of Jeevan Pramukh:

Age at Entry: 35 years
Sum Assured (Rs.): 1000000
Policy Term: 25 years
Premium Paying Term: 3 years
Yearly Premium (Rs.): 178213

End of year
Total Premium paid till end of year (Rs.)

Death Benefit / Maturity Benefit (Rs.) payable at end of year

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

178213

1000000

0

0

1000000

1000000

2

356426

1050000

0

0

1050000

1050000

3

534639

1100000

0

0

1100000

1100000

4

534639

1150000

0

0

1120000

1150000

5

534639

1200000

0

0

1150000

1200000

6

534639

1250000
22000

104000

1200000

1354000

7

534639

1250000

44000

208000

1272000

1458000

8

534639

1250000

66000

312000

1294000

1562000

9

534639

1250000

88000

416000

1338000

1666000

10

534639

1250000

110000

520000

1360000

1770000

15

534639

1250000

220000

1040000

1470000

2290000

20

534639

1250000

440000

2080000

1690000

3330000

25

53463 9

1250000

586000

2773000

1836000

4023000