LIC Jeevan Pragati :

LIC  Jeevan Pragati is a Limited Premium paying Non-Unit-Linked, With Profits Endowment Insurance plan which offers a combination of protection and savings. In this plan there is an automatic increase of risk covered i.e. Basic Sum Assured on every 5 years. The key benefits and eligibility conditions are given below :

Ø  Death Benefit : Higher of 10 times of annualised premium or absolute amount assured to be paid on death i.e. 100% of the Basic Sum Assured during first 5 policy years, 125% of the Basic Sum Assured during 6^th to 10^th policy years, 150% of the Basic Sum Assured during 11^th to 15^th  policy years and thereafter 200% of the Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Ø  Maturity Benefit : Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy.

Ø  Optional Benefit : LIC's Accidental Death and Disability Benefit Rider

Rider sum assured cannot exceed the basic sum assured.

Ø  Minimum Basic Sum Assured : ` 1,50,000, Maximum Basic Sum Assured :No Limit

Ø  Policy Term : 12 - 20 years, Premium Paying Term : Same as Policy Term

Ø  Minimum Age at entry : 12 years (completed), Maximum Age at entry 45 years (nearest birthday) Maximum Maturity Age : 65 years (nearest birthday)

Ø  Loan can be availed under the policy

Why one should go for this plan :

Ø  Increase in risk cover with increase in age at no extra premium cost

Ø  Relatively low premium rates than other short premium paying term policies

Ø  Options to avail accidental benefit rider

Ø  Paid premiums on this policy are exempted from income tax under 80C Maturity amount is tax free under 10 (10D)

What goes against :

Ø  Although this plan provides an increasing life cover at no extra cost but if you consider the returns at maturity it is not very high as is the case for all other endowment plans so if you higher returns as well as risk cover you can go for a combination of Term Assurance Plan along with Mutual Fund SIPs. But if you want Insurance and Secured  Low Risk Investment together at an affordable cost then you can go for this plan.

For more details visit http://licindia.in/LIC_Jeevan_pragati_Benefits.html