About LIC Jeevan Vaibhav single premium endowment policy
LIC Jeevan Vaibhav Plan is a single premium endowment plan. It offers guaranteed benefits on death and maturity along with loyalty additions. This is a non-participating plan and therefore there is no loyalty bonus facility in this policy. In Jeevan Vaibhav plan, premium needs to be paid in single time or lumpsum. At the end of policy tenure, the Sum Assured besides Loyalty Additions can be paid as Maturity Benefit. However, in case policyholder dies within the policy tenure but before last year of Policy, only the basic Sum Assured will be paid as Death Benefit and policy will get terminated.
Returns, bonus, maturity amount and other benefits of LIC Jeevan Vaibhav policy
a) Death Benefit: On death of policy holder during continuous policy term, excluding last policy year the Sum Assured will be payable. On death during last policy year, Sum Assured along with loyalty addition, if any will be payable.
b) Maturity Benefit: On date of maturity, Sum Assured with Loyalty Addition, if any, will be payable.
c) Loyalty Addition: This policy shall be eligible for Loyalty Addition on maturity date, rates and other terms vary as per the policyholder's risk status.
Eligibility of LIC Jeevan Vaibhav Policy
The minimum age of entry for the plan is 8 years while maximum entry age is 65 years. The minimum premium under the policy is around Rs 95,000 with no upper limit. Policy term can be 10 years and Maturity amount shall be around double than policyholder's premium paying amount.
Catchy points of LIC Jeevan Vaibhav plan
(1) This plan can give you returns between the ranges of 6-7.5 % .
(2) The term for this plan is fixed for 10 years. If you buy this policy for risk cover you have to again buy another insurance plan after 10 years to cover yourself, at that time it will cost you a fortune.
Key features of LIC Jeevan Vaibhav policy
Single Premium non-linked endowment assurance plan.
Maturity Benefit: Sum Assured plus Loyalty Addition.
Liquidity: Facility for loan.
Life Cover: Full Sum Assured Payable on death during the term.
Loyalty Addition, if any, payable on Death, if it occurs during the last policy year or on maturity.
Drawbacks of LIC Jeevan Vaibhav policy
One of the biggest drawbacks of this policy is, there is no tax benefit under sec 80C. With current inflation index, this product may not beat inflation.
Overall, this policy doesn't provide you enough risk cover, return and tax benefits.
As you will be investing all money at single go for 10 years, you may lose the opportunity to invest in some better financial product which may come up during this time period.
LIC's Jeevan Vaibhav is a Life insurance Plan especially designed to meet needs of -
- Wealth creation and
- Those who want Liquidity
LIC came up with this plan with sole intention of launching "Single Premium Plan". You can easily get attractive returns by locking your investment in current high yielding Bank FDs for same 10 yrs and opting for Term Insurance till 60 years of your age. Remember not for 10 years because after 10 years you will not get the same life cover with same premium for what you will get now.
Read more articles on Life insurance policies.
Suggested reading: LIC Jeevan Ankur optional premium policy - Reviews, benefits, features, returns and disadvantages