LIC Jeevan Pragati 938 – Overview
Over the years, LIC has introduced many endowment plans like the Jeevan Shikhar and Jeevan Labh. The Jeevan Pragati Plan was launched along the same lines in 2016 and changed plan number February 2020 with few minor changes. This plan offers a combination of savings and protection. This is a non-linked plan which means it is not dependent on the share market. During the term of the policy, there is a provision for an automatic increase in the risk cover after every five years and also a loan facility to take care of all the liquidity needs. The increasing risk cover takes care of the rise in inflation as the years pass by. This policy is available to insurance seekers between 12 and 45 years of age. The minimum and maximum term is 12 and 20 years respectively. The premium can be paid yearly, half-yearly, quarterly, or monthly. For those who want to build a corpus for retirement, this plan is ideal.
In today’s fast-paced world, insurance plays a vital role in the sustainable growth of an economy. There are numerous reasons for this, including but not limited to, turning the accumulated capital into productive investments, promoting commercial activities, and enabling us to mitigate losses. Every individual is inherently different from one another and so are their needs. And in the midst of all this, the LIC (Life Insurance Corporation of India) continues to provide the best insurance plans to the people.
Benefits
1. Death Benefit – Provided all the premiums are paid, the sum assured along with the final bonus is paid out to the nominee in the event of death. The sum assured on death is incremented by 25% every five years, whereas the additional bonus becomes applicable only after 15 policy years. The sum assured is initially the basic absolute premium to be paid at death. In any case, the premium shall not include any taxes or extra amount chargeable under the policy.
2. Maturity Benefit – Sum assured on maturity is comprised of the basic sum and the bonus if any. It is paid in a lump sum for survival until the end of the policy term and full payment of all the premiums.
3. Optional Rider – Accidental death and disability rider is also available in this plan. The term ‘accident’ and all that it constitutes is clearly defined in the policy. This benefit is available on the payment of additional premiums. Lastly, the rider sum cannot exceed the basic sum.
The policy shall also participate in profits and shall be entitled to receive Simple Reversionary Bonuses provided the policy is in force. The bonuses would be based on the basic sum.
Key Features:
1. Minimum sum assured: Rs. 1,50,000
2. Maximum maturity age: 65 years
3. Maturity amount is tax-free.
4. Optional rider benefit
5. Additional rebate is offered on the sum assured.
This is an easy-to-understand simple endowment plan. It acts as a good hedge against inflation. It may not offer the highest rate of return, but it is an affordable
financial protection.
