LIC has rolled out a new endowment plan with an option to suspend premium payments after three policy years
The Life Insurance Corporation of India (LIC) has rolled out a new endowment plan with an option to suspend premium payments after three policy years, among other features. In such cases, the policy will continue to be in force as a paidup one. According to the life insurer, the flexibility has been built into the product to help those who are unable to pay premiums due to a job loss or those with irregular sources of income. The plan offers life cover up to the age of 100. It also promises guaranteed survival benefits of 8 per cent of the basic sum assured or the paid up sum assured. The first survival benefit will be paid out at the end of premium paying term and subsequently on completion of each subsequent year till the life assureds’ death or till the policy anniversary prior to the date of maturity, whichever is earlier. LIC chairman VK Sharma hinted that the return on investment is likely to be around 7.5 per cent.