LIC’s Jeevan Saral V/s Monthly Recurring Scheme

*This is like a Post Office’s R.D. Scheme. You can deposit Yearly, Half-yearly, Quarterly or Monthly (ECS) in LIC Scheme.

*Maturity received in LIC Scheme is Tax Free under section 10(10D) of Income Tax Act.

*You can withdraw partial or full amount if necessary after 3 years.

*The amount deposited in LIC is exempted under section 80C of Income Tax Act.
You can continue LIC Scheme after 10 years . You cannot continue Post Office Scheme after 10 years.

*In case of death 250 Times monthly premium + total premium paid (- 1st year premium & extra premium paid) + L.A., if any, payable.

*If you forget to take maturity at the end of 10 years, you can get return beyond 10 years in LIC Scheme. This is not available in Post Office Scheme.

*Age group 12 to 60 years

*This Policy has earned Golden Peacock Award.

LIC introduces scheme for the underprivileged

PUNE: The Life Insurance Corporation of India (LIC) has announced a special life insurance scheme for the underprivileged, those whose income patterns are highly irregular and unpredictable.

Partha Samal, senior divisional manager for LIC's Pune divisional office, told media persons on Tuesday that the scheme will offer life insurance cover of between Rs 10,000 and Rs 50,000 to persons falling in this category for a nominal premium of Rs 15 per week onwards. The scheme, targeted at the ABCD or bottom of the pyramid' population, is being introduced on the occasion of LIC's anniversary. "The person covered under this policy can pay a very small premium to get insurance protection of up to Rs 50,000," Samal said, adding that considering the nature of the policy, the corporation has decided to market it through non-governmental organisations (NGOs) working for the betterment of these people. A policy-holder under this scheme will get the amount of the accumulated premium back at the end of the policy term, Samal informed.

He said 25 NGOs have been identified by LIC for distribution of these policies. Samal said that LIC's Pune division has achieved a high 98 per cent death claim settlement ratio and claims worth Rs 260 crore (including death and maturity) were settled during the year ended March 2009.

Samal said LIC has maintained its leading position in the life insurance business with a market share of 60 per cent. The corporation has been able to attract investors to many of its guaranteed returns schemes as the interest rates on bank deposits have nose-dived, he said. Also popular is LIC's pension plan Jeevan Akshay (now in its sixth series) because of its flexibility and relevance for the investors, he stated