Life Insurance Corporation of India (LIC) has launched two new insurance policies – Bima Platinum (Plan 770) and Jeevan Raksha (Plan 894). LIC CEO and MD R Doraiswamy launched these products on the occasion of the Corporation’s 70th anniversary. The two plans offer different benefits, premium-payment options, and purposes. Here is what prospective policyholders should know about these two insurance policies.
LIC Bima Platinum Plan 770
According to LIC, Bima Platinum is a non-par, non-linked, individual plan. In simple terms, it is an individual insurance policy that is neither profit-sharing nor market-linked. It provides insurance protection along with savings. It is a limited premium payment policy.
A guaranteed sum assured of Rs 70 will be added annually for an annual premium of Rs 1,000 during the premium payment term. The policy also provides regular income benefits of 10 per cent of the basic sum assured every year during the policy term. Discounts are available for existing LIC policyholders as well as nominees or beneficiaries of deceased policyholders. Policyholders can also enhance their insurance protection by choosing additional insurance benefits available.
LIC Jeevan Raksha Plan 894
LIC Jeevan Raksha is a non-par, non-linked, pure risk plan. This insurance policy’s primary objective is to provide financial security to the insured’s family in the event of their death during the insurance term. The death benefit under this policy is predetermined and guaranteed. This amount will not increase or decrease based on actual experience. This policy does not provide bonuses or share in the company’s excess profits.
The minimum basic sum assured in Jeevan Raksha is Rs 5 lakh, and the maximum is Rs 24 lakh. However, the final sum assured will depend on LIC’s approval and its prescribed risk assessment policy. Customers can choose from three premium payment options: a lump sum payment, regular payments, or payments over a limited period. LIC states that special rates are also available for women customers.
LIC Bima Platinum Plan 770 vs LIC Jeevan Raksha Plan 894: Key difference
Bima Platinum combines savings with insurance protection and a guaranteed sum assured. It also provides the policyholder with regular income. Meanwhile, Jeevan Raksha’s primary objective is to provide assured financial security to the insured’s family in the event of their death. The sum assured is predetermined, with no bonuses or additional profit sharing. Thus, the two policies have different objectives – one focuses on savings and protection, while the other primarily focuses on family financial security.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
