The LIC Jeevan Pragati Plan is the new scheme started by Life Insurance Corporation of India (LIC) that is owned by Indian Government. LIC bags top rank in the list of Indian Insurance Companies. The bill was passed in 1956 by the Parliament of India to form a Life Insurance Corporation under which more than 245 private companies were merged. It provides more than 20 plans suitable for each individual. They have kept in mind every individual’s needs.
Death Benefit: Upon the death of the policyholder, this benefit is provided. If all the regular premiums for the decided term are paid with no balance premium, the Death benefit is calculated by adding the following amounts:
Death Benefit = Sum Assured on death + Vested simple Reversionary Bonus + Final Additional Bonus. The Sum Assured on death is relative to the Life Risk rates provided above. The final Death Benefit will never be less than 105% of all the premiums paid regardless of the exact tenure of the policy. The premium paid during the decided tenure does not include any extra tax. The only extra amount needs to be paid for Rider Premium, if applicable.
Maturity Benefit: Upon completing the tenure of the policy, Maturity benefit is provided to the survivor. The key here is all the premiums should be paid for the entire term. The Maturity benefit is calculated as follows:
Maturity Benefit = Sum Assured on maturity + Vested simple Reversionary Bonus + Final Additional Bonus. Here the Sum Assured on maturity is nothing but Basic Sum Assured. This lump sum amount is paid on the maturity of the policy.
Profit of Participation
Your policy should be eligible, and it should incur profit for the Corporation. Then the policy is entitled to Simple Reversionary Bonus. For this, the policy should be active and in force. The Reversionary bonus will be calculated based on the Basic Sum Assured.
Final Additional Bonus depends upon the year of policy maturity or the year in which it is claimed under death of policyholders.
Rider Benefit:This Accidental Death and Disability Benefit Rider can be added by the policyholder as an option. For this, the policyholder has to pay the extra cost along with the usual premium.