ECONOMIC TIMES
2 April 2012LIC Jeevan Ankur: Pay the 'Premium' & secure your child's future
Product Details
LIC Jeevan Ankur is predominantly a policy meant to provide financial aid to the child in the unfortunate event of the death of the earning parent. Thus, while the policy covers the life of the parent, the term of the policy is designed to coincide with the age of the child.
The maximum policy term under is this plan is capped to the period when the child attains 25 years of age. For example, if the parent buys this policy when the nominee child is 2 years old, the maximum policy term allowable will be 23 years.
Key Features
The main highlight of Jeevan Ankur is the kind ofdeath benefit that it provides. In the event of death of the policyholder during the policy term, an amount equivalent to the basic sum assured is paid immediately to the nominee.
Thereafter, an income benefit equal to 10% of the sum assured is payable to the nominee each year until the end of the policy term. On maturity, the entire amount of sum assured is once again payable to the nominee.
Our View
LIC Jeevan Ankur scores well on the death benefit. The scheme has been structured to meet not only the immediate, but also regular financial needs of a child like education. A regular income of 10% of sum assured is provided each year in the event of the death of the earning parent.
In case the policyholder dies within a few years of taking the policy, the total amount payable to the nominee through the policy term can turn out to be more than four times the amount of the basic sum assured. This payout will vary depending on the policy term and the date of the death of the policyholder.
LIC Jeevan Ankur is predominantly a policy meant to provide financial aid to the child in the unfortunate event of the death of the earning parent. Thus, while the policy covers the life of the parent, the term of the policy is designed to coincide with the age of the child.
The maximum policy term under is this plan is capped to the period when the child attains 25 years of age. For example, if the parent buys this policy when the nominee child is 2 years old, the maximum policy term allowable will be 23 years.
Key Features
The main highlight of Jeevan Ankur is the kind ofdeath benefit that it provides. In the event of death of the policyholder during the policy term, an amount equivalent to the basic sum assured is paid immediately to the nominee.
Thereafter, an income benefit equal to 10% of the sum assured is payable to the nominee each year until the end of the policy term. On maturity, the entire amount of sum assured is once again payable to the nominee.
Our View
LIC Jeevan Ankur scores well on the death benefit. The scheme has been structured to meet not only the immediate, but also regular financial needs of a child like education. A regular income of 10% of sum assured is provided each year in the event of the death of the earning parent.
In case the policyholder dies within a few years of taking the policy, the total amount payable to the nominee through the policy term can turn out to be more than four times the amount of the basic sum assured. This payout will vary depending on the policy term and the date of the death of the policyholder.
This impressive feature, however, comes at a price. The premiums are high, especially when compared with those of pure term plans (even after taking into account four times the sum assured under this plan).
Jeevan Ankur is thus meant for those seeking a hassle free and systematic arrangement to take care of all the financial needs of their growing children.
POLICY BENEFITS
If we assume the age of the policyholder to be 30 years and the age of the nominated child to be 2 years, the policy and premium paying term would work out to 23 years.
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