LIC to roll out two new policies

New Delhi: LIC to launch Jeevan Tarang, a whole life plan. The plan provides cover upto 100 years and guaranteed annual survival benefit of 5.5 per cent sum assured throughout life after premium paying term.

As part of its aggressive growth strategy, the Life Insurance Corporation (LIC) of India will launch two new products, a whole life plan and a pension plan tomorrow reports Business Standard.

This will take the number of new schemes launched by the life insurance behemoth in 2005-06 to seven. The corporation will also soon set up an office at Leh as part of its plans to open 400 new satellite offices in the country in 2006-07.

“With the fibre optic link to Leh set to be functional shortly, we will be the first to open an insurance office there,” Ashok Shah, north zone manager, said.

Besides catering to the local needs, the corporation aims to spread brand awareness among foreigners tourists who frequent Leh. LIC will focus on expanding its network through satellite offices instead of full-fledged branches in the next fiscal.

“For the north zone, we are targeting 60 such offices,” Shah said.

LIC will launch the Jeevan Tarang and Jeevan Akshay-4 tomorrow. A whole-life policy, Jeevan Tarang is open to persons aged up to 60 years and provides risk cover up to 100 years.

It offers a guaranteed annual survival benefit at 5.5 per cent of sum assured throughout life after the premium paying term and provides tax benefits under section 80C and 10(10D). The revised Jeevan Akshay-4 provides for immediate payment on purchase of the policy.

“The scheme will give about 8.5 per cent return and guarantees return of capital,” Shah said. The entry age for the scheme is 40-79 years and the minimum purchase price is set at Rs 50,000 or the amount needed to secure a minimum annuity of Rs 3,000 per annum.

The minimum annuity instalment is Rs 250 per-month, Rs 750 per quarter, Rs 1,500 per half-year and Rs 3,000 per year. The north zone is hopeful of replacing the western zone from the top slots in mopping up new policy premiums.

“We are aiming for Rs 3,500 crore premium against our target of 2,730 crore,” Shah said. The western zone has a target of Rs 3,500 crore.