LIC Jeevan Vriddhi

LIC Jeevan VriddhiJeevan Vriddhi is a new product launched by Life Insurance Corporation of India (LIC), in order to attract customers. Even though, there are similar plans existing in the market, LIC’s Jeevan Vriddhi will rule the market because of its influence over the market.

Jeevan Vriddhi, a single premium traditional plan, was brought for the customers who wish to save their tax by investing in different plans. The plan offers guaranteed benefits with loyalty additions (if any) in a short span of 10 years. The policy span differs with respect to the age of the policy holder from 8 to 50 years, as the sum assured reduces with the growing age.

The components of this plan are fixed 5 times the premium paid by the policy holder. The plan works like bank’s fixed deposit, whereby a younger person can easily double the amount he invests in just 10 years. With the growing interest rates every day, LIC still is offering good returns with this policy.

The minimum amount of the premium is Rs. 30000 for a sum assured of Rs. 1, 50,000. If during this term, the policy holder dies, den the nominee will be paid the entire amount of 1, 50,000.  And in case, the policy holder survives, and then he’ll get 5 times the premium paid by him on maturity of the policy.

Advantages of Jeevan Vriddhi plan-

Rate of return- the normal LIC endowment plans offer a 10% return on investment, whereas Jeevan Vriddhi offers a 7% return on investment. The increase on rate of return is an attraction in itself.

Surrender value- the guaranteed surrender value in this plan is available after the completion of the first year of the policy. It is 90% of the first premium paid. LIC may offer a special surrender value which may depend upon the sum assured to be paid.
 Loyalty addition – the loyalty additions or benefits depend upon the way policy has fared in the market. As the plan offers non- guaranteed, loyalty additions, so it better to be careful before expecting higher additions.

Convenience- One-time payment only.

Disadvantages of the plan-

  • Even though the plan offers surrender value after completion of a year, it is not a guaranteed value to be paid.
  • The term of the policy is fixed and so is the sum assured. So the individuals looking out for long term investment plans don’t fit in here.

Still, this is an ideal plan for all groups of people, be it younger generation who wish to work hard for a few years and save simultaneously for future, or it be parents who wish to save money for the education of children or their future.


Shivangi writes about News, Insurance, Investment and Finance articles on Public Media.

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