12. equity and life insurance product • Single premium assurance plan • Offers guaranteed benefits on death and maturity whichever is earlier • The Plan is close ended • Would be available for a maximum period of 45 days from the date of its launch i.e. 08.2008 .Features • A hybrid product which combines features of Fixed Deposits/Debt.

000.Eligibility conditions and other restrictions • • • • Minimum Entry Age : 13 years (completed) Maximum Entry Age : 60 years (nearest birthday) Minimum Basic Sum Assured: Rs. 30.1.50. • Policy Term : 5 or 10 years • Premium payment mode : Single premium only .000 Maximum Basic Sum Assured: No Limit The basic sum assured shall be available in multiples of Rs.

85 167.00 165.50 174.10 180.70 Policy Term 10 years 165.95 175.Premium rates Specimen Single Premium rates per Rs.40 40 50 176.1000 Basic Sum Assured for some of the ages are as under: Age at entry 20 30 Policy Term 5 years 174.90 .

3. 1.00 .99. 2.4.000 to Rs.3.00. to Rs.5.999 Rs.000 and above Nil Rs.000 Basic Sum Assured : Basic Sum Assured Rebate Term – 5 years Rebate Term – 10 years Below Rs.00 Rs.00.50 Rs.50 Rs. 3.00.000 Rs.00 Nil Rs.00 Rs. 2.999 Rs 12.Rebate High Sum Assured Rebates per Rs.99.6.

Loan • Loan facility will be available to you under this plan . after completion of one policy year. .

The minimum Guaranteed Surrendered Value allowable is equal to 90% of the Single premium paid excluding all extra premiums.Surrender value • The policy can be surrendered for cash after the policy has run for at least one year. • Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the guaranteed Surrender Value. . • The Special Surrender Value will be the discounted value of the Maturity Sum Assured and Guaranteed Additions accrued as on date of surrender.

the same can be returned within 15 days .Cooling-off period • In case one is not satisfied with the “Terms and Conditions” of the policy .

if any Benefits .• Death benefits: • On death during the first policy year: Basic Sum Assured with Guaranteed Addition. • On death during the policy term after first policy year. excluding last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition. • On death during last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition along with loyalty addition.

the maturity Sum Assured along with Guaranteed Addition and Loyalty Addition.• Maturity Benefit: • On maturity. . if any. • Maturity Sum Assured shall be 1/6th of Basic Sum Assured. shall be payable.

90 per thousand Maturity Sum Assured per year for a policy of 5 years term. – Rs. . 100 per thousand Maturity Sum Assured per year for a policy of 10 years term.Guaranteed Addition: • The policy provides for Guaranteed Addition at the following rates: – Rs.

Loyalty Addition: • Depending upon the Corporation’s experience the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the Corporation .

Advantages • Tax benefit under Sec 80C on initial premium. • Loyalty Addition – a variable component based on company performance. • Maturity benefit is non taxable under Sec 10(10D) • On death during the first policy year. • Guaranteed Addition at two rates for 5 and 10 year terms. • Can be used as security for a loan .

• Provides simple interest. • Insurance benefit decreases drastically after first year.Disadvantages • Guaranteed additions are not on the Basic sum but on the Maturity Sum assured. . • This policy looks like more of an Investment scheme than an Insurance cover.

the policy also provides "Cooling off Period" whereby one can also return the policy within 15 days if one is not satisfied with the terms and conditions of the policy. No upper limit has been fixed • Attractive for Indian middle class. .5 lakh. • The surrender value in no case is less than 90% of the single premium paid.Conclusion • The minimum risk coverage that can be availed is Rs. 1. • To provide flexibility.

a in most cases.75% to 7. • Offers insurance along with investment . • Any investment in this plan should be made with a clear understanding and recognition of this return.25% p.Contd… • Jeevan Aastha is a fixed return investment plan that would offer a return in the range of 6.

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