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Review Of LIC Jeevan Vriddhi : A Guaranteed Return Single Premium Life Insurance Plan

Life Insurance Corporation of India (LIC) has launched a new life insurance plan named ‘Jeevan Vriddhi’. It is a single premium non-linked close ended insurance plan which offers a life cover of 5 times the premium paid by the insured and guaranteed returns at maturity. This is a perfect combination of a insurance and returns as on death of insured during the policy tenure the nominee will get five times the premium paid by the insured else insured will get guaranteed return + loyalty addition (if any) on maturity of the policy.

This plan is available only for a limited period i.e  upto a maximum of 120 days from the day of launch (1st March 2012).

Jeevan vriddhi life insurance plan by LIC

This plan offers multiple benefits to the customers like:-

    • Death Benefit :- Five times the single premium paid by the insured
    • Maturity Benefits :- Guaranteed maturity sum assured + loyalty additions (if any)
    • Loan Facility (Liquidity) – Insured can take loan on policy after completion of one year.
      • Loan can be maximum 70% of the surrender value of the policy.
      • The rate of interest on loan will be 10.25% p.a (subject to change) compounding half-yearly.
      • Loan foreclosure facility is not available on this plan.


Based on the premium amount chosen by the insured, this policy also offers attractive rebate on the premium like in case of premium ranges between Rs 50,000 to 99,000 insured will get 1.25%increase in the Guaranteed Maturity Sum Assured amount. Likewise if your premium is Rs 100,000 or above, then you can get 3% increase in the Guaranteed maturity sum assured.


Insured can surrender his policy after expiry of one year from the date of purchase of the policy. The minimum Guaranteed Surrender Value (GSV) allowable is equal to 90% of the Single premium paid excluding extra premium, if any. The Special Surrender Value (SSV) will be the discounted value of the Guaranteed Maturity Sum Assured as on date of surrender.


This life insurance policy also offers tax benefit to the insured under section 80C.
On Maturity, it is TAX free.


This policy also attracts service tax as per the prevailing rates.


Like other insurance plans, this policy also offers its policyholders to return the policy within 15 days from the date of purchase and get the amount of premium paid against the policy after deducting some charges like risk premium, expenses incurred on medical examination and stamp duty..

Drawbacks Of LIC Jeevan Vriddhi Plan

After looking at all the benefits of the LIC Jeewan Vriddhi Plan lets have a look what can be drawbacks of this plan which you should know before investing into the same:-

  • Loyalty addition which policyholder can get on maturity is not guaranteed.
  • The tax benefit offered by this life insurance policy may vanish on implementation of Direct Tax Code (DTC) which is likely on 1st April 2012.

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