LIC has unveiled the Children’s Money Back Plan, which the state-owned life insurer hopes will arrest the decline in its market share.
Children’s Money Back Plan is a participating non-linked money back plan. It is designed to meet the educational, marriage and other needs of growing children through survival benefits, LIC said in a statement.
Children’s Money Back Plan provides for risk cover on the life of child during the policy term and also for periodic payments on surviving to the end of the specified durations.
Moreover, the parents have an option to take a premium waiver rider wherein the premium will be waived in case of untimely death of the proposer during the term of the Children’s Money Back Plan policy, it said.
LIC has also launched Jeevan Sangam – a participating, non-linked, savings-cum-protection single-premium plan wherein the risk cover is a multiple of single premium.
“The proposer will have an option to choose the maturity sum assured. The single premium payable (exclusive of service tax) shall depend on the chosen amount of maturity sum assured and age of the life assured,” it said.
The plan will be open for sale for a maximum period of 90 days from the date of launch, it added.
“With the launch of these products tomorrow, we have been able to complete security for all the policyholders up to 60 years. Again, for the first time, we are launching a single premium product which is tax compliant too,” LIC managing director V K Sharma said.
“We are planning to launch a Ulip product early next fiscal,” he added.
LIC, the country’s largest insurer, has seen its market share slip to 70 per cent this fiscal as its new business premium shrunk by over 21 per cent in April-December period.
LIC garnered new premium of Rs 51,667.07 crore during the first three quarters of 2014-15 as against Rs 65,774.47 crore in the same period of the previous fiscal, a decline of 21.4 per cent.
As a result, market share of the insurance behemoth came down to 70 per cent as against over 75 per cent at the end of last fiscal – 2013-14.