Page 78 - Life Insurance Today July - December 2020

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LIC Housing aims for "PMAY CLSS (Pradhan Mantri Awas options: Deferred annuity for single
Yojana Credit Linked Subsidy Scheme) life, and deferred annuity for joint life.
double-digit growth in is a major driver of home loans today Under the deferred annuity for single
FY21 in the sector. For LICHFL, around 47 life plan, the annuity payments shall be
LIC Housing Finance hopes to record per cent of our business by value is made in arrears for as long as the an-
double-digit growth this fiscal, sup- from the Top 7 metros, while the rest nuitant is alive after the deferment
ported by the return of home loan is from other centres. PMAY consti- period and according to the chosen
growth to pre-Covid-19 levels, govern- tutes nearly 30 per cent of our busi- mode.
ment push, revival in affordable hous- ness," said Mohanty.
ing segment, and its new products and In case of unfortunate death, during or
support measures. Meanwhile, its product Griha after the deferment period, death ben-
Varishtha, which caters to individuals efit will be payable to nominee of the
"As of now, sentiments are improving covered under defined pension ben- annuitant.
day by day. We expect a positive rub- efits, appears to be receiving good re-
off in the realty space, with the overall sponse. Close to Rs. 1,000 crore has LIC IPO may spill over to
economy opening in phases. A big chunk already been sanctioned under the next fiscal
of an upwardly mobile middle-class seg- scheme since its introduction in July.
The mega initial public offering of Life
ment, urbanisation rates, and the
emerging concept of work from home LIC launches its new de- Insurance Corp (LIC) may spill over to
the next fiscal as the government will
will be able to sustain the demand. ferred annuity plan first look at the independent actuarial
At the current rate, we can look 'Jeevan Shanti' valuation of the country's largest in-

forward to a double-digit growth to- LIC has introduced new Jeevan Shanti surer, a top official has said.
wards the end of the current financial plan. It is a new deferred annuity plan,
year," Siddhartha Mohanty, MD and which is a non-linked, non-participat- Department of Investment and Public
CEO of LIC Housing Finance, told. He is ing, individual single premium plan. Asset Management (DIPAM) Secretary
of the view that people with stable Tuhin Kanta Pandey said the pre-IPO
earnings have not been impacted The annuity rates for the New Jeevan work of LIC is going on at four stages -
greatly, and are looking to cash in on Shanti plan are guaranteed at the in- - appointment of advisors for ensuring
this opportunity - it is a buyers' market. ception of the policy, and annuities are compliance, legislative amendment,
payable after the deferment period LIC''s internal software changes to
Affordable housing has seen the fast- throughout the life of the annuitant, come out with its ''embedded value''
est recovery post pandemic due to the LIC said in a statement. and appointing an actuary for vetting
inherent demand and sops given by the LIC's actuarial valuation.
government under PMAY CLSS in the The plan, which can be bought offline
form of subsidy. and online, comes with two annuity The government plans to amend the

78 July - December 2020 Life Insurance Today