Page 10 - Insurance Times May 2020

LIC of India

News

LIC launches modified is Rs 1,62,162 and for yearly mode Rs mium was due in March till May 31 in
1,56,658. The maximum pension one wake of the extension of lockdown to
PMVVY for senior citizens can get under this scheme will be Rs fight spread of coronavirus.
Life Insurance Corporation of India 9,250 per month and Rs 1,11,000 per "On a review of the recent situation of
(LIC) has launched the revamped year. lockdown resulting from global pan-
Pradhan Mantri Vaya Vandana Yojana demic of Covid-19 across the country
(PMVVY) for senior citizen with better While the Senior Citizen Saving Scheme
(SCSS) has a tenor of five years and can and representations received, it has
rate of interest.
be extended for another three years, been decided that, for all life insurance
This pension scheme is non-linked and PMVVY has a policy term for 10 years policies where the premium falls due
non-participating, and will be available and gives 7.4% per annum. For an in- in the month of March 2020, the grace
for investors till March 31, 2023. Finan- vestor who wants income certainty for period shall be allowed till 31st May
cial advisors say that investors should ten years, this is a very good product." 2020", Irdai said in a statement.
look at this scheme as it offers attrac- Earlier, on March 23 and April 4, the
tive returns for longer duration. Total amount of purchase price under
all the policies under this plan and all Insurance Regulatory and Develop-
According to LIC, this scheme has a the policies taken under earlier ver- ment Authority had announced addi-
policy term of 10 years and the pen- sions of PMVVY allowed to a senior citi- tional grace period of 30 days for poli-
sioner can choose monthly, quarterly, zen shall not exceed Rs 15 lakh, said cies where premium fell due in the
half yearly or yearly mode of pension. LIC. This scheme was earlier launched months of March and April.
The scheme will provide an assured in 2017, and recently, the government This was done to provide relief to life
rate of return of 7.40% per annum in extended the scheme till March 31, insurance policyholders in wake of the
FY21. For investors investing this finan- 2023. unprecedented lockdown situation as
cial year will get 7.40% per annum a result of coronavirus pandemic, the
This scheme can be purchased offline
payable monthly for entire duration of insurance had said.
ten years. as well as online from LIC. Financial
planners say that since pension re- Now as the lockdown has been further
"For the policies sold during the next ceived are taxed at the hand of inves- extended up to May 17, 2020, the in-
two financial years, the applicable as- tors, this product from LIC is advisable surance regulator has extended the
sured rate of interest, at which the for someone who is in a lower tax grace period up to May 31 for all life
pension payment shall be made, will be bracket. insurance policies whose premium was
reviewed and decided at the beginning due in March keeping in view the diffi-
of each financial year by the finance Life insurance policy: Grace culty faced by some policyholders to
ministry," said LIC in its release. renew the policies in time.
period for premium pay-
The scheme can be purchased by pay- All policyholders are requested to note
ment of a lump sum purchase price. ment extended further that the objective of grace period al-

The pensioner has an option to choose Irdai, the insurance regulatory body, on lowed is to pay all the premiums due
either the amount of pension or the Sunday said it has decided to further within that period so as to keep the
purchase price. For example, the mini- extended the grace period for renewal policy coverage in force, Irdai further
mum purchase price for monthly mode of life insurance policies whose pre- said. T

10 The Insurance Times, May 2020