Latest news with #JeevanUtsav
Economic Times
5 days ago
- Business
- Economic Times
LIC's goal is 'Insurance for All' by 2047, policy numbers should grow from Q2: R Doraiswamy, MD & CEO
LIC's new chief aims to boost profitability through diversified products, particularly non-PAR plans, targeting 40% of APE. R Doraiswamy plans to increase bancassurance sales beyond 10% and strategically invest in debt and equity markets. LIC is exploring health insurance ventures and addressing regulatory challenges regarding its stake in IDBI Bank. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads is betting on a diversified product mix and higher sales through bancassurance channels to keep the state behemoth ahead of private rivals. In his first interview since taking over, Doraiswamy discusses with ET his plans on increasing the share of non-participating products to 40% of annual premium equivalent-a switch that is key to boosting profitability. Edited excerpts:The broader goal is "Insurance for All" by 2047. The industry saw a drop in volumes after last year's product rule changes, but our sales have stabilised. We expect growth in policy numbers to turn positive from the second quarter onwards, with stronger momentum in the third and fourth quarter. Market share being a by-product of growth, when LIC grows at a rate higher than the rest of the industry, my market share is going to go factors drove our margin expansion-higher non-PAR contribution, expense optimisation, and revised commission structures following the October 1, 2024 norms on products. There were some changes in some products, we had to be compliant with the surrender value norms, tweak the agency commission from being totally front-ended to introducing some deferred payments of margins also follow a seasonal pattern, rising from the first quarter to the fourth because PAR profits are booked in the last quarter. We have consciously shifted from a 7% share in non-participating (non-PAR) annual premium equivalent (APE) at the time of listing to around 30% now. This could rise further to 35-40% in the near term, before we balance the mix back towards participating (PAR) preferences vary. Younger buyers lean towards guaranteed non-par protection products, while others prefer savings-oriented participating or non-participating plans. ULIPs see strong demand in rising markets and a slowdown when markets dip. This year, we expect ULIPs to grow alongside non-PAR savings and protection try to fill product gaps and cater to all segments from micro-insurance to high-ticket savings. Our recent launch, Jeevan Utsav, has already set a trend in the market. Over the next few months, we will bring out three to four innovative products across is a major financial institution player in the country, and they are playing a major role in developing India's economy for the last 69 years. If you look at what we have to do, our objectives are very clear, extend insurance coverage across the country at affordable prices, and mobilise savings for the welfare of policyholders while delivering decent returns. Globally, we are already the fourth-largest life insurer, and see whether we can still grow individual agency network is the backbone of LIC. It is a distribution strength we will continue to nurture. That said, we are changing in other channels, bancassurance and corporate. Our bank assurance premium share has risen from less than 3% two years ago to 6.77% today. We expect it to cross 10% in the near you have such large investable funds to be invested, you are looking at various options which are giving you a decent return. We need to look at both debt as well as equity in the proportion that we are supposed to invest. But at many times you find that you will do more on one side or the other based on availability. We have to have a clear rating of those instruments, paying certain dividends and stuff like has already started doing FRA (forward rate agreements), and now we are actively looking at bond forwards. Once we have enough tie-ups on that, we will be moving to bond forwards to hedge our interest rate risk only in perspective of our guaranteed protection. On the equity front, we are still weighing the decision will be taken by the vision of LIC is to be a transnationally competitive financial conglomerate. That is a vision, if you look at this. So, when you are looking at a financial conglomerate, you would like to have a bank as a major partner, a housing finance company, or a mutual fund. But the Act and regulations do not permit LIC to have a bank of its own. Whereas a bank can have an insurance company, an insurance company can't promote a bank. That is what the problem is. RBI has already made their position have the options in front of us. We are doing due diligence into existing SAHI (standalone health insurance) companies, which we can have a stake at. Only thing is, we are not fixing a particular time limit. We are examining those options.
Hans India
22-06-2025
- Business
- Hans India
LIC Jeevan Utsav: A smart way to earn ₹20,000 every month for life
If you're aiming for a financially secure and peaceful retirement, the LIC Jeevan Utsav plan might be just what you need. Offered by the Life Insurance Corporation of India, this innovative policy ensures lifelong income after a limited premium-paying term. Under the Jeevan Utsav scheme, you choose a premium payment period between 5 to 16 years. After this period ends, LIC will start giving you an annual income of 10% of your sum assured — up to ₹2.5 lakh per year, or roughly ₹20,000 per month — for life, until you turn 100. Key Highlights of LIC Jeevan Utsav: Premium Term Options: 5 to 16 years Lifetime Income: Begins after the waiting period, depending on chosen term Income Amount: 10% of the sum assured annually Sum Assured: Minimum ₹5 lakh Eligibility Age: 90 days to 65 years Death Benefit: Full sum assured to nominee Income Options: Regular or Flexi Additional Perks: Tax savings and loan facility available Waiting Period Details: 5-year premium term → 5-year waiting period 6-year term → 4 years wait 7-year term → 3 years wait 8–16-year term → 2 years wait This plan combines lifelong income, tax benefits, and financial protection for your loved ones. Interested individuals can visit the official LIC website or contact a registered LIC agent for more details. Disclaimer: This article is based on publicly available information. Please verify with official LIC sources before making financial decisions.
Time of India
07-05-2025
- Health
- Time of India
A tax expert's journey to saving lives
Ahmedabad: The presidential honour for Mukesh Patel recognises his role in establishing the Ahmedabad Red Cross Shatabdi Bhavan , acknowledged as India's largest blood centre with state-of-the art facilities. He has spearheaded the Thalassemia Care, Awareness & Prevention (CAP) Mission since 1983, providing free life-saving transfusions to over 1,200 children suffering from blood about his inspiration behind championing voluntary blood donation and thalassemia care, Patel told TOI, "Blood donation is the only gift that costs nothing to the donor but means a whole world to someone in need. You do not have to be a doctor to save a life, just donate blood."Ahmedabad has earned recognition as the blood donation capital of India and global hub of centurion blood donors under Patel's leadership. The city boasts 138 centurion blood donors, including all five of India's women centurions, three double centurions, India's first centurion couple and first differently abled an international tax expert by profession, Patel has donated blood in 25 countries worldwide. "My globetrotting gave me ample opportunities to visit leading blood banks around the world, donate blood, study their blood donation promotion, interact with experts and in the process nurture innovative ideas and strategies for fruitful implementation," he innovative approaches include "instilling the feeling of pride and participation through blood donor recognition, setting up of diverse activity hubs and clubs, launch of our imaginative mascots Sherdil and Caredil, motivational songs on Raktdaan and showcasing the creative Blood-o-pedia, Thalas-e-media and Jeevan Utsav".
Mint
06-05-2025
- Business
- Mint
LIC Jeevan Utsav Plan Explained: 5 key benefits you shouldn't miss in 2025
The Jeevan Utsav plan provided by Life Insurance Corporation of India (LIC) is a non-linked, non-participating whole life insurance policy. This policy is designed to provide lifetime income and risk coverage. This particular insurance plan is developed with an objective to assist individuals seeking long term financial security with the option of flexibility in premium payment options. Before thinking about investing in this scheme it is important to know about five important facts: The Jeevan Utsav scheme allows all policyholders to opt for premium payment terms ranging from 5 to 16 years. This takes into account various financial planning needs and goals. Further, this plan is available to individuals aged 90 days to 65 years, with a minimum sum assured of ₹ 5 lakh and no upper limit. Individual policy holders are provided assured additions of ₹ 40 per ₹ 1,000 of the basic sum assured at the end of every policy year during the entire premium paying term. These additions enhance the policy's value over time, thus contributing to the holistic benefits for the policyholder. Once the premium paying term is complete, policyholders can opt between: Steady income benefit: 10% of the basic sum assured is paid annually. This starts from the end of the deferment period. 10% of the basic sum assured is paid annually. This starts from the end of the deferment period. Benefit of flexi income: All policyholders can defer income withdrawals, that accrue interest at 5.5% per annum. This compounds yearly until withdrawal or policy termination. Now, in the unfortunate event of the policyholder's demise the nominee receives the sum assured on death. This sum includes the basic sum assured and accrued guaranteed additions. Further, this amount is not less than 105% of the total premiums paid ensuring substantial financial support and protection to the beneficiary. The Jeevan Utsav scheme offers several additional features to enhance policyholder convenience, including: Facility of loan: Upon the payment of premiums for two years, policyholders are allowed to take loans providing liquidity in times of need. Upon the payment of premiums for two years, policyholders are allowed to take loans providing liquidity in times of need. Optional riders: Policyholders can avail up to four to five available riders, this includes accidental death, disability benefit, accident benefit along with new term assurance, new critical illness benefit and premium waiver benefit. Policyholders can avail up to four to five available riders, this includes accidental death, disability benefit, accident benefit along with new term assurance, new critical illness benefit and premium waiver benefit. Benefits in taxation: Premiums paid and benefits received are all eligible for tax exemptions under Sections 80C and 10 (10D) of the Income Tax Act. The benefits are also subject to prevailing tax laws. LIC Jeevan Utsav provides a blend of guaranteed returns, lifetime consistent income and flexible premium options. This makes the product ideal for long-term financial planning. Further, with added loan facilities, death benefits and tax advantages, it ensures both liquidity and protection. Therefore, on your part as an investor, you should consult a certified financial advisor, understand its key features thoroughly to make well informed investment decisions. Disclaimer :This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor or LIC representative before making any investment decisions. First Published: 6 May 2025, 03:39 PM IST
