December 10th, 2008 
Tushar Mathur
LIC of India has launched Jeevan Aastha on December 8th, 2008. The scheme is open for subscription for 45 days.
You can get the details about this scheme here.
When reading through its features, please make note of the two terms used in this:
Basic Sum Assured – This is insured amount during the first year of the policy.
Maturity Sum Assured – This is equal to ( Basic Sum Assured / 6 )
Thus, if you purchase a policy with basic sum assured of Rs. 3,00,000/- , the maturity sum assured is only Rs. 50,000/-
In a way, this insurance policy is quite stupid and absurd ( truly speaking this does not look like an insurance policy at all ):
1. Decreasing Insurance benefit: This is the first insurance policy I have come across in which the death benefit decreases with the increase in the term of the policy. If you purchase a policy for Rs. 3,00,000/-, then only during the first year the death benefit is Rs. 3 lakhs. Second year onwards the death benefit is in the range of Rs 1 lakh – Rs. 2 lakhs. You can see the benefits illustration here.
2. Guaranteed additions are not on the Basic sum assured but on the Maturity Sum assured ( which is one-sixth of the Basic Sum assured ). So when you read the policy features, keep this thing in mind.
Infact, this looks like another of LIC’s tricks to fool the common public. The purpose of this scheme is not to provide insurance, but to mop up huge sums of money from the public so that LIC can shore up the sinking stock market.
Update: This post was previously titled “LIC Jeevan Aastha – Do not buy”. To know why I have renamed it, please read this.
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