LIC to stop issuing Convertible Whole Life Plan policy soon
By James Paul | 26 Aug 2003
Kochi:
Life Insurance Corporation (LIC) has decided to stop issuing
the Convertible Whole Life Plan policy by this month.
The policy, which was started nearly 25 years ago, gives insurance coverage to the policyholder till s/he attains the age of 80. The policy is being stopped as it is found unviable for the corporation.
The unique feature of the policy is that the policyholder needs to pay only a small amount as premium during the initial five years. S/he has the option to choose the term of the policy after the fifth year. The premium is revised according to the term.
If the policyholder does not opt for the term, the policy will continue at the low rate of premium till s/he attains the age of 80. In case of death by accident, the nominee will get double the amount of the sum assured. The policyholder could also take loans on the guarantee of the policy.
In
Thiruvananthapuram division alone, a total of 69 policies
were sold during this year with a total sum assured of
Rs 1.86 crore, according to LIC sources.
