Although a number of people are criticizing the demonetization move by Modi Government, it has indeed proved to be helpful for Life Insurance Corporation in getting the highest premium policy to date.
Yes, that’s right! Surprisingly, this historical moment in the history of India’s largest life insurance company took place after the implementation of demonetization! On Wednesday, this amazing deal was done at LIC’s Dadar branch with the record premium income of whopping Rs. 50 crores for a pension plan called Jeevan Akshay. The man who purchased the policy is said to be a real estate businessman.
In the past too, some individuals have bought multi-crore policies and the most popular among them is an actor from B-Town who opted for a pension plan of Rs. 2 crores which would get him around Rs. 15-lakh annuity yearly. However, the company has asked the branch to explain how the celeb’s insurance proposal news was broke out in social media.
The plan made headlines owing to record sales on 30th November which was the scheme’s last day prior to the revision of rates. Previously, the yield had been reduced from 7.5% to 7% for a 50-yr old person.
The Jeevan Akshay plan was not producing satisfactory results over the years in view of the fact that returns hadn’t been good in comparison to the small saving schemes. Nevertheless, after the announcement of demonetization, banks began to cut deposit rates, indicating the possibility of reduced rates by RBI in Dec and it induced fears of more reduced deposit rates. Talking of Jeevan Akshay, the annuity plan offers fixed returns as similar to a bond all through the policyholder’s life.
LIC’s MD Usha Sangwan told Times Of India that the company has achieved great results in the month of November on account of great premium collections of nearly Rs 8,000 crore and all the credit goes to Jeevan Akshay. In the words of Usha Sangwan,
“We are already showing a growth of 104% in a month and we have achieved close to 70% of our annual target thanks to Jeevan Akshay.”
According to Anand Jathan, who is among the corporation’s top agents plus Million Dollar Round Table’s member,
“Jeevan Akshay was offering 12% before 2000 under the lifelong annuity plan yet there were not many takers.This was because banks were offering 13% at that time and there were company fixed deposits with 14% returns.What people do not realise is that annuity income is guaranteed for life. Even if in the short-term there are instruments offering higher returns, in the long-term, interest rates are expected to come down.”
Well, we must say that demonetization has affected a great mass for sure with mixed results; for some, the decision has proved to be a boon whereas, for several others, it has become no less than curse, especially for those who lost their family members and kids.
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