LIFE INSURANCE CORPORATION (LIC) of India is all set to roll out its new guaranteed single premium plan - Jeevan Nischay. The new plan Jeevan Nischay will be quite similar to the Jeevan Astha, which was launched last year which brought a lot of confidence in the life insurance market which was very much shaken due to the global financial crisis.

In this plan, an investment of Rs. 1 lakh would mature into Rs.1.7 lakh after a span of 10 years. The policy will be available for a limited period until the end of March 2010.

Jeevan Nischay will be availbale only to existing policy holders of LIC. The amount an individual can invest will be linked to the extent of protection the individual already has purchased. If a person with a term insurance of Rs.10 lakh for accidental death can invest a maximum of Rs. 1 lakh. The new policy will be available to only those who are not subject to any additional charges for ill health.

The main objective of the policy will be to tap the maturity benefits offered under an older plan, Bima Gold, which sold more than a crore policies. Jeevan Astha had mobilised around Rs.10,000 crore as it was the ideal choice for guaranteed return during the financial crisis. When Jeevan Astha was launched the interest rates were crashing and now Jeevan Nischay's launch coincides with RBI's exit from the accommodative policy. Jeevan Nischay is more like a single premium bond as the its offers protection which is only fundamental.

Officials of LIC said that in Jeevan Nischay the minimum cover requirement was not really an exclusion as anyone can buy term insurance to the extent of investment that one wished to make.

The Jeevan Nischay plan covers only the mandatory five times of the premium amount for the first year of insurance and for subsequent years the sum insured will be equivalent to the premium paid.