Introduction
LIC’s Jeevan Rakshak Plan is a participating non-linked plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.
Table No.
827
Plan Type
participating non-linked plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
8 years (should have completed)
Maximum :
Maturity Age
Minimum
Maximum
Basic Sum Assured
Maximum
Rs.75,000
Minimum
Rs.200,000
Policy Term
10 years To 20 Years
Policy Paying Term
Equal To Policy Term
Premium Payment Mode
Annually, half-yearly, quarterly, monthly
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Bonus
- Loyalty Addition
Key Features
- This Traditional Endowment Plan allows the insurance taker to leverage the profit made by the company as it is a participating plan.
- You need to pay the premium for the entire policy tenure.
- This plan has low coverage facility and can be taken only for a maximum sum assured of Rs 2 lacs per life
- Maturity benefit is paid if the policyholder survives to complete the tenure of the policy and the policy terminates.
- If the life insured dies during the tenure of the policy, then the nominated person receives the death benefit and this policy terminates
- To get an additional premium, you need to opt for additional coverage.
- You can get this policy without any medical test. You have to declare good health which makes it very simple to associate with this policy.
1. As this is a participating plan of LIC, this conventional endowment plan always permits the insurance holder to leverage the revenue of the company.
2. You will get a low coverage facility with this policy and you can take the maximum sum of 2 lakhs rupees per head.
3. In this policy, you have to pay the premium for the complete policy term.
4. If you want to opt for further premium then you have to go for additional coverage and for that you can contact any representative of LIC.
5. Maturity benefit is paid if the policy owner is able to survive the term of the policy and on the termination of the policy.
6. In case, the policyholder dies during the term of the policy then the nominee will get all the death benefits.
7. As per this policy, you can get double accidental reimbursement but it’s only with the additional premiums.
- LIC Jeevan Rakshak is a participating Endowment plan offering savings and protection
- It offers bonus in the form of loyalty additions post the completion of 5 years of the plan
- It is a non-medical fixed benefit plan that allows participation in profits through loyalty additions
- An optional rider of LIC Accident Benefit can be opted for with the plan
Policy Benefits
Death Benefit
The plan also comes with a very important death benefit. If the policyholder has an unfortunate death during the policy term then the plan pays out basic sum assured or 10 times of annualized premium or 105% of all the paid-up premiums as on the date of death. The premiums defined above will be excluding service tax, additional premium or rider premium if any. Loyalty addition if any will be added to the death benefit if the death occurs after 5 years of policy term.
Maturity Benefit
The plan comes with maturity benefit. If the policyholder has paid regular premiums throughout the plan and survives the policy term then he/she will be eligible for maturity benefit. The final sum will be the basic sum assured on maturity plus loyalty addition will be added to the maturity amount.
Rebate
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Profit Participation
The plan is eligible to participate in corporations profit through investments. This profit if any is shared in the plan through loyalty addition provided the policy has been in force for 5 years. The loyalty addition will be paid on death or maturity.
Ideal Plan
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Tax Benefits
Premium paid for this plan and death/maturity benefit amount received carry income tax benefit under section 80c and 10 (10D) of the Income Tax Act.
Loans
You can take a policy loan with this plan if your policy has obtained the surrender value.
Riders
Accidental Death and Disability Rider
This rider can be attached to the base plan after attaining 18 years of age. The rider pays benefit in case of accidental death during the policy period, over and above the sum assured offered to the nominee. This rider can be opted by paying an additional premium as per the rider eligibility term.
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
To build the surrender value the policy needs to be active for at least three years in which full premiums have been paid. Guaranteed surrender value will be percentage of total premiums paid excluding extra premiums and premiums for riders.
Guaranteed Surrender Value
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Special Surrender Value
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Rebates
Rebate on Premium Payment Mode
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Rebate on Sum Assured
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High Sum Assured and Mode Rebate
| Basic sum assured | Rebate |
| Rs.75,000 to 1,45,000 | – |
| Rs.1,50,000 and higher | 1.50% of sum assured |
You will also receive mode rebates with this plan.
| Type of mode | Rebate |
| Annual mode | 2% of tabular premium |
| Half-yearly mode | 1% of tabular premium |
| Quarterly, monthly (ECS) and salary deduction mode | – |
Other Details
Revival Period
Free Look Period
This plan offers a period of 15 days from when the policy is received. It is known as a cooling-off period. You can check the terms and features of your insurance plan within this special period and then return your policy if you are not happy with it.
Grace Period
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Nomination
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Assignment
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Paid Up
If in case, three years’ worth of premiums have been duly paid and the premium payment is then discontinued, the policy continues as a paid-up policy. The Basic Sum Assured will be of a lesser value by the calculation Paid-up Sum Assured = Basic Sum Assured x (No. of premiums paid/No. of premiums payable).Paid-up Sum Assured is provided at the maturity of the policy or at the death of the policyholder, whichever is first.
Accident Benefit Rider’s benefits will cease as it doesn’t acquire any paid-up value.
Exclusions
Suicide
If the policyholder dies due to committing suicide in 12 months after the policy commences, then the beneficiary will receive only 80% of the premiums that have already been paid till the date of the death, accidental death benefit rider premium, and any additional premium.
In case the life insured commits suicide in 12 months after the insurance policy is revived, then the nominated beneficiary will get the surrender value or 80% of the premiums that have been paid until the date of death, the premium of the accidental death benefit, and any extra premium, whichever is higher.
Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Examples
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FAQs
Q 1: What happens if I stop paying the premium?
Ans: The policy and all its benefits lapse if the policyholder stops paying the premium. If the policyholder pays the premium for at least complete 3 years, then the premium becomes paid-up value and goes on as reduced value. The nominee gets this Paid-up value on the early death of the policyholder or maturity.
Paid-up Value = Basic Sum Assured * (Number of Premiums Paid/ Total Number of Premiums Payable)
Q 2: Does the policy offers any surrender benefit?
Ans: If the insured pays the premium for complete three years then the policy acquires a Surrender Value. The Surrender Value payable will be higher of:
- Guaranteed Surrender Value is the percentage of all the premiums paid
- Special Surrender Value is declared with the change in time
Q 3: Can we take a loan against this policy?
Ans: Yes, you can take Loan against this policy as per the terms and conditions of the company.
Q 4: Are there any death benefit offered by this policy?
Ans: If the Life Insured passes away within the Policy Tenure, then the nominee receives:
- Sum Assured
- Loyalty Additions if the policyholder completed 5 policy years.
At the time of Death the Sum Assured is the higher of:
- Basic Sum Assured
- 105% of the premiums that the policyholder paid till death
- 10* Annual Premium
Q 5: How many riders are available under this plan?
Ans: You will get to leverage LIC’s Accident Benefit Rider under this plan.