Introduction
LIC’s Navjeevan is a non-linked, participating Endowment Life Assurance 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.
853
Plan Type
Non-Linked, Participating Endowment Life Assurance Plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
Single Premium : 90 days (completed)
Limited Premium : 90 days (completed) under Option 1
Limited Premium : 45 years (nearer birthday) under Option 2
Maximum :
Single Premium : 44 years (nearer birthday)
Limited Premium : 60 years (nearer birthday) under Option 1
Limited Premium : 65 years (nearer birthday) under Option 2
Maturity Age
Minimum
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Maximum
Single Premium : 62 years (nearer birthday)
Limited Premium : 75 years (nearer birthday) under Option 1
Limited Premium : 80 years (nearer birthday) under Option 2
Basic Sum Assured
Maximum
Rs. 1,00,000
Minimum
No Limit
Policy Term
10 To 18 Years
Policy Paying Term
Single Or 5 Years
Premium Payment Frequency
Single Premium (Lump sum), Yearly, Half yearly, Quarterly, Monthly (through NACH only)
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Loyalty Addition
Key Features
- This plan can be purchased online on LIC website
- Offers Loyalty Additions which are added at the end of the policy term
- Minimum Sum Assured of 1 lakh
- Can be purchased for anyone from the age of 90 days to 65 years of age
- LIC Navjeevan is Endowment life insurance policy.
- Under this plan single premium as well as limited premium payment option available.
- The term of the plan is 10 to 18 years
- Minimum sum assured is 1 Lakh. No limit on the maximum sum assured.
- Loan facility is available under this plan.
- This plan is offered with optional accidental rider and disability benefit rider.
- Option to avail death benefit in Installments.
- This policy shall participate in the profits of the corporation in the form of loyalty additions.
- Income tax benefits under section 80 C is available for the premium payment.
Policy Benefits
Death Benefit
Very important to check the Risk commencement date in the plan because the death benefits is linked to it.
If death occurs during the first 5 policy years, the benefits are as follows:
- If the Life Insured dies before the Risk commencement date, the premiums paid are returned without any interest.
- If the Life Insured dies after the Risk commencement date, the sum assured on death is paid.
If death occurs after the first 5 policy years, the sum assured on death + loyalty additions are paid to the nominee.
Maturity Benefit
When the policy matures, the Sum Assured on Maturity + Loyalty Additions will be paid to the policyholder.
Rebate
Three Types Of Rebates Available
Profit Participation
Loyalty addition is one time profit sharing by the insurer in case of death or maturity along with assured amount (basic sum assured in this plan).
Ideal Plan
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Tax Benefits
Under single premium plan, kindly note that you can claim premium of up to Rs 1.5 Lakh only u/s 80c, for the Financial year in which you buy this policy. For example, if you buy an insurance policy for premium of Rs 5 lakh, you can claim up to Rs 1.5 lakh only as the benefit under section 80c in that financial year.
Loans
Under Single Premium payment policies, loan can be availed at any time after three
months from completion of the policy (i.e. 3 months from the date of issuance of policy) or
after expiry of the Free-Look Period, whichever is later. Under Limited Premium payment policies, loan can be availed provided atleast two full years’ premiums have been paid.
The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as under:
For Single Premium payment policy: upto 80%.
For Limited Premium payment policy:
– For inforce policies – upto 80%
– For paid-up policies – upto 70%
The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI. Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.
Riders
Accidental Death and Disability Rider
This rider can be opted only at the time of inception of the plan. If this rider is opted for, in case accidental death of the life assured, the accidental death sum assured is paid along with the death benefit as a single lump sum payment.
In case of accidental disability arising due to an accident (within 180 days from the date of accident) an amount equal to the accident benefit sum assured will be paid in monthly installment spread over 10 years and the future premiums for the rider as well as premiums for that portion of the sum assured shall be waived.
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
The Policy can be surrendered at any time during the policy term under single premium option.
Under Limited Premium payment, the policy can be surrendered provided at
least two full years’ premiums have been paid. On surrender of the policy, the
Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender
Value or Special Surrender Value.
Guaranteed Surrender Value
Under Single Premium:
- First policy year: 70% of the Single Premium
- Thereafter : 90% of the Single Premium
Under Limited Premium:
The Guaranteed Surrender Value payable during the policy term shall be equal to the
total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to
total premiums paid under the policy. These Guaranteed Surrender Value factors
expressed as percentages will depend on the policy term and policy year in which the
policy is surrendered and are specified as below:
Single premium/Premium referred above shall not include taxes, extra amount
chargeable under the policy due to underwriting decision and rider premium, if any.
Special Surrender Value
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Rebates
Rebate on Premium Payment Mode
Mode | Loading (as a % of tabular annual premium)
Yearly mode | Nil
Half-yearly mode | 2%
Quarterly | 3%
Monthly (NACH) And SSS mode |3.5%
Rebate on Sum Assured
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Rebate for Online sale
For policies purchased Online, following rebate shall be applicable:
- Single Premium : 2% of tabular premium
- Limited Premium : 5% of tabular premium
High Sum Assured and Mode Rebate
a) Under Single Premium:
Basic Sum Assured Reduction in tabular single premium per Rs. 1000/- Basic Sum Assured
Rs. 1,00,000 to Rs. 1,80,000 Nil
- Rs. 2,00,000 to Rs. 4,80,000 Rs. 20
- Rs. 5,00,000 to Rs. 9,50,000 Rs. 25
- Rs 10,00,000 and above Rs. 35
b) Under Limited Premium Payment:
Basic Sum Assured Reduction in tabular premium perRs. 1000/- Basic Sum Assured
- Rs. 1,00,000 to 1,80,000 Nil
- Rs. 2,00,000 to 4,80,000 Rs. 5
- Rs. 5,00,000 to 9,75,000 Rs. 7
- Rs. 10,00,000 and above Rs. 9
Other Details
Revival Period
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy
can be revived within a period of 2 consecutive years from the date of first unpaid
premium or as is allowed under applicable Product Regulations, on payment of all the
arrears of premium together with interest (compounding half-yearly) at such rate as fixed
by the Corporation at the time of the payment. In addition, proof of continued insurability
may be required.
Free Look Period
if the policyholder is not convinced with the terms and conditions of the policy, s/he can cancel the policy within 15 days from the receipt of the policy document.
Grace Period
A grace periodof one calendar month but not less than 30 days shall be allowed for
payment of yearly or half- yearly or quarterly premiums and 15 days for monthly
premiums from the date of First unpaid premium. During this period, the policy is
considered inforce with the risk cover without any interruption as per the terms of the
policy, If the premium is not paid before the expiry of the days of grace, the Policy lapses.
Nomination
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Assignment
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Exclusions
Suicide
(i) Under Single Premium Policy:
The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of the risk, an amount which is higher of 90% of the Single Premium paid or Surrender Value shall be payable. The Corporation will not entertain any other claim.
(ii) Under Limited Premium Policy:
A Policy shall be void;
1) If the Life assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of the risk, the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is inforce.
2) If the Life assured (whether sane or insane) commits suicide at any time within 12 months from the date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value as available on the date of death shall be payable. The Corporation will not entertain any other claim. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies. This clause shall not apply in case of Life Assured whose age at the time of entry/revival is below 8 years i.e. if age of the Life assured is below 8 years normal death benefit shall be payable.
Note: Single Premium/Premium referred above shall not include any taxes, extra amount if charged under the policy due to underwriting decision and any rider premium.
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
1. Is it available online only?
No, if you want to purchase the same through the offline medium then you can easily visit the nearest branch and can invest easily.
2. I am 39 years old. What will be the premium if I invest in Navjeevan
Well, the company decided the premium amount on the basis of several different things, like, age, sum assured, additional riders, premium payment method, etc. So it varies from person to person and choice to choice.so the company will first examine.
3. Is it reliable?
It is an LIC product, co the trust level is always high. It is the oldest life insurance company of India and serving millions on a daily basis. You can easily trust on the same.
4. What is the return rate under the Navjeevan Plan?
One should not club insurance and investment together. Still, if you purchase this policy and survive till maturity you are likely to get the return in the range of 4 to 5%.
5. When I would become liable for loyalty additions?
With this plan, loyalty addition will not be there in the first five policy years. So, if the policyholder dies within 5 years from the commencement only basic sum assured is payable.