LIC Endowment Plans Info : LIC Jeevan Rakshak - InsuranceRise

Sunday, 10 January 2016

LIC Endowment Plans Info : LIC Jeevan Rakshak

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.

LIC Endowment Plans Info : LIC Jeevan Rakshak

Key Features & Highlights of LIC Jeevan Rakshak

  • 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


Death benefit: 
In case of death of the policyholder during the policy term provided all due premiums have been paid, “Sum Assured on Death” shall be payable, which is the highest of

  • Basic Sum Assured or
  • 10 times of annualized premium or
  • 105% of all the premiums paid as on date of death.
The premiums defined above exclude service tax, extra premium and Accident Benefit rider premium, if any.

In addition to the above, Loyalty Addition, if any shall also be payable if death occurs after completion of 5th policy year.

Maturity Benefit: Basic Sum Assured, along with Loyalty Addition, if any, shall be payable in lump sum on Survival to the end of the policy term provided all due premiums have been paid.

Participation in Profits: Provided the policy is in full force, then depending upon the Corporation’s experience the policies under this plan will be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable at such rate and on such terms as may be declared by the Corporation, on death after completion of 5th policy year or on Policyholder surviving to the maturity.

Optional Benefit:

LIC’s Accident Benefit Rider:  Accident Benefit Rider is available as an optional rider by payment of additional premium. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan

Eligibility Conditions for LIC Jeevan Rakshak

    For Basic plan
    (This plan is only available for standard healthy lives without undergoing any medical examination)
    1. Minimum Basic Sum Assured per life*        :   Rs. 75,000
    2. Maximum Basic Sum Assured per life*       :   Rs. 200,000
           (The Basic Sum Assured shall be in multiples of Rs. 5000/-)
    1. Minimum Age at entry                                  :  8 years (completed)
    2. Maximum Age at entry                                 :  55 years (nearest birthday)
    3. Minimum Policy Term                                   :  10 years
    4. Maximum Policy Term                                  :  20 years
    5. Maximum Age at Maturity                            :  70 years (nearest birthday)
    * The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed Rs. 2 lakh.
    For LIC’s Accident Benefit Rider
    1. Minimum Accident Benefit Sum Assured    : Rs. 75,000
    1. Maximum Accident Benefit Sum Assured   : An amount equal to the Basic Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh overall limit taking all existing policies of the Life Assured under individual as well as group schemes including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.
          The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000.                    
    1. Minimum Entry Age                           : 18 years (completed)
    2. Maximum Entry Age                          : The cover can be opted for at any policy anniversary during the policy term
    3. Maximum Cover Ceasing Age            : Same as under the Basic Plan.

    Payment of Premiums:

    Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy.
    However, a grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

    more info please visit licindia

    How Does LIC Jeevan Rakshak Work

    LIC Jeevan Rakshak has a maximum policy term of 20 years and its premium payment term is equal to its policy term. The premium payable varies as per the age of the prospective policy holder, the term of the policy and the chosen Sum Assured. Taking these into consideration, if

    Policy Term = 15 yearsSum Assured = 1,00,000Premium Payment Term = 15 years
    then, considering Mr. Verma (Age - 30 years), Mr. Sharma (Age - 40 years) and Ms. Soni (Age - 50 years) apply for this policy, the sample premiums payable by them would be -

    Mr. Verna - Rs. 5235Mr. Sharma - Rs. 5370Ms. Soni - Rs. 5780
    The policy can be availed by contacting registered LIC offices around India or through licensed agents and brokers of LIC. Medical reports are not a requisite for this policy as it mandates the coverage of only healthy individuals. Proposal form 300, a passport size photograph, address and age proof will have to be submitted during the time of application.

    This policy is of a shorter time frame (20 years) and the maximum entry age is 55 years. While tax benefits are applicable on the policy, it can only be considered a fringe benefit to the actual cover it provides. As an investment option, this policy doesn't stand too bright.

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