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LIC Jeevan Rakshak
  • Maturity Benefit
  • Loan Against Policy
  • Acidental Rider Benefit
  • 15 days Free Look Period
  • Guaranteed Surrender Value

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LIC Jeevan Rakshak Plan

LIC Jeevan Rakshak Plan (Table No. 827) is a participating non-linked plan which provides a combination of insurance and savings. As the name suggests, the plan offers life insurance as well as maturity benefit.

This plan is introduced in August 2014 by the Life Insurance Corporation (LIC) of India. If the policyholder dies during the policy term before the maturity date, the plan offers financial assistance to the family of the insured and at the time of maturity, a lump sum amount is payable along with loyalty additions if applicable on the survival of the policyholder.

The policy is an excellent choice for those who belong to a low-income group as it is the only insurance policy which provides less than one lakh rupees as Sum Assured. The plan also provides loan facility in order to fulfill the liquidity requirements of the insured.

Policy Details of LIC Jeevan Rakshak

MinimumMaximum
Entry Age (last birthday)8 years55 years
Maturity Age (last birthday)-70 years
Policy Term (in years)10 years20 years
Premium Paying Term (in years)Equal to the policy term
Premium Paying FrequencyYearly, half-yearly, and monthly
Sum Assured Per LifeRs. 75,000Rs. 2 lakhs

Primary Features of LIC Jeevan Rakshak

  • As this is a participating plan of LIC, this conventional endowment plan always permits the insurance holder to leverage the revenue of the company.

  • You will get a low coverage facility with this policy and can take the maximum sum of Rs. 2 lakhs.

  • In this policy, you have to pay the premium for the complete policy term.

  • 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.

  • Maturity benefit is paid if the policyholder is able to survive the policy term and on the termination of the policy.

  • Death Benefit is paid in case the policyholder dies during the policy term then the nominee will get the death benefit.

  • As per this policy, you can get double accidental reimbursement but it’s only with the additional premiums.

Benefits of LIC Jeevan Rakshak

Additional Bonus

Additional Bonus

This bonus is the profit shared by the company with the policyholder in a single payment during maturity or death claim. According to the terms and conditions of this policy, the plan performs under the bonuses of the company so it always accumulates the loyalty addition. You can get this policy without any medical tests.

Death Benefit

Death Benefit

After completing 5 years of the policy if the policyholder dies during the policy term, the company is liable to pay the Sum Assured and additional loyalty bonuses to the nominee(s).

The Sum Assured on any accidental death is usually higher as per the basic Sum Assured, this is solely at the company’s discretion.

Maturity Benefit

Maturity Benefit

If the insured person completes the maturity period and survives the policy tenure with all the premiums paid then as per the terms and conditions of this policy, he/she will get the basic Sum Assured with loyalty additions as a maturity benefit.

Tax Benefit

Tax Benefit

Premiums payable under the policy and the amount received during the claim as a death or maturity benefit are exempted from tax under the Section 80C and 10 (10D) of the Income Tax Act, 1961.

Premium Details of LIC Jeevan Rakshak

Information regarding the yearly premiums for the plan is given in rupees for a policy term of 20 years. The necessary premium details are discussed below (tax not included):

Age (in years)Rs. 75,000 Sum AssuredRs. 1 Lakh Sum AssuredRs. 2 Lakhs Sum Assured
30264235236746
40277837047109
50313841858069

Things to Know About LIC Jeevan Rakshak Plan

1

Grace Period

With the LIC Jeevan Rakshak Plan, the policyholder is entitled to receive a grace period of 30 days to pay the premium. The insurance company has the right to terminate the policy shall be terminated in case you didn't pay the premium on time

2

Surrender Value

In case you want to surrender the policy because of any reason then, you can do the same easily and can get the premium back. There are some conditions associated with the same that you must check in your policy documents.

3

Free Look Period

A free look period of 15 days is provided by LIC to the policyholder to understand the terms and conditions of the policy. During this period the policyholder has to make a decision for the purchase of the policy.

4

Loan Facility

The policyholder can avail loan facility with an acquired surrender value under the plan in which the conditions will be declared by LIC.

5

Exclusions

If the policyholder commits suicide within 12 months of initiation of the policy then LIC will pay 80% of the paid premiums to the nominee but if the policyholder commits suicide within 12 months of revival, then LIC will return surrender value acquired or 80% of the paid premiums.

6

Documents Required

To buy this policy the policyholder needs to submit an application or proposal form with a proper medical history and Know Your Customer (KYC) documents. A medical examination is not compulsory but in some cases, it may be required.

LIC Jeevan Rakshak is an ideal policy and if you have a low budget and if you want to avail good returns in future in terms of not only insurance but savings also, in that case, you can go for this policy without any hesitation.

Understanding LIC Jeevan Rakshak with an Illustration

Amit Saha whose age is 30 years has purchased the LIC Jeevan Rakshak plan. He has taken the plan for a policy term of 20 years with a Sum Assured of Rs. 2 lakhs and the premium payment term is 20 years.

On the basis of the above data, the annual premium for Amit is Rs. 6,746 + 4.5% GST (Tax) which is equal to Rs. 7,050.

Case I

If Amit survives the policy term of 20 years, he will liable to receive Basic Sum Assured + loyalty additions as stated by LIC.

Sum of all the premiums paid= Rs. 1,40,991+ Taxes

Sum Assured= Rs. 2 lakhs

Loyalty bonus= As per LIC

Case II

If Amit is dead after 4 years of policy purchase. The beneficiary will receive the highest of

Sum Assured= Rs. 2 lakhs

10 times of annual premium= 10 ✕ Rs. 6,746 = Rs. 67,460

105% of total premium until death= 105% ✕ 15 ✕ Rs. 6,746 = Rs. 28,333

The amount received will be Rs. 2 lakhs without including any loyalty bonuses because the policy has not completed 5 years.

Case III

If Amit is dead after 15 years of policy purchase. The beneficiary will receive the highest of

Sum Assured= Rs. 2 lakhs

10 times of annual premium= 10 ✕ Rs. 6,746 = Rs. 67,460

105% of total premium until death= 105% ✕ 4 ✕ Rs. 6,746 = Rs. 1,06,250.

The amount received will be Rs. 2 lakhs including any applicable loyalty bonuses as per LIC declarations since the policy has completed 5 years.

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Last updated on 13-11-2019