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LIC Navjeevan Plan

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LIC Navjeevan

LIC Navjeevan is a newly launched plan by Life Insurance Corporation of India. It is a non-linked with profit endowment assurance plan. It is a comprehensive plan that offers financial support to the family in case of unfortunate death of the policyholder at any time before maturity and a lump sum amount after maturity would go to the survivors of the policyholder.

Under LIC Navjeevan Plan, the insured have the option, he/she can pay the premium either as Lumpsum (Single premium) or as Limited Premium with a premium payment term of 5 years. The interested one can easily buy the same through the online application process or can visit the nearest branch for the same

The plan is available for ages 90 days to 65 years with an option to choose risk sum assured from age 45 years onwards. It is an Income Tax compliant plan. It also takes care of liquidity needs with its loan facility.

If you are a regular customer of LIC or check the history of the company, then you may have noticed that every year LIC come out with a new single premium or another type of plans especially during the months of January to March. LIC’s Navjeevan Insurance Plan No.853 plan launch in the month of March is one such classic example

LIC Navjeevan Policy Features

  • Available on the online platform

  • Endowment plan with single and 5 years Limited payment option

  • The term of the plan is 10 to 18 years

  • Minimum sum assured is 1 Lakh. No limit on the maximum sum assured.

  • Available for age 90 days completed to 65 years

  • Income tax benefits under section 80 C

  • Loan facility is available under this plan

  • Option to avail death benefit in Installments

Under Limited Premium payment, if the insured is of 45 years and above then he/she may have two options to choose the Absolute Amount Assured to be paid on Death which is as under:

Option 1: 10 times the Annualized Premium.

Option 2: 7 times of the Annualized Premium.

What are the options 1 & 2 depicts in LIC Navjeevan Plan?

This Option 1 and Option 2 is applicable only for Limited Premium Paying option but it is not valid for the case where you have invested as a lump sum.IN the case where you choose the single premium payment option, then the death sum assured is 10 times of your single premium.

However, if you opted for a limited premium payment, then you have the below options.

# If your age is below 45 years of age.

You will receive the 10 times of your annual premium as a death benefit.

# If your age is above 45 years of age.

In this case, you have two options to choose from.

Option 1-You can choose for 10 times of annualized premium as a death benefit.

Option 2-You can choose for 7 times of annualized premium as a death benefit.

LIC Navjeevan Plan Benefits

Like other plans, LIC make sure to offer the best to their customers with this new plan as well. There are many benefits that this plan carries for you, From maturity to death, the plan has several things to serve for a better tomorrow. Below is the list of such benefits that you will get under LIC Navjeevan Insurance Plan.

Death Benefit

As the name suggests, death benefits will be there in case of the demise of the insured person.

On death during the first five policy years: Benefit is payable in case of death of an insured person before the maturity time. Before the date of commencement of risk: Refund of premium(s) paid without interest will be payable.

On or after the date of commencement of risk: Sum Assured on Death will be payable.

On death after completion of five policy years but before the stipulated Date of Maturity: Sum Assured on Death with Loyalty Addition will be payable.

Maturity Benefit

In the case where the insured survives till the end of the policy period, provided all the due premiums have been paid, Sum Assured on Maturity along with Loyalty Addition, will be payable.

Participation in profit

In Case where the insured has completed five years and paid all premiums, then depending upon the Corporation's experience the policies under this plan will be liable for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity.

Optional rider benefits:-

LIC's Accidental Death and Disability Benefit Rider

In case of accidental death, the Accident Benefit Rider Sum Assured will make sure to provide a lump sum along with the death benefit under the Base plan.

Maximum Accident Benefit Sum Assured

An amount equal to the Sum Assured on Death under the Base Plan subject to the maximum of Rs.100 lakhs overall limit taking all existing policies.

Eligibility

Minimum Sum Assured Rs. 1,00,000
Maximum Sum Assured No limit
Minimum age at entry Single Premium : 90 days (completed)
Limited Premium : 90 days (completed) under Option 1
Limited Premium : 45 years (nearer birthday) under Option 2
Maximum age at entry Single Premium : 44 years (nearer birthday)
Limited Premium : 60 years (nearer birthday) under Option 1
Limited Premium : 65 years (nearer birthday) under Option 2
Maximum Maturity age Single Premium : 62 years (nearer birthday)
Limited Premium : 75 years (nearer birthday) under Option 1
Limited Premium : 80 years (nearer birthday) under Option 2
Policy term 10 to 18 years
Mode of payment Single Premium (Lump sum), Yearly, Half yearly, Quarterly, Monthly (through NACH only)

LIC Navjeevan Plan Premium Calculation

If a person selected for a Limited Premium with a premium payment term of 5 years, for a sum assured of Rs 10 lakh, then the insured have to pay around Rs 9628 monthly in the first year, and Rs 9430 from second year onwards. After 15 years at the time of maturity, the insured will be liable for Rs 10 lakh along with the Loyalty Addition. In case of single premium payment for the period, of15 years for Rs 10 lakh sum assured amount, a person has to make a one-time payment of around Rs 501287. The return at the time of maturity will be around Rs 10 lakh plus the Loyalty addition.

Examples:-

Single Premium

Under single premium plans, the death benefit is 10 Times of Tabular Single Premium for the selected sum assured

Example 1

Age of Policyholder – 39 Years

Policy Term – 12 Years

Basic Sum Assured – Rs. 600000

Tabular Single Premium – Rs. 439750

Sum assured on death = (Rs. 600000/- or 10 x Rs.439750) = Rs.43,97,500/-

Limited Premium Case 1

Example 2 – Policy Holder Opts for Option 1

Age of Policyholder – 40 Years

Policy Term – 12 Years

Basic Sum Assured – Rs. 400000

Mode of Premium – Half Yearly

Tabular Single Premium – Rs. 60635

Sum assured on death = (Rs. 500000/- or 10 x Rs.60635) = Rs.6,06,350/-

Limited Premium Case 2

Example 3 – Policyholder choose Option 2

Age of Policyholder – 50 Years

Policy Term – 12 Years

Basic Sum Assured – Rs. 600000

Mode of Premium – Half Yearly

Tabular Single Premium – Rs. 81211

Sum assured on death = Higher of (Rs. 500000/- or 7 x Rs.81211) = Rs.568477

Limited Premium Case 3

Example 4 – Policy Holder Opts for Option 2

Age of Policyholder – 45 Years

Policy Term – 10 Years

Basic Sum Assured – Rs. 500000

Mode of Premium – Half Yearly

Tabular Single Premium – Rs. 80000

Sum assured on death = Higher of (Rs. 500000/- or 7 x Rs.80000) = Rs.5,60000/-

FAQ’s

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.

*Information provided on this webpage/website is only for the purpose of general information & understanding of the topic. PolicyX or any of its subsidiaries does not endorse any of the information provided herewith and are committed in providing correct and unbiased information to its customers helping them make an informed decision.