An endowment plan called LIC Jeevan Rakshak provides both maturity and death benefits. For the duration of the tenure, the insured must consistently pay the premium. The policyholder receives Loyalty Additions in addition to the base Sum Assured upon achieving the maturity age. In the event of the policyholder’s premature death, the plan offers financial help to their surviving family members.
In the tragic event that the policyholder passes away within the policy’s term, the nominee is entitled to the Loyalty Additions and the Sum Assured. The availability of loans under the scheme also meets the requirement for liquidity.
| Launch Date | 5th March, 2014 |
| Plan Details | Table No. 827 |
| Policy Type | Endowment |
LIC Jeevan Rakshak Plan: Key highlights-
- A participating endowment plan that provides safety and savings is called LIC Jeevan Rakshak.
- It provides bonuses in the form of loyalty additions once the five-year plan has been completed.
- This fixed benefit plan is non-medical and permits members to share in earnings through loyalty additions.
- With the plan, a rider of LIC Accident Benefit is an optional option.
Read more: Know about LIC jeevan Azad Policy
Advantages of LIC Jeevan Rakshak LI-
The following advantages are provided by Jeevan Rakshak to the potential policyholder:
Maturity Benefit: If the policyholder survives to the end of the policy term, a lump sum payment consisting of the Basic Sum Assured and any applicable Loyalty Additions will be made to them. Only after all premiums have been properly paid is this relevant.
Death Benefit: If the policyholder passes away within the policy’s term, a “Sum Assured on Death” payment, which is the highest of-
- The annualised premium times ten times the Basic Sum Assured
- 100% of the total premiums paid as of the death date
Service tax, additional premiums, and any optional rider perks are not included in the benefits listed above.
If the policyholder passes away after the fifth year of the policy’s term, any applicable loyalty additions will also be paid out.
Participation in Profits: Should the policy be in full effect, it may qualify for Loyalty Additions at the Corporation’s discretion. The Corporation sets the rates and amounts for these benefits, which are paid out upon the policyholder’s death at the end of the fifth year or, if the policyholder survives, when the policy matures.
Optional Benefit: To make the policy more complete, an optional benefit is available via the LIC’s Accident Benefit Rider. This benefit, which comes with a one-time premium requirement, is payable in full along with the death benefit in the event of the policyholder’s untimely death.
Tax Benefit: Section 80C allows premiums up to Rs. 1,50,000 paid under this insurance to be deducted from taxable income, and section 10D exempts the maturity proceeds from taxes if certain requirements are met.
LIC Jeevan Rakshak Eligibility and Policy Details
| Parameter | Minimum | Maximum |
| Entry Age (Years) | 8 | 55 |
| Maturity Age (Years) | N/A | 70 (plan matures on reaching this age) |
| Policy Term (Years) | 10 | 20 |
| Premium Paying Term (Years) | Same as Policy Term | Same as Policy Term |
| Premium Paying Frequency | Annual, half-yearly, quarterly, or monthly | Annual, half-yearly, quarterly, or monthly |
| Sum Assured per life | Rs. 75,000 | Rs. 2,00,000 |
Details of the LIC Jeevan Rakshak Plan
The LIC Jeevan Rakshak Plan facts listed below will aid in your better understanding of the plan:
Grace Period: 30 days are allowed for the insured to pay the premium. If the insured does not pay his premium within the allotted grace period, the insurance usually lapses. On the other hand, the insurance is reinstated within the first unpaid premium date. There is a grace period of thirty days for annual, half-annual, and quarterly premium payments, and fifteen days for monthly premium payments.
Benefits of Surrendering the Policy or Termination Benefit: After the policy has been in effect for three years, the insured becomes able to apply for loans and the insurance gains a surrender value.
Free Look Period: The policyholder has fifteen days to carefully review the policy documentation and determine whether they made the proper choice if they are unhappy with the terms and conditions, features, and benefits of the policy.
Not Included-
Eighty percent of the premiums paid are reimbursed to the nominee in the event that the insured suicides within a year of the policy’s initiation. However, the greater of the Surrender Value acquired or 80% of the premiums paid is paid if the policyholder ends their life within a year of being revived.
Documents Needed
You must submit an application or proposal form with an accurate medical history and the required Know Your Customer (KYC) documentation in order to purchase the coverage. While not compulsory, a medical checkup may be necessary depending on the individual’s age and the amount guaranteed, among other factors.
FAQ’s-
1)What would happen if I stopped making premium payments?
If the policyholder ceases to pay the payment, the policy and all of its benefits expire. The premium becomes paid-up value and continues as a reduced value if the policyholder pays it for the full three years. This Paid-Up value is awarded to the nominee upon the policyholder’s early death or maturity.
Paid-up Value is equal to the Basic Sum Assured * (Paid Premiums / Total Premiums Payable).
2)Can I receive a Surrender Benefit in accordance with the LIC Jeevan Rakshak Plan Details?
The policy gains a Surrender Value if the insured pays the payment for the full three years. The amount due for surrender value will be greater than:
The percentage of all premiums paid that is known as the guaranteed surrender value
Declared Special Surrender Value changes with the passage of time.
3) Does this policy allow us to borrow money?
In accordance with the terms and conditions set forth by the business, you are able to obtain a loan against this policy.
4) Is there a death benefit available under this policy?
In the event that the Life Insured dies during the duration of the policy, the nominee will be awarded:
- Total Guaranteed
- Bonuses for Loyalty if the policyholder has completed five years of coverage.
- The Sum Assured at the moment of Death is the greater of:
- Basic Sum Assured Ten Percentage of the Policyholder’s Premiums Paid Until Death
- Ten* Yearly Fee
5) Under this arrangement, how many riders are available?
With this plan, you can take advantage of LIC’s Accident Benefit Rider.
6) How can I precisely determine the maturity amount for the LIC Jeevan Rakshak Plan (Plan 827)?
The LIC Jeevan Rakshak plan 827 maturity calculator, which is provided on their website, can be used to precisely determine the maturity amount for the plan.
