LIC Jeevan Pragati Plan

Life Insurance Corporation of India (LIC) launched the Jeevan Pragati Policy on 3^rd February, 2016. It is one of the non -linked endowment policies, where the sum assured on death increases every five years, during the term of the policy.

This is the third plan that has been launched by LIC in 2016, following Jeevan Shikhar and Jivan Labh. The Jeevan Pragati policy is available for insurance seekers in the age group of 12 to 45 years. The minimum term is 12 years and the maximum term is 20 years. When you opt for this policy, you have the liberty to pay the premium yearly, half-yearly, quarterly or monthly.

This policy is ideal for those who want to build a corpus for retirement and are on the lookout for an insurance cover against accident (available as a rider with the policy) and death. This policy offers a combination of savings and financial protection.

Benefits of the Jeevan Pragati Plan

The increasing risk cover is an important feature of the plan that provides adequate risk cover against inflation.

Let’s take a look at the benefits of the plan:

1.  Death Benefit: In the event of death of the policy holder, during the term of the policy, provided all premiums are paid, the death benefit or the sum assured on death together with final additional bonus and simple reversionary bonus is paid out to the nominee. The death benefit is higher of 10 times the annualized premium or the absolute amount paid on death calculated as follows:

2.  Maturity Benefit: The sum assured on maturity equals the basic sum assured along with Final Additional Bonus and Reversionary Bonus. It is paid in lump sum when the policy holder survives till the end of the policy term and has paid all the premiums.

3.  Optional Rider: Accidental death and disability rider is available with the plan. It is important to note that the rider sum assured cannot exceed the basic sum assured. For additional information on the rider, you can get in touch with LIC’s nearest branch office.

Key Features of Jeevan Pragati Policy:

Let’s now take a look at the key features of the plan:

• Basic minimum sum assured amount: Rs. 1,50,000
• Maximum age at maturity: 65 years
• Basic maximum sum assured: No limit (The assured sum on maturity is in multiples of Rs. 10,000)
• Minimum entry age for the rider: 18 years
• Policy holders qualify for premium paid under section 80C.
• The maturity amount is tax free under 10(10D).
• The loan facility can be availed when the premium is paid for three years.
• Policy can be surrendered after premium is paid for three years.
• Insurer accepts the risk from the date of commencement of the policy
• Minimum Accident benefit sum assured: Rs 10,000
• Maximum Accident Benefit sum assured: Basic sum assured which is subject to the maximum of Rs. 1 crore.
• From the date of receipt of the policy bond you will be eligible for a free look period of 15 days. 

Additionally, rebate is offered on the sum assured:

For policy buyers, Jeevan Pragati is both a great saving and insurance cover. Some premium services that are offered to the policy holder include claim history, online payment of premium and premium history. The policy acts as a good hedge against inflation. However, this plan is not the ideal choice, if you are looking for a high rate of return.

Regardless to mention that this is certainly a great one from LIC Policies to which one can avail.  So why not share it with your friends and family and help them leverage the benefits of this amazing policy.

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