LIC Jeevan Rakshak Plan

LIC Jeevan Rakshak- An Overview

LIC Jeevan Rakshak is an endowment plan that offers the combination of death and maturity benefits. The insured needs to pay the premium for the whole tenure regularly. After reaching the maturity age, the policyholder gets the basic Sum Assured along with Loyalty Additions. The plan provides financial support to the loved ones in case of an untimely demise of the policyholder. In case of the unfortunate demise of the policyholder during the term of the policy, the nominee receives the Sum Assured and any Loyalty Additions. The plan also takes care of liquidity requirements through its loan availability. 

LIC Jeevan Rakshak - Key Features

• This traditional endowment plan allows the insurance taker to leverage the profit made by the company as it is a participating plan.

• You need to pay the premium for the entire policy tenure.

• This plan has a low coverage facility and can be taken only for a maximum sum assured of Rs 2 lakhs per life.

• To avail additional coverage, you need to pay extra premiums.

What are the Benefits of LIC Jeevan Rakshak?

• Bonus: The policy also performs in the bonuses of the company and thus it accrues Loyalty Addition.   

• No Medical Test: This policy is offered without any medical test and is offered only on declaration of good health.

• Maturity Benefit: Basic sum assured along with the loyalty additions, shall be payable in a lump sum upon the survival to the completion of the policy tenure, provided all the due premiums have been paid.  

• Death Benefit: If the policyholder dies during the term of the policy, provided all the due amount of premium has been paid. Then the sum assured on death shall be payable, as the higher of:

  • 10 times of annual premium

  • Subject to a minimum of 105% of the total premiums paid as on date of death

  • If the life insured dies within the first 5 policy years, only the amount assured is paid to the nominee as a Death benefit and then after the policy gets terminated.   

The premiums amount discussed above excludes the additional premium, service tax, and Accidental Benefit Rider premium (if availed). 

After completing 5 years of the policy, the Sum Assured plus Loyalty addition would be payable to the nominee.

• Profit Participation – The plan is also eligible for loyalty additions, provided the policy is in complete force. 

• Add on Benefit: LIC’s Accidental Death Benefit Rider is available as an optional benefit that enhances the coverage of your policy by paying an additional premium . In case accidental death sum assured amount will be payable in lumpsum along with the death benefit under this plan, in case of accidental death. 

• Tax Benefits: This allows the leverage when it comes to the mode (half-yearly and yearly) of paying the premium for the higher assured sum. Section 80C defines the income tax benefits on the premiums paid and, on the claims, received as per Section 10(10D) defined under the Income Tax Act. 

LIC Jeevan Rakshak - Product Specification:

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Sample Premium Illustration of LIC Jeevan Rakshak Policy

Below mentioned is the sample premium illustration of LIC Jeevan Rakshak policy for a policy tenure of 20 years with different sum assured and age groups:

*The premiums calculated are exclusive of taxes, and may vary.

LIC Jeevan Rakshak Plan Details

Below mentioned are the Jeevan Rakshak Plan details that will help you to understand the plan in a better way:

• Grace Period: The insured can take 30 days to pay the premium. The policy tends to lapse if the insured fails to pay his premium within the specified grace period. However, the policy is revived within the date of the first unpaid premium. A grace period of 30 days is allowed for payment of yearly/half-yearly/quarterly premium and 15 days is allowed for a monthly payment of premiums. 

• Benefits of Surrendering the policy or Termination Benefit: The policy acquires a surrender value after completing 3 years of the policy and the insured also gets eligible for availing loans.

• Free Look Period: If the insured is not satisfied with the terms and conditions, features, and benefits of the policy, the policyholder gets fifteen days to go through the policy documents thoroughly and find whether they have taken the right decision or not.

Exclusions

If the insured commits suicide within 12 months of commencing the policy, then 80% of the premiums paid are returned to the nominee.  However, if the policyholder commits suicide within 12 months of revival, then the higher of the Surrender Value acquired or 80% of the paid premiums are paid. 

Documents Required

To purchase the policy, you need to submit a Proposal or application form with accurate medical history along with proper Know Your Customer (KYC) documents. A medical examination is not mandatory, but can be required in certain cases such as sum assured as well as the age of the person.

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