LIC Jeevan Chhaya policy is an endowment plan. This is one of the plans of LIC that provides protection to the policyholder and his nominees against death until the maturity of the plan. One of the special features of the Jeevan Chhaya plan by the Life Insurance Corporation of India is that it not only guarantees the Sum Assured at the time of death of the policyholder but also ensures that one-fourth of that will be payable to the policyholder at the end of each of the last four years regardless of whether the policyholder survives or not.Read more
Guaranteed Tax SavingsUnder sec 80C & 10(10D)
Life Cover10 times of Annual Premium
Zero LTCG TaxUnlike 10% in Mutual Funds
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
There are numerous benefits that a policyholder can avail of under this plan, e.g., death/maturity benefits, supplementary/extra benefits, etc.
The premiums are payable on a yearly, half-yearly, quarterly, or monthly basis or might also be deducted from the policyholder's salary.
Eligibility Criteria of LIC Jeevan Chhaya Plan
The eligibility to invest under the LIC Jeevan Chhaya Plan is as follows:
Benefits of LIC Jeevan Chhaya
The following are the key benefits offered under the Jeevan Chhaya plan by the Life Insurance Corporation of India:
In each of the last four years of the policy term, the policyholder is guaranteed an amount that will be one-fourth of the Sum assured.
In the event of either survival of the policyholder to the end of the term of the LIC Jeevan Chhaya Policy or his death, all the bonuses that have accumulated during the term of the policy will be payable. As is customary with the Corporation, the Sum Assured will be released immediately on the policyholder's death, provided all the documentation is in order. The policyholders' beneficiaries must keep all policy-related documents handy when they approach the Corporation to claim.
These are the benefits that can be added to the LIC Jeevan Chhaya Plan with an additional premium payment. The supplementary benefits are as follows:
Even though buying a life insurance policy is a long-term commitment, a policyholder may find that he is unsatisfied with the terms and conditions of the LIC Jeevan Chhaya Policy or unable to pay the premiums required to keep the policy in full force. In such circumstances, he has the option to surrender the policy.
Once the policy has completed a period of 3 years, it can be surrendered. The value payable is fixed at 30% of the basic premiums paid apart from the first year's premium and the fixed benefit paid by the policyholder.
The Corporation follows the practice of paying a Special Surrender Value under the LIC Jeevan Chhaya Plan. This might be equal to or more than the guaranteed surrender value. The benefit available to the policyholder under this is the discounted value of the claim amount that has been further reduced, which would have been payable at the death of the policyholder or his survival to maturity of the policy. This value depends on the total number of premiums that have been paid and the duration at which the surrender value is being calculated. If there is a premature termination of the policy the
value of the total paid premiums may exceed the Surrender Value payable to the policyholder.
Premium Structure of LIC Jeevan Chhaya
LIC Jeevan Chhaya is an endowment plan.The best part about this plan is that it provides double benefits to the policyholder. The Sum Assured is payable to the nominee in the event of the death policyholder, and 25% of the Sum Assured is also returned in the last four years of the policy. This amount is paid back to the policyholder if he survives to the end of the policy term or his nominee in the event of his death. Premiums may be paid on a monthly, quarterly, semi-annual, or annual basis.
Documents Required to buy the Plan
The following documents are required if a nominee of the policyholder of the LIC Jeevan Chhaya wishes to claim the policy in the event of the death of the policyholder:
The following documents are required if a policyholder survives to the end of the term of the policy.
The Process to buy LIC Jeevan Chhaya PolicyOnline
The policy is most conveniently purchased online. It cuts out the hassle for the customer to visit the branch office of the Corporation. It is a quick process and completely safe as well.
Step 1:Locate the official company website online.
Step 2:Scroll to “Products” and search for LIC Jeevan Chhaya Policy.
Step 3:Click on the “Buy Online” option.
Step 4:Enter personal details like name, gender, date of birth, occupation, medical history, contact number, etc.
Step 5:Choose financial parameters and upload scanned copies of all the documents requested.
Step 6:Study the quote for the premiums that are supplied and make an online payment to complete the process.
Key Exclusions of the Plan
In the event that a policyholder commits suicide, he will automatically be excluded from the LIC Jeevan Chhaya Plan. The following conditions must be kept in mind:
A1. The benefits of paying LIC Jeevan Chhaya Policy premiums via net banking/phone banking are as follows:
A2. This service is provided free of cost to all policyholders of LIC. The Corporation has tie-ups with authorized banks/ service providers, and they pay them a fixed sum at the end of each month, per transaction. The policyholders are not for this facility from the Corporation.
A3. Banks like HDFC Bank, ICICI Bank, Bank of Punjab, Federal Bank, UTI Bank, Corporation Bank, Citi Bank, and service providers alike, Timesofmoney.com, illJunction.com, and BillDesk.com are authorized by LIC to collect premium on its behalf.
A4. Those who can register with the authorized banks are:
A5. Yes, a policyholder may avail of a loan under the policy.
A6. A share of the profits of the Corporation is added to the policy as Bonuses. Simple Reversionary Bonus is declared as per thousand of Sum Assured. Once these bonuses are declared, they become a component of the Guaranteed Benefits of the LIC Jeevan Chhaya Plan. Even in the event that the policyholder dies during the policy term, the bonuses for a full term on the full Sum assured are still payable. The policyholder might also avail of additional bonuses, or his nominees provided the policy has been in full force for a certain amount of time.
A7. The premiums might be paid on a yearly, half-yearly, monthly, or quarterly basis. The policyholder might also opt for the premiums to be deducted from his salary.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
*The investment risk in an investment portfolio is borne by the policyholder.
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
***Tax benefit is subject to changes in tax laws.