LIC Jeevan Mangal plan, a term assurance plan, originated to offer such protection to the policyholder and their family in times of financial crisis. It is a micro-investment policy with a refund of the paid premiums at the time of maturity. The plan also offers affordability in terms of premium payment. The plan can be availed for ten years to fifteen years, whichever term period is convenient to the customer.Read more
The key feature of the plan is to help in securing the future of the nominees if the policyholder faces an untimely death. If the customer passes away due to an accident, this policy offers an additional amount assured, which is equal to the original assured amount.
Eligibility Criteria for LIC Jeevan Mangal Plan
The following lists out the eligibility criteria for the LIC Jeevan Mangal policy:
Minimum age required at entry-18 years old (completed)
Maximum age required at entry-60 years old (close to birthday)
Maximum age for availing maturity-70 years old (close to birthday)
Benefits of LIC Jeevan Mangal Plan
Like several of its insurance plans, the Jeevan Mangal planby the Life Insurance Corporation of India also offers its fair share of benefits. The considerable benefits are enumerated and briefly considered below -
This insurance plan of LIC offers tax benefits. Based on Section 80C, Income Tax Act, the customer can avail of the tax benefit on all the premiums paid in a year for term insurance.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply.
Customers of this plan can enjoy their maturity benefit only when they are alive, and the policy has finished its tenure period. All the paid premiums are returned. However, this excludes the tax that has been paid or the extra premiums that have been paid (if any).
The LIC Jeevan Mangal policy offers death benefits to its customers. However, the benefits are different for deaths due to accidents and deaths due to other reasons or causes.
In the case of deaths due to accidents -
LIC refunds the amount of sum that has been assured by the policyholder along with an additional assured sum (that is equal to the actual assured sum) to the nominees of the policy. The additional amount is only paid when the death occurs during the term period of the policy and if the policyholder dies within a certain period of time (180 days) after the accident.
In the case of deaths caused by other reasons than death -
The death benefit in this scenario will differ for customers who chose to pay single premiums and for those who chose to pay their premiums regularly.
For regularly paid premium policies, the assured amount will be paid according to which is high of - the annualized premium by ten times, a 105% of all the paid premiums until the demise of the policyholder, assured sum upon maturity, an amount equivalent to the assured amount.
For policyholders with single premium plans, the amount assured upon demise can be defined as a high of 125% of the single premium paid and an amount equal to the assured sum.
Itis noted by the customers that the taxes paid or any extra premiums paid will be excluded while considering the amount for a death benefit.
The Premium Structure of the Plan
The LIC Jeevan Mangal plan allows customers to pay their premiums regularly. They can pay the premiums weekly, monthly, quarterly, half-yearly, or annually. The customers can also pay their premium in a single payment mode.
The premium quotes differ for policyholders who choose to pay premiums regularly and for those who choose to pay their premiums in a single payment.
Below are few sample premium rates for Rs 1,000 assured amount (regular premiums) -
Below are few sample premium rates for Rs.1, 000 assured amount (single premium payment) -
For single premium payment plans, the term of a plan available is a ten-year term.
Documents Required to buy LIC Jeevan Mangal Scheme
Having the proper documents eases the process of availing of any insurance policy. The following are few standard documents required for a LIC term assurance policy-
Standard documents required for raising a claim (death due to accident)-
Standard documents required for raising a claim (death due to other reasons than death)-
The Process to Buy Online
Customers can now buy their life insurance plans online. The following standard steps can serve as a guideline on how to purchase a term insurance plan online -
Step 1:On the insurer’s website, select “Products.”
Step 2:Select a plan that suits you best and proceed to buy.
Step 3:Enter the details asked and make the payment through a secured gateway.
Key Exclusions of the Plan
The LIC Jeevan Mangal policy would not be providing the additional sum mentioned in its death benefits if the policyholder's demise is caused by suicide, insanity, injuries caused in riots or sports, or if the death occurs in an incident that breaches the law. LIC would also not be providing any additional sum if the death occurs after 180 days of the accident or if the death occurs after the policy period.
A1. No, one cannot avail of a loan under the LIC Jeevan Mangal policy.
A2.The minimum premium installment required for this term insurance plan is rs. 15, with the minimum assured amount being Rs 10,000.
A3. Yes, the customers are given a grace period of two calendar months (60 days) to pay their premiums along with the required interest.
A4. Yes, the term insurance policy can be revived. The customer can revive the policy by making the payment of premiums with additional interest (for late payments). This can be carried out within a term of two years beginning from the date of the first premium, which was not paid and prior to the completion of the policy term. The policyholder would need to submit required proofs and documents to LIC to ensure that the policy would continue.
A5. The guaranteed surrender value differs for customers who regularly make premium payments and the customers who make a single payment of premium.
For policyholder's who make a single payment of premium-
If the customer surrender's the plan within three years of the term of the policy, the GSV would be seventy percent of the premium.
If the customer surrenders the plan after three years of the term commencement, the GSV would be ninety percent of the premium.
For policyholder's who make regular payments of premiums
The guaranteed surrender value would be equal to the GSV factor multiplied by the premiums paid. The GSV factor (percentage factor) is dependent on the term of the policy and when the policy is surrendered.
A6. Yes, this term insurance plan allows for the customers to select the tenure of their policy.
A7. The available term periods of this policy range from ten to fifteen years for policyholders who are willing to make regular payments of premiums and ten years for those willing to make a single payment of the premium.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Standard T&C apply.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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