LIC Jeevan Raksha 894

LIC Jeevan Raksha - An Overview

LIC’s Jeevan Raksha is a non-linked and non-participating individual pure protection term insurance policy offered by LIC of India. With this plan, LIC aims to focus entirely on high financial coverage for the nominee at a highly competitive premium rate.

It is a pure risk utility product with no maturity benefits if the policyholder survives. However, this LIC term insurance plan will offer affordable and competitive premiums so that the beneficiaries can get high-value coverage. Jeevan Raksha guarantees fixed benefits payable on death irrespective of actual experience. Therefore, the policy does not include any discretionary benefits like bonuses.

Key Features of LIC Jeevan Raksha Plan 894

Here are some of the key features of the upcoming LIC Jeevan Raksha plan.

• LIC Jeevan Raksha is a non-participating and non-linked individual life insurance policy.

• It is a term insurance plan proving pure risk cover.

• Flexibility to choose the premium payment option as either single, regular or limited premium payment of 10 and 15 years.

• Flexibility to choose the policy term with insurance coverage that is available up to 60 years.

• Option to get the death benefit as a lump sum or in installments.

• Specialized rates for women.

• High sum assured rebate benefit.

• Premium rates are different for smokers and non-smokers.

What are the Benefits of LIC Jeevan Raksha Plan?

The LIC Jeevan Raksha policy is a highly affordable, small-ticket pure term insurance policy. The company has tailored this policy for mass protection. Following are the core benefits of the policy.

Death Benefit

If the policyholder passes away during the policy term, then the nominee receives the sum assured as death payout.

For Regular and Limited premium payment mode, the sum assured on death is higher of the following two

• 7 times of Annualized Premium, or

• Basic Sum Assured

The death payout for Regular and Limited premium payment modes shall not be less than 105% of the total premium paid till the date of death.

For Single premium payment mode, the sum assured on death is higher of the following two

• 125% of the Single Premium, or

• Basic Sum Assured

Important Terms:

• Annualized Premium is the premium payable in a year excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums.

• Total Premium Paid is the complete premium amount paid under the base product, excluding any extra premium and taxes.

• Single Premium is the premium amount payable if you choose the single premium payment mode. This excludes the taxes, rider premiums and underwriting extra premiums.

The policyholder can choose how their nominee will receive the death payout. They can choose to get it either as a lump sum or as installments over a selected number of years. The policyholder gets to choose this option which can not be changed later on by the nominee.

Maturity Benefit

As LIC Jeevan Raksha is a pure term insurance plan, there is no payout given to the policyholder if they outlive the policy term. Therefore, LIC Jeevan Raksha offers no maturity benefits.

LIC Jeevan Raksha Policy Details

Payment of Premium

The plan offers Regular, Limited (10 or 15 years) and Single Premium payment options. Under Regular and Limited Premium options, premiums can be paid yearly or half-yearly with a minimum instalment premium of ₹2,000 (excluding rider and underwriting extra premiums). The premium depends on factors such as age, Basic Sum Assured, smoking status, gender, policy term and Premium Paying Term.

Grace Period

The policy provides a 30 day grace period for paying yearly or half-yearly premiums. During this period, the policy remains in force with uninterrupted risk cover. If the premium is not paid within the grace period, the policy lapses and all benefits cease.

Free Look Period

Every policyholder gets a chance to return their policy to the corporation if they are not satisfied with the terms and conditions. They can return the policy within 30 days from the date of issuance of the policy.

Rebates

The LIC Jeevan Raksha plan gives rebates for high sum assured. The rebates are given as a percentage for different brackets of sum assured. The table below illustrates the rebates for each bracket for Single or Annual Premium.

Policy Revival

If premiums are not paid within the grace period, the policy lapses and its benefits cease. However, the policy can be revived within 5 years from the date of the first unpaid premium, provided it is before the maturity date. Revival requires payment of all outstanding premiums along with applicable interest.

Paid-Up Value

LIC Jeevan Raksha plan does not offer paid-up value.

Policy Surrender

This plan generally does not offer a surrender value. However, a refund called the Unexpired Risk Premium Value may be paid on surrender. For Single Premium policies it is available anytime during the policy term while for Limited Premium policies it is available only after at least three consecutive years of full premium payments. Regular Premium policies receive no surrender payout.

Loan Facility

LIC Jeevan Raksha plan does not offer the facility to avail a loan.

Tax Benefits

Any applicable statutory taxes on the policy will be charged as per the tax laws and rates in force from time to time.

Policy Exclusions

In case of suicide within 12 months of the policy’s risk commencement (or revival for Regular/Limited Premium policies), the nominee will receive 80% of the premiums paid, subject to the policy being in force. For Single Premium policies, 80% of the Single Premium paid will be payable. Taxes, rider premiums and underwriting extras are excluded, and this benefit does not apply to lapsed policies.

Optional Rider With LIC Jeevan Raksha Plan

LIC Jeevan Raksha Plan 894 offers policyholders to add LIC’s Accident Benefit Rider to their plan. This is optional and can be used by policyholders paying premium through Regular and Limited premium payment modes.

If LIC’s Accident Benefit rider is opted and the life assured dies due to an accident, the Accident Benefit Rider Sum Assured will be paid as a lump sum in addition to the death benefit under the base plan.

The rider premium cannot exceed 30% of the base plan premium. The Accident Benefit Rider Sum Assured is also capped at three times the Basic Sum Assured under the base plan.

LIC Jeevan Raksha Premium Calculator

The LIC Jeevan Raksha Premium Calculator is a tool available on the LIC website which can be used to estimate the premiums you will need to pay for Jeevan Raksha policy as per the premium payment mode and term you select.

The tool is free to use any number of times and without any cost. This makes the tool even more useful because you can calculate the premium amount for several payment modes and terms to understand which of them would be the best for you.

For instance, you decide to choose the regular premium payment mode and use the calculator to estimate the premium amount. Now you also estimate the amount for the case of limited premium payment mode. It turns out that the limited premium payment mode is more aligned with your financial situation as well as goals.

The process of using this LIC Calculator is super easy. You do not need to do any manual calculations if you use this tool. Just give the calculator all the information it needs like your personal details and the policy’s details. The calculator instantly generates an illustration of the premium amount you will have to pay.

Sample Illustration of Premium for LIC Jeevan Raksha Plan

The table below illustrates a sample of premiums payable for a basic sum assured of Rs. 5 lakhs for non-smoker, male, standard lives for different premium payment options.

All the above premiums are exclusive of taxes if there are any.

How to Buy LIC Plans from Policybazaar?

When you buy an LIC plan from Policybazaar, you get dedicated claim assistance and 24/7 customer service. Follow the steps below to buy an LIC plan from Policybazaar.

Step 1: Visit the LIC section on Policybazaar.

Step 2: Fill out your name and contact number in the online form.

Step 3: Enter your current city, age and annual income.

Step 4: View all the available LIC plans on Policybazaar. Tweak the investment amount and time period as per your need and select the plan you find the most suitable.

Step 5: Pay the premium online to complete the purchase.

Summing Up

LIC Jeevan Raksha is an individual pure protection term insurance plan. This is a non-participating and non-linked plan which aims to offer affordable premiums with high financial cover. As a pure risk utility product, the Jeevan Raksha plan will not have maturity benefits. Its sole purpose is to provide financial protection against the insured’s death during the policy term.

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