Why Jeevan Rakshak Plan is One of the Best Life Insurance Plans to Invest in?

If you live your life from pay check to pay check, it’s understandable that it won’t be easy for you to find a few extra bucks from your tight budget to invest in something that doesn’t even seem necessary at this particular time.  However, the importance of a life insurance cannot be dismissed , especially if you are married and have kids. You might even say that investing in life insurance is an added liability to your budget, but you can manage the added expense if you choose the right insurance plan.

Choosing an economical life insurance will not only help you get your life insured;it will also let you avail its benefits without disturbing your monthly expenditure. Thankfully, with LIC you can easily find a wide range of the best and the most economical policies to invest in. Taking the tradition forward, the company recently launched its Jeevan Rakshak plan that will not only help you avail the benefits of a life insurance plan, but will also let you avail the maturity benefit associated with it.

LIC Jeevan Rakhsak plan is a low-cost policy with the best features of a life insurance scheme.  It’s a regular premium paying endowment policy where the total sum assured cannot be more than Rs 2 lakhs. In fact,  you can even set an amount less than Rs 1 lakh as your sum assured, thus, making it an excellent investment option for the people belonging to the lower income bracket.

Jeevan Rakhsak plan offers you great flexibility and gives you the option to insure even your 8 year old kid under the umbrella of this plan. This policy requires regular premium payment as described in the terms & conditions of the policy. Once you reach the maturity age, the policy will offer you the basic sum assured as well as loyalty additions (if applicable). In case of sudden demise of the insured in the mid of the policy term the sum assured, as well as the loyalty additions, will be transferred to the legal heir/nominee as mentioned in the policy.

Salient Features of Jeevan Rakshak Plan:

  • The policy offers a low coverage option to the policyholder where the maximum sum assured will be Rs 2 lakhs per person.
  • The policy holder can get the maturity benefit only if s/he is able to survive the complete tenure of the policy.
  • In case the policy holder dies mid-tenure, the death benefits will be automatically transferred to the nominee.
  • In case you wish to increase the premium of your policy, you need to opt for additional coverage. This can be done by contacting any of the LIC representatives.
  • With additional premium feature, this policy gives you the opportunity to avail the benefit of double accidental imbursement.
  • The minimum sum assured per person in this policy starts from Rs 75,000, while, the maximum sum assured is up to Rs 2, 00,000.

Premium Details: The table below shows the annual premium amount (in rupees) for a term of 20 years:

Rs 2 Lakhs Sum Assured

Rs 1 Lac Sum Assured

Rs75,000 Sum Assured

Age

6746

3523

2642

30 years

7109

3704

2778

40 years

8069

4185

3138

50 years

 

  • The minimum entry age for the policy is 8 years, whereas, the maximum entry age is 55 years.
  • The maturity age, as defined by the policy, is 70 years.
  • The minimum policy term has to be 10 years, while, the maximum tenure can be of 20 years.
  • The premium amount can be paid monthly, half-yearly or annually.

Benefits of LIC Jeevan Rakshak

Maturity Benefit:

  • The policy holder is eligible to get the basic sum assured along with the maturity benefits only if s/he reaches the maturity age as per the specified terms & conditions of the policy.

Bonus:

  • If you are able to declare yourself in good health, you don’t need to undergo any medical tests to enrol in this policy. Also, as this plan performs according to the bonuses of the company, it always has loyalty additions to offer to its customers.

Death Benefits:

  • If the policyholder dies during the policy term, LIC is liable to pay all the benefits along with the sum assured to the nominee. However, this condition is only applicable if the policy holder has already completed 5 years into the policy.

As per the company’s discretion, the sum assured on an accidental death will normally be higher than the basic sum assured.

Surrender benefit:

  • You have the benefit of surrendering the Jeevan Rakshak Plan if you have already completed 3 years and your plan is eligible to get a surrender worth by LIC. However, LIC also provides 15 days to the policyholder to re-evaluate her/his decision before making the final call.

Grace Period:

  • As a policyholder, you will get a grace period of 30 days to pay your premium, in case you miss the payment. If you aren’t able to make the payment even in the grace period, your policy will lapse.

Documents Required to Invest in Jeevan Rakshak Policy:

  • You simply need to fill and submit the proposal/ application form designed for the Jeevan Rakshak Plan along with your KYC (Know Your Customer) documents. Though, medical tests aren’t mandatory for this plan, in some cases, you might need to undergo a medical examination.

Exclusions:

  • Life Insurance Corporation(LIC) will pay 80% of the premium to the legal heir if the insured person commits suicide within 1 year of her/his policy enrolment. In case, the policy has been revived and the policyholder commits suicide within 1 year of the policy revival, the nominee is entitled to get 80% of the total premium amount paid by the policyholder or the surrender value acquired by her/him.

Conclusion:

Hence, it goes without saying, Jeeven Rakshak Plan is the perfect choice for people who are looking for a low-budget investment option  but avoid the risk factor involved in most investments. After all, it’s not only about you but also about your loved ones who are dependent on you. However, make sure to go through the policy documents thoroughly..

Written By: PolicyBazaar - Updated: 22 September 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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