LIC Jeevan Bharthi 1 Policy

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LIC Jeevan Bharathi Plan

 

LIC Jeevan Bharathi-I Plan is an amazing plan as it is a Life Insurance Policy for WOMEN only. It is basically a Money Back Plan which can be utilized to purchase an Annuity on maturity of the plan.

 

In this plan, premium needs to be paid for the entire policy term of 15 or 20 years, but Survival Benefits of 20% of the Sum Assured are paid every 5 policy years. The remaining amount of the Sum Assured along with accrued Reversionary Bonus and Final Addition Bonus is payable as Maturity Benefit. However, the policyholder may choose to withdraw the Survival Benefit at a later date than its due date and she would also get interest for that period as well. Hence she gets an opportunity to customize this plan according to her needs.

 

Moreover, the Maturity Benefit may be utilized to purchase an annuity instead of withdrawing the same in a lumpsum. In this plan, there are 3 additional riders that can be opted for where most female concerns are taken care of including common female diseases, childbirth complications, etc.


Hence this plan is a plan with varied options which caters to the needs of large number of women policyholders and is the answer to the needs of many.

 

 

Features of LIC Jeevan Bharathi-I Plan

 

§  This plan is especially for women policyholders ONLY.

§  This is a very special plan since it is actually a Money Back Plan with Reversionary Bonus which can be converted to an annuity.

§  The entire Sum Assured is payable Death Benefit along with accrued Bonuses irrespective of how much Survival Benefit has been paid

§  20% of the Sum Assured is paid as Survival Benefit every 5 years

§  The remaining Sum Assured along with accrued Bonuses are paid as Maturity Benefit at the end of the Policy Term.

§  There is optional higher cover through 3 additional riders

§  High Sum Assured rebate is provided in this plan.

 

 

Special Features of LIC Jeevan Bharathi-I Plan

 

§  The policyholder may choose to take the Survival Benefit at any later date after its scheduled due date but before maturity. Hence she may even customize her plan according to her own needs. Thus, if the Survival Benefit is withdrawn at a later date, there would be an interest paid for the same as well.

§  There is also a flexibility to pay the next yearly premium in advance and in instalments. Thus, if advance premium is paid, there is a rebate provided for the same as well.

§  The policyholder may choose to purchase an Annuity with the maturity proceeds of the policy at the prevailing annuity rate.

§  There is a premium holiday for 3 years after if at least 2 years’ premiums have been paid during which full life cover continues.

 

 

Benefits you get from LIC Jeevan Bharathi-I Plan

 

Death Benefit – In case of death of the Life Insured, the nominee receives

§  100% of the Sum Assured +

§  Accrued Reversionary Bonus +

§  Final Addition Bonus, if any,

is payable irrespective of the Survival Benefits paid earlier, if any.

 

Survival Benefit— 20% of the Sum Assured is payable every 5 years, i.e.

Survival Benefit Payable at the end of

15 year Policy Term

20 year Policy Term

5 Years

20% of the Sum Assured

20% of the Sum Assured

10 Years

20% of the Sum Assured

20% of the Sum Assured

15 Years

-

20% of the Sum Assured

 

Maturity Benefit – At the maturity of the policy, the insured will get the remaining Sum Assured + accrued Reversionary Bonus + Final Addition Bonus, if any.

Tenure

Maturity Benefit

15 year Policy Term

60% of the Sum Assured + accrued Bonus + Final Addition Bonus (if any)

20 year Policy Term

40% of the Sum Assured + accrued Bonus + Final Addition Bonus, (if any)

 

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

 

 

Eligibility conditions and other restrictions in LIC Jeevan Bharathi-I Plan

 

 

Minimum

Maximum

Sum Assured (in Rs.)

50,000

25,00,000

Policy Term (in years)

15

20

Premium Payment Term (in years)

15

20

Entry Age of Policyholder

18

55

Age at Maturity

-

70

Single Premium (in Rs.)

NA

NA

Payment modes

Yearly

 

 

Sample illustration of premium of LIC Jeevan Bharathi-I Plan

 

The below illustration is for a healthy Female opting for a Sum Assured = Rs 1,00,000 and Policy Term = 20 years respectively.

LIC Jeevan Bharathi Premium - Sample Illustration

Additional Features and Benefits of LIC Jeevan Bharathi-I Plan

 

Riders – There are 3 Additional Riders available:

§  Accidental Benefit Rider which is payable upon death or total and permanent disability due to accident during the policy term.

§  Critical Illness Benefit Rider which is payable in case of diagnosis of any of the mentioned critical illnesses.

§  Congenital Disabilities Benefit Rider which is payable if the Life Assured gives birth to a child  with certain congenital disabilities like Down’s Syndrome, Tetralogy of fallot, Anal Atresia, Imperforate anus, etc. The Benefit is payable upto a maximum of Rs 5 lakhs and for 2 children.

 

 

What happens if?

 

You stop paying the premium – If you stop paying the premiums after 2 policy years, the policy continues for the full Sum Assured for a period of 3 years from the first unpaid premium date. This period is commonly known as Premium Holiday.

If at least 3 years’ premiums have been paid, the policy acquires a Paid Up Value after 3 years of Premium Holiday else the policy lapses and all benefits cease.

However, the policy can be revived within a period of 5 years from the date of first unpaid premium.

 

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

 

You want a loan against your policy – Loan facility is available under this policy

 

 

Alternate Money Back Insurance Plans from different insurance companies

 

Met Sukh Plan from MetLife

ICICIPru Cashbak

BSLI Money Back Plus Plan

 

 

Other Money Back Insurance Plans from Life Insurance Corporation of India

 

The Money Back Policy-20 Years

The Money Back Policy-25 Years

Jeevan Surabhi-15 Years

Jeevan Surabhi-20 Years

Jeevan Surabhi-25 Years

Bima Bachat
 

 

Videos on LIC Jeevan Bharathi

 

 

~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the LIC Jeevan Bharthi 1 Policy brochure and insurance company's website. It should not be construed as a Critical or Favourable LIC Jeevan Bharthi 1 Policy Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


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is this policy still working

By Karuna Mungekar on Sep 11, 2012 Reply

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