LIC Jeevan Chhaya Plan

LIC Jeevan Chhaya Plan

LIC Jeevan Chhaya Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured is paid immediately to the nominee on death of the Life Insured and the future premiums are waived but the policy continues. 25% of the Sum Assured is given back to the Life Insured on survival or to the nominee on his death in the last 4 policy years and the accrued bonus and final addition bonus would also be paid on maturity, irrespective of whether the life insured is alive or not.

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 Key Features of LIC Jeevan Chhaya Plan 

• This is a Double Benefit Plan as the Sum Assured is paid twice if the Life Insured dies, once immediately when he dies -and again 25% of the Sum Assured is paid in the last 4 policy years
• Premium needs to be paid till maturity or earlier death 
• There are inbuilt benefits like Premium Waiver Benefit rider and an additional Accidental Death Benefit rider
• In the last 4 policy years, 25% of the Sum Assured is paid to the Life Insured or his nominee 

Benefits you get from LIC Jeevan Chhaya Plan

Death Benefit – In case of death of the Life Insured, the nominee would get the Sum Assured immediately. The future premiums would be waived and again 25% of the Sum Assured is paid on each of the last 4 policy years.

Survival Benefit – On Survival of the Life Insured, he receives 25% of the Sum Assured is paid on each of the last 4 policy years.

Maturity Benefit – On maturity, the life insured or his nominee gets the remaining 25% of the Sum Assured plus the Bonus.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C

 Eligibility conditions and other restrictions in LIC Jeevan Chhaya Plan

Sample illustration of LIC Jeevan Chhaya Plan 

Premium = Rs.4653/-, Age = 35 years

Policy Term = 25 years, Premium Paying Term = Regular Pay

Sum Assured = Rs 1,00,000

Total Investment = Rs 4653 x 25 = Rs 116325

Guaranteed Return is

Year 22 = Rs 25000/-

Year 23 = Rs 25000/-

Year 24 = Rs 25000/-

Year 25 = Rs 25000/- + Bonus (Variable)

Additional Features and Benefits of LIC Jeevan Chhaya Plan

Riders – There is 1 in-built rider available in this policy

Premium Waiver Benefit

There is 1 additional rider available in this policy

Accidental Death Benefit

What happens if?                              

You stop paying the premium – The policy will lapse if the premium stops. However, it can be revived within a specific period.

You want to surrender the policy – If premiums for 3 years have been paid up, 30% of basic premiums paid excluding the first year’s premium and the fixed benefit already paid.

You want a loan against your policy - There is loan available under this plan at 9% p.a.

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