LIC Jeevan Rakshak Policy is a participating endowment plan which provides both investment and insurance benefits. Since it is a participating plan, bonus benefits will be available. This is a standard endowment plan. There are some additional benefits which you can take in the form of riders. We will explain the benefits of this plan with the help of a few examples.
Launch Date | 5th March, 2014 |
Plan Details | Table No. 827 |
Policy Type | Endowment |
When buying the LIC Jeevan Rakshak Plan, the customer has to decide on the following:
Based on the basic sum assured, your age and the policy term selected. your annual premium will be decided.
In case of the death of the policyholder before the end of the policy term, the nominee will receive the highest of the following:
The premiums mentioned above refer to premiums without the tax component and also does not consider any rider premiums.
Loyalty Additions, if declared will be payable as part of the Death Benefit in case the death occurs after 5 policy years.
At the end of the policy term, the policyholder will receive the following:
We have Anurag Reddy, age 30 who wishes to buy this plan. He goes in for the plan with the following:
Sum Assured - Rs. 2,00,000
Term - 20 years
Premium Payment Term - 20 years
Based on these parameters, his annual premium is Rs. 6,746 + Taxes = Rs. 7,050. Here we have assumed the current tax rate of 4.5%.
Death Benefit
Scenario 1 : If Anurag dies after 4 policy years.
His nominee gets the highest of the following:
The highest of the above is Rs. 2,00,000 - which is what the nominee will receive. Since the policy has not completed 5 years, no Loyalty Additions will be payable.
Scenario 2 : If Anurag dies after 15 policy years
His nominee gets the highest of the following:
The highest of the above is Rs. 2,00,000. Since the plan has completed 5 policy years, it is eligible to receive Loyalty Additions. So nominee will receive Rs. 2,00,000 + Loyalty Additions. The value of Loyalty Additions can only be known when it is declared.
Scenario 3 : If Anurag survives till the end of the policy term of 20 years - Anurag will get the Basic Sum Assured + Loyalty Addition as declared.
Total Premiums Paid = Rs. 1,40,991 (including taxes)
Basic Sum Assured = Rs. 2,00,000
Loyalty Additions - As declared.
Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.
Term: 15 Years
Age: 30,50 & 50 Years
Sum Assured: 1,00,000
Minimum | Maximum | |
Sum Assured * | Rs. 75,000 | Rs. 2,00,000 |
Policy Term | 10 years | 20 years |
Premium Payment Term | Same as policy term | |
Entry Age | 8 years (completed) | 55 years (nearest birthday) |
Maximum Maturity Age | 70 years (nearest birthday) | |
Premium paying frequency | Annually, Half-yearly, Quarterly, Monthly |
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If you have any questions on the LIC Jeevan Rakshak Policy, drop in a line in the comments and we will be happy to help out.