LIC Jeevan Rakshak Plan

LIC Jeevan Rakshak – Table No. 827

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 Date5th March, 2014
Plan DetailsTable No. 827
Policy TypeEndowment
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Free-look Period
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Grace Period
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Surrender Value
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Death Benefit in LIC Jeevan Rakshak Plan

In case of the death of the policyholder before the end of the policy term, the nominee will receive the highest of the following:

  • Basic Sum Assured
  • 10 times the Annualised Premium
  • 105% of all premiums paid till date of death

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.

Maturity Benefit in LIC Jeevan Rakshak Plan

At the end of the policy term, the policyholder will receive the following:

  • Basic Sum Assured
  • Loyalty Additions, if declared
Free-look Period

If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.

Grace Period

 In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days.


You can avail a long against this policy after you have paid 3 years of premium.


You have the choice of taking the following rider by paying an extra premium amount:

  • LIC’s Accident Benefit Rider
Surrender Value
  • If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. Click to find the Guaranteed Surrender Value in LIC Jeevan Rakshak Plan.

How it works


When buying the LIC Jeevan Rakshak Plan, the customer has to decide on the following:

  1. Basic Sum Assured - this is the amount of cover that you want. You can choose an amount between 75,000 and 2,00,000.
  2. Policy Term - this is the period for which you wish to have the cover. The term can be anywhere between 10 to 20 years.
  3. Premium Payment Term - This is same as the policy term.

Based on the basic sum assuredyour age and the policy term selected. your annual premium will be decided.

LIC Jeevan Rakshak Plan with an Example

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:

  • Basic Sum Assured - Rs. 2,00,000
  • 10 times the Annualised Premium = 10 x 6,746 = Rs. 67,460
  • 105% of all premiums paid till date of death = 105% x 4 x 6,746 = Rs. 28,333

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:

  • Basic Sum Assured - Rs. 2,00,000
  • 10 times the Annualised Premium = 10 x 6,746 = Rs. 67,460
  • 105% of all premiums paid till date of death = 105% x 15 x 6,746 = Rs. 1,06,250

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.

Maturity Benefit 

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.

Tax Benefit

  • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
  • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act
  • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act




  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