On August 19, 2014 LIC launched his new Jeevan rakshak Plan which is endowment insurance non-linked with profit policy plan. Before deciding to opt for this policy, have a look on the key features of Jeevan Rakshak Plan.

Key Features of LIC Jeevan Rakshak Policy

  • Age Limit: Maximum: 55 years , Minimum:  8 years completed.
  • Policy Tenure: Minimum 10 years and maximum 20 years.
  • Sum Assured:  A Minimum of Rs. 75000 and a Maximum of RS. 2,00,000.

Benefits
  • Death Benefit: The nominee will only get Basic Sum Assured if the policy holder dies before 5 years of the policy existence. Or if the policy holder dies 5 years after the policy existence, the nominee will receive higher of BSA or 10 times of the annual premium or 105% of the total premium as on death of loyalty addition.
  • Maturity Benefit: Basic Sum Assured plus Loyalty Addition.
Other Additional Points to Ponder.

  •  After three years of premium payment, loan can be taken.
  • There would be no loyalty Addition sum be payable in case of surrender by the policyholder.
  • Loyalty addition is applicable only after the end of five years since the policy has started.
  • The policyholder will receive a return of around 4% to 6% in endowment policy. You may find better investment avenues in financial market.
  • The amount of loyalty addition paid decides largely the rate of return.
  • There will be no Loyalty Addition paid if the policy holder surrenders or if he dies before 5 years of the existence of the endowment policy.
  • In this policy the section C limit has increased up to 1.5 lakhs and you will be well convinced to buy this policy but this should not be the only deciding factor.
  • Only two lakh is the maximum sum assured offered in this plan, which is quite less if the maturity period is of 20 years.
  • It may be a wise decision to avoid this policy if you can afford to take risk depending upon your age and financial goals.
A Simple illustration for better understanding: Suppose if Thomas buys this policy, if he dies before 5 years since the commencement of the policy then his nominee will be paid only the Basic sum assured. If he dies after 5 years of the policy and in between the policy period then his nominee will be paid 10 times of the premium amount or 105% of the total sum assured + Loyalty addition. If he remains alive till the end of the policy term then he will only get the basic sum assured + LA.
If you are planning to opt this policy, kindly evaluate whether this sum is efficient for your family? If this sum is enough to cover your life? Is the premium affordable? 
The main objective of this article is to make this policy easier to understand. The agents who persuade you to buy this policy may not be able to explain you every point, we hope that this article will help you in deciding your future policy.

See also  LIC Single Premium Endowment Policy (Table No. - 817) - Key Features and Review