LIC’s Jeevan Rakshak Plan

Death Benefit

In the event of death of the life assured before the date of maturity, the Sum Assured on Death, is payable, provided the policy is in-force. Sum Assured on Death is higher of Basic Sum Assured or 105% of all the premiums paid or 10 times of annualized premium. The loyalty addition is also payable, if death occurs after the completion of 5^th policy year.

Maturity Benefit

In case of survival of the life assured till the end of the policy term, the Basic Sum Assured along with loyalty addition is payable, provided the policy is in-force.

Bonus

Loyalty Addition is payable, depending on the corporation’s experience provided the policy is in-force. The loyalty addition is payable to the policyholder on maturity or on death after completion of the 5^th policy year.

Loan Benefit

Loan amount can be availed, provided all the premiums have been paid for at least 3 policy years.

Surrender Value

Under this policy, the surrender value can be acquired at any time, provided all the due premiums have been paid for at least 3 full policy years. The guaranteed surrender value is a percentage of the total premium paid. The Special Surrender Value is payable, when it is favorable to the policyholder. The Special Surrender Value is the discounted value of the Paid-up Sum Assured.

Tax Benefit

Tax benefits are applicable as specified under the Income Tax Act, 1961.

LIC’s Accident Benefit Rider can be opted under this plan, on payment of additional rider premium.

Let’s understand the plan with the help of below illustration.
 

Mr. Raman at 35 years, wants to buy a plan that provides both savings and protection. He opts to buy LIC’s Jeevan Rakshak with the policy term of 20 years, pays the annual premium of Rs 3,587 with the basic sum assured of Rs 1 Lac.
 

Scenario A: Raman Survives through the Policy Term

If Mr. Raman survives till the end of the policy term, Rs 1 Lac plus with loyalty addition is payable. The maturity benefit can be used to achieve your long term financial goals.
 

Scenario B: Raman dies during the Policy Term

In the event of demise of Mr. Raman during any policy year, Rs 1 Lac along with loyalty addition (if death occurs after the 5^th policy year) is payable. This death benefit ensures the financial security for his family.
 

Benefit Illustration

Note: The non-guaranteed benefits as mentioned in the above illustration are calculated at Projected Investment Rate of Return of 4% per annum (Scenario 1) and 8% p.a. (Scenario 2) respectively.