LIC’s Jeevan Rakshak Plan 2023 Benefits, Features, Details, Review

LIC’s Jeevan Rakshak Plan 2023-One of the most reputable and well-liked insurance providers in India is the Life Insurance Corporation of India, more commonly referred to as LIC.LIC has been providing millions of people with a wide range of insurance policies for more than 60 years. In addition, this seasoned company is favored for its policies with no hidden fees and prompt claim resolution. The LIC Jeevan Rakshak Policy is one of their most well-known policies.

The Jeevan Rakshak plan from LIC is a non-linked, participating plan that offers both savings and safety. It is a straightforward Endowment Plan with profit sharing features. If the insured person dies before the policy expires, the plan pays the appointed nominee a death benefit. In addition, maturity benefit is provided in the event that the policyholder does not renew it. For the duration of the policy, he is required to make regular payments of the required premium. The individual will receive the sum assured and the loyalty additions once the policy reaches maturity.

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LIC’s Jeevan Rakshak Plan 2023

The LIC Jeevan Rakshak Plan is a profit-sharing, non-linked, and participating endowment plan that combines protection and savings. It is a straightforward endowment plan with death and maturity benefits that can be purchased even for a child who is eight years old. The insured must regularly pay the entire term’s premium. The policyholder receives the basic Sum Assured and Loyalty Additions when they reach maturity age. The arrangement offers monetary help to the friends and family in the event of a troublesome downfall of the policyholder.

LIC's Jeevan Rakshak Plan

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LIC’s Jeevan Rakshak Plan 2023 Details

Name Of ArticleLIC’s Jeevan Rakshak Plan 2023
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Key Features of LIC’s Jeevan Rakshak Policy

  • The appointed nominee is entitled to the sum assured, also known as the death benefit, in the event that the policyholder passes away prior to the policy’s maturity date. The policy comes to an end at that point.
  • If the insured person survives the policy, he would get the maturity benefits and, if there are any, the loyalty benefits. The policy comes to an end at that point.
  • The Jeevan Rakshak Policy from LIC has a low life coverage and a maximum insured sum of Rs.2 lakh, with a minimum of Rs.75,000.
  • Multiples of Rs must be used for the initial amount guaranteed.5,000.
  • The term of the policy can be anywhere from 10 to 20 years.
  • The premium can be paid on a monthly, quarterly, biannual, or annual basis.The frequency that best suits the policyholder can be chosen.
  • This plan allows for maturity at the age of 70.
  • The policyholder is eligible for the loyalty benefit after five years of regular premium payments.

Benefits of LIC’s Jeevan Rakshak Policy

The fact that the Jeevan Rakshak Policy is owned by LIC is the main benefit of investing in it. The Corporation carries a degree of trustworthiness. The numerous additional benefits of this policy are listed below:

Death Benefit

The appointed nominee is entitled to the Death Benefit in the unfortunate event of the policyholder’s untimely death during the policy’s term. The sum assured upon death is known as the Death Benefit, and it is determined by multiplying the higher of the following factors:

  • Basic Sum Assured or
  • 10 times the annual premium or
  • 105% of the premiums that have been paid to date
  • Loyalty Additions would be payable if the death of the insured takes place at least 5 years after the policy has been purchased.

Maturity Benefit

Maturity Benefit would be paid to the insured in one lump sum and the policy would end if the insured lived to the end of the policy and paid all premiums on time.

Loyalty Additions

  • After five years of regular premium payment, if the policy is in effect, Loyalty Additions serve as both the maturity benefit and the death benefit. The Corporation announces loyalty additions based on its experience.

Tax Benefits

  • Section 80C of the Income Tax Act states that the policyholder is exempt from paying taxes on the premiums they pay.
  • Under Section 10(10D), both the maturity benefit and the death benefit of the LIC Jeevan Rakshak Policy are exempt from taxation.

LIC Accident Benefit Rider

After the age of 18, this add-on can be added to the basic plan. With this rider, the nominee would receive an additional sum in addition to the sum assured in the event of the policyholder’s death during the policy’s term. Different Advantages presented by LIC’s Jeevan Rakshak Strategy.

  • Free-Look Period

    This plan offers a free-look period. Within 15 days of purchasing the policy, the policyholder has the option of returning it to the Corporation.

  • Flexibility in payment of Premium

    The policyholder has the option of selecting a premium payment frequency, which can be biannually, annually, monthly, or quarterly, depending on his or her convenience and financial plans.

  • Revival Period

    The policyholder has the option to reinstate a lapsed policy within two years of the first unpaid premium date. However, the revival must be completed prior to the maturity date.

  • Surrender Value

    If the policyholder decides to end the coverage for any reason, he or she can take advantage of the termination benefit provided that all of the conditions are met. For this reason, the insured person should have paid their premiums on time for the first three years of the policy. The policy starts to accumulate a surrender value after just three years.

  • Grace Period

    In the event that the premium payment frequency is monthly, the corporation provides a 15-day grace period. The grace period is thirty days for quarterly, semiannual, and annual frequency.

  • Availability of Loan

    After three years of regular premium payments, the Surender value builds up, and the policyholder can get a loan.

How does Plan work?

Gupta, a 35-year-old nonsmoker, purchases the Jeevan Rakshak Policy with a term of 20 years and a sum assured of INR 1 lakh. The annual premium he would pay would be approximately INR 3,587 based on these criteria. The plan wouldn’t work the same way in every situation.

Sample Premium

Given below is a sample premium and the corresponding Sum Assured for a 35-year-old male.

Age at Entry35 years
Policy Term20 years
Basic Sum AssuredINR 1,00,000
Amount of Single PremiumINR 3,587

Maturity Benefit

  • If Mr Gupta outlives the policy then he would receive:
  • Sum assured of INR 2 lakh
  • Loyalty additions as per declared by the LIC of India.

Eligibility Criteria for LIC’s Jeevan Rakshak Policy

Age of Entry8 Years55 Years
Sum AssuredINR 75,000INR 2 Lakh
Policy Term10 Years20 Years
Maturity Age70 Years

LIC’s Jeevan Rakshak Policy Exclusions

If the policyholder takes their own life within one year of purchasing the policy, the nominee receives 80% of the premiums paid. The nominee would receive the higher of 80% of the paid premiums or the acquired surrender value if the policyholder did so within one year of police revival.

Purchasing Jeevan Rakshak Policy

The premium amount can be clearly seen using the premium calculator. Additionally, registered agents and brokers or any LIC branch office can be used to purchase the policy. Completed and properly signed Application Form

  • Proof of Address
  • Proof of Age
  • Medical History Report (if asked)

Claiming Jeevan Rakshak Policy

LIC’s Jeevan Rakshak policy has come under criticism recently, with people stating that it is unfair and discriminatory. The policy stipulates that any individual who dies while waiting for a surgery or treatment on the priority list will not be able to claim the benefits that are normally available to patients who die due to natural causes. This has led to a lot of people protesting and claiming that the policy is unfair and discriminatory. So what is LIC’s Jeevan Rakshak policy, and how does it work? In this post, we will take a look at all the details.

Death Claim

The claim form and other policy documents must be submitted by the nominee in the event that the policyholder passes away during the policy’s term. He must also provide the bank account information, medical information, and the death certificate.

Maturity Claim

In the event that the safeguarded individual outlasts his strategy, he needs to present a properly marked Guarantee Structure, unique papers of the arrangement and the bank subtleties for smooth exchange of the development add up to his record.

Also Read-Max Life Term Insurance Plan

Surrender Claims

The policyholder must provide the Claim Form, original policy documents, and bank account information to claim the surrender value. The LIC’s Jeevan Rakshak plan, also known as surrender claims, is a way for LIC policyholders to exit their insurance policies with minimal financial damage. Under the plan, policyholders surrender their policies and receive a payments package that covers a range of expenses, such as medical expenses, loss of income, and other costs. The Jeevan Rakshak plan is available to LIC policyholders in all states of India. Interested in learning more? Read on for our complete guide to the LIC’s Jeevan Rakshak plan.

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