LIC Navjeevan Plan is a new
insurance plan by Life Insurance Corporation (LIC) in 2019. LIC Navjeevan Plan is
a non-linked with profit endowment life assurance plan. It is a comprehensive
plan which offers a combination of protection and savings. This policy offers financial
support to the family in the event of unfortunate death of the policyholder at any
time before maturity and a lump sum amount to the surviving policyholder at the
time of maturity. In this post, let’s take a look at the features &
benefits of LIC Navjeevan Plan.
LIC Navjeevan Plan is a
simple and traditional endowment plan. In this plan, you can choose to pay the premium
either as lumpsum or as limited premium for a period of 5 years. At the end of
the policy term, you will receive a lumpsum amount. Loan facility is available on
this plan during the policy term. You can purchase this plan both either online
or offline.
Features of LIC Navjeevan Plan
Following are the features
of this insurance plan.
1. This is a non-linked with
profit endowment life assurance plan.
2. This plan offers a
combination of protection and savings.
3. Premiums can be paid
either in lumpsum (Single premium) or for a limited period of 5 years.
4. If you choose limited
premium payment option, you can pay your premiums at yearly, half-yearly,
quarterly or monthly intervals.
5. Under this plan, the minimum
sum assured is 1 lakh and there is no limit on the maximum sum assured.
6. The policy term is
between 10 to 18 years.
7. The loan can be availed
on this plan during the policy term.
8. There are two optional
riders (accidental rider and disability benefit rider) available with this plan.
9. There is an option to
avail death benefit in Installments.
10. Income tax benefits are available
for the premium paid under section 80C.
11. If you purchase this plan
online, then you will get 2% rebate in case of single premium payment and 5% rebate
in case of limited premium payment option.
12. The policy can be surrendered
at any point of time if you paid a single premium but for limited premium
payment option, the policy can be surrendered after completion of 2 years.
Eligibility for LIC Navjeevan Plan
Eligibility conditions and other
restrictions for this plan are given below.
1. Minimum Age at entry: 90
days for Single premium
: 90
days for Limited premium under Option
: 45 years for Limited premium under Option 2
2. Maximum Age at entry: 44
years for Single premium
: 60 years
for Limited premium under Option 1
: 65 years
for Limited premium under Option 2
3. Minimum Age at maturity:
18 years
4. Maximum Age at maturity:
62 years for Single premium
: 75 years for Limited premium under
Option 1
: 80 years for Limited premium under
Option 2
5. Policy Term is between 10
to 18 years
6. Minimum Basic Sum Assured:
Rs.1,00,000/-
7. Maximum Basic Sum
Assured: No Limit
Basic Sum Assured shall be
in multiples of amounts specified in the below table:
What are the Option 1 and Option 2 in LIC Navjeevan Plan?
Option 1 and Option 2 is
applicable for Limited Premium Payment option only. This means if you have paid
as a lumpsum, then these options are not applicable. Hence, the death benefit
will be 10 times of your single premium.
However, if you choose limited
premium payment option, then you have the below options.
1. If your age is below 45
years then the death benefit will be 10 times of your annual premium.
2. If your age is above 45
years then you have two options to choose from.
Option 1 - You can choose
for 10 times of annualized premium as death benefit.
Option 2 - You can choose
for 7 times of annualized premium as death benefit.
Benefits under LIC Navjeevan Plan
Following benefits are
available under this insurance plan
1. Maturity Benefit
When the Life Assured survives
till the end of the policy term and all due premiums are paid then Sum Assured
on Maturity along with Loyalty Addition (if any) shall be paid.
2. Death benefit
In case the policyholder
dies before the stipulated date of maturity and the policy is in force the
death benefit payable shall be as under:
a) On death during first 5 policy
years: If death occurs before the date of commencement of risk, then refund of
premiums you paid shall be payable. However, if death occurs after the date of commencement
of risk, then Sum Assured on Death shall be payable.
b) If death occurs after
completion of 5 policy years but before the maturity then Sum Assured on Death
along with Loyalty Addition shall be paid to the nominee.
Meaning of Sum Assured on
death
For Single Premium Policy: Sum
Assured on Death is defined as the higher of
i) Guaranteed sum assured on maturity i.e. basic sum assured or
ii) Absolute amount assured
to be paid on death i.e. 10 times of Single Premium.
For Limited Period Premium
Payment Policy: Sum assured on Death is defined as higher of
i) Guaranteed sum assured on
maturity i.e. Basic Sum Assured or
ii) Absolute amount assured
to be paid on death .i.e 10 times of Annual Premium if OPTION 1 is opted or 7
times of Annual Premium if OPTION 2 is opted.
LIC Navjeevan Plan (Table No. 853) is the second endowment insurance plan launched by LIC in the year
2019. LIC has already launched LIC Micro Bachat Insurance Plan in the month of
February. LIC Navjeevan Plan is a non-linked with profit endowment life
assurance plan.
Also read: LIC Jeevan Akshay VI Pension Plan
Also read: LIC E-Term Plan | Features & Benefits
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