Monday, 22 April 2019

LIC Navjeevan Plan | Features & Benefits

LIC Navjeevan Plan | Features & Benefits

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:
LIC Navjeevan Plan | Features & Benefits


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.





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