- About Coverfox
LIC Jeevan Pragati is a simple endowment plan which offers a combination of both financial protection and savings. The plan was introduced on 3rd February 2016.
It's a non-linked plan with profits which automatically increases risk cover after every 5 years of the policy term
The plan provides a good saving option which can be used to fulfil long-term goals. The increased risk cover helps to keep up with life stage financial protection requirements. Loan facility can also be availed based on the surrender value for immediate liquidity needs.
Maturity Benefit : The plan comes with maturity benefit. If the policyholder has paid regular premiums throughout the plan and survives the policy term then he/she will be eligible for maturity benefit. The final sum will be the sum assured on maturity plus the vested simple revisionary bonus and final additional bonus if any will be added to the maturity amount. The basic sum assured is the sum assured on maturity.
Death Benefit: The plan also comes with a very important death benefit. If the policyholder dies during the policy term then the plan pays Sum Assured on Death” + “Simple Reversionary Bonus” (which have been accrued till date) + “Final Additional Bonus” if any.
The death benefit increases in the plan after every 5 years. So the death benefit amount will be as follows-
Tax benefits : Premium paid for this plan and death/maturity benefit amount received carry income tax benefit under section 80c and 10 (10D) of the Income Tax Act.
LIC's Accidental Death and Disability Benefit Rider : This rider can be attached to the base plan anytime during the premium paying term. The rider pays benefit in case of accidental death during the policy period, an additional sum assured is offered to the nominee. This rider can be opted by paying an extra premium over and above the base policy premium anytime during the policy term.
Revival period: The policy can be revived if lapsed. The revival period is 2 years since the last date of first unpaid premium but before the date of maturity.
Free Look period: Free look period of 15 days is offered in this plan from the date of receipt of the policy bond. The policy can be returned to the corporation stating the reasons of objection. On receipt of the same, the policy will be cancelled and amount of premium paid will be returned minus the expenses incurred.
Surrender Value : To build the surrender value the policy needs to be active for at least three years in which full premiums have been paid. Guaranteed surrender value will be a percentage of total premiums paid excluding extra premiums and premiums for riders.
Loan on Policy : A loan can be availed on policy after a payment of 3 years of premiums after which it accumulates surrender value.
Suicide: If the policyholder commits suicide within 12 months from the date of start of policy then no death benefit amount mentioned in the policy is payable. The company will only return 80% of the premiums paid excluding any taxes, extra premium and rider premium other than Term Assurance Rider if and only if the policy is in force.
This is a simple endowment plan which is easy to understand. The plan offers both savings and financial protection with increased cover to take care of life stage requirements for loved ones to the policyholder. The protection can be further enhanced with the inclusion of useful accidental and disability rider at a nominal cost. It is an affordable financial protection and saving plan by LIC of India.