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LIC Jeevan Pragati

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.

Features of LIC Jeevan Pragati

  • Minimum sum insured for this plan is INR 1, 50,000 and there is no maximum limit. Basic sum assured needs to be in the multiples of INR 10, 000.
  • Policy term can be chosen between 12 years to 20 years and one of the four premium payment modes can be selected monthly, quarterly, half-yearly and yearly.
  • Maximum maturity age in this plan is 65 years.
  • This plan is eligible to get a simple reversionary bonus and final additional bonus at the maturity of the policy.
  • The plan offers option of attaching accidental death & disability benefit rider.

Benefits of LIC Jeevan Pragati

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-

Highest of

  • 10 times the Annualised Premium or absolute amount assured to be paid on death The absolute amount assured to be paid on death will be
  • For 0 to 5 years of policy term, 100% of Basic Sum Assured in case of death
  • For 6 to 10 years of policy term, 125% of Basic Sum Assured in case of death
  • For 11 to 15 years of policy term, 150% of Basic Sum Assured in case of death
  • For 16 to 20 years of policy term, 200% of Basic Sum Assured in case of death After 15 years of the policy term, the policyholder will be eligible to get final addition bonus.

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.

Eligibility Criteria for LIC Jeevan Pragati

Policy Name/CriteriaLIC Jeevan Pragati
Minimum Entry age12 years
Maximum Entry age45 years
Maximum Maturity Age65 years
Sum AssuredMinimum - Rs. 1,50,000
Maximum - No limit

Rider offered by LIC Jeevan Pragati

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.

Other Details of LIC Jeevan Pragati

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.

Exclusions of LIC Jeevan Pragati

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.

Review of LIC Jeevan Pragati

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.