- About Coverfox
LIC Jeevan Rakshak is a participating non-linked life insurance plan offering dual benefit of life protection and saving.
The plan offers good life cover along with savings especially for low-income groups.
The life insurance plan provides financial protection through lump sum amount if the policyholder, unfortunately, dies anytime during the policy term. The plan also helps in immediate liquidity needs through loan facility.
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 basic sum assured on maturity plus loyalty addition will be added to the maturity amount.
Death Benefit: The plan also comes with a very important death benefit. If the policyholder has an unfortunate death during the policy term then the plan pays out basic sum assured or 10 times of annualized premium or 105% of all the paid-up premiums as on the date of death. The premiums defined above will be excluding service tax, additional premium or rider premium if any. Loyalty addition if any will be added to the death benefit if the death occurs after 5 years of policy term.
Participation in profits : The plan is eligible to participate in corporations profit through investments. This profit if any is shared in the plan through loyalty addition provided the policy has been in force for 5 years. The loyalty addition will be paid on death or maturity.
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 : This rider can be attached to the base plan after attaining 18 years of age. The rider pays benefit in case of accidental death during the policy period, over and above the sum assured offered to the nominee. This rider can be opted by paying an additional premium as per the rider eligibility 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 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. LIC of India will pack back only 80% of the premiums paid excluding any taxes, extra premium and rider premium if any, only if the policy is in force.
This is a low sum assured life insurance plan with maturity benefit. The plan offers both savings and financial protection for loved ones to the policyholder. The protection can be further enhanced with the inclusion of accidental death benefit rider. It is a very good and a cost effective plan offered by Life Corporation of India especially for low-income groups or for low sum assured requirements of an individual.