LIC Jeevan Rakshak is another typical participating non-linked plan which offers a combination of protection and savings product as per the terms of lic of India website. The most striking thing about this policy is that it will provide a max sum assured value of Rs 2 lakh only. That means straightway this policy can’t be considered as a insurance policy which will provide enough life cover, rather than we can say a moderate return small deposit scheme kind of.
Anyway, in this article I will share every single details about LIC Jeevan Rakshak benefits, key features, maturity value, surrender value, how to use the online premium calculator and calculate return on investment and the complete review of LIC Jeevan Rakshak plan.
Key Highlights of LIC Jeevan Rakshak Policy – Table No. 827
If you remember about PM Jeevan Jyoti Bima Yojana you will find that the life cover is similar to the same only. That means LIC Jeevan Rakshak plan will mainly target that class of people to provide a nominal life cover and also a moderate return on investment. Other than that, what I feel is this product will attract people who are new to income tax saving and want to exploit the entire 80C limit of 1.5 lakh.
Anyway let’s find out the basic features of LIC Jeevan Rakshak plan 827.
- It is a participating Endowment assurance Plan for savings and protection needs.
- The maximum life insurance coverage allowed is Rs 2 lakh only. Although you can opt for higher sum assured accidental rider with this policy.
- Rebate is given for yearly and half-yearly mode of premium payment the rebate being 2% and 1% of the Tabular Premium respectively. And given for choosing a Sum Assured of 1,50,000 and higher @ 1.5% of the Sum Assured
- In case of death happen before 5 years of policy premium payment, nominee will get only the sum assured value. But if you have crossed the 5th year of premium payment, then your nominee will get sum assured value + Loyalty addition as per LIC declaration.
- There is no other bonus like reversionary bonus or final additional bonus. In case you survived till the policy term you will get Basic Sum Assured, along with Loyalty Addition, if any, shall be payable in lump sum on Survival to the end of the policy term provided all due premiums have been paid.
These are the few key details I want to share with you. For more information, I think you can refer to the official page of LIC Jeevan Rakshak plan.
Eligibility Criteria of LIC Jeevan Lakshya Plan
|Sum Assured|| |
|Premium Paying modes|
|Maximum Maturity age|
|Maximum Cover Ceasing age|
|Grace Period|| |
A sample of annual premium rates (not inclusive of service tax) per Rs. 1000 of the sum assured is as follows –
|Age of Policyholder/Term (in years)||10||15||20|
Should I Invest in LIC Jeevan Rakshak Plan?
Well, I will never tell one to follow my personal opinions, rather try to understand what I am saying and validate whether I am right or wrong. Personally, this policy is no where matching with my requirement of insurance or investment. I have told many times that I have subscribe for a higher sum assured term plan from HDFC and for investment I am following the path of PPF/FD/NSC + Mutual Fund (SIP) + Stock Investments.
To help you in a better way to analyse the return, let’s explore the LIC Jeevan Rakshak premium calculation chart first. You can also use the lic online premium calculator and find out how premium you need to pay.
If you check the benefit illustration page of LIC Jeevan Rakshak page, you will find they have an example with the below data and showed how much premium one need to pay and also the surrender value.
- Entry Age: 35 years
- Policy term: 20
- Mode of Payment: Yearly
- Basic Sum Assured: 1 lakh
- Annual Premium: 3587
Now guaranteed sum assured value is rs 1 lakh and you are paying total Rs 71,740 as premium only in 20 years. Now generally the rate of loyalty addition bonus is Rs 250 – 400 / Rs 1000 sum assured value. As per the chart, we can see that the loyalty addition bonus accumulated as Rs 16, 500 only.
That means your net return on investment is ( Rs 1,00,000 + Rs 16,500 ) – Rs 71,740 = Rs 44,760 = 6% approx. So, now are you happy with this return on investment? It may be little more if you consider the income tax amount you have saved and considering the maturity value will be tax free. But remember that the loyalty addition is the only hope to get some return for this policy which is not guaranteed.
Now it’s over to you. Do you think LIC Jeevan Rakshak can protect life’s insurance & investment need? Write a simple comment below and share your thoughts or any experience.