LIC Jeevan Rakshak Plan 827 – The Jeevan Rakshak Plan by LIC is a simple endowment plan designed to offer savings alongside life insurance protection. In case of the policyholder’s unexpected death before the plan matures, this plan ensures financial support to their family. If the policyholder survives until the end of the maturity period, they will receive a lump sum amount. Below, find comprehensive details regarding the LIC Jeevan Rakshak Plan including its features, benefits, eligibility criteria, required documents, premium payments, policy revival options, surrender value, exclusions, and more.
Overview of LIC Jeevan Rakshak Plan 827
The Life Insurance Corporation of India has been offering the LIC Jeevan Rakshak policy since August 2014. It is a non-participating plan which elegantly combines protection with savings. Should the policyholder pass away during the policy term, it provides ongoing financial support to their family; if they survive the policy term, a lump sum is paid out upon maturity. This policy also comes with an option for loans.
LIC Jeevan Rakshak Policy Details
| Name | LIC Jeevan Rakshak Plan |
| Introduced by | The Life Insurance Corporation of India |
| Beneficiaries | Policyholder’s family |
Features of LIC Jeevan Rakshak
Key features of the LIC Jeevan Rakshak plan include:
- The insured amount ranges from a minimum of Rs 75,000 to a maximum of Rs 20,00,000, with the basic sum assured in multiples of Rs 5,000.
- The policy term varies from 10 to 20 years, with four premium payment modes available—monthly, quarterly, half-yearly, or annually.
- The maximum age at maturity is 70 years.
- After five years, the policy is eligible for a loyalty addition.
- The plan allows for the attachment of an accidental death benefit rider.
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LIC Jeevan Rakshak Plan Benefits
The key benefits of the LIC Jeevan Rakshak Plan include:
- Maturity Benefit: The maturity benefit is available if regular premium payments have been maintained until maturity. This includes the basic guaranteed amount plus any loyalty addition.
- Death Benefit: In case of the policyholder’s death during the policy term, the plan provides a death benefit of the basic sum assured, 10 times the annualized premium, or 105% of total premiums paid until that point. This calculation excludes service taxes and additional premiums. Any loyalty addition will also be added if death occurs after five years from the policy’s initiation.
- Tax Benefits: Premium payments and death/maturity benefits qualify for tax deductions under sections 80C and 10(10D) of the Income Tax Act.
- Profit Participation: The policyholder can participate in corporate profits, with profit being shared amongst policyholders as a loyalty addition once the policy has been active for five years. This addition will be applicable at maturity or upon death.
- Optional Accidental Benefit: An accident benefit rider can be included for an extra premium to receive a lump-sum payment in case of accidental death.
Eligibility Criteria for LIC Jeevan Rakshak Policy
The eligibility criteria for the LIC Jeevan Rakshak Plan are summarized in the table below:
| Factor | Minimum | Maximum |
| Policy Tenure | 10 Years | 20 Years |
| Sum Assured | Rs 75,000 | Rs 20,00,000 |
| Age Limit | 8 Years | 55 Years |
| Age at Maturity | – | 70 Years |
| Premium Payment Terms | Equal To Policy Term | – |
| Premium Payment Modes | Monthly, Quarterly, Semi-Anually, & Annually | – |
| Grace Period | 30 Days (15 Days For Monthly Mode) | – |
| Free Look Period | 15 Days From Receipt of the Policy | – |
| Plan Type | Offline | – |
Documents Required for LIC Jeevan Rakshak Plan
Essential documents necessary for the LIC Jeevan Rakshak Plan include:
- Policy Application Form
- Medical History Documentation
- Proof of Address
- KYC Documents such as Aadhaar Card, PAN Card, and Photo ID Proof
Premium Payments for LIC Jeevan Rakshak Policy
Premiums for the LIC Jeevan Rakshak Policy can be settled annually, biannually, quarterly, or monthly. Monthly payments can only be made through the ECS facility. Rebates of 2% for annual and 1% for half-yearly payments are applicable, and a 1.5% rebate is available for premiums greater than Rs. 1,50,000. A grace period of one month is permitted for yearly and half-yearly payments, while a 15-day grace period is allowed for monthly payments.
Revival of LIC Jeevan Rakshak Policy
If premiums are not paid within the grace period, the policy will lapse. However, it can be revived if all overdue premium payments and accumulated interest are cleared within two consecutive years from the date of the last paid premium. This two-year survival period will end just before the maturity date. The Accident Benefit Rider is revived alongside the base policy and not separately.
Paid-up Value
The policy remains valid as a paid-up policy if premiums have been paid for a minimum of three years and payment is stopped afterwards. The Basic Sum Assured will then be calculated based on a formula involving premiums paid and payable. The Paid-up Sum Assured will be paid upon maturity or the unfortunate death of the policyholder, whichever occurs first.
Surrender Value of LIC Jeevan Rakshak Plan
Only those policies that have sustained a minimum of three years of premium payments are eligible for cash surrender. The Guaranteed Surrender Value equates to a percentage of total premiums paid (after service tax) but does not include any additional premiums or payments for riders. This percentage is determined by the Corporation, based on the policy term and the year in which the policy is surrendered. If necessary, the Corporation might determine a Special Surrender Value if it is more beneficial for the policyholder.
Loans
Loans can be availed against the policy if it holds a surrender value. The Corporation will specify the terms and conditions for these loans.
Exclusions
The policy will be rendered void if the life assured commits suicide within the first 12 months of the policy’s inception. In such cases, only 80% of premiums paid (excluding taxes, additional premiums, and rider premiums) will be refunded.