The Jeevan Madhur Plan from Life Insurance Corporation of India (LIC) is a life insurance policy that offers customers both savings and protection features. Under this policy, the policyholder may choose to pay the due premium in weekly, fortnightly, monthly, quarterly, half-yearly, or yearly instalments. The exact amount that one will have to pay as the premium will vary according to the sum assured chosen, age at entry, policy term, etc. Tax benefits can also be availed every fiscal year provided the policy is in force.
Insurance firms usually set eligibility criteria, i.e., age limits, which the policy buyer needs to meet in order to be able to purchase the policy. Prior to being withdrawn, individuals between the ages of 18 years to 60 years could purchase the Jeevan Madhur Plan.
The minimum amount of money that the insurer guarantees to pay to the life assured or his/her nominee, as per the eventuality, is called the sum assured. Any individual purchasing a life insurance policy will have to opt for this amount at the inception of the policy.
|Minimum Sum Assured||Rs.5,000|
|Maximum Sum Assured||Rs.30,000|
The premium is what is paid by the policyholder to the insurer in order to enjoy the protection provided by the policy.
|Minimum term of the policy||5 years|
|Maximum term of the policy||15 years|
|Premium Payment Mode||
|Minimum Premium Amount||
* Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||Upon the policyholder’s death, vested bonuses and the total premiums paid during the policy tenure will be paid to the nominee.|
|Maturity Benefit||At completion of the policy term, the maturity sum assured and bonuses will be paid to the policyholder.|
The policyholder can purchase the Accidental Death and Disability Benefit Rider along with the base policy, for an additional premium. Thus, in case the policyholder suffers from an untimely, accidental death, the rider benefit will be paid in addition to the base policy’s benefit. If the life assured suffers from a severe disability due to the accident, the rider benefit will be paid in instalments for a period of 10 years.
This policy comes with a one-year suicide exclusion. Thus, if the life assured commits suicide within a year of purchasing the plan, the insurer will not pay any death benefit. However, the bonafide beneficial interest may be paid to the nominee.
Any injuries resulting from a civil commotion, rebellion, riots, war, snake biting, invasion, mountaineering, hunting, racing, etc. will also not be covered. If the death occurred while the life assured was committing an act against the law, no payout will be paid by LIC.
|Free-Look Period||The free-look period for this policy is 15 days.|
|Policy Revival||Lapsed policies can be revived within 5 years of the last unpaid premium, provided the policyholder pays the arrears with interest, to the insurer.|
|Auto Cover Facility||If the life assured has paid premiums for two policy years and has not paid the subsequent premium, the risk cover will continue as is for 3 years from the date of the first unpaid premium.|
|Bonus||The Simple Reversionary Bonus will be declared by LIC at the end of every fiscal year.|
|Surrender Value||Policies that have been running for 2 years can be surrendered. The insurer will pay the Guaranteed Surrender Value or the Special Surrender Value, based on whichever of the two amounts is greater.|
|Paid-Up Policy||If at least 2 years’ premiums have been paid within the due date and the subsequent premium was left unpaid, the policy shall be converted into a paid-up policy, instead of being terminated.|
Individuals who have purchased the Jeevan Madhur Plan from LIC can avail tax returns under Section 80C of the Income Tax Act, 1961, for every policy year. Similarly, any benefit that is paid to you is also tax-free, as per Section 10(10D) of the Income Tax Act.
The Jeevan Madhur Plan from LIC offers policyholders a comprehensive life cover, in addition to bonuses and optional rider benefits that are payable along with the plan benefits. LIC, which is one of the stalwarts of the industry, is one of the most preferred life insurance companies within the company. The company has received several awards over the years, for their service and contribution to the life insurance industry in India. The company also has a grievance solved ratio of 100% for FY16-17, in addition to the high claim settlement ratio.
Note: This policy has been withdrawn by LIC.