Securing the future of our loved ones is often the top priority in our lives, with a good life insurance plan helping alleviate this stress to a certain limit. The Jeevan Nischay plan from LIC offers protection for a specified time period, through the payment of a single premium. The plan is suited for individuals who are looking for pure protection for a limited period. Individuals looking for monetary gains might not find this policy suited to their needs.
The Jeevan Nischay plan can be purchased by keeping these simple eligibility criteria in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||NA|
|Maximum age at entry||50 years|
|Maximum age at maturity||60 years|
Sum Assured – The Jeevan Nischay plan pays a certain amount to the nominee in the event of demise of policyholder during the policy period. This is termed the sum assured and it is a fixed amount which is determined at the start of the policy. This amount is computed after taking the premium into consideration. It is possible to increase the sum assured by paying a higher premium.
|Maximum sum assured||Rs.50 lakh|
Premium – This is a single premium plan wherein the premium amount is paid while purchasing the policy. The premium amount should be chosen carefully, for this has a bearing on the sum assured. One can choose to pay a premium ranging between Rs.10,000 and Rs.10 lakh under this plan.
|Maximum premium||Rs.10 lakh|
*The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.
|Death Benefit||On demise of the policyholder during the first year of the policy, the nominee will be paid a death benefit equivalent to 5 times the premium paid while purchasing the policy. If death occurs after the first year (but before the last year) the nominee will be paid the maturity sum assured. If demise occurs during the last year of the policy the nominee will be paid the sum assured plus loyalty additions.|
|Maturity Benefit||The maturity sum assured is paid along with any loyalty additions earned.|
There is no provision to enhance this plan through a rider.
There is a suicide exclusion under this plan wherein the nominee is entitled to an amount equivalent to 90% of the premium paid if the policyholder commits suicide within one year of purchasing the policy. The policy will cease to exist once this amount is paid.
Other Key Features
|Loan||There is a provision for loan under this policy, subject to the plan being active for a minimum of one year.|
|Grace period||Not applicable since this is a single premium plan wherein the premium amount is paid upfront.|
|Free-look period||A 15 day free-look period is provided within which one can choose to return this policy if he/she does not agree with the terms and conditions.|
|Surrender value||The policy acquires a surrender value after it has been in force for a minimum of 1 year. This amount is equivalent to 90% of the premium paid.|
|High premium incentive||LIC will pay a higher maturity sum assured to those individuals whose premium amount exceeds Rs.25,000.|
Individuals can avail tax benefits under the Income Tax Act of 1961 when they purchase this plan. While the premium paid is eligible for deduction under Section 80C of the Act, the amount received as a death/maturity benefit qualifies for benefits under Section 10(10D) of the same act.
The Jeevan Nischay Plan from LIC offers protection and peace of mind to an individual. While the family is financially protected in case of demise of the policyholder during the period, the policyholder is also eligible for a maturity benefit if he/she survives the term.
LIC is the most popular insurance company in India, with millions of people trusting it. The company has an impeccable record, having registered a high claim settlement ratio of 98.33% during 2015-16. This number indicates that genuine claims are likely to be catered to without any issues.
Additionally, the company had a 100% record when it came to grievances solved during the same year.
The affordability of the plan is another reason why one could consider purchasing it. The option to earn a higher maturity benefit for higher premiums can entice one to get greater protection.
Note: This plan has currently been withdrawn and cannot be purchased.