The Jeevan Pragati Plan from LIC of India is a ‘with profits’, non-linked, saving cum protection, life insurance plan. This plan offers policyholders several benefits including an automatic increase in the level of coverage, every five years. In addition, the policy also pays a considerable death benefit with the inclusion of bonuses, should the policyholder meet with an untimely death benefit.
The maturity benefit payable at maturity of the policy will also enable the policyholder to plan for future milestones. Premiums payable will vary as per the policy tenure, sum assured, policy buyer’s age at entry, etc. In addition, the life assured can choose to avail LIC’s Accidental Death and Disability Benefit Rider by paying an additional premium. Tax benefits, as per prevailing tax laws, will be applicable to this policy.
Insurance providers usually set an eligibility criteria that prospective policy buyers need to meet in order to purchase the insurance policy.
|Parameters||Criteria for eligibility|
|Minimum age at entry||12 years|
|Maximum age at entry||45 years|
|Maximum age at maturity||65 years|
The sum assured is a basic amount of money that will be paid to you or your nominee, in case of certain eventualities, before the addition of any bonuses that you may be entitled to receive as a policyholder. You will need to choose the sum assured while buying your policy. You premium amount is tied to the sum assured. Thus, if you opt for a high sum assured, you will need to pay a higher premium, and vice versa.
|Minimum Sum Assured||Rs.1.5 lakh|
|Maximum Sum Assured||No limit|
The premium is what you will have to pay, as per the premium payment mode chosen by you, in order to maintain the coverage accorded by the policy. Listed below are certain particulars related to your policy term and the premium mode.
|Minimum term of the policy||12 years|
|Maximum term of the policy||20 years|
|Premium Payment Mode||Premiums can be paid on an annual, bi-annual, quarterly, or monthly basis.|
* Premiums vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If the policyholder succumbs to an untimely death, the insurer will pay the nominee the Death Sum Assured, Final Additional Bonus, and the Simple Reversionary Bonus.
The Death Sum Assured payable will be the highest of the following:
|Maturity Benefit||On maturity of the policy, the insurer will pay the Maturity Sum Assured, the Final Additional Bonus, and the vested Simple Reversionary Bonus, as declared by the insurer.|
The policyholder can also opt for LIC’s Accidental Death and Disability Benefit Rider to enhance the coverage of the base policy. If the life assured meets with an accidental death, the insurer will pay the nominee the Accident Benefit Sum Assured amount. And if the life assured were to meet with an accident that causes severe and permanent disability, he/she will be liable to claim the Accident Benefit Sum Assured over a period of 10 years as monthly instalments. This can serve as an income replacement and will safeguard the life assured and his/her family financially.
This policy comes with a suicide exclusion. If the policyholder happens to commit suicide within 1 year of the policy’s inception date, no benefit will be paid. However, 80% of the total premiums paid will be returned to the nominee. If the policyholder commits suicide within 1 year or reviving/reinstating the policy, the nominee will be paid either 80% of the premium amount or the surrender value, based on whichever is the higher of the two.
|Free-look period||The insurer provides policy buyers a 15-day free-look period, during which time the life assured can review the policy terms and return the policy if he/she is not satisfied with it.|
|Grace Period||If you have opted for an annual, bi-annual, or quarterly mode of premium payment, you will be provided a 30-day grace period. If you have opted for the monthly mode of premium payment, you will be provided a 15-day grace period.|
|Policy Revival||Any lapsed policy can be revived within 2 years, provided the policy has not yet attained maturity, by paying the unpaid premiums along with the interest amount.|
|High Sum Assured and Mode Rebate||
|Participation in Profits||Since this is a “with profits” policy, the life assured will also receive the vested Simple Reversionary Bonus and the Final Additional Bonus, as declared by the company on the basis of its experience.|
|Paid-Up Value||If the policyholder has paid full premiums for at least 3 policy years and has missed the following premium payment, the policy will continue as a paid-up policy. The Death Sum Assured and Maturity Sum Assured will also reduce, accordingly.|
|Surrender Value||You can surrender your policy if at least 3 years’ premiums have been paid. Post surrendering your policy, you will be paid the Guaranteed Surrender Value.|
|Policy Loan||Once your policy has acquired a Surrender Value, you can avail a loan against this policy.|
|Nomination||Assignment is permitted as per Section 38 of the Insurance Act, 1938.|
|Assignment||Nomination is allowed under Section 39 of the Insurance Act, 1938.|
Policyholders can claim tax benefits as per prevailing income tax laws under Section 80C (for premiums paid) and Section 10(10D) (for maturity/death benefit received). Tax laws might change from time to time, without notice. Hence, you must consult with a tax advisor for more information on the same.
Apart from the regular policy benefits that you are entitled to, you can also avail a host of other benefits by being a customer of LIC. A few other benefits offered to policy buyers and members are:
Securing the lives of our dependents financially and planning for shared milestones are an easy task when one is hale and hearty. But in case of an unfortunate eventuality, the family often has to face a lot of uncertainty and financial distress, along with the emotional distress brought about by the situation. While nothing can compensate for the loss of a loved one, having a comprehensive life insurance policy can at the very least take care of one’s family financially, no matter what happens in the future.
The Jeevan Pragati Plan provides a considerable death benefit with bonuses, in case the policyholder passes away during the policy tenure. And if the life assured survives till maturity of the policy, he/she is able to claim a substantial maturity benefit, which will also help one meet financial goals in the future.
Coming to the insurer, Life Insurance Corporation of India (LIC) is without doubt a leader in the life insurance sector. LIC has a wide range of individual and group insurance products on offer, due to which one is guaranteed to find a policy that perfectly matches their needs. LIC has also reported an extremely high claim settlement ratio of 98.33% for FY15-16. The insurer has also received several awards over the past years.