The New Jeevan Mangal Plan from LIC is a micro insurance policy that provides customers the dual benefit of a comprehensive cover against death and also the return of all premiums paid throughout the policy tenure at maturity of the policy. Policyholders can also pay their premiums in the form of a one-time lump sum amount or as regular instalments throughout the policy tenure.
The minimum premium payable towards this policy is Rs.60 (under the monthly mode of premium payment). This plan comes with a built-in Accident Benefit cover, which will provide an added benefit in case the policyholder meets with an accidental death. Tax benefits as per the Income Tax Act, 1961, will be applicable for this policy.
Prospective policy buyers will have to ensure that they meet the eligibility criteria set by the insurer.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||55 years|
|Maximum age at maturity||65 years|
The sum assured is the basic amount of money that the insurer will pay the life assured/nominee in the event of an unfortunate eventuality. The base sum assured doesn’t include additional bonuses or benefits that may be payable to you under the plan.
|Minimum Sum Assured||Rs.10,000|
|Maximum Sum Assured||Rs.50,000|
The premium is a fixed sum of money that the policyholder pays to the insurer in exchange for the risk cover offered by the insurance policy. For the New Jeevan Mangal Plan, premiums can be paid in the form as a single premium or as instalments during the policy tenure. Certain aspects of your premium payments and policy tenure are listed in the table below.
|Premium Payment Mode (applicable for Regular Premium policies)||
|Minimum Single Premium Amount||Rs.60|
|Maximum Single Premium Amount||Will vary based on the sum assured, age at entry, policy tenure, etc.|
*Premiums will vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If the life assured passes away while the policy cover is active, a death benefit will be paid to the nominee.
|Maturity Benefit||If the policyholder survives till maturity of the policy, all premiums paid during the policy tenure will be returned.|
|Accidental Death Benefit||If the life assured meets with an untimely death due to an accident, an additional benefit which will be equivalent to the sum assured will be paid to the nominee.|
While there are no additional riders that one can purchase in order to customise their policy, this policy comes with an in-built Accident Benefit Cover, which will provide an added benefit to one’s nominee in case of an unforeseen eventuality.
Exclusions - What LIC’s New Jeevan Mangal Plan doesn’t cover?
The New Jeevan Mangal Plan has a suicide clause. For Single Premium policies, if the policyholder commits suicide within a year of purchasing the policy, the insurer will return 90% of the single premium amount paid.
For Regular Premium policies, if the policyholder commits suicide within a year of the commencement of the risk cover, the insurer will return 80% of the total premiums paid and the policy cover will cease to exist. If the policyholder commits suicide within a year of the policy’s date of revival, the insurer will pay the nominee either the surrender value or 80% of the overall premiums, based on whichever is the higher of the two.
With regards to the Accident Benefit, the insurer will not be held liable to pay the benefit if the accidental death was caused as a result of:
|Grace Period||Insurer provides a grace period of 60 days regardless of the mode of premium payment.|
|Paid-Up Value||In the case of regular premium policies, if the policyholder has paid premiums for 3 full years and has not paid the subsequent premium, the policy will be converted into a paid-up policy.|
|Revival||Policyholders can revive their lapsed policy by paying the unpaid premiums with the applicable interest rate.|
|Loan||No facility to avail a loan against this policy is provided.|
|Free-Look Period||Policy buyers are provided a free-look period of 15 days to return their policy if they find it unsatisfactory.|
Policyholders or their nominees can claim tax rebates under Section 80C and Section 10(10D) of the Income Tax Act, 1961, thus making this plan a smart investment tool.
The New Jeevan Mangal Plan from LIC provides policyholders a protection cum savings option. While the policy does provide a risk cover with an in-built Accident Benefit cover, the insurer also guarantees the return of all premiums if the life assured survives till the completion of the policy tenure. The policy is also extremely affordable, with premiums starting from Rs.60.
LIC has been a market leader in the Indian life insurance space with decades of experience behind them. The insurer has reported a high claim settlement ratio of 98.33% for FY15-16, and has also won numerous awards over the years. They have a range of insurance products on offer including retail plans, group plans, and health plans.