LIC stands for Life Insurance Corporation of India. For more than 6 decades, this has been the most popular names in the field of insurance. For millions of Indians, LIC is suggestive of safe and trust-worthy life insurance policies. LIC believes that every individual has different needs and necessities. For what may be a priority for one, may not be so for the other. Therefore, LIC policies are varied in nature and each of them offers different solutions to different requirements. The transparent insurance plans help the common man plan for the future.
The veteran LIC launched a few plans in 2016, one of them is LIC’s Jeevan Pragati Policy. Launched on 3 February, 2016, Jeevan Pragati Policy is a non-linked with-profits endowment policy that provides the customers with a two-fold advantage of savings and welfare. After purchasing the policy, the risk cover is increased automatically every five years. This policy also caters to the liquidity requirements of the policy holder by providing an option of loan.
A participating non-linked plan, LIC’s Jeevan Pragati offers dual benefits of welfare and savings. It is a simple Endowment Plan with features of profit sharing. The plan provides a death benefit to the appointed nominee in case the insured individual expires before the policy matures. Not just that, maturity benefit is provided if the policyholder outlives the policy. He has to pay the required premium regularly for the entire term of the policy. Once the policy reaches its age of maturity, the individual will receive the sum assured and the loyalty additions.
|Age of Entry||12 Years||45 Years|
|Sum Assured||INR 1.5 lakhs||No Limit|
(In multiples of Rs 10,000)
|Policy Term||12 Years||20 Years|
|Maturity Age||65 Years|
The key features of the policy are given below:
LIC Jeevan Pragati Plan is considered to be ideal for people, within the age group of 12 to 45 years seeking insurance as the Jeevan Pragati Policy helps in an individual’s long term plans. With an increased cover keeping up with financial requirements at different stages of life, it becomes manageable for the policyholder.
Let us now take a look at the benefits of LIC’s New Jeevan Pragati Policy which make it a popular endowment plan.
These premiums do not include taxes or the rider charges.
|Year Of Death||Sum Assured||Final Additional Bonus|
|During Initial 5 Years||100% of the Sum Assured would be payable to the nominee||As applicable|
|Between 6-10 Years||125% of the Sum Assured would be payable to the nominee||As applicable|
|Between 11-15 Years||150% of the Sum Assured would be payable to the nominee||As applicable|
|Between 16-20 Years||200% of the Sum Assured would be payable to the nominee||As applicable|
As per LIC, “An accident is a sudden, unforeseen and involuntary event caused by external, violent and visible means.”
This benefit is optional and depends completely on the selection of the policyholder. It may be purchased when buying the policy or later in life too.
This policy offers a Guaranteed Surrender Value which depends on the policy tenure chosen and the year of surrender. On surrendering the plan, the surrender value of the vested bonuses, if applicable is also payable along with the Guaranteed Surrender Value.
LIC Jeevan Pragati Policy would be void if the insured individual:
The accidental death claim shall not be payable under the following situations:
To make a death claim the nominee who is the claimant should first lodge the claim. He then has to submit:
Maturity Claim and Surrender Claim
If the policy holder has to make a maturity claim or in case a surrender claim, he needs to submit:
Accidental Death Claim:
Sub-divisional verdict of the cause of accident to prove that the same was not created on purpose
Jeevan Pragati Policy is an easy to understand simple endowment plan. It offers dual benefits of welfare and savings with an automatically increasing life cover, thereby, allowing the policyholder to plan the future of his loved ones even in his absence. Affordable protection that also caters to long-term goals and creates a hedge against inflation, LIC’s Jeevan Pragati Policy is a great option for insurance seekers
The policyholder can add-on LIC’s Accident and Disability Benefit Rider to his policy.
If the insured individual has regularly paid all his premiums regularly for the initial three years of purchasing the policy, he is eligible for a surrender value. After three years only the policy collects a claimable surrender value.
In case the premium paying frequency is per month, then the policyholder has a grace period of 15 days. In the case of quarterly, semi-annual and annual frequency there is a 30-Day grace period. The policy will lapse if the policyholder does not pay his dues within this period.
If the policyholder does not pay the premium amount even in the grace period provided, the policy will lapse. However, the policyholder can revive it within a time limit of two years from the first unpaid premium date. But, it should be remembered that the revival has to be done before the maturity date.
If the policyholder does not pay the premium even in the grace period, the policy will lapse. However, the policyholder can revive it within a time period of two years from the first unpaid premium date. But, it should be remembered that the revival has to be done before the policy’s date of maturity.
If the individual commits suicide within 1 year of buying the policy, LIC of India will not serve any claim other than 80% of the amount paid through premiums, if the policy is in force. If the individual does so within 1 year of reviving the policy LIC will not serve any claim other than 80% of the premiums paid till the date of death.
If the policy holder wishes to add the Accidental and Disability Benefit Rider to his base plan, he can do so by adding a small amount to the premium amount. If in case the policy holder’s death or disability in an accident, during the term of the policy, the nominee would receive an extra amount apart from the sum assured.
The maturity benefit under LIC’s Jeevan Pragati Policy, which is received by the policy holder at the end of the policy term, is free from taxation under Section 10 (10D).