LIC’s New Jeevan Mangal Plan
Life Insurance Corporation of India has introduced numerous unique insurance products and one such product is LIC’s New Jeevan Mangal Plan. The LIC’s New Jeevan Mangal Plan is a micro-insurance plan that also offers features of a term insurance plan. The LIC’s New Jeevan Mangal Plan is a protection plan that guarantees the return of all the premiums paid on the maturity date. The other key highlights, features and benefits offered by the plan are discussed in detail below.
What are the key features of the New Jeevan Mangal Plan?
The LIC’s New Jeevan Mangal Plan is a protection plan that focuses to provide financial protection and secure the future of the loved ones in the event of the death of the Life Assured. This plan is ideal if a policyholder is looking for an insurance product that provides financial protection at an affordable premium. The product features of the LIC’s New Jeevan Mangal Plan are as under :
- A pure protection plan that provides life coverage at a low premium rate
- The policyholder has an option to choose the tenure of the policy as per their convenience
- The policy offers two modes of premium payment single premium payment mode and regular premium payment mode.
- Under the regular premium payment mode the policyholder can choose premium payment mode as Yearly, Half-Yearly, Quarterly or Monthly as per their convenience.
- The premium payment can be done in a lump sum manner under single premium payment mode or on regular basis (i.e. Yearly, Half-Yearly, Quarterly or Monthly) under the regular premium payment mode as per the needs of the policyholder.
- The LIC’s New Jeevan Mangal policy tenure is bifurcated in two classes i.e. policy tenure for single premium and policy tenure for regular premium.
- In case of death due to accident an additional sum assured equal to the basic sum assured shall be paid by LIC
Thus, above are the most unique features offered by the LIC’s New Jeevan Mangal Plan.
What are the benefits of the LIC’s New Jeevan Mangal Policy?
The Life Insurance Corporations New Jeevan Mangal Policy is a unique protection plan. this product is a micro-insurance product that guarantees the return of all the premiums paid. The plan also provides built-in Accidental Benefit Rider which provides for an additional risk cover apart from the basic sum insured in case of death due to an accident. The benefits of the New Jeevan Mangal Plan of LIC are as under :
- Maturity Benefit
Maturity Benefit is the benefit that is received by the policyholder on the date of maturity of the policy i.e. at the end of the tenure of the policy. The LIC’s Jeevan Mangal Plan offers repayment of all the premiums paid during the tenure of the policy. This maturity benefit shall exclude all the taxes paid or extra premiums paid during the tenure of the policy. Kindly note, this maturity benefit is paid by LIC only on the survival of the policyholder till the end of policy term and only if the policy is in full force. - Death Benefit
The death benefit under the New Jeevan Mangal plan is payable upon the event of the death of the policyholder. The death benefit under this plan is different for death due to accident and death due to reasons other than an accident. Following death benefit is paid by LIC to the nominee provided the policy was in force on the date of death of the policyholder.- Death due to any reason other than an accident
In case of eventuality not due to an accident the death benefit payable is different for regular premium policies and single premium policies. The death benefit under both the modes of premium payment payable by LIC is as under:- For policies having regular premium payment mode : Sum assured on death shall be payable which is highest of :
- 10 times of the annualized premium
- 105% of all the premiums paid till the date of eventuality
- Sum assured on maturity
- Absolute amount assured (equivalent to sum assured)
- For policies having single premium payment mode : Sum assured on death is payable by LIC. The sum assured on death is defined as higher of :
- 125% of single premium
- Absolute amount assured equivalent to sum assured
- Kindly note that the premium amount taken into consideration while calculating death benefit shall exclude taxes or extra premium paid during the policy tenure.
- For policies having regular premium payment mode : Sum assured on death shall be payable which is highest of :
- Death due to any reason other than an accident
- Death due to an accident
In case of eventuality due to an accident the nominee is eligible to receive the death benefit from LIC. Death benefit in case the death is due to an accident is basic sum assured PLUS additional sum assured equivalent to basic sum assured is paid by LIC to the nominee.
Kindly note, the additional sum shall be paid by LIC for a policy that is in-force at the time of the accident and the death of the policyholder is occurred within 180 days of the accident.
What are the eligibility criteria of the LIC’s New Jeevan Mangal Plan?
The Life Insurance Corporation of India has set certain eligibility criteria that must be taken into account while purchasing the LIC’s New Jeevan Mangal Plan. The eligibility criterion for the LIC’s New Jeevan Mangal Policy is as under :
| Particulars | Conditions |
|---|---|
| Minimum Entry Age | 18 Years Last Birthday |
| Maximum Entry Age | 55 Years Nearing Birthday |
| Maximum Maturity Age | 65 Years Nearing Birthday |
| Policy Tenure | For Regular Mode of Premium Payment : 10 years to 15 years For Single Mode of Premium Payment : 5 Years to 10 Years |
| Minimum Premium Amount | Rs 60.00 for the monthly mode of premium payment (kindly note, there is no such minimum premium amount condition for other modes of premium payment) |
| Min. Sum Assured | Rs 10,000.00 |
| Max. Sum Assured | Rs 50,000.00 |
| Maximum Policy Tenure | Maximum Premium Paying Term + 2 Years i.e. 15 Years |
| Kindly note that the sum assured under the LIC’s New Jeevan Mangal Plan can be availed in multiples of Rs 1,000.00 | |
What are the Premium Rates under the LIC’s New Jeevan Mangal Plan?
The premium rates are different for regular premium payment mode policies and single premium payment mode policies. The premium rates for both different premium payment policies are as under :
Premium rates for Regular Premium Policies
| Age of the Life Assured | Policy Tenure | |
|---|---|---|
| 10 Years | 15 Years | |
| 20 Years | 58.85 | 36.85 |
| 30 Years | 60.15 | 38.15 |
| 40 Years | 66.45 | 43.60 |
| 50 Years | 83.60 | 56.15 |
Premium rates for Single Premium Policies
| Age of the Life Assured | Policy Tenure | |
|---|---|---|
| 5 Years | 10 Years | |
| 20 Years | 175.30 | 138.65 |
| 30 Years | 179.25 | 144.40 |
| 40 Years | 199.85 | 172.00 |
| 50 Years | 269.45 | 247.40 |
Kindly note, the above premium rates under both regular premium payment mode policies and single premium payment mode policies are Rs 1000 per sum assured.
What are the conditions of surrendering the policy?
The policyholders of LIC’s New Jeevan Mangal Plan are eligible to receive guaranteed surrender value for their policies as under :
The guaranteed surrender value for Single Premium Policies shall be as follows
- 70% amount of the single premium when the surrender of policy is within 3 policy years from the commencement date. The surrender value shall be calculated by excluding the taxes or extra premium paid.
- After the completion of the first 3 policy years from the date of commencement of the insurance policy 90% amount of the single premium is the surrender value. This surrender value shall not include taxes and extra premium paid.
The guaranteed surrender value for Regular Premium Policies shall be as follows
The surrender of regular premium policies can be done provided all the premiums of a minimum of 3 consecutive years have been paid in full. The guaranteed surrender value in the case of Regular Premium policies is equivalent to the guaranteed surrender value factor X total premiums paid. The guaranteed surrender value factor is a percentage factor based on policy term and the year of policy surrender.
Following is a tabular illustration of guaranteed surrender value factor of LIC’s New Jeevan Mangal Plan :
| Policy year of surrender | Policy term 10 years | Policy term 11 years | Policy term 12 years | Policy term 13 years | Policy term 14 years | Policy term 15 years |
|---|---|---|---|---|---|---|
| 5 | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% |
| 8 | 65.00% | 60.00% | 57.50% | 56.00% | 55.00% | 54.29% |
| 10 | 80.00% | 80.00% | 72.50% | 68.00% | 65.00% | 62.86% |
| 15 | NA | NA | NA | NA | NA | 80.00% |
LIC may on its discretion offer a special surrender value if it is favourable to the policyholders.
What are the exclusions under the New Jeevan Mangal policy?
The exclusion under the LIC’s New Jeevan Mangal Policy is Suicide. In case of suicide LIC shall not entertain any claim except the payment in certain cases shall be done as under :
- For Single Premium Policies
If the policyholder whether sane or insane commits suicide within the first policy year i.e. within 12 months from the policy commencement date then 90% amount of single premium shall be paid and the insurance contract shall end. - For regular Premium Policies
If the policyholder commits suicide within 1st policy year from the commencement date then 80% amount of the premiums paid shall be paid to the nominee provided the policy is in-force. While, if the policyholder commits suicide within 12 months from the date of revival of the policy, then 80% amount of premiums paid till the date of death or surrender value whichever is higher shall be paid by LIC to the nominee. Kindly note, the policy should be in-force to be eligible to receive the claim.
FAQ’s
The LIC’s New Jeevan Mangal Plan allows premium payment in the following modes :
- Yearly
- Half-Yearly
- Quarterly
- Monthly
- Single Premium
LIC allows a grace period of 2 months i.e. 60 days of grace period for payment of unpaid premium plus interest. The grace period of 60 days is applicable to all modes of premium payment.
LIC is not liable to pay an additional sum assured under the New Jeevan Mangal Plan where the death of the life assured is due to :
- Intentional self-injury,
- Attempt to suicide
- Insane or unstable state of mind
- Under the influence of liquor, drugs or narcotics
- Succumbing to injuries caused by participating in riots, civil war, adventure sports, mountaineering, paragliding etc
- If the death of the policyholder occurs within 180 days from the accident date but after the end of policy tenure
- If the death of the policyholder occurs after the completion of 180 days from the date of the accident
The paid-up value of the LIC’s New Jeevan Mangal Plan is acquired when a premium of at least of 3 years is paid. The paid-up policies are not wholly void but they receive benefits in the ratio of the premiums paid. The maturity sum assured in the case of paid-up policies is equivalent to total premiums paid shall be paid. The death sum assured benefit for paid-up policies shall be paid in the ratio similar to the premium paid to total premiums payable. Kindly note, the paid-up value is only applicable to LIC’s New Jeevan Mangal Policy having regular premium payment mode.
The revival of LIC’s New Jeevan Mangal Plan is possible. The revival of the lapsed policy is possible by paying the unpaid premiums plus late payment interest. The revival of the lapsed policy can be done within a period of 2 years commencing from the date of first unpaid premium but before the end of policy tenure. The revival of lapsed policy is done by submitting satisfactory proof of continued insurability to LIC.
No, the LIC’s New Jeevan Mangal policy does not offer loan facility under this plan.
The free-look period or cooling-off period offered by LIC under this plan is 15 days. The policyholders can cancel the New Jeevan Mangal Plan if they are unsatisfied with the terms and conditions of the policy within a period of 15 days commencing from the date of receipt of the original policy bond. The cancelation of the policy within the cooling-off period can be done by returning back the policy to LIC stating the valid reason for such cancellation. Upon receipt of such request, LIC shall cancel the policy and return the premium paid by deducting certain charges pertaining to stamp duty, a proportionate premium for the period covered etc.