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LIC Nav Jeevan

Nav Jeevan plan is a non linked, with profit, Endowment Life Assurance plan. The main feature of this plan is that the policyholder has the option to choose between two premium payment options i.e., single premium (or) limited premium payment term of 5 years.

Before discussing about the features of LIC Nav Jeevan plan, let’s understand the different types of Traditional Life Insurance plans.

  • What is an Endowment plan?  – It  is a combination of insurance and investment. The insured will get a lump sum along with bonuses (if any) on policy maturity (or) on death event.
  • What is an ‘Whole-Life Insurance Plan’? –  It is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime. The Sum assured is paid to the Policyholder’s nominee in the event the insured dies.
  • What are Money-back policies? – They provides life coverage during the term of the policy and the maturity benefits are paid in installments by way of Survival Benefits (money-back payments).
  • What are Limited Premium Payment Insurance Plans? – A limited premium payment plan is a plan where you pay the premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time.
  • What is a Single Premium Plan? – It is the insurance policy where you pay insurance only in the first year but continue to enjoy the life cover and other plan related benefits throughout the term of the policy.
  • What is Term Life Insurance Plan? – Term insurance is the simplest and most fundamental insurance product. These insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.

    Key Features of LIC Nav Jeevan Plan

    Below are the key features of LIC’s Nav Jeevan Policy for Single Premium option;

    • Minimum Age at entry : 90 days
    • Maximum age at entry : 44 years
    • Minimum basic sum assured (BSA) : Rs 1,00,000
    • Maximum basic sum assured (BSA) : No Limit
    • Policy term : 10 to 18 years
    • Premium Payment Term : Single
    • Surrender option: The Policy can be surrendered at any time during the policy term under single premium option.

    Below are the key features of LIC’s Nav Jeevan Policy for Limited Premium Payment option;

    • Minimum Age at entry : 90 days
    • Maximum age at entry : 60 years
    • Minimum basic sum assured (BSA) : Rs 1,00,000
    • Maximum basic sum assured (BSA) : No Limit
    • Policy term : 10 to 18 years
    • Premium Payment Term : 5 years
    • Surrender option: The Policy can be surrendered at any time after paying premium for two policy years.

    LIC Nav Jeevan – Maturity Benefit

    When the policyholder survives till the end of the policy term and all the due premiums have already been paid ‘Sum Assured on Maturity’ along with LA (Loyalty Additions) if any are payable. (Sum Assured on Maturity is equal to Basic Sum Assured.)

    LIC Nav Jeevan Policy – Death Benefit

    In case life assured dies before the date of maturity and policy is in force condition then the benefits payable to nominee/assignee is as under;

    • On death during the first five years: ‘Sum Assured on Death’ is payable
    • On death after completion of five policy years but before the date of maturity: ‘Sum Assured on Death’ along with Loyalty Addition is any payable
      • For Single Premium Policy: ‘Sum Assured on Death’ is defined as the higher of  Guaranteed sum assured on maturity that is basic sum assured or absolute amount assured to be paid on death that is 10 times of tabular single Premium for the chosen basic sum assured.
      • For Limited Premium Policy: ‘Sum assured on death’ is defined as higher of guaranteed sum assured on maturity or absolute amount assured to be paid on death that is 10 times of annualized premium if OPTION 1 is opted for or 7 times of  annualized premium if OPTION 2 is opted for.

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