LIC’s Jeevan Pragati Plan is a benefit plan having a combination of protection and savings. The dual benefit is that there is an automatic increase in risk cover after every 5 years and the liquidity needs are taken care of through loan facility.
Maturity Benefits in Jeevan Pragati
The benefit is the lump sum amount paid on survival at the end of the policy term, on the condition that the member has paid all the premiums on time under Jeevan Pragat plan. The “Sum Assured on Maturity” is equal to the Basic Sum Assured, along with vested Simple Reversionary Bonuses and any applicable Final Additional bonus.
Death Benefits in Jeevan Pragati
The nominee can avail the “Sum Assured on Death “, the granted Simple Reversionary Bonuses and Final Additional bonus, during the policy term, in case of the member’s death, provided all the premiums are paid. The amount assured to be paid on death is 10 times of annualized premium or Absolute amount. For first 5 years of the policy, it is 100% of the Basic Sum Assured. During the 6th to 10th policy years, it is 125%, 150% during 11th to 15th policy years and 200% thereafter.
No taxes shall be included or an extra amount will be charged.
Optional Riders
In Jeevan Pragat policy, there is an option for every policyholder to claim the LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01). The sum cannot exceed the Basic Sum Assured.
About Premiums
LIC Plan 838 has very flexible premium paying options. The members can pay regularly at an interval of 12 months to 6 months or even on a quarterly or monthly basis. The mode can be through ECS or salary deduction. The grace period of payment would be not less than 30 days. If one is opting to pay every month then grace period would be 15 days only, otherwise, the policy would go in the lapsed state and may even get annulled.
Revival
In the instance of premium not paid within the grace period, the policy will lapse. In such cases, the lapsed policy can be revived within the time period of 24 months from the date of the first unpaid premium. The policy member shall keep in mind that the policy hasn’t reached the maturity date. The member will have to pay all the premiums at a time along with the compounded interest, a rate fixed by the Corporation. The corporation has all the rights to accept the original term or revise the term or decline the revival of a discontinued policy.
Paid-up Value in Jeevan Pragati
The policy will continue in a paid-up form if the member has not duly paid the premiums after at least paying full 3 years premiums. The disadvantage would be a lower amount on both Sum Assured on Death and Sum Assured on Maturity. In such instances, the Sum Assured on Death would reduce to Death Paid-up Sum Assured and Sum Assured on Maturity would be reduced to Maturity Paid-up Sum Assured. The amount would be Sum Assured on Death / Maturity multiplied by the amount received by dividing the number of premiums already paid by a Total number of payable premiums. The rider benefits will automatically cease to apply.
Surrender Value
If the member wished to surrender his/her policy, it will be beneficial only if he/she do it after paying a minimum of 3 years of premium. No taxes will be included or extra amount charged.
Policy Eligibility for Jeevan Pragati
| Lowest Eligible Age | 12 Years |
| Highest Eligible Age | 45 Years |
| Age Limit for Maturity | Less than 65 Years |
| Lowest Basic Amount Assured | 150000 INR |
| Highest Basic Amount Assured | Limitless |
| Policy Tenure | 12 to 20 years |
Policy Loan
Members can avail loan on LIC table 838, if and only if the policy has acquired the surrender value. The terms and conditions of the Corporation have to be followed.
Tax Benefits in Jeevan Pragati
Members may please make note of this. Taxes are applicable as imposed by the Government of India or any other constitutional Tax Authority of India. The amount payable would be as per rules and on premiums payable under the policy. This amount will be collected separately in addition to the regular premiums.
Cooling Off Period
Members have the option to return the policy within 15 days’ time after receipt of the policy if they are not satisfied with the rules and regulation of Jeevan Pragat plan. The corporation will cancel the policy and return the premium amount paid, after necessary and required deductions.
Exclusion
In the Jeevan Pragat policyholder ends his/her life prematurely within a year’s time from the receipt of the policy, then the policy shall be annulled and no claim can be entertained. If the policy is in force then just 80% of the premiums paid can be claimed. But no other claim can be made in the case of revival or rider premium or taxes. This is to dissuade the policyholder to willing take his/her life to provide monetary support to the family.
