LIC’s Navjeevan is a non-linked, participating Endowment Life Assurance plan which offers a Combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder before the maturity period. A lump sum amount will be provided to the policyholder at the time of maturity for the surviving. You can pay the premium as a lump sum amount with a single premium or within a limited period of 5 years. To avail this policy you can use both the online as well as offline methods.
Benefit
Maturity Benefit of Navjeevan Plan
If the policy attains the maturity and the policyholder survives the insurance cover period then the policy is said to be matured. When all premiums have been paid the policy becomes entitled to provide the policyholder with the Sum Assured on maturity which is equal to the Basic Sum Assured + Loyalty Bonus.
Death Benefit of Navjeevan Plan
If the policyholder suddenly demises then the nominee decided by the policyholder will be provided with the Insurance Amount. The following payments will be provided as per the scenario-
On Death during the First Five Policy year
Before the date of Commencement of Risk
The refund of premium(s) paid without interest shall be payable to the nominee. The Premium paid to the nominee will be excluding any tax, extra amount for an added benefit like rider benefit, etc.
After the date of Commencement of Risk
Sum Assured at the time of availing the insurance will be paid to the nominee.
On Death after the First Five Policy Year And Before the Maturity
In this case, the Sum Assured along with the Loyalty Bonus will be payable to the policyholder.
The Sum Assured that you will be getting is the depending on the type of premium you are paying which is as follows-
Single Premium
The Sum Assured for Single Premium at the time of death is-
- Guaranteed Sum Assured on Maturity
- “Absolute amount assured to be paid on death” which is equal to 10 times of ‘Tabular Single Premium for the chosen Basic Sum Assured’
Limited Premium
- Guaranteed Sum Assured on Maturity
- “Absolute amount assured to be paid on death
- The Absolute Amount is depended upon the specific needs and plan which is as follows-
Option 1- “Absolute amount assured to be paid on death” equal to 10 times of the Annualized Premium.
Option 2- “Absolute amount assured to be paid on death” equal to 7 times of the Annualized Premium.
Eligibility for Navjeevan Plan
| Minimum Age at entry | Single premium | 90 days (completed) |
| Limited premium | 90 days (completed) under Option 145 years (nearer birthday) under Option 2 | |
| Maximum Age at entry | Single premium | 44 years (nearer birthday) |
| Limited premium | 60 years (nearer birthday) under Option 165 years (nearer birthday) under Option 2 | |
| Minimum Maturity Age | 18 years (completed) | |
| Maximum Maturity Age | Single premium | 62 years (nearer birthday) |
| Limited premium | 75 years (nearer birthday) under Option 180 years (nearer birthday) under Option 2 | |
| Basic Sum Assured | Minimum | Rs.1, 00,000/- |
| Maximum | No Limit | |
| Policy Term | 10 to 18 years | |
Grace Period for Navjeevan Plan
A grace period of one month not less than 30 days is allowed for payment of yearly/half- yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. During this period, the policy is considered to be in force with the risk cover. If the premiums are not paid before Grace Period then the Policy lapses.
Rebate of Navjeevan Plan
The following are the Rebate which is applicable as follow-
For policies purchased Online
- Single Premium: 2% of tabular premium
- Limited Premium: 5% of tabular premium
High Basic Sum Assured
Under Single Premium-
| Basic Sum Assured | Reduction in tabular single premium per Rs. 1000/- Basic Sum Assured |
|---|---|
| Rs. 1,00,000 to Rs. 1,80,000 | Nil |
| Rs. 2,00,000 to Rs. 4,80,000 | Rs. 20/- |
| Rs. 5,00,000 to Rs. 9,50,000 | Rs. 25/- |
| Rs 10,00,000 and above | Rs. 35/- |
Under limited Premium Payment-
| Basic Sum Assured | Reduction in tabular premium per Rs. 1000/- Basic Sum Assured |
|---|---|
| Rs. 1,00,000 to Rs. 1,80,000 | Nil |
| Rs. 2,00,000 to Rs. 4,80,000 | Rs. 5/- |
| Rs. 5,00,000 to Rs. 9,50,000 | Rs. 7/- |
| Rs 10,00,000 and above | Rs. 9/- |
Modal Loading (Limited Premium Payment)
| Mode | Loading (as a % of tabular annual premium) |
|---|---|
| Yearly mode | Nil |
| Half-yearly mode | 2% |
| Quarterly | 3% |
| Monthly (NACH) And SSS mode | 3.5% |
Paid up Value for Navjeevan Plan
If less than two years of premiums have been paid, and any subsequent premium (are not duly paid, all the benefits under the policy shall cease after the expiry of the grace period and nothing shall be payable. However, after at least two full years premiums have been paid and any subsequent premium(s) are not duly paid, this policy shall not be wholly void but shall subsist as a paid-up policy.
The Sum Assured on Death under a paid-up policy shall be reduced to such an amount called ‘Death Paid-up Sum Assured” and shall be equal to [Sum Assured on Death X (number of premiums paid / number of premiums payable during the premium paying term]. The sum assured on Maturity is called “Maturity Paid-up Sum Assured” and is equal to [Sum Assured on Maturity X (number of premiums paid/number of premiums payable during the premium paying term)].
Revival of Navjeevan Plan
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium. For the revival of the policy full payment of all the arrears of premium together with interest (compounding half-yearly) at a rate fixed by the Corporation at the time of the payment. In addition, proof of continued insurability must be provided.
Surrender Value for Navjeevan Plan
Surrender value is the value which is paid by the corporation to the policyholder if he/she does not like the policy and wants to return it. Under the Single Premium payment, the policy can be surrendered at any time during the policy term. Under Limited Premium payment, the policy can be surrendered provided at least two full-year premiums have been paid. At the time of surrender of the policy, you will be paid with the Guaranteed Surrender value which is as follows-
Under Single Premium
- First policy year: 70% of the Single Premium
- Thereafter: 90% of the Single Premium
Under Limited Premium
- Guaranteed Surrender Value = Total premiums paid X Guaranteed Surrender Value factor (Available at the corporation website)
Loan Against Navjeevan Plan
This plan offers greater liquidity which can be used to avail the loans from the bank which makes t easier for you to bear the financial need of you and your family.
Tax for Navjeevan Plan
Tax Benefit is also provided under the policy which helps the policyholder to save Income Tax payment. This tax subsidy is owing to the Tax rubrics, section 80C together with Section 10 (10D) on death privileges. Therefore, the death benefit sum delivered to the nominee would benefit from this tax rebate.
Free Lookup period
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy bond stating the reason of objections. You deposited premium will be repaid after deduction the documentation and other cost,
Exclusion for Navjeevan Plan
Under Single Premium
The policy shall be void if the Life Assured (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of the risk, an amount which is higher of 90% of the Single Premium paid or Surrender Value shall be payable.
Under Limited Premium Policy
If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of the risk, the Corporation will provide the nominee with 80% of the premiums paid, provided the policy is in force.
