LIC Nav Jeevan Plan

India’s largest insurer LIC (Life Insurance Corporation), has acquainted the LIC Nav Jeevan Plan 853 on 18^th March 2020. By being a step ahead of tax billing season.

The endowment guarantee plan, which is non-related to profit, is the LIC Nav Jeevan Plan. It must be filled by the age group of 90 days to 65 years. And, the period of the program could be at least 10years and a maximum of 18 years.

You can have financial support in case of the client’s death as the policy promises to provide an assured sum of money after the policyholder’s decease. And you can also have the additional reward sum once the plan gets matured. The minimum age for a plan to be mature is at least 18 years. This plan’s main feature is that the client has the alternative to decide between two premium payment options, i.e., single premium (or) constricted finest payment term of 5 years.

LIC Nav Jeevan Plan

Bequest plans in which you disburse premiums for a certain time, and when that time is over, you get a lump total.

As in keeping with LIC’s web page- it’s miles a non-attached with a turn-over bequest warranty plan. Here, a non-linked connotation doesn’t link with the stock bourse or mutual funds. Therefore, one thing for which we do not need to worry is a risk factor. A single price plan premium could be paid as a constrained premium alternative under a five-year or as a lump sum.

And, the emptor will acquire a confident sum with loyalty payback at the time of adulthood. You can also have a nominee who will collect the amount of money guaranteed on death if the plan is moving.

Key Features Of LIC Nav Jeevan Plan              

1. Available At both online and offline platforms- But, on the e-platform, you can have a spare discount of 2% and 5% for a single premium policy and Limited Premium Nav Jeevan policy correspondingly.

2. The period of the policy is 10 – 18 years.

3. Age criteria for the policy are at least 90 days and 65 years.

4. Income tax benefits can be taken under section 80C through this policy.

5. You can apply for a loan under this policy.

6. If, in case of the unfortunate death of the policyholder, you can benefit from “financial family support” under this policy. As the policy holds the promise of paying after the fatality of the policyholder.

7. The least sum assured under this policy is of 1lakh, and there is no limit on the largest sum assured.

Premium Payment Mode

LIC Nav Jeevan insurance Policy 853 has been issued with two different payment policies. Both of them are described below-

i. Single Premium

In a single premium amount scheme, the policy’s expense is done as a one-time payment or the lump sum amount.

ii. 5-Year Limited Premium

In this mode, the premium for the selected Basic Sum Assured can be stipendiary in installments over the course of 5 years. The acquirable installment options are monthly, quarterly, half-yearly, and once a year payments.

Basic Sum Assured In LIC Nav Jeevan Policy 853

Basic sum assured is the total amount which the policyholder receives after the maturity of the insurance plan. Loyalty benefits are excluded.

1. Least Basic Sum Assured

The LIC Nav Jeevan 853 insurance plan will require the insured to choose the least of ₹100,000 as a basic sum guaranteed.

2. Largest Basic Sum Assured

LIC has not assigned any largest limit on the basic sum assured in the Nav Jeevan 853 plan.

However, there are a couple of conditions regarding the largest limit.

• Vital Sum Assured preferred between ₹1lakh to ₹9lakh must be in multiples of ₹20,000.
• Vital Sum Assured preferred above ₹9lakh to unlimited sum must be in multiples of ₹50,000.

Eligibility For LIC Nav Jeevan 853 Applicants

For an individual to be qualified for the LIC’s Nav Jeevan 853 plan, at least one of the following circumstances must be fulfilled.

i. For Single-Premium

• The least entry age of at least 90 days should have been completed.
• The upper limit entry age is set at 44 years (nearest birthday) of age.

Example:

Age of Policyholder: 39Years

Policy Term: 12Years      

Basic Sum Assured: Rs.6,00,000

Tabular Single Premium: Rs.439750

Sum Assured on Death: (Rs.600000/- or 10*Rs.439750) = Rs.43,97,500/-

 ii. For 5-Year Limited Premium

The eligibility for a 5-year limited premium is classified into Option 1 and Option 2.

i. Option 1

• The least entry age of 90 days should have been completed.
• The upper limit entry age is set at 60 years (nearest age) of age.

Example:

Age of Policyholder: 40 Years

Policy term: 12 Years

Basic Sum Assured: Rs. 500000

Mode of Premium: Half Yearly

Tabular Single Premium: Rs. 60635

Sum Assured on Death: (Rs.500000/- or 10*Rs.60635) = Rs.6,06,350/-

 ii. Option 2

• The least entry age of 90 days should have been completed.
• The upper limit entry age is set at 65 years (nearest age) of age.

Example:

Age of Policyholder: 45 Years

Policy term: 10 Years

Basic Sum Assured: Rs. 500000

Mode of premium: Half-yearly

Tabular Single Premium: Rs. 80000

Sum Assured Death: Higher of (Rs.500000/- or 7*Rs.80000) = Rs. 5,60,000

The choice of ‘option’ while buying the Navjeevan 853 policy will impact the Sum Assured at Death under death coverage settlement.

Maturity Of LIC Nav Jeevan 853: Eligibility & Benefits

Maturity Benefits:

• On the occurrence of maturity of the LIC Nav Jeevan 853 insurance policy, the insured is suitable for maturity payback.
• The maturity payback includes the Basic Sum Assured and Loyalty Addition (If any).
• The said maturity payback is paid on the condition that all the due premiums have been paid.

Eligibility For Benefits:

 i. For Single Premium NavJeevan Policy:

• A least 18 years of age must have been completed to be eligible for the maturity payback.
• An upper limit of up to 62 years (nearest birthday) is allowed to be eligible for the maturity payback.

ii. For Limited Premium LIC Nav Jeevan Policy:

• A least 18 years of age must have been completed to be eligible for the maturity benefits.
• Under Option 1: The largest of up to 75 years (nearest birthday) of age is permissible to be eligible for the maturity benefits.
• Under Option 2: The largest of up to 80 years (nearest birthday) of age is permissible to be eligible for the maturity benefits.

Death Coverage Benefits Of LIC Nav Jeevan 853

In the LIC’s Nav Jeevan 853, in case of the policyholder’s death before the maturity date, while the policy is still active, death coverage will be paid under two conditions.

i. If death occurs during the first 5Years, starting from the date of initiation of risk, the nominee must accept the death coverage benefits.
ii. Death insurance coverage Benefit: Repayment of the premiums paid, without any interest.

After the First 5 Years

• If the first 5 years’ event of death occurs, the nominee will receive the following benefits.
• Death insurance coverage Benefit: Sum Assured at Death with the Loyalty Addition (if any).

What Is Sum Assure At Death In LIC Nav Jeevan Policy?

It is the amount receivable by the nominee at the event of the death of the life assured. The higher of the two available amounts will be payable as the amount Assured at Death.

For Single Premium Nav Jeevan Policy:

1. Basic Amount Assured by the policy on maturity.
2. Absolute Sum Assured: 10 times of Tabular Single Premium for chosen ‘Basic Sum Assured.’

For Limited Premium Nav Jeevan Policy:

1. Basic Amount Assured by the policy on maturity.
2. Absolute Sum Assured:

• 10 times of Annualized premium if the policy bought under ‘Option 1’.
• 7 times of Annualized premium if the policy is bought under ‘Option 2’. 

Return Calculation 

According to Zee Business, if you opt for the Limited Premium option for a sum assured of Rs 10lakh, you will have to pay the monthly premium of around Rs 9,628 in the first year 9,430 from the second year onwards.

On maturity, after 15 years, you are eligible for Rs 10lakh along with the Loyalty Addition. Under the single premium payment option for the same term and total assured amount, one would have to make a one-time payment of around Rs 5,01 287.

According to Basavaraj Tonagatti, who is among the foremost personal finance bloggers, the Navjeevan plan offers returns of around 5- 6%. So you need to think cautiously if it is good enough for a long-term investment. LIC also has LIC Jeevan Anand, LIC Jeevan Rakshak, and LIC Jeevan Pragati.

Comparison With Different LIC Policy

Comparison of LIC Nav Jeevan Policy with different Policies of LIC is described in the below table:

FAQs