LIC’S Jeevan Rakshak : This plan is introduced by Life Insurance Corporation of
India to on 19th August 2014 to cater the lower income group of
Indian families. This plan is a participating non-linked plan which offers a combination of protection
and savings. Important feature of this plan is – It is only available for standard healthy lives without
undergoing any medical examination.
Who
can take this Plan : Anyone
having age between 8 years to 55 years can take this plan. The policy term and premium
paying term available are only 10 and 20 years. Minimum Sum assured available
under the plan is 75000 and maximum sum assured under the plan is 2 lacs.
Accidental rider can also be taken an equivalent to available sum assured and
for taking accidental rider insured person must be at least 18 years old.
Premium
payment options and mode rebate:
Premium will be paid yearly,
half-yearly, quarterly or monthly mode (through ECS only) or through salary
deductions over the term of policy.
Service Tax : Service tax will be borne by Policy holder under this plan.
Benefits under the plan: at the unfortunate death of Policy Holder sum assured will
be given to his nominee and at the stage of maturity sum assured plus loyalty addition will be given to policy holder. Accidental Rider benefits
also be given to those policy holder’s who taken the rider.
Example of the Plan : This example carried out based on Policy Holder entry age
under the plan – 35 years, Policy/Premium Paying term – 20 years, Premium
payment mode – yearly, basic sum assured – 100000 and Premium is Rs. 3587.
|
Policy Term
|
Premium paid
|
Guaranteed
Death
/Maturity
Benefits
|
Expected Loyalty
Addition
|
Total
Maturity
Benefits
|
|
1
|
3587
|
1,00,000
|
0
|
0
|
|
2
|
3587
|
1,00,000
|
0
|
0
|
|
3
|
3587
|
1,00,000
|
0
|
0
|
|
4
|
3587
|
1,00,000
|
0
|
0
|
|
5
|
3587
|
1,00,000
|
0
|
0
|
|
6
|
3587
|
1,00,000
|
2500
|
0
|
|
7
|
3587
|
1,00,000
|
1000
|
0
|
|
8
|
3587
|
1,00,000
|
1000
|
0
|
|
9
|
3587
|
1,00,000
|
1000
|
0
|
|
10
|
3587
|
1,00,000
|
1000
|
0
|
|
11
|
3587
|
1,00,000
|
1000
|
0
|
|
12
|
3587
|
1,00,000
|
1000
|
0
|
|
13
|
3587
|
1,00,000
|
1000
|
0
|
|
14
|
3587
|
1,00,000
|
1000
|
0
|
|
15
|
3587
|
1,00,000
|
1000
|
0
|
|
16
|
3587
|
1,00,000
|
1000
|
0
|
|
17
|
3587
|
1,00,000
|
1000
|
0
|
|
18
|
3587
|
1,00,000
|
1000
|
0
|
|
19
|
3587
|
1,00,000
|
1000
|
0
|
|
20
|
3587
|
1,00,000
|
1000
|
0
|
|
Total
|
71,740
|
-
|
16,500
|
1,16,000
|
* Service tax not included in above given premium.
Internal Rate of the return (IRR) :
|
Policy Term
|
Premium paid
|
|
1
|
-3587
|
|
2
|
-3587
|
|
3
|
-3587
|
|
4
|
-3587
|
|
5
|
-3587
|
|
6
|
-3587
|
|
7
|
-3587
|
|
8
|
-3587
|
|
9
|
-3587
|
|
10
|
-3587
|
|
11
|
-3587
|
|
12
|
-3587
|
|
13
|
-3587
|
|
14
|
-3587
|
|
15
|
-3587
|
|
16
|
-3587
|
|
17
|
-3587
|
|
18
|
-3587
|
|
19
|
-3587
|
|
20
|
-3587
|
|
Maturity
|
1,16,500
|
|
IRR
|
4%
|
Conclusion:- Before reaching to the
conclusion, we need to see some very mind opening data of inflation in India. It
is difficult to wrap your mind around 2200% inflation. But that means that
prices increased by 2200% or they cost 22 times more.
The above chart clearly indicating inflation rates of India
from the year 1910 to year 2010, almost of 100 years. If you are going to take
this policy for the objective of fulfillment of your saving requirement only you
not need to take this policy because this policy maturity value will not be defeated
to inflation ratio. After restrictions and new guideline of IRDA regarding
traditional plan LIC try to tap the lower income group peoples of India trough
this plan. But unfortunately this plan
not in the interest of lower income group who generating income through their
hard work.
If anyone
wants to save with protection they can take this plan. This plan return is also
better as compared to other insurer’s plan of this segment. And one more thing
is very important i.e. claim settlement of LIC that clearly creating believe in
general people. Nobody can deny trust of LIC.
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