LIC Jeevan Rakshak (Plan No. 827, UIN: 512N289V01) is a participating, non-linked endowment assurance plan that offered the dual benefits of protection and savings. It provided a basic lump-sum at maturity and a death benefit during the policy term; policies could also receive Loyalty Additions (if declared) by LIC. The plan was withdrawn from new business on 1 November 2019 — existing in-force policies continue under the original terms.
Who it suited
Designed as a simple, regular-premium endowment for standard, healthy lives, the plan targeted lower to middle income customers who wanted both life cover and a disciplined savings outcome. Under the plan rules the total Basic Sum Assured per life under this plan could not exceed ₹2,00,000.
Key eligibility & plan parameters (at a glance)
- Entry age (nearest birthday): 8 years (completed) to 55 years.
- Maturity age (nearest birthday): up to 70 years.
- Policy term (PT): 10 or 20 years (premium paying term = policy term).
- Basic Sum Assured: ₹75,000 to ₹2,00,000 (multiples of ₹5,000).
- Premium modes: yearly / half-yearly / quarterly / monthly (ECS/salary).
- UIN: 512N289V01.
What you (or the nominee) received
- Maturity benefit: On survival to end of the policy term, the policyholder received the Basic Sum Assured + Loyalty Additions (if any), subject to policy terms.
- Death benefit: If the life assured died during the term, the Sum Assured on Death payable was the highest of:
- Basic Sum Assured; or
- 10 × annualized premium; or
- 105% of all premiums paid as on the date of death.
If death occurred after completion of the 5th policy year, any Loyalty Additions (if declared) were also payable.
Other features
- Participation in profits: This is a with-profits plan — Loyalty Additions (discretionary, as declared by LIC) may be payable at maturity or on death after the 5th policy year.
- Medical requirements: The plan was structured to be available to standard lives without a medical examination (subject to the plan’s non-medical limits and underwriting rules).
- Optional rider: An Accident Benefit Rider could be opted for (subject to its terms and limits).
- Surrender / Paid-up: Standard LIC rules for paid-up status and surrender value applied (surrender value generally available after specified minimum premium payments). See LIC policy conditions.
Premium / maturity calculation (calculator note)
Maturity values depend on: Basic Sum Assured, policy term, actual bonuses / loyalty additions declared by LIC over the term, mode rebates and any extra premium. Several third-party LIC calculators reproduce the tabular premium rates and provide approximate maturity estimates — for any production-quality calculator use the official LIC rate tables (from the policy document/brochure) and clearly label results as estimated (final values depend on declared bonuses and exact policy data).
Important regulatory / availability note
LIC lists this product under “Withdrawn Plans” with date of withdrawal 01-Nov-2019 — the plan is not open for new sale, but existing policies in force continue under contractual terms. Always refer to the policy document and LIC’s official communications for exact terms, and include the product UIN (512N289V01) on any page describing benefits.
Tax & legal
Tax treatment of premiums and benefits is subject to prevailing tax laws. The policy brochure and policy document include standard tax disclaimers — consult a tax advisor for personal tax treatment.
Terms & Eligibility
Entry & Term Conditions
- Minimum entry age (completed) : 8 years.
- Maximum entry age (nearest birthday) : 55 years.
- Policy term (duration) : Minimum 10 years, Maximum 20 years.
- Maximum maturity age (nearest birthday) : 70 years.
- Maximum cover ceasing age: In some sources, the cover ceases at age 75 years (nearest birthday).
Sum Assured
- Minimum Basic Sum Assured: Rs. 75,000.
- Maximum Basic Sum Assured: Rs. 2,00,000.
- The Basic Sum Assured must be in multiples of Rs. 5,000.
Premium Payment Modes
- Premiums can be paid in yearly, half-yearly, quarterly and monthly (via ECS/SSS) modes.
- Premium paying term equals the policy term.
Additional Eligibility Notes
- The total sum assured under all policies for one individual under this plan shall not exceed Rs. 2 lakh.
- The plan is a participating, non-linked, with-profits endowment assurance plan.
- Standard lives only; typically no medical examination within non-medical limit.
Benefits of the Plan
Death Benefit
In case of death of the life insured within the policy term (provided all due premiums have been paid):
- The “Sum Assured on Death” payable is the highest of:
- The Basic Sum Assured; or
- Ten times the annualised premium; or
- 105% of all the premiums paid as on date of death.
- If death occurs after completion of 5 policy years, Loyalty Additions (if any) also become payable along with the Sum Assured on Death.
- If death occurs within the first 5 years, only the Sum Assured on Death (as defined above) is payable; Loyalty Additions may not apply.
Maturity Benefit
On survival of the life insured to the end of the policy term (and all due premiums having been paid):
- The policyholder receives the Basic Sum Assured plus any Loyalty Additions (if declared) in lump sum.
Participation in Profits (Loyalty Additions)
- Because the plan is a “with-profits” (participating) plan, the policy may earn Loyalty Additions, disclosed at LIC’s discretion, once the policy has been in force.
- Loyalty Additions are typically payable on maturity or on death after completion of 5 years and full premium payment.
Loan Facility
- After payment of at least 3 full years’ premiums, the policy acquires a surrender value and can be used as security for a loan from LIC.
Paid-Up Value & Surrender
- Paid-Up: If premiums cease after at least 3 full years paid, the policy becomes paid-up rather than lapsing. The Paid-Up Sum Assured = Basic Sum Assured × (no. of premiums paid ÷ no. of premiums payable).
- Surrender Value: Policy can be surrendered after acquiring surrender value (after minimum premiums paid). No Loyalty Additions are payable in case of surrender before maturity.
Optional Rider
- An optional Accidental Benefit Rider is available (on payment of additional premium). In case of death due to accident, the Accident Benefit Sum Assured is payable along with the death benefit under this plan.
Tax Benefits
- Premiums paid up to Rs. 1,50,000 per year qualify for income‐tax deduction under Section 80C of the Income Tax Act.
- Maturity proceeds and death benefit paid are typically tax‐free under Section 10(10D), subject to terms of the Act.
Buying, Claim & Other Key Formalities
Application / Buying Procedure
- Submit proposal form (e.g., Form 300 or 340) with photograph, age and address proof.
- Basic health declaration required (medical exam may not be required within non-medical limit).
Claim Procedure (Death Benefit)
Documents typically required:
- Policy bond (original)
- Death certificate of life insured
- NEFT/Bank account details or cancelled cheque copy
- Discharge form filled by nominee or assignee
- Any other documents as stipulated by LIC
Other Important Provisions
- Cooling-off (“Free-look”) Period: Policyholder may return the policy within 15 days from receipt if not satisfied.
- Revival: If the policy lapses due to non-payment of premium, it can be revived within 2 consecutive years from first unpaid premium date by paying arrears plus interest.
- Suicide Clause: If policyholder commits suicide within 12 months of commencement of risk (or date of revival) the nominee will receive only 80% of the total premiums paid (or surrender value whichever is higher).
- Assignment/Nomination: Standard assignment and nomination provisions apply.
- Service Tax / Taxes applicable as per prevailing law.
- Policy Stamp & Back‐dating: Back‐dating within the same financial year may be allowed per LIC’s rules.
Expert Commentary & Considerations
As an insurance-journalist and life-insurance specialist:
- This plan is suited for individuals seeking affordable protection + savings with moderate cover (max Rs. 2 lakh) and combined maturity benefit.
- Because the maximum sum assured is relatively modest and the plan is shorter term (10-20 years), those seeking high life cover may need to supplement with term insurance.
- Loyalty Additions are not guaranteed but depend on LIC’s experience; thus one should view this more as an endowment policy than a pure guaranteed return product.
- Surrendering early will reduce benefits; the paid-up and surrender provisions make it less flexible than pure term plans.
- Because the plan has a maximum maturity age of 70 years, older entrants may have shorter tenure and higher premiums.
- Always compare premium rates, alternative plans (including term + investment separately) and confirm latest rates with LIC.
- Tax benefits are available but should not be the sole reason for purchase—focus should be on whether the policy meets your protection & savings goals.
Disclaimer
The information provided here is only for general guidance. It is based on publicly available sources of the Life Insurance Corporation of India plan (Table No. 827) as of the date of publication. This does not constitute financial or insurance advice. For personalised advice, quotes, premium rates, rider details, and suitability you should consult a licensed insurance agent/broker or LIC branch and review the official policy document carefully before purchase.