LIC Navjeevan (Table 853) – Review, Features and Benefits

LIC’s Navjeevan plan is a Non-Linked” With Profit ” Endowment Assurance plan. Under this plan, the premium can be paid either as Lump sum (Single premium) or as Limited Premium with a premium payment term of 5 years.

This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder.

Features of this policy – (Table 853)

1. The term of the plan is 10 to 18 years
2. Minimum and Maximum sum assured is 1 Lakh and No limit.
3. Income tax benefits under section 80 C
4. There is an option to avail of the death benefit in installments.
5. Loan facility is available against this policy.
6. This policy is available for purchase through online and offline mode.

Benefits of this policy –

There are many benefits that this plan carries for a layman. This policy covers exclusively lots of benefits from maturity to death for a better tomorrow. Below is the list of such benefits under LIC Navjeevan Insurance Plan.

A) Maturity Benefit – If the policyholder survives till the maturity of the policy provided the policy is in force then, the policyholder will be paid sum assured on maturity + loyalty addition. Here, the sum assured on maturity is equal to the basic sum assured.

B) Death Benefit –

***If death occurs before the 5 years completion of the policyholder***

• If death occurs before the commencement of the life risk, then LIC will refund the premiums the policyholder has paid. However, if death occurs after the commencement of the life risk, then-nominee will receive Sum Assured on Death as a death benefit.

***If death occurs after the 5 years completion of the policyholder***

• If the death occurs after 5 years completion of the policyholder then, the sum assured along with Loyalty Addition will be payable to the nominee.

Meaning of Sum Assured on death –

# For Single Premium Policies – Higher of the below will be payable

• Basic Sum Assured
• 10 times of single premium

# For Limited Period Premium Payment Policies – Higher of the below will be payable.

• Basic Sum Assured
• 10 times of Annual Premium (If Option 1 has opted) or 7 times of Annual Premium (If Option 2 has opted).

Eligibility Conditions –

What is Option 1 and Option 2 in this policy?

This Option 1 and Option 2 is applicable only for Limited Premium Paying option but it is not valid for the case where you have invested as a lump sum. In the case where you choose the single premium payment option, then the death sum assured is 10 times of your single premium.

However, if one has opted for a limited premium payment, then they will have the below options.

• If your age is below 45 years of age.

You will receive the 10 times of your annual premium as a death benefit.

• If your age is above 45 years of age.

In this case, you have two options to choose from –

• Option 1 – You can choose for 10 times of annualized premium as a death benefit.
• Option 2 – You can choose for 7 times of annualized premium as a death benefit.

Can the policy be revived if it has lapsed?

Yes, the policy can be revived if it has lapsed within a period of 2 consecutive years from the date of first unpaid premium provided the unpaid premiums have been paid with interest.

Is there any loan facility against this policy? How much loan is allowed?

• Under Single Premium payment policies – Loan can be availed at any time after three months from completion of the policy (i.e. 3 months from the date of issuance of policy) or after the expiry of the Free-Look Period, whichever is later.
• Under Limited Premium payment policies – Loan can be availed only after the completion of two full years premiums.
• The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as under:
  a) For Single Premium payment policy: up to 80%.
  b) For Limited Premium payment policy:
  – For in force policies – up to 80%
  – For paid-up policies – up to 70%

Is there any free look period in the policy –

Yes, LIC Navjeevan Policy has a free look period. If the Policyholder is not satisfied with the “Terms and Conditions” of the policy then, the policyholder can return policy to LIC 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.

Can I surrender the policy any time in the near future?

• Under Single Premium payment – The policy can be surrendered at any time during the policy term.
• Under Limited Premium payment – The policy can be surrendered only if 2 full years premium has been paid.

Video Review of the policy –

Conclusion –

So, by now everyone of you have come to know each and every details of this policy. Now it’s up to you all to decide whether this policy will satisfy your requirements or not. If you have any doubt regarding this policy, they please let us know in the comment section.