LIC Nav Jeevan: Insurance Policy With Flexible Premiums: Should You Choose?

Term period and PPT

The USP of this policy is either you can pay the premium as Single Premium or as Limited Premium with a premium payment term of 5 years. Hence, if you are choosing the term premium option, even in that case you can avail a very short term for that, unlikely in other plans offered by LIC. You can pay the term period on a Single or Yearly, Half-yearly, Quarterly, or Monthly (ECS) basis.

The term period for LIC Nav Jeevan is 10 to 18 Years. The Premium Paying Term (PPT) has been fixed at 5 Years for Limited Premium Option. This policy has 2 options, namely Sum Assured on Death is 10 times the Annualised Premium, and Sum Assured on Death is 7 times the Annualised Premium.

 

Policy benefits and sum assured

Under the LIC Nav Jeevan policy, you will have to pay at least Rs. 1,00,000 as the Minimum Sum Assured. However, there is no limit on the Maximum Sum Assured, depending upon your income. You can avail of the Maximum Accidental Death and Disability Benefit Rider up to your age of 70 years.

The death benefits under the LIC Nav Jeevan have been designed to benefit the subscribers at best. In case of death, during 5 years (Before the date of commencement of risk), the subscriber will get the refund of premium(s) paid without interest. On the other hand, in case of death during 5 years (after the date of commencement of risk), the policyholder will get the Sum Assured on Death. And lastly, in case of death after 5 years, the policyholder will get the Sum Assured on Death, along with the Loyalty Addition.

This is a calculation done considering different premium paying options, age and sum assured.

Calculation of sum assured

Sum Assured on Death for Single Premium will be your Basic Sum Assured or 10 times Tabular Single Premium for the chosen Basic Sum Assured. Sum Assured on Death for Limited Premium (option-1) will be your Basic Sum Assured or 10 times Annualised Premium for the chosen Basic Sum Assured. Sum Assured on Death for Limited Premium (option-2), will be your Basic Sum Assured, or 7 times Annualised Premium for the chosen Basic Sum Assured. Basic Sum Assured is the money you initially subscribed to the policy with. On the survival of the policyholder after the maturity of the plan, he/she will be Basic Sum Assured, along with the Loyalty Addition.

Eligibility Of LIC Nav Jeevan

The entry age under the LIC Nav Jeevan policy varies on the above-mentioned 2 options. For Single Premium, the minimum entry age is 90 days completed. On the other hand, the minimum entry age for a limited premium under the 1st option is 90 days completed, while the minimum entry age for a limited premium under the 2nd option is 45 years.

The maximum entry age similarly depends on the above-mentioned 2 options. The maximum entry age for Single Premium is 44 years. On the other hand, the maximum entry age for a limited premium under the 1st option is 60 years completed, the maximum entry age for a limited premium under the 2nd option is 65 years.

Maturity, surrender, loan, and tax benefits

The minimum maturity age is 18 years completed. The maximum maturity age for Single Premium is 62 years, while the Limited Premium under the 1st option is 75 years, and the maximum maturity age for Limited Premium under the 2nd option is 80 years.

If you are not comfortable with the policy, you can surrender the policy at any time, during the policy term. However, under the Limited Premium Payment, the policy can be surrendered at any time during the policy term, provided at least 2 full years' premiums have been paid to LIC. The loan is available under the LIC Nav Jeevan policy. You can also have the tax benefit under this LIC policy under section 80c.