LIC Nav Jeevan: Insurance policy with flexible premiums: should you choose?

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Duration and PPT

The USP of this policy is that you can pay the premium as a single premium or as a limited premium with a premium payment term of 5 years. Therefore, if you choose the premium term option, even then you can benefit from a very short duration for it, which is unlikely in other plans that LIC offers. You can pay the term period on a one-off basis or annually, semi-annually, quarterly or monthly (ECS).

The term of office of LIC Nav Jeevan is 10 to 18 years. The premium payment term (PPT) has been set at 5 years for the limited premium option. This policy has 2 options, namely that the sum insured at death corresponds to 10 times the annualized premium and that the sum insured at death corresponds to 7 times the annualized premium.

Policy benefits and sum insured

Policy benefits and sum insured

Under the LIC Nav Jeevan policy, you will have to pay at least Rs. 1,000,000 as the minimum sum insured. However, there is no limit on the maximum sum insured, depending on your income. You can take advantage of the maximum Accidental Death and Disability benefit rider until age 70.

The LIC Nav Jeevan death benefits have been designed to best benefit policyholders. In the event of death, for 5 years (before the start date of the risk), the subscriber will obtain the reimbursement of the premium (s) paid without interest. On the other hand, in the event of death for 5 years (after the date of the beginning of the risk), the policyholder will receive the Sum insured upon death. And finally, in the event of death after 5 years, the policyholder will receive the Sum insured upon death, as well as the Loyalty Supplement.

This is a calculation made taking into account the different premium payment options, age and sum insured.

Premium paid option Policy term Basic sum insured (INR) Death sum insured Death benefit insured before 5 years Claim on death after the 5th insurance year but before the 12th insurance year Maturity after 12 years Age
Alone 12 years 200000 1138000 1138000 1,138,000+ Loyalty add-on (LA) 200,000 + Loyalty Bill (LA) 27 years
“Limited Premium Option-1
(Premium payment period: 5 years) “ 15 years 500000 584000 584000 584,000+ Loyalty add-on (LA) 500,000 + Loyalty Bill (LA) 24 years
“Limited Premium Option-2
(Premium payment period: 5 years) “ 10 years 400000 425040 425040 425040+ Loyalty add-on (LA) 400,000 + Loyalty Bill (LA) 45 years old
Calculation of the sum insured

Calculation of the sum insured

The sum insured at death for the single premium will be your base insured amount or 10 times the tabular single premium for the chosen base insured amount. The amount insured at death for the limited premium (option 1) will be your base face amount or 10 times the annualized premium for the base face amount chosen. The amount insured at death for the limited premium (option 2) will be your base face amount or 7 times the annualized premium for the base face amount chosen. The base face amount is the money with which you initially purchased the policy. On the survival of the policyholder after the expiry of the plan, he / she will be insured with the base capital, as well as the loyalty addition.

Eligibility of LIC Nav Jeevan

Eligibility of LIC Nav Jeevan

The entry age under the LIC Nav Jeevan policy varies according to the 2 options mentioned above. For the single premium, the minimum entry age is 90 days. On the other hand, the minimum entry age for a limited premium under the 1st option is 90 full days, while the minimum entry age for a limited premium under the 2nd option is 45 years.

The maximum entry age also depends on the 2 options mentioned above. The maximum age for admission to the single premium is 44 years. On the other hand, the maximum age of access to a limited premium under the 1st option is over 60, the maximum age of access to a limited premium under the 2nd option is 65 years.

Maturity, redemption, loan and tax benefits

Maturity, redemption, loan and tax benefits

The minimum age of maturity is over 18 years. The maximum maturity age for the single premium is 62 years, while the limited premium according to the 1st option is 75 and the maximum maturity age for the limited premium according to the 2nd option is 80 years.

If you are not comfortable with the policy, you can surrender it at any time during the term of the policy. However, as part of the limited premium payment, the policy can be surrendered at any time during the term of the policy, provided that at least 2 full years of premiums have been paid to LIC. The loan is available under the LIC Nav Jeevan policy. You can also benefit from the tax benefit under this LIC policy under section 80c.


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