LIC Jeevan Mitra(Double Cover Endowment Plan) as the name suggests is an endowment plan which offers life cover. The plan lets the policyholder participate in the company's profits thus earning bonuses.
Eligibility Criteria for LIC Jeevan Mitra(Double Cover Endowment Plan)
|Minimum age at entry||18 years|
|Maximum age at entry||50 years|
|Minimum age at maturity||Not available|
|Maximum age at maturity||70 years|
|Minimum policy term||15 years|
|Maximum policy term||30 years|
|Minimum sum assured||Rs. 50,000|
|Maximum sum assured||No limit on the maximum sum assured|
Key Features of LIC Jeevan Mitra(Double Cover Endowment Plan)
|Policy terms||15 to 30 years|
|Premium payment terms||Same as the policy term|
|Premium payment mode||Annually, bi-annually, quarterly and monthly|
|Death benefit||In case of death of the insured during the policy term, twice the sum assured along with all bonuses on basic sum assured till that date will be paid as death benefit to the nominee/ beneficiary|
|Maturity benefit||The sum assured amount along with all bonuses till maturity date is payable as the maturity benefit on survival at the end of the policy term|
|Free look period||15 days|
|Grace period||One month (30 days)|
|Surrender value||Surrender value is available for the plan given that the contract is terminated early|
|Policy cover||Death benefit, maturity benefit along with bonus|
|Loan facility||Loan facility is available under the policy after three years|
|Policy revival||The policy can be revived within the first 12 months from the date of the first unpaid premium in case of lapse of the policy|
|Tax benefits||The policy qualifies for tax benefits under section 80c of the Income Tax Act, 1961|
|Riders||The plan offers two types of additional riders|
Benefits Offered by LIC Jeevan Mitra(Double Cover Endowment Plan)
Listed below are the benefits of this LIC Endowment Plan
- Death Benefit- In case of unfortunate death of the insured during the policy term, the nominee will be paid twice the basic sum assured along with bonuses as death benefit.
- Maturity Benefit-In case of survival at the end of the policy, the basic sum assured amount along with all the bonuses until the date of maturity will be paid as maturity benefit.
- Guaranteed Surrender Value- A guaranteed surrender value of 30% of the basic premiums paid(excluding the first year) is paid given that the policy is surrendered after completing three years.
- Tax Benefits- The policy qualifies for tax benefits under section 80c of the Income Tax Act, 1961.
- Bonuses-The policy participates in the profits of Corporate's life insurance business and gets a share of the profits as bonuses.
- The plan can easily be purchased online without any hassles
- Offers life cover as well as bonuses
How does the Plan Work?
Consider the case of Mr. Arun who purchases LIC Jeevan Mitra(Double Cover Endowment Plan) for Rs.1 lakh for a premium payment term of 16 years. Now let's assume that he dies after the completion of three years of the policy, in this case his nominee will get Rs. 2,13,200 as the death benefit which also includes the bonuses.
The plan comes with two additional riders for which you have to pay additional premiums. Listed below are the two riders.
- Critical illness benefit rider
- Accidental death benefit rider
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017