LIC Jeevan Madhur Plan

Life Insurance Corporation of India is a state-owned insurance group that has been insuring people’s life since 1956, when the parliament of India passed the Life Insurance Act of India that nationalized the private insurance industry in India. LIC always comes up with various plans to make it easy for a policy holder to understand the plans according to their needs. With its growing monopoly over life insurance and a great conviction in market, LIC never fails to come up with the best plans for market; such is the LIC Jeevan Madhur Plan.

LIC Jeevan Madhur Plan

It is a saving related life insurance plan, where the policy holder can pay the premium regularly at weekly, fortnightly, monthly, quarterly, half-yearly or yearly intervals over the time of policy.

Minimum installment premium for different terms of policy payment

  1. Weekly- Rs. 25
  2. Fortnightly- Rs. 50
  3. Monthly- Rs. 100
  4. Quarterly/half-yearly/monthly 250

The premium further chosen by the policy holder shall be minimum sum assured of Rs. 5000 and maximum sum assured of Rs. 30000 which payable under death and maturity under this scheme.

Benefits-

The various benefits covered under this policy are-

Maturity Benefits-

On the date of maturity, the maturity sum assured along with bonus, the maturity sum assured per Rs. 1200 annual premium are-

Age at Entry Policy Term
5 years 10 years 15 years
20 5089 11219 18561
30 5081 11173 18396
40 5026 10910 17572
50 4847 10066 14884

Death Benefit-

It includes the payment of amount that is equal to total premiums payable during the entire period of policy along with the vested bonuses (if any).

Accidental death or Disability benefit-

  • During the policy, if the death of policy holder occurs due to accident, an addition amount, equal to the death benefit sum assured will be available.
  • If due to accident, total or permanent disability occurs within 180 days from the date of accident, the accident benefit will be payable over a span of 10 years in monthly installments.
  • If the policy becomes a claim either because of death or maturity before the end of the period of 10 years, the disability benefit installment will be paid along with the claim.

The disability due to accident covered under this scheme, should be total and such that the policy holder is unable to carry out any work to earn the living. There are certain disabilities due to accident that are not covered under this scheme;

  1. Loss of the entire sight of both eyes, or
  2. Amputation of both hands at or above wrists, or
  3. Amputation of both feet at or above ankles, or
  4. Amputation of one hand at or above the wrist and one foot at or above the ankle.

Auto cover facility-

If, under this policy, at least two full year’s premium has been paid, full death cover shall continue from the due date of First Unpaid Premium (FUP) for a period of two years or till the end of the policy, whichever is early.

The accidental benefits will not be available during the auto cover period.

Participation in profit‑

Depending upon the Company’s experience, Simple Reversionary Bonuses are declared per thousand Death Benefit Sum Assured annually at the end of each financial year, if the policy is in the full force.

In case of paid up policies, bonuses shall be payable only if 3 years premium has been paid fully.

In case of surrender, the discounted value of bonuses (if any) will be payable.

Paid-up Value-

If under this policy, at least two full year’s premium have been paid, and any subsequent premium is not duly paid, the policy will not be wholly void, but will be considered as a paid up policy, and the sum assured will be reduced to a sum, called the paid-up value.

The paid up sum assured shall be calculated as the Maturity Sum Assured multiplied by the ratio of the number of premiums actually paid to the total number of premiums originally stipulated for in the policy.

If there is any paid up value along with the vested bonuses, it will be payable on the date of maturity or at policy holder’s demise.

In lapsed condition, the Accidental Benefit will cease to apply.

Surrender Value-

The policy holder may surrender the policy for cash, after paying at least 2 full years premiums. The 30 percent of the total amount of premiums being paid is equal to the guaranteed surrender value.

Eligibility Conditions-

  • Minimum age at entry is 18 years (completed)
  • Maximum age at entry is 60 years (nearest birthday)
  • Maximum age at maturity is 65 years (nearest birthday)
  • Term- 5 to 15 years.
  • Minimum Sum Assured is Rs. 5,000
  • Maximum Sum Assured is Rs. 30,000

Reversionary Bonus Rates For LIC Jeevan Madhur Plan

Financial Year
(in which policy was active)
Premium Paying Term Reversionary Bonus Rate
(per 1000 Sum Assured)
2006-2007 10<= 20
11 to 15 25
2007-2008 10<= 20
11 to 15 25
2008-2009 10<= 20
11 to 15 25
2009-2010 10<= 20
11 to 15 25
2010-2011 10<= 21
11 to 15 26
2011-2012 10<= 21
11 to 15 26
2012-2013 11<= 21
11 to 15 26
2013-2014 11<= 21
11 to 15 26
2014-2015 11<= 21
11 to 15 26
2015-2016 11<= 21
11 to 15 26

LIC Jeevan Madhur Plan Bonus Rates for 2017-2018

Plan Term Reversionary Bonus Rate
%o Sum Assured (**)
Interim Bonus Rate
% Sum Assured (**)
(*)
Jeevan Madhur (Plan 182) < 11 21 21
11 – 15 26 26

Conclusion-LIC Jeevan Madhur plan is a saving related life insurance plan, where the policy holder can pay the premium weekly, fortnightly, monthly, quarterly, half-yearly or yearly. This plan gives maturity benefits, along with accidental benefits and death benefits. For 2017- 2018, the interim bonus rate for this plan lies between 21 to 26 per cent.

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