LIC Jeevan Kiran

LIC Jeevan Kiran- An Overview

LIC Jeevan Kiran is a life insurance policy offered by Life Insurance Corporation of India. It is a non-linked, with-profit endowment assurance plan. The policy provides financial protection to the insured's family in case of unfortunate demise during the policy term. In addition to the death benefit, the plan offers maturity benefits if the policyholder survives the entire term. The policy allows the option of participating in profits, thereby earning bonuses. It is an ideal combination of protection and savings, ensuring a secure future for the policyholder and their loved ones. Premiums can be paid annually, semi-annually, quarterly, or monthly.

Key Features of LIC Jeevan Kiran Plan

Below mentioned are some of the key features of LIC Jeevan Kiran Policy:

• Dual Benefits: LIC Jeevan Kiran offers dual benefits of financial protection and savings. It provides a death benefit to the nominee in case the policyholder's unfortunate demise during the policy term, ensuring financial security for the family. Additionally, if the policyholder survives the policy term, they receive maturity benefits.

• Participation in Profits: The policy participates in the profits of the corporation, which means policyholders may receive bonuses declared by LIC. This feature allows the policy to grow further and enhances the overall returns.

• Flexibility in Premium Payment: Policyholders have the flexibility to choose from various premium payment frequencies – annual, semi-annual, quarterly, or monthly, based on their convenience and financial capacity.

• Guaranteed Surrender Value: The policyholder can surrender the policy after it acquires a surrender value, and in return, they receive a guaranteed surrender value, subject to certain terms and conditions.

• Loan Facility: LIC Jeevan Kiran also offers a loan facility, which allows the policyholder to borrow funds against the policy's surrender value, providing them with liquidity in times of financial need. 

Eligibility Criteria Of LIC Jeevan Kiran Policy

Benefits of LIC Jeevan Kiran Plan

1. Death Benefit

   In any unfortunate event of the policyholder's death during the policy term, the nominee will receive the "Sum Assured on Death" along with any applicable bonuses, providing financial support and protection to the insured's family.

   Under LIC Jeevan Kiran policy, the death benefit payable on the demise of the life assured during the policy term, after the commencement of risk but before the date of maturity, shall be the "Sum Assured on Death."

   For Regular Premium Payment Policy, the "Sum Assured on Death" is defined as the highest of the following:

   • 7 times the annualized premium.

   • 105% of the total premiums paid up to the date of death.

   • Basic Sum Assured.

   For Single Premium Payment Policy, the "Sum Assured on Death" is defined as the higher of the following:

   • 125% of the single premium.

   • Basic Sum Assured.

2. Maturity Benefit

   Upon survival of the policyholder till the end of the policy term, they will be eligible to receive the maturity benefit. The maturity benefit consists of the sum assured on maturity along with any applicable bonuses.

   • For Regular Premium Payment Policy:

     The "Sum Assured on Maturity" is equal to the "Total Premiums Paid" over the policy term. It means the total amount of premiums paid by the policyholder during the policy period will be returned as the maturity benefit if the policyholder survives till the maturity date.

   • For Single Premium Payment Policy:

     The "Sum Assured on Maturity" is equal to the "Single Premium Paid." In the case of a single premium payment policy, the maturity benefit will be the same as the premium amount paid by the policyholder.

3. Tax Benefit

   The premiums paid towards the LIC Jeevan Kiran policy are eligible for tax deduction under Section 80C of the Income Tax Act, 1961, subject to a maximum limit of Rs. 1.5 lakh per financial year. This deduction helps reduce the policyholder's taxable income.

4. Additional Rider Benefits for Enhanced Protection

   LIC Jeevan Kiran plan offers additional rider benefits that can be added to the base policy to enhance the coverage and tailor the plan to suit specific needs. These additional riders provide extra protection and benefits beyond the basic features of the policy. The available riders under the plan are:

   • Accidental Death and Disability Benefit Rider: This rider provides an additional sum assured in case of accidental death or disability of the policyholder. 

   • Accidental Death Benefit Rider: The Accident Benefit Sum Assured is paid to the nominee in lump sum along with the death benefit under the base plan.

Sample Illustration of LIC Jeevan Kiran

Below mentioned is the sample illustration of LIC Jeevan Kiran Policy for Basic Sum Assured of Rs. 20 Lakh for Non-Smoker under Single and Regular Premium Payment options: 

Regular Premium:

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