LIC Jeevan Pragati: Get 28 Lakh Return Along with Additional Pension Advantages!

This article will guide you through some important features, benefits, returns, additional pension advantages, and much more about the LIC Jeevan Pragati scheme.

LIC Jeevan Pragati

 LIC Jeevan Pragati is a non-linked, profit-making plan, which comes with dual benefits of protection and savings. The plan takes care of the liquidity needs through its loan facility. The main purpose of the plan is to offer a secure future to the policyholder by providing an automatic increase in its risk coverage during its tenure after every 5 years. LIC Jeevan Pragati offers savings benefits by which the policyholder can save a lump sum amount of 28 lakh rupees by the time of maturity and get an additional pension advantage of approximately Rs. 15,000.

Features of LIC Jeevan Pragati Scheme

Let us have a look at some key features of the LIC Jeevan Pragati scheme:

• It is a non-linked profit, profit-earning scheme
• The minimum basic sum assured is 1,50,000 rupees
• The Maximum basic sum assured has no limit
• Risk coverage under the scheme increases every 5 years
• After the investment, the sum for the initial five years remains as is
• From six to ten years, the Sum Insured (SI) increases from 25% to 125%
• From 11 to 16 years, the SI increases to 150%
• Not taking money till 20 years increases the SI to 150%
• Maturity amount is tax exempted under Section 10(10D) of the Income Tax Act
• Policy surrender option after 3 years of payment of premium
• 10,000 rupees is the minimum accident sum assured
• A loan facility is also available after 3 years of payment of premium
• Amount up to 28 lakhs can be received by the beneficiary at the time of maturity
• Offers death coverage as per IRDAI (Indian Regulatory and Development Authority of India) guidelines

Benefits Under LIC Jeevan Pragati Scheme

Let us have a look at the benefits of this endowment plan:

1. Death Benefit

   If the policyholder dies during the policy tenure, he/she is eligible for death benefit under the LIC Jeevan Pragati scheme. Under the benefit, the beneficiary receives:

   Sum assured on death + vested Simple Reversionary Bonuses + Final Additional bonus (if any)

   Where,

   Sum assured on demise is higher of:

   • 10 X Annual premium, or
   • Absolute assured amount is paid at the time of death of the policyholder

   The death benefit is calculated as follows:

   Year of Death	Sum Assured on Death	Final Additional Bonus
   During the first 5 years	100% of basic sum assured	Not applicable before 15 years
   6th to 10th policy years	125% of basic sum assured	Not applicable before 15 years
   11th to 15th policy years	150% of basic sum assured	Not applicable before 15 years
   16th-20th policy years	200% of basic sum assured	Applicable

   Premiums mentioned above shall not include taxes or any extra amount chargeable.

2. Maturity Benefit

   Sum assured on maturity equals to:

   Basic sum assured + vested Simple Reversionary Bonuses + Final Additional bonus (if any)

   Maturity benefit is payable in a lump sum at the end of the policy tenure provided all the premiums are duly paid.

3. Participation in Profits

   LIC Jeevan Pragati must participate in profits of the LIC and should be entitled to get Simple Reversionary Bonuses mentioned according to the experience of the company during the tenure of the policy.

4. Optional Riders Benefit

   Optional riders include:

   • LIC's Accidental Death Rider
   • LIC’s Disability Benefit Rider

   In LIC Jeevan Pragati, sum assured cannot exceed Basic Sum Assured

Other benefits available under the LIC Jeevan Pragati scheme are as follows:

1. Free-Look Period

   A 15 day free-look period is available at the start of the policy.

2. Surrender Value

   Surrender benefit can be claimed only after 3 years of the premium payments are made. LIC Jeevan Pragati offers Guaranteed Surrender Value, depending upon the policy tenure and years of policy surrender.

3. Grace Period

   30 days grace period is available in the premium paying frequency is Annual, Half-Yearly, or Quarterly. 15 days grace period is available for monthly premium payments.

Eligibility Conditions and Other Restrictions

*Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product by an insurer or any other financial product.

Summing it!

LIC Jeevan Pragati is an easy and simple endowment plan with dual benefits of protection and savings. The life coverage increases automatically as with the policy years, which allows the policyholder to plan a better future for their loved ones. An affordable protection plan, LIC Jeevan Pragati can surely be considered by individuals planning to secure their future at the best benefits possible.