LIC Jeevan Rakshak Maturity Calculator: Plan Your Financial Future
Welcome to your complete guide to LIC’s Jeevan Rakshak plan! If you’re looking for a reliable insurance plan that combines protection with savings, you’re in the right place. Let’s explore how this plan works and calculate your potential returns.
LIC Jeevan Rakshak Maturity Calculator
Use this interactive calculator to estimate your maturity benefits. Adjust the values based on your situation to see how much you could receive.
Your Estimated Returns
Understanding LIC Jeevan Rakshak Plan
LIC Jeevan Rakshak is a non-linked, with-profits endowment plan that offers both protection and savings. It’s designed to provide financial security to your family in case of your unfortunate demise while also helping you build a corpus for your future goals.
What makes Jeevan Rakshak special is its dual benefit structure. It not only provides life cover throughout the policy term but also pays out a lump sum amount on survival till maturity. This makes it an excellent choice for those who want to secure their family’s future while also building savings.
Key Features at a Glance
- Death Benefit: Sum assured plus bonuses in case of unfortunate demise
- Maturity Benefit: Sum assured plus accrued bonuses on survival till maturity
- Bonus Participation: Eligible for LIC’s declared bonuses
- Loan Facility: Can avail loan against the policy after acquiring surrender value
- Tax Benefits: Premiums eligible for tax deduction under Section 80C
How Does LIC Jeevan Rakshak Work?
Let me break down how this plan works in simple terms that anyone can understand.
When you purchase a Jeevan Rakshak policy, you commit to paying regular premiums for the chosen policy term. In return, LIC provides you with:
- Life Cover: Your family receives the sum assured plus bonuses if something happens to you during the policy term
- Savings Component: Your premiums build savings through bonuses declared by LIC
- Maturity Benefit: If you survive the policy term, you receive the sum assured plus all accrued bonuses
The plan essentially forces you to save regularly while providing crucial life insurance protection for your loved ones.
Breaking Down the Calculator Results
Now that you’ve used the calculator, let me explain what each of those numbers means for your financial planning.
The maturity amount you see is composed of several elements:
- Basic Sum Assured: This is the guaranteed amount you’ll receive at maturity
- Simple Reversionary Bonuses: These are annual bonuses declared by LIC that get added to your policy
- Final Additional Bonus: This is an extra bonus paid at maturity based on the policy term
It’s important to remember that while the sum assured is guaranteed, bonuses depend on LIC’s performance. The calculator uses historical bonus rates to give you a realistic estimate.
Benefits of Choosing Jeevan Rakshak
| Benefit | Description | Impact on Your Finances |
|---|---|---|
| Financial Protection | Life cover for your family | Peace of mind knowing your family is secured |
| Forced Savings | Regular premium payments build corpus | Disciplined approach to wealth creation |
| Bonus Accumulation | Participation in LIC’s profits | Enhanced returns over the policy term |
| Loan Facility | Option to take loan against policy | Financial flexibility during emergencies |
| Tax Benefits | Deductions under Section 80C and 10(10D) | Reduced tax liability |
Who Should Consider Jeevan Rakshak?
This plan isn’t for everyone, but it’s perfect for specific financial situations. You might find it particularly beneficial if:
- You’re a young professional starting your financial planning journey
- You want to combine insurance protection with savings
- You prefer the safety of traditional insurance plans over market-linked products
- You’re looking for a disciplined way to save for long-term goals
- You want to create a financial safety net for your family
However, if you’re nearing retirement or seeking very high returns, you might want to explore other options alongside this plan.
Frequently Asked Questions
Jeevan Rakshak is an endowment plan that focuses on both protection and savings. Unlike term plans that offer only death benefit, Jeevan Rakshak provides maturity benefit too. Compared to ULIPs, it doesn’t have market-linked returns but offers guaranteed benefits with bonus additions. It’s simpler to understand than many other plans and offers a balanced approach to insurance and savings.
Yes, you can surrender the policy after it has acquired a surrender value, which typically happens after paying premiums for at least 3 full years. The surrender value comprises guaranteed surrender value and special surrender value which includes bonuses. However, surrendering early usually means you won’t get the full benefits you would have received at maturity, so it’s generally better to continue the policy if possible.
Bonuses in Jeevan Rakshak are declared annually by LIC based on their performance and are typically expressed per ₹1000 of sum assured. These are simple reversionary bonuses, meaning once declared, they’re added to your policy and become guaranteed. The bonus rate can vary each year based on LIC’s performance. At maturity or claim, you receive all the accumulated bonuses along with the basic sum assured.
If you stop paying premiums, your policy may lapse after the grace period. LIC provides a grace period of 30 days for monthly premium mode and 15 days for other modes. If premiums remain unpaid after this period, the policy lapses. However, you can revive a lapsed policy within 5 years from the first unpaid premium by paying all outstanding premiums with interest and fulfilling other revival conditions.
Whether a medical examination is required depends on your age, the sum assured amount, and your medical declaration. For younger ages and smaller sum assured amounts, typically no medical examination is needed. However, for higher sum assured or if you have pre-existing medical conditions, LIC may require a medical examination. Your LIC agent can provide specific details based on your profile.
Tips for Maximizing Your Jeevan Rakshak Returns
To make the most of your Jeevan Rakshak policy, consider these practical strategies:
- Start Early: The younger you are when you start, the lower your premiums will be for the same coverage
- Choose Adequate Sum Assured: Select an amount that would sufficiently protect your family’s financial needs
- Opt for Yearly Premiums: This usually works out cheaper than more frequent payment modes
- Never Miss Premiums: Set up auto-debit to ensure continuous coverage and avoid policy lapse
- Review Periodically: Assess if your coverage still matches your financial responsibilities
- Keep Policy Documents Safe: Ensure your nominee knows about the policy and how to claim
Final Thoughts
LIC Jeevan Rakshak offers a balanced approach to financial planning, combining the security of life insurance with the discipline of regular savings. While it might not offer the highest returns compared to some market-linked products, its safety and guaranteed benefits make it an excellent choice for risk-averse investors.
The calculator we’ve provided gives you a realistic estimate of potential returns, helping you make an informed decision. Remember that actual returns may vary based on LIC’s actual bonus declarations over the years.
Before making any financial decision, it’s always wise to consult with a licensed financial advisor who can assess your complete financial situation and recommend the best options for your specific needs and goals.
Financial security is a journey, and tools like the Jeevan Rakshak plan can be valuable companions along the way. Here’s to making smart financial decisions that protect both your present and future!