LIC Plan 827 Maturity Calculator | Endowment Insurance Guide
When it comes to life insurance, sometimes simplicity is the ultimate sophistication. LIC’s Jeevan Rakshak Plan 827 represents a refreshing return to basics – it’s a participating endowment insurance plan that provides a combination of protection and savings.
However, note that this plan was withdrawn by LIC on November 1, 2019. This guide and calculator are for illustrative purposes or for existing policyholders to estimate maturity benefits. For latest plans, consult LIC official website.
How much will you get at maturity? In this comprehensive guide, we’ll explore everything about LIC Plan 827 and provide you with an easy-to-use maturity calculator to estimate how much you can get at the end of the term.
What is LIC Jeevan Rakshak Plan 827?
LIC Jeevan Rakshak Plan 827 is a participating non-linked endowment assurance plan. In simple terms, it’s a savings-cum-protection policy that offers both life cover and maturity benefit. The “Rakshak” in the name means “protector” in Hindi, symbolizing the protection it offers to your family.
Unlike pure term plans, Jeevan Rakshak combines insurance with savings, providing a lump sum at maturity if you survive the term. It’s designed for people seeking both protection and savings in a single plan.
Key Insight: With Jeevan Rakshak Plan 827, you get protection during the term and savings at maturity. Every premium contributes to both risk cover and loyalty additions for better returns.
How Does LIC Plan 827 Work?
The working of Jeevan Rakshak Plan 827 is straightforward:
- You Pay Premiums: Regular premiums for the chosen term
- You Get Coverage: Your life is insured for the chosen Sum Assured throughout the policy term
- On Death During Term: Your nominee receives the death benefit
- On Survival Till Term End: You receive the maturity benefit (Sum Assured + Loyalty Addition)
This approach provides both protection and savings, making it suitable for conservative investors.
Key Features of LIC Jeevan Rakshak Plan 827
Let’s explore what makes this endowment plan stand out:
Combination of Protection and Savings
Provides life cover during the term and lump sum at maturity.
Loyalty Addition
Participates in profits through loyalty additions after 5 years.
Flexible Term
Choose policy term from 10 to 20 years.
Accident Benefit Rider
Optional rider for additional protection against accidental death.
Understanding the Maturity Calculation
Your maturity for LIC Plan 827 depends on several factors that our calculator takes into account:
| Factor | Impact on Maturity | Why It Matters |
|---|---|---|
| Sum Assured | Higher SA = Higher Maturity | Directly proportional to the payout |
| Policy Term | Longer Term = Higher Loyalty Addition | Longer period allows more profit participation |
| Age | Affects premium, indirect impact | Younger age may lead to lower premiums |
| Loyalty Addition | Adds to maturity | Depends on LIC’s profit declaration |
Why Maturity Benefit Makes Sense
Endowment plans like Jeevan Rakshak provide guaranteed maturity if you survive the term, along with loyalty additions:
- Savings Discipline: Regular premiums build savings
- Protection + Savings: Dual benefit in one plan
- Tax Benefits: Premiums qualify for 80C deduction
- Peace of Mind: Guaranteed payout at maturity
Remember: Returns on endowment plans are moderate (4-6%). For higher returns, consider separate investments. This plan is best for conservative risk-averse individuals.
Who Should Consider LIC Jeevan Rakshak Plan 827?
This plan is ideal for:
- Conservative Savers: Seeking guaranteed maturity with protection
- Low Income Groups: With small sum assured options
- First Time Buyers: Wanting simple savings cum insurance
- Risk Averse Individuals: Preferring LIC’s guarantee
How Plan 827 Compares with Other LIC Plans
| Feature | Jeevan Rakshak (827) | Jeevan Anand (915) | Jeevan Labh (936) |
|---|---|---|---|
| Plan Type | Endowment | Endowment with Whole Life | Limited Premium Endowment |
| Maturity Benefit | SA + LA | SA + Bonus | SA + Bonus |
| Death Benefit | SA + LA (after 5 yrs) | SA + Bonus | SA + Bonus |
| Max SA | ₹2L | No Limit | No Limit |
| Best For | Small Savings + Protection | Lifelong Cover | Limited Pay |
*Features as per last available info
As you can see, Jeevan Rakshak is suitable for small coverage needs with savings, while other plans offer higher SA.
Calculating Your Ideal Coverage Amount
Determining how much Sum Assured you need is crucial. Here’s a simple method to calculate your ideal Sum Assured:
- Income Replacement: 5-10 times your annual income
- Outstanding Debts: Home loan, car loan, personal loans
- Future Expenses: Children’s education, marriage costs
- Final Expenses: Medical bills, funeral costs
- Emergency Fund: 6-12 months of living expenses
Use our calculator to experiment with different coverage amounts and terms to find the right balance.
Common Mistakes to Avoid with Endowment Insurance
Many buyers make these errors when purchasing endowment insurance:
- Underinsuring: Choosing low SA due to premium constraints
- Wrong Term Length: Selecting term not aligning with goals
- Hiding Information: Not disclosing health issues
- Not Comparing: Buying without checking alternatives
- Forgetting Nominees: Not updating nominee details
- Lapsing Policies: Missing premium payments
Pro Tip: Review your policy every 3-5 years or after life events. Use our calculator to estimate if your maturity aligns with your goals.
FAQs About LIC Plan 827 Maturity Calculator
The maturity benefit is the Basic Sum Assured plus Loyalty Addition, if the policy has completed 5 years and all premiums are paid.
Loyalty Addition is declared by LIC based on the plan’s performance. It is a one-time addition payable at maturity or death after 5 years. Actual amounts vary and are not guaranteed.
No, the plan was withdrawn on November 1, 2019. Existing policies continue to receive benefits.
Yes, but no Loyalty Addition is payable on surrender. Surrender value is available after 3 years of premiums paid.
The maximum Basic Sum Assured is ₹2,00,000 per life.
Making the Right Decision for Your Family’s Protection and Savings
Choosing the right life insurance is important. For endowment plans like Jeevan Rakshak, it’s about balancing protection and savings.
Use our maturity calculator to understand how different amounts and terms affect your benefits. Remember, actual Loyalty Addition depends on LIC’s declarations.
Conclusion
LIC Jeevan Rakshak Plan 827 offers simple protection with savings. Though withdrawn, it serves as an example of endowment plans. Consult LIC for current offerings.
Assess your needs and make an informed decision for security and savings.
Disclaimer: The calculator provides estimates. Actual benefits may vary. This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor or LIC for accurate information.