LIC Navjeevan Plan: The Life Insurance Corporation (LIC) recently launched a new plan for its customers. Named Navjeevan (UIN: 512N33VO1), it is a non-linked "with Profit" Endowment Assurance plan. About the plan, LIC says on its website, "Under this plan the premium can be paid either as Lumpsum (Single premium) or as Limited Premium with a premium payment term of 5 years. This plan will also be available through online application process." The minimum sum assured for the plan is Rs. 1,00,000, while there is no upper limit. The policy term is 10-18 years and the mode of payment is in the form of Single Premium (Lump sum), Yearly, Half-yearly, Quarterly, Monthly (through NACH only). 

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Here are some important features, benefits of the plan provided by LIC: 

LIC Navjeevan Plan features 

- LIC Navjeevan Plan is available through Online mode (www.licindia.in)
- It is an endowment plan with single and 5 years Limited payment option
- LIC Navjeevan Plan is available for age 90 days completed to 65 years
- Under Limited Premium payment, if the life proposed is aged 45 years and above shall have two options to choose the 
- Absolute Amount Assured to be paid on Death which is as under:
 a) Option 1: 10 times of the Annualized Premium.

 b) Option 2: 7 times of the Annualized Premium.

- If the life proposed is aged below 45 years only Option 1 is available.

LIC Navjeevan Plan Benefits

Death Benefits: 

LIC website says the death benefit, "Is payable in case of death of the Life Assured before the stipulated Date of Maturity provided the policy is in force.

- On death during the first five policy years: Before the date of commencement of risk: Refund of premium(s) paid without interest shall be payable.

- On or after the date of commencement of risk: Sum Assured on Death shall be payable.

- On death after completion of five policy years but before the stipulated Date of Maturity: Sum Assured on Death along with Loyalty Addition, if any, shall be payable.

Maturity Benefit: On the life assured surviving to the end of the policy term, provided all the due premiums have been paid, Sum Assured on Maturity along with Loyalty Addition, if any, shall be payable.

Participation in profit: LIC says, "Provided the policy has completed five policy years and all the premium due under the policy is paid, then depending upon the Corporation's experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation."

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LIC Navjeevan Plan Calculation

If someone opts for Limited Premium with a premium payment term of 5 years, for a sum assured of Rs 10 lakh, the subscriber would have to pay the monthly premium of approx. Rs 9628 in the first year, and Rs 9430 from second year onwards. On maturity after 15 years, the subscriber would eligible for Rs 10 lakh along with the Loyalty Addition. For single premium payment for the same term of 15 years for Rs 10 lakh sum assured amount, one would have to make a one-time payment of around Rs 501287. The return on maturity would be Rs 10 lakh plus the Loyalty addition. 

(Note: Online calculations have been used for this article. Read offer document before investing in the plan)