LIC New Janaraksha Policy

This plan is best suited for people whose job is not secured with irregular income. Example, farmers, milk vendors, petty businessman.

1.  This plan is allowed for Physically handicapped lives under group A.

2.  Widows belonging to category III can’t take this plan.

3.  A max. SA of Rs 1 lakh is allowed in case of non-std age proof.

4.  Minimum age at entry is 20 under all plans including plan 91 when self-declaration is the Age Proof.

5.  Premiums have to e paid till maturity or death of the policy holder, whichever is earlier.

6.  Only for literate females (under category III) having independent income as given under article insurance on Female Lives this plan is allowed.

7.  From the date of premium unpaid, the life risk cover continues for three more years even if the policy holder is not ale to pay further premiums after paying first two years premiums.

8. After the premiums are paid for 2 years, as risk is covered even during lapsation (up to 3 years), financial security for the family in case of unfortunate death of the policy holder.

9.  For self employeed women falling under Cat. III: Restriction regarding age at entry 35, Term 20, Maturity Age 55 has been relaxed to 40, 25 & 65 respectively with Non-std Age proof.

  • Wherever Non-std Age proof (NSAP-1/2/3) is submitted a declaration from the client, Agent and development Officer/ABM’s is to be obtained in the form number 3260 to the effect that he is not able to submit any other Std. Age Proof. No Age proof extra will be charged for NSAP 2 & 3 if the declaration is satisfactory.

W.e.f. 01-07-1985

General Conditions:
  1. Min. age at entry:  18 years.
  2. Max. age at entry:  50 years.
  3. Min. S.A.: Rs. 30,000.
  4. Max. SA.: Rs 10 lakhs.
  5. SA in multiples: Rs. 5,000
  6. Max. Maturity age: 70 years.
  7. Modes Allowed: ALL
  8. Accident benefit per 1000 SA: Incl. in TP.
  9. Min Term: 12 years.
  10. Max Term: 30 years.
Requirements in writing:
  1. Female lives category: I/II
  2. Non-Medical General :  Allowed
  3. Non-Medical Professional:  Allowed
  4. Non-Medical Special:  Allowed
  5. Risk Coverage:  SA + Bonus
  6. Age proof: Std./NSAP-1/2/3
  7. Form Number:  300
  8. Dating Back @ 8%: Allowed
  9. Actual Sum assured: Basic SA.
Policy Servicing:
  1. Term Rider Option: No.
  2. Critical Illness Rider: No.
  3. Policy Loan @ 9%: Yes.
  4. Revival: Yes.
  5. Surrender of Policy: Yes.
  6. Housing Loan: Yes.
  7. Assignment: Yes.
  8. Survival Benefits: No.
Benefits:
  1. Maturity Benefits:  SA + bonus is given on maturity.
  2. Death Benefits:  SA + bonus given to the nominee on death of policy holder before maturity.
  3. Accident Benefits:  W.e.f. from 23-11-2002, maximum cover increased from 5 lakhs to 7.5 lakhs.

Example:

A petty business man Mr. Ajay takes New LIC Janaraksha Policy of 15 years term for Rs. 50000. Ajay’s business slow down after payment of 4 years premium. He cannot pay premium for next 2 years and dies after 6 years of taking policy.  His nominee gets Rs. 61400 including Rs 11400 being bonus for 6 years at an estimated bonus of Rs 38 per 1000 pa. (However, arrears of the premium if any, will be recovered from the total amount payable). If Mr. Ajay had taken any other policy his family would not have got anything. Since the policy would have lapsed.

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