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LIC Jeevan Rakshak Plan

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Insurance in today's age and tie is fast growing into a much-needed saving investment than normal bank savings. Money saved in banks may not last you long term in case of a sudden emergency or medical expenses, and worse, it may not sustain you after retirement. Saving money in the bank helps meet your short term expenses, whereas investing money in an insurance policy in the long term is more beneficial. Insurance plans and policies act both as savings and guarantees coverage in case of sudden death, medical emergency, accidental death or injury, for transport and vehicles too.

Life insurance policies are not market-linked, which means the sum assured against premium is not affected or influenced by market results. However, a policyholder can opt for a market-linked policy, but it's not necessary. If you are planning to invest, rather purchase an insurance policy. You will also need to research suitable Insurers or Insurance companies with a reliable and proven track record of policy returns and claim settlements. One such reliable, most trusted and sought after Insurance Company in India is LIC of India.

There are multiple schemes and plan options available at most conveniently affordable and inexpensive premium amounts. For those purchasing life insurance for the first time or seeking to buy policies with minimum premium options availing several benefits can choose the LIC Jeevan Rakshak Plan.

The LIC Jeevan Rakshak Plan- An Overview

The Jeevan Rakshak Plan is a policy offered by LIC to those from lower-income groups. It is the only insurance policy with the lowest premium rates, providing a minimum sum assured of one lakh rupees to policyholders. Under this policy, the policyholder is eligible to apply for a loan after paying the basic premium amount and keeping the policy for over a minimum period. The policyholder can also avail additional benefits available under this plan, thus helping the insured to fulfil their liquidity requirements.

It is a non-linked participatory plan under LIC, providing both insurance and savings option. The plan offers life insurance and maturity benefit to the policyholder on completion of the maturity term of the policy, and the insured has survived the maturity period. It assures financial security to the beneficiaries or nominees nominated by the insured even after his or her death.

This policy under LIC makes insurance plans affordable and available for everyone, especially those from lower-income groups. Individuals can now purchase and invest in insurance plans to secure their future financially at lower premium rates. This policy can be purchased for children as young as 8 years old. Parents can invest in this policy to secure their kid's future educational expenses, etc. Thus, securing your future and your families.

About the LIC Jeevan Rakshak Plan

LIC of India introduced the Jeevan Rakshak Plan in August 2014. This is a  participatory non-linked plan offering dual benefits of safety and savings to policyholders. The policyholder shall receive a lump sum assured on surviving the policy's maturity term when the policy matures. The sum assured will be paid with additional benefits applied in this policy or provisioned under this insurance policy. These benefits are given along with the maturity sum assured to policyholders at the time of maturity or upon the survival of the policy's maturity term period. If the policyholder dies before the policy matures, then their nominee(s) or beneficiary (ries) will receive the benefits as underwritten the policy certificate.

The LIC Jeevan Rakshak Plan is an endowment policy providing life coverage to the insured and helping him/ her to save regularly within the term maturity period of the plan. If the policyholder happens to die before the policy maturity term then the nominee will receive the lump sum assured against all paid premium under the policy. Thus, the plan offers financial assistance to not only the policyholder in the near future but also the family, even after the death of the insured. When the policy matures, the insurer pays a lump sum amount and the loyalty additions to the insured as mentioned on the plan. The policy provides coverage for death, accidents, and medical expenses.

Eligibility Criteria for the LIC Jeevan Rakshak Plan

There are certain set rules in the policy and the optional rider limiting its availability to prospective policyholders. They are mentioned as below:

Basic Plan under LIC Jeevan Rakshak policy - for individuals without the medical examination requirements.

  1. Basic Sum Assured
    • Minimum sum assured is Rs. 75,000
    • Maximum sum assured is Rs. 2,00,000
    • Basic Sum Assured should be in multiples of Rs. 5000 as instructed by the insurer
  2. Age Criteria
    • Minimum age of applicant - 8 years (completed at the time of purchase of the policy
    • Maximum age of applicant- 55 years
    • Maximum (at maturity of the policy) - 70 years
  3. Policy Term
    • Minimum term is 10 years
    • Maximum term is 20 years
    • Optional Rider available with the Plan is LIC Accident Benefit Rider
  4. Accident Benefit Sum Assured
    • Minimum amount is Rs. 75,000
    • Maximum Amount is equal to the sum assured in the basic plan or a maximum of Rs. 50 lakh that includes accident cover from all other policies linked or bought by the same individual
    • The Accidental Benefit Sum Assured will be in multiples of Rs. 5000 only
  5. Age Criteria
    • Minimum (at entry) - 18 years (completed)
    • Maximum (at entry) – anytime, during any anniversary of the basic policy term
    • Maximum (Cover Ceasing term) - Same as the basic policy

Features of the LIC Jeevan Rakshak Plan

The LIC's Jeevan Rakshak Plan is a simple endowment plan with features of profit sharing. The plan provides a death benefit to the nominee in case the insured individual dies before the policy matures. However, the maturity benefit will be provided to the policyholder only after they have survived the policy maturity term. One must pay all premiums regularly for the entire term of the policy to avail all maturity benefit. Once the policy reaches its age of maturity, the individual will receive the sum assured and the loyalty additions.

  • The Jeevan Rakshak Plan is a participating non-linked plan of LIC offering dual benefits of safety and savings
  • This simple and conventional endowment plan permits the insurance holder to leverage the revenue of the company, a profit-sharing feature
  • Gives policyholders a low coverage facility and the maximum sum assured of Rs 2 Lakh and a minimum of Rs 75,000
  • The policyholder can choose a policy term between 10 – 20 years
  • In this policy, the policyholder has to pay the premium for the complete policy term
  • The policyholder can opt for additional coverage for which he or she will require to make an additional premium payment, to know more you can contact a LIC agent
  • The maximum age for maturity under this plan is 70 years
  • The premium can be paid monthly, quarterly, bi-annually or annually as per the policyholder's preference
  • On surviving the policy maturity term, the policyholder receives the maturity benefit along with additional loyalty benefits if any provided by the policy
  • In case the policyholder dies before the maturity date of the policy then the nominee or beneficiary nominated by the policyholder receives the sum assured also referred to as the death benefit, thus ending the term of the policy
  • Under this policy, you can get double accidental reimbursement against the additional premiums paid
  • 5 years after regularly paying premiums the policyholder is eligible to receive loyalty benefit
  • The policyholder can apply for a loan right after paying the initial premium under this plan

Benefits of LIC Jeevan Rakshak Plan

The following are the benefits provided by the LIC Jeevan Rakshak Plan:

Additional Bonus

As a part of the policy, the insurer shares the profit with the policyholder in a single instalment at the time of payment of death or maturity benefits. As a participatory plan of LIC under the terms and conditions of this policy, the plan performs under the bonuses of the company, thus always accumulating the loyalty addition. Plus, you can get this policy without any medical tests.

Death Benefit

The death of the insured after the first five years of the policy plan after the commencement of the policy will make the nominee eligible to receive a sum assured and loyalty benefits. The nominee has to file a claim to receive the death benefits.

Maturity Benefit

The survival of the policyholder during the policy term will make him/her eligible to receive the maturity benefits from the insurer.

Tax Benefit

Insurance policies are largely exempted from tax. Premiums that are payable under the policy and the sum assured amount received during the claim as a death or maturity benefit are exempted from tax under the Income Tax Act, 1961, under Section 80C and Section 10 (10D) in India. An insured can save on the income tax be deducting the paid premiums amount from the taxable income. The maximum deduction that can be done from the taxable income is Rs. 1,50,000. Premiums above that will not give any tax benefit to the insured.

Premium Details of LIC Jeevan Rakshak

The below table provides information regarding the yearly premiums for the plan. The premium amounts are shown in rupees for a policy term of 20 years without tax:

Age of the policyholder (in years)

Premium amount for a Sum

Assured (Rs. 75,000)

Premium amount for a Sum

Assured (Rs. 1 Lakh)

Premium amount for a Sum

Assured (Rs. 2 Lakh)













Things to Know About LIC's Jeevan Rakshak Plan

Here are some additional details you need to know about the LIC Jeevan Rakshak Plan:

Grace Period

The policyholder is entitled to a grace period of 30 days to pay the premium under the LIC Jeevan Rakshak Plan. However, the insurance company has the right to terminate the policy in case the insured is unable to pay the premium on time. The grace period is applicable after the last payment due date, and during this period, the policyholder has to make the payment to continue using the benefits of the plan.

Surrender Value

In case the policyholder wants to surrender the policy because of any reason, he or she can do so and can get the premium paid back although it is subject to certain conditions associated with the policy which you must check in your policy documents at the time of purchase or soon after receiving the policy.

Free Look Period

The insurance company provides the policyholder a free look period of 15 to understand the terms and conditions of the policy. During this period the policyholder has the time to decide whether to purchase the policy and proceeding with paying premiums against the same.

Loan Facility

The LIC of India provides a loan facility under the LIC Jeevan Rakshak plan. The loan amount is based on the surrender value of the policy at the time loan application. The loan facility is extended by the insurer to provide exclusive benefits to the insured, and the rate of interest on the loan amount is kept minimum for more convenience. The insured has to pay back the loan amount with interest to the insurer within a specified time frame, and the equated monthly instalments are calculated by the insured. Using the online services, the insured can keep checking the loan amount due and the interest rate applicable to the loan amount. The insurer also sends a reminder to the policyholder about the upcoming loan payment.


If the policyholder commits suicide within 12 months of the policy initiation, then LIC will pay 80% of the paid premiums to the nominee chosen by the policyholder. But if the policyholder commits suicide within 12 months of the revival of the plan, then the LIC of India will return the surrender value acquired or 80% of the paid premiums to the nominee(s).

Riders available with LIC Jeevan Rakshak Plan

Riders are the exclusive policy plans that can be coupled with the basic insurance policy to provide enhanced coverage to the insured and the insured. The insured has to pay a premium amount of the rider as well to get the enhanced coverage. The amount is usually quite less in comparison to the premium of the whole new policy, and by purchasing a rider, an insured can increase the sum assured of the plan. The rider sum assured will be paid to be the insured's family in case of any mishappening that is covered under the plan. The following policy rider is available with the LIC Jeevan Rakshak Plan.

Accidental Death Benefit Rider

The rider protects the insured's family in case of accidental death of the insured. The insurer will pay the sum assured an amount which is less than or equal to the sum assured of the basic life insurance if the insured dies in the accident. Please note that the exclusion of the policy is the death of the insured caused by the self-inflicted injuries, participation in dangerous sports and events like river rafting, sky diving, bungee jumping, cliff jumping, paragliding or any other sports listed by the insured. The claim filed against the policy will be rejected if the insured is found to be involved in the events mentioned in the list of exclusions of the rider

Documents Required for purchasing the LIC Jeevan Rakshak Plan

Before purchasing the plan, the applicant should read in detail about the plan features like the sum assured required, policy term for which the applicant is willing to pay the premium amount, other benefits required with the basic plan. Once all these details are thought off, the applicant can proceed to purchase the policy at the LIC of India.

  • Firstly, for purchasing this policy, the policyholder needs to submit an application or proposal form with details of the applicant like name, contact number, permanent address, present address, KYC details like PAN card number and Aadhar card number
  • Even though the LIC of India has not made a medical check-up compulsory for purchasing LIC Jeevan Rakshak plan, in certain cases where there has been a history for treatment, the insurer might ask the application to undergo a proper medical examination. It is preferable to mention the previous treatments if any, that the applicant has undergone. Hiding medical history from the insurer can result in rejection of the claim filed by the nominee. The insurance application form talks about the medical history of the insured, and mentioning the details is important as per the insurer guidelines
  • The next step for purchasing the policy is to submit the KYC documents with the insurer
  • Once the details mentioned in the form and the documents provided are verified by the insurer, they will ask to make the payment for the premium amount which can be paid in multiple modes available with the insurer
  • Please note that the policy will start after the payment made towards the policy premium has been realised and accounted
  • The insurer will mail the policy copy to the insured at the registered address as mentioned in the application form

The LIC Jeevan Rakshak is an ideal policy, and if you have a low budget but seek to avail of an insurance policy and good returns in future in terms of not only insurance but savings also, then you can go for this policy without any hesitation.

Documents required to claim under the LIC Jeevan Rakshak

The claim process for LIC Jeevan Rakshak Plan for various claims is explained below:

Death Claim

In case of the sudden demise of the policyholder during the term of the policy, the nominee has to submit the claim form along with the following documents:

  • The policy documents like the Plan certificate issued by the insurer at the time of policy renewal
  • The death certificate of the deceased policyholder issued by the medical officer stating the cause of death
  • A copy of the first information report or panchnama from the policy authority if the death happened in a road accident
  • Medical details of the insured
  • A certificate from the aeroplane or shipping authorities stating the travelling details of the insured, if the death happens in an air crash or a shipping accident
  • Provide the bank account details where the money will be transferred by the insurer

Maturity Claim

If the insured individual survives the maturity term of his/her policy, he/she has to submit a duly signed Claim Form with the following documents:

  • The maturity claim form is available on the website of the insurer and can be collected from the local office of the LIC of India
  • Original papers of the policy, the Plan certificate
  • Bank details for the smooth transfer of the maturity amount to the policyholder's account directly

Surrender Claims

If anytime the policyholder wishes to surrender their policy and claim the surrender value, the policyholder will need to submit the Claim Form along with:

  • The original documents of the policy
  • A form stating the reason to surrender the policy has to be submitted to the insurer as well. The form can be obtained from online or from the local office of the LIC of India
  • The bank account details like account number and IFSC code of the branch

How to Buy the LIC Jeevan Rakshak Policy?

The Jeevan Rakshak Policy can be purchased online by visiting the official website of the Corporation or using any trusted policy buying website. You can calculate the premium amount to get a clear picture of how much premium you would like to purchase a policy for. An applicant can buy the policy by visiting the local office the LIC of India or through the agents of the insurer as well. To apply and purchase the policy, the following documents are required by the insurer. They are:

  • Duly filled and signed Application Form stating all the details required by the insurer
  • Permanent address proof like Aadhar card, driving licence, attested bank passbook, bank statement stating the permanent address of the applicant, voter card, ration card or a certificate from the local government authority mentioning the address of the insured
  • Identity proof details of the insured like PAN card, Aadhar card, bank passbook with the photograph of the applicant, driving licence, voter card or any other government-issued identification card with the photograph on it
  • Proof of Age of the applicant
  • Medical History Report if asked by the insurer
  • Details of the nominee like name, relationship with the insured, age of the nominee, date of birth of the nominee, contact details like email and mobile number
  • Proof of identity and address of the nominee
  • Photographs of the applicant and the nominee

Upon submission of the documents to the insurer, there will be thorough check and validation come by the insurer and after the details have been verified, the policy will be sent to the insured.

Renewal of LIC Jeevan Raksha Plan

To enjoy the benefits of the insurance plan, the policy has to be renewed every year. The process of renewal is quite easy. The insured has to pay the premium amount to the insurer via online modes or by visiting the local office of the LIC of India. Using online services, the payment can be made through any of the following:

  • Bank transfer like NEFT
  • Debit card
  • Credit card
  • UPI (unified payment interface)
  • BHIM app

An insured can make the online payment by either registering to the online services or by directly making the payment by sharing the policy details. In either way, the payment is processed in real-time and the details of the payment made to the insured are shared via email and SMS to the registered details.

To pay the premium at the local office of the LIC India, the insured should remember to take the policy details like policy number and the premium of the policy. The payment can be made via cheque or cash.

The insurer keeps sending the policy renewal information to the insured via the preferred mode of communication as chosen by the policyholder. The insured should keep in mind to renew before the end of the grace period. Once the grace period passes, the policy will lapse, and the benefits of the policy will cease.


  • Q1. Can money be withdrawn from the LIC policy before maturity term?

    A1. A LIC policy is not the same as a bank's saving account. There is the option to exit from a life insurance product before completing its maturity term. The policyholder will receive the surrender value amount on surrendering the policy before maturity. The policyholder must pay the policy premiums regularly to be eligible for surrendering the policy after paying the premiums continuously for 3 years and not missing a single premium.

  • Q2. Can the policyholder surrender his or her LIC policy after 10 years?

    A2. If the premium paying term is less than 10 years even though the actual policy term is 25 to 30 years, the policy will acquire a surrender value if the premium has been paid regularly for at least two years. For single premium policies, the surrender value gets acquired after the very first year itself. The policyholder is then eligible to claim the surrender value on opting to surrender his or her insurance policy to the insurance company.

  • Q3. Are Fixed deposit accounts beneficial than opening a LIC policy?

    A3. If both are compared concerning financial advantages each provides, a fixed deposit is certainly more valuable than a LIC policy. This is because money doubles in approximately 8 years for a Fixed Deposit, whereas LIC does not have any plan where money matures before 10 years, but in comparison, LIC provides risk coverage, and Fixed Deposits don't.

  • Q4. Why should anyone invest in the LIC Jeevan Rakshak Policy?

    A4. The LIC Jeevan Rakshak Policy is a participating non-linked plan, offers dual benefits of safety and savings. It is an extremely cost-effective and affordable plan for low-income people and the sole earners of low-income households.

  • Q5. Are there any riders that can be added to Jeevan Rakshak Policy?

    A5. The policyholder can get LIC's Accidental Benefit Rider added to his policy. There might be an additional premium for benefit riders. It is best to consult an agent or representative to learn about it in detail or go through the policy website to learn more.

  • Q6. Does it require to pay an extra premium to add Riders to this plan?

    A6. By paying an additional small amount, the Accident Benefit Rider can be added to the plan. With this rider, if the policyholder dies in an accident, during the term of the policy, then the nominee would receive an extra amount apart from the sum assured under this policy.

  • Q7. If a policy lapses, can one revive it?

    A7. The insurer allows the revival of lapsed policy within the first 2 years from the date of the non-payment of the policy premium. The revival of the lapsed policy should be done before the maturity date of the plan.

  • Q8. Will a policy lapse if one stops paying the premium?

    A8. When the policyholder does not pay the premium even under the grace period, the policy will lapse. However, the policyholder can revive it within two years from the first unpaid premium date. But the revival has to be done before the maturity date of the policy term.

  • Q9. Is the maturity amount taxable?

    A9. Under Section 10 (10D) the death benefit under the endowment insurance plan is free from the taxes.

  • Q10. Can one apply for a loan against the Jeevan Rakshak Policy?

    A10. After a regular payment of premiums for 3 years, surrender value accumulates, and the policyholder can avail of a loan against the same. The loan amount is based on the surrender value of the plan at the time of availing the loan from the insurer.

Written By: Paisawiki - Updated: 12 April 2021