LIC Jeevan Pragati Scheme : A Comprehensive Guide to Financial Growth and Security

LIC Jeevan Pragati Scheme : Discover the LIC Jeevan Pragati Scheme, a unique plan offering life insurance with gradual financial growth. Learn its features, benefits, eligibility criteria, and how it can secure your future.

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LIC Jeevan Pragati Scheme

In today’s uncertain world, securing financial stability and ensuring the well-being of loved ones has become a priority. Life insurance policies play a vital role in safeguarding your family’s future while offering growth opportunities for your savings. Among the plethora of insurance plans available, the LIC Jeevan Pragati Scheme stands out for its unique blend of life coverage and increasing risk protection benefits.

Launched by the Life Insurance Corporation of India (LIC), this plan is designed to provide life insurance coverage along with a systematic increase in risk cover every five years. This dual advantage makes it an ideal choice for individuals seeking long-term financial security and peace of mind. In this article, we’ll explore everything you need to know about the LIC Jeevan Pragati Scheme, including its features, benefits, and how to apply.

What is the LIC Jeevan Pragati Scheme?

The LIC Jeevan Pragati Scheme is a non-linked, participating endowment plan that offers both protection and savings. It is specifically designed to provide life insurance coverage and financial benefits that increase over time.

Unlike traditional plans where the sum assured remains constant, the LIC Jeevan Pragati Scheme increases the risk cover automatically at regular intervals. This makes it a unique solution for individuals who want a life insurance plan that adapts to their growing responsibilities and financial needs.

Key Features of LIC Jeevan Pragati Scheme

Here’s a closer look at the key features that make the LIC Jeevan Pragati Scheme an attractive choice:

1. Automatic Risk Cover Enhancement – The risk cover increases at specific intervals (every five years) during the policy term, providing enhanced financial security.

2. Maturity Benefit – On surviving the policy term, the policyholder receives the sum assured along with bonuses, ensuring financial growth.

3. Death Benefit – In case of the policyholder’s demise during the policy term, the nominee receives the sum assured and other applicable benefits.

4. Loan Facility – Policyholders can avail themselves of loans against the policy after completing the premium payment for three years.

5. Bonus Participation – As a participating policy, it is eligible for LIC’s declared bonuses, adding to the maturity value.

6. Tax Benefits – Premiums paid and benefits received are eligible for tax exemptions under Sections 80C and 10(10D) of the Income Tax Act.

7. Flexible Premium Payment Options – Premiums can be paid monthly, quarterly, half-yearly, or annually as per the policyholder’s convenience.

Benefits of LIC Jeevan Pragati Scheme

1. Life Insurance Protection – Provides comprehensive life insurance coverage to secure your family’s financial future in your absence.

2. Increasing Risk Cover – The automatic enhancement of risk cover ensures that your coverage grows with your financial responsibilities.

3. Savings and Returns – Combines savings with risk cover, ensuring financial growth through bonuses and maturity benefits.

4. Loan Facility – Enables policyholders to address financial emergencies by borrowing against the policy.

5. Tax Savings – Enjoy tax exemptions on premiums and payouts, reducing your overall tax liability.

Eligibility Criteria for LIC Jeevan Pragati Scheme

To be eligible for the LIC Jeevan Pragati Scheme, you must meet the following requirements:

1. Entry Age

Minimum age: 12 years
Maximum age: 45 years

2. Policy Term

Minimum term: 12 years
Maximum term: 20 years

3. Sum Assured

Minimum sum assured: ₹1,50,000
Maximum sum assured: No limit (subject to underwriting).

4. Premium Payment Term

Equal to the policy term.

How LIC Jeevan Pragati Scheme Works

1. Premium Payments

Policyholders pay premiums throughout the policy term as per their chosen payment frequency.

2. Gradual Risk Cover Increase

The basic sum assured increases by:
- 25% after the first 5 years.
- 50% after the next 5 years.
- 75% after 15 years.
- 100% after 20 years (if applicable).

3. Death Benefit

In case of the policyholder’s demise, the nominee receives the enhanced sum assured along with bonuses.

4. Maturity Benefit

On surviving the policy term, the policyholder receives the sum assured plus accumulated bonuses.

Example Illustration

Let’s understand the LIC Jeevan Pragati Scheme with an example:

Age of Policyholder: 30 years
Policy Term: 20 years
Sum Assured: ₹5,00,000
Premium: ₹25,000 annually

Coverage Over Time

First 5 Years: ₹5,00,000
Next 5 Years: ₹6,25,000
Next 5 Years: ₹7,50,000
Final 5 Years: ₹10,00,000

This gradual increase ensures better financial coverage as the policyholder’s responsibilities grow.

How to Apply for LIC Jeevan Pragati Scheme

Follow these steps to apply for the LIC Jeevan Pragati Scheme:

Step 1: Visit the Official LIC Website

Navigate to the “Products” section and select the Jeevan Pragati Scheme.

Step 2: Use the Premium Calculator

Estimate your premiums based on your desired sum assured and policy term.

Step 3: Contact an LIC Agent

Get in touch with a licensed LIC agent for assistance with the application process.

Step 4: Submit Documents

Provide the necessary documents, including identity proof, address proof, and medical reports (if required).

Step 5: Make the Payment

Pay the first premium to activate your policy.

Step 6: Receive Policy Documents

Upon approval, you’ll receive the policy documents detailing your coverage and benefits.

FAQs About LIC Jeevan Pragati Scheme

1. What makes the LIC Jeevan Pragati Scheme unique?

Its gradual risk cover enhancement ensures increasing financial security over time, adapting to the policyholder’s growing responsibilities.

2. Can I surrender my policy?

Yes, you can surrender your policy after completing three years of premium payments. However, the surrender value will depend on the premiums paid and policy term.

3. Is the LIC Jeevan Pragati Scheme eligible for loans?

Yes, loans can be availed against the policy after three years of premium payments.

4. What happens if I miss a premium payment?

A grace period of 30 days is provided for quarterly, half-yearly, or annual payments. Policies may lapse if premiums are not paid within this timeframe.

5. Can NRIs purchase this plan?

Yes, Non-Resident Indians (NRIs) can purchase this plan subject to specific conditions set by LIC.

Pros and Cons of LIC Jeevan Pragati Scheme

Pros

Gradual increase in risk cover.
Combines savings with life protection.
Offers tax benefits.
Provides a loan facility.

Cons

Limited liquidity in the initial years.
Requires long-term commitment.

Conclusion

The LIC Jeevan Pragati Scheme is a thoughtfully designed insurance plan that offers both financial protection and savings growth. Its unique feature of increasing risk cover makes it a perfect choice for individuals seeking a policy that adapts to their evolving responsibilities.

With benefits like maturity payouts, tax savings, and loan facilities, this plan stands out as a comprehensive solution for securing your financial future. Whether you’re a young professional planning for long-term goals or a family person safeguarding loved ones, LIC Jeevan Pragati Scheme is worth considering.

Start planning today with LIC Jeevan Pragati Scheme and take a step toward a financially secure tomorrow!

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