LIC has launched new term plan, LIC Jeevan Kiran ( 870). Jeevan Kiran is a Pure risk premium Life insurance Plan with return of premium amount at maturity. Although LIC has two existing term plans. How different is LIC Jeevan Kiran with the older ones.
Table of Contents
LIC Jeevan Kiran ( 870) – Eligibility & features
LIC Jeevan Kiran is an Individual Pure Risk Premium Life Insurance plan with return of premium amount at maturity (excluding any extra premium, any rider premium and taxes etc.)
| Minimum Sum Assured | Rs.15,00,000/- |
| Maximum Sum Assured | No limit |
| Policy Term | 10 years to 40 years (maximum) |
| Premium Paying Term | Under Regular Premium : Same as Policy Term Under Single Premium : Not applicable |
| Minimum Age at entry | 18 years (Last Birthday) |
| Maximum Age at entry | 65 years (Last Birthday) |
| Minimum Maturity Age | 28 years (last birthday) |
| Maximum Maturity Age | 80 years (last birthday) |
| Minimum Premium | Rs. 3,000/- for Regular premium policies and Rs. 30,000/- for Single premium policies |
| Mode of installment premium payment | Yearly / Half-Yearly or as Single premium |
Benefits under LIC Jeevan Kiran Policy ( LIC New Term Plan)
Maturity Benefit
On maturity basic Sum Assured at maturity is paid. That means, the proposer will get entire paid Premiums back(excluding any extra premium, any rider premium and taxes etc.).
The life-insurance coverage will get terminated automatically after maturity date.
Death benefit -LIC Jeevan Kiran Plan 870
On Death during the policy term – For Regular Premium Policy
On death of the Life Assured (During policy term) the nominee will get higher of the following
- Basic Sum Assured on death
- 7 times of annualised premium
- 105% of total premium paid till date of death
On Death during the policy term-For Single Premium Policy
- Basic Sum Assured on death
- 125% of single premium paid
Settlement Option ( for Maturity)
Under LIC settlement option, one can take maturity benefit in instalments over a period of 5 years instead of lump sum amount. This option can be exercised for in force or paid policies.
| Mode of Instalment payment | Minimum Instalment amount |
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/- |
| Half-Yearly | Rs. 25,000/- |
| Yearly | Rs. 50,000/- |
Settlement Option( Death Claim)
One can choose to receive death benefit in instalments over the chosen period of 5 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for in force or paid policies.
Please refer above table.
Riders
The policyholder has an option of availing following Rider benefit(s):
- the LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death – the Accident Benefit Sum Assured will be payable in lump sum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums to the extent of rider sum assure will be waived off.
- LIC’s Accident Benefit Rider -In case of accidental death, the Accident Benefit Sum Assured will be payable in lump sum. ( Not available in case of single premium policy)
Rider sum assured cannot exceed the Basic Sum Assured.
LIC Jeevan Kiran Premium Calculator ( 870)
The sample illustrative premiums for Basic Sum Assured of Rs. 20 Lakh for Non-Smoker, Standard lives under Single and Regular Premium Payment options for Offline sales are as under:
LIC term plan calculator online – LIC Jeevan Kiran 870 premium calculator
LIC term insurance plans calculator is available on the LIC website, URL given above. Just fill in your details and buy LIC term insurance plan at cheaper rates.
LIC Jeevan Kiran ( New LIC Term Plan)- Should you buy?
Jeevan Kiran LIC is a with return of purchase price term plan. Which means you will get your entire premium back at the maturity and in return you will get term assurance.
Definitely you will have to pay very high premium and no returns in turn. Yes, your money won’t get wasted in a different sense. But if we calculate a pure term insurance and investment of leftover premium amount, then definitely it’s a loss. it’s a great loss.
In my point of view, it is better to buy a pure-term insurance plan and invest rest of the money in mutual funds, post office saving schemes or elsewhere.
Calculate your Premium yourself –Life Insurance Corporation of India term plan premium calculator
You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.
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Read more –LIC New tech term plan
