LIC is now offering Three Term plans online, namely LIC Jeevan Kiran Vs LIC New Tech term plan Vs LIC Saral Jeevan Bima, 859. Choosing from three plans, may sound confusing to an investor.
This post will figure out the difference between all LIC term insurance plans.
LIC’s Jeevan Kiran vs Saral Jeevan Bima vs New Tech term Plan are all a Non-Linked, Non-Participating, Individual, Pure Risk Life Insurance plan which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term.
Read more about Term Insurance
Table of Contents
LIC Term Insurance Plan -Eligibility
| Features | LIC Jeevan Kiran ( Table no. 870) | LIC New Tech Term ( table no. 954) | LIC Saral Jeevan Bima ( Table no. 859) |
| Type of Plan | With return of Premium Plan at maturity | premium is NOT returned at maturity | premium is NOT returned at maturity |
| Mode of Purchase | Online & Offline | Online only | Online & Offline |
| Minimum Basic Sum Assured | Rs.15,00,000/- | Rs. 50,00,000 | Rs. 5,00,000 |
| Maximum Basic Sum Assured | No limit | No limit | Rs. 25,00,000 |
| Premium Paying Options | Single Premium/ Regular Premium | Single Premium/ Regular Premium/ Limited premium payment ( for term 10-40 years, term is policy duration – 5 year) Limited premium payment for term 15-40 years, term is policy duration – 10year) Example: if policy term is 30 year than one can opt for 30-5 =25 year policy term or 30-10 = 20 year policy term | Single Premium/ Regular Premium/ Limited premium payment 5 year/Limited premium payment 10 year |
| Premium Paying Term – Regular premium Payment | Same as Policy Term | same as policy term | same as policy term |
| Premium Paying Term-Limited Premium payment | Not applicable | Policy term- 5 year ( for 10-40 year term) Policy term- 10 year ( for 15-40 year term) | Policy term- 5 year /10 year |
| Single Premium | One time payment | One time payment | One time payment |
| Minimum Policy Term | 10 years to 40 years (maximum) | policy term -10 to 40 yrs | policy term -5 to 40 yrs |
| Minimum Age at entry | 18 years (Last Birthday) | 18 years (last birthday) | 18 years (last birthday) |
| Maximum Age at entry | 65 years (last birthday) | 65 years (last birthday) | 65 years (last birthday) |
| Maximum Maturity Age | 80 years (last birthday) | 80 years (last birthday) | 70 years (last birthday) |
| Riders | LIC’s Accidental Death and Disability Benefit Rider Accident Benefit Rider ( not available for Single premium policy) | LIC’s Accidental Death and Disability Benefit Rider is available | No riders are available |
| Surrender Value | Surrender value applicable | Some Value is given back in case of single premium & Limited Premium payment | Some Value is given back in case of single premium & Limited Premium payment |
Benefits under LIC Term Insurance Plans
Maturity Benefit
Since LIC Jeevan Kiran 870 is with return of premium plan, the assured get back the premium paid at maturity whereas LIC New Tech Term and LIC Saral Jeevan Bima are Without return of premium plan. Therefore no money is returned back at maturity.
| LIC Jeevan Kiran Plan | LIC New Tech Term Plan | LIC Saral Jeevan Bima Plan |
| Total Premium Paid is returned back at maturity (WROP- with return of premium Plan) | No money Returned back | No money Returned back |
Death benefit
The amount death benefit is paid, depends on premium payment option
For Regular & Limited Premium payment
On death of the Life Assured (During policy term) the nominee will get higher of the following ( For Regular premium or Limited premium payment policy)
| LIC Jeevan Kiran Plan | LIC New Tech Term Plan | LIC Saral Jeevan Bima Plan |
| 105% of Total Premium Paid upto the date of death | 105% of all the premiums paid as on the date of death | 105% of all the premiums paid as on the date of death |
| 7 times of Annualized Premium | 7 times of annualised premium paid till date of death | 10 times of annualized premium |
| Basic Sum Assured | Absolute amount* assured | Absolute amount* assured |
For Single Premium payment
| LIC Jeevan Kiran Plan | LIC New Tech Term Plan | LIC Saral Jeevan Bima Plan |
| 125% of Single Premium | 125% of Single Premium. | 125% of Single Premium. |
| Basic Sum Assured | Absolute amount* assured to be paid on death. | Absolute amount* assured to be paid on death. |
Absolute amount* For Level Sum Assured is the amount equal to Basic Sum Assured, which shall remain the same throughout the policy term. ( For New tech Term)
Absolute amount* For Increasing Sum Assured equal to Basic Sum Assured till completion of fifth policy year. ( New Tech Term)
After 5 year sum assured will be increased by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured.
From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.
| Death event occurrence | Sum Assured payment In Increasing Sum Assured Option |
| 1-5 year | Basic Sum Assured |
| 6-15 year | Basic Sum Assured is increased each year by 10% – Death occurred in 6th year – 110% SA Death occurred in 7th year -120% SA Death occurred in 8th year -130% SA . . . Death occurred in 15th year -200% SA |
| 16 year onwards | 2 times of SA ( 200%) |
NOTE: Increasing Sum Assured option is not available for LIC Saral Jeevan Bima Policy. In Addition the maximum sum assured limit is only 25 lakh.
Option to take Death Benefit in instalments:
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
Different modes of payments being as under:
LIC Jeevan Kiran & LIC New Tech term Plan- Death benefit Payout in instalments
Please note – This option is not available forLIC Saral Jeevan Bima Policy.
Riders
The policyholder has an option of availing following Rider benefit(s):
LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident).
Rider sum assured cannot exceed the Basic Sum Assured.
Please note – Available for LIC Jeevan Kiran & LIC New Tech Term only. This option is not available for LIC Saral Jeevan Bima Policy.
- 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
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 Saral Jeevan Bima Premium
Basic Sum Assured of Rs 10 lakh and Policy Term 25 years for Standard lives
LIC New Tech Term Premium Chart
Basic Sum Assured of Rs. 1 Crore
What if you do not pay Premium
If the premiums are not paid within the grace period, then the policy will lapse. A lapsed policy can be revived, within a period of 5 consecutive years from the date of First Unpaid Premium.
Surrender Value LIC Jeevan Kiran Policy
Under Single Premium policy -The Guaranteed Surrender Value shall be as under:
During first three policy year: 75% of the Single premium Paid.
Thereafter: 90% of the Single premium Paid.
Under Regular Premium Policies:
The Guaranteed Surrender Value shall be the Total Premiums Paid (excluding any extra premium, any premiums for rider(s), if opted for and taxes) multiplied by the GSV factor applicable to Total Premiums Paid.
Surrender Value LIC Saral Jeevan Bima Policy
No surrender value will be available under this Plan ( regular plan).
Surrender Value LIC New Tech Term Policy
No surrender value will be available under this Plan ( regular plan).
However, In case of Limited premium & single premium – some amount is given back as surrender value
- Single Premium Policies: The applicable refund shall be payable anytime during the Policy Term.
- c) Limited Premium Payment: The applicable refund shall only be payable if full premiums have been paid for at least:
- i) Two consecutive years in case of premium paying term less than 10 years.
- ii) Three consecutive years in case of premium paying term of 10 years or more.
Conclusion
After all the differences mentioned above, now we can clearly define all three term plans of LIC.
We can clearly define LIC Jeevan Kiran policy as LIC return of premium term plan which is available online and offline both. Whereas LIC Tech term is an Online term insurance plan of LIC which offer high risk co average to its takers. LIC Saral Jeevan Bima is without return of premium policy, which offers low insurance coverage.
If we closely observe, LIC Saral Jeevan Bima Policy is suitable for low risk cover amount upto 25 lakh only ( Since it is the maximum coverage under the plan) whereas in case of New tech term Plan, the coverage starts from 50 lakh to no limit.
The available LIC Term Insurance Plan Online are LIC New Tech Term, LIC Jeevan Kiran and LIC Saral Jeevan Bima. To buy LIC Plans Online https://digisales.licindia.in/eSales/liconline
In my view, looking at todays life scenarios, LIC New Tech term is suitable for high risk coverage( online mode). In meanwhile who wish to go for with return of premium plans can go for Jeevan Kiran Term plan.
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