LIC Jeevan Kiran 870
LIC Jeevan Kiran 870 plan helps the policyholder’s loved ones financially during the policy’s term in the event of the policyholder’s death. If you wish to save regularly and have life insurance, this plan is for you.
Let’s look at LIC Jeevan Kiran 870 chart:
Age | Minimum: 18 years |
Policy Term | 10 – 40 years |
Sum Assured | Min. Sum Assured – Rs. 15,00,000/- Max. Sum Assured – no limit |
Minimum Premium | Single Premium: Rs 30,000 Regular Premium: Rs 3000 |
Premium Paying Term | Single-Premium: Lum Sum (One Time) Regular Premium: Same as Policy Term
|
Maturity Age | 80 years |
Premium Paying Mode | Monthly, Quarterly, Half-Yearly and Yearly |
Riders (Optional) | Accidental Death and Disability Benefit Rider Or Accidental Benefit Rider
|
Tax Benefits | Premium is exempted (80c) and Death Claim is Tax-Free 10(10D) |
Maturity Amount | Total Premium Paid Amount |
Claim Payment Option | LUM SUM Or INSTALMENT PAYMENT: Over five years (Monthly, Quarterly, Half Yeary, Yearly) any one Lic will pay interest in instalment mode. |
Jeevan kiran lic policy details and benefits :
Death Benefit
The death benefit is the amount paid out when the policyholder passes away during the policy term, which occurs after the policy’s risk coverage begins but before the maturity date.
Under a Regular Premium Payment Plan, the basic Sum Assured on Death is the higher of the following three options:
• 7x (times) the annual premium amount,
• 105% of the total premiums paid up to the date of the policyholder’s death.
• The Basic Sum Assured.
For a Single Lum Sum Premium Payment Plan, the basic Sum Assured on Death is the higher of:
• 125% of the single premium paid.
• The Basic Sum Assured.
Here:
“Total Premiums Paid” represents the cumulative sum of all premiums received, excluding extra premiums, rider premiums, and taxes.
Maturity Benefit
In case the life assured lives until the end of the insurance term. In that case, the assured maturity sum equals the total amount of regular or single premiums or 105% of the premiums paid.
Riders
Two Riders are available under LIC Jeevan Kiran as detailed below on payment of additional premium. Users can choose any rider between these two riders:
• Accidental Death and Disability Benefit Rider
• Accident Benefit Rider
Note:
Riders, if taken, can only be claimed after death during policy tenure, no maturity benefits are available.
Tax Benefits
The premiums are not taxed under section 80C of the Income Tax Act. Also, section 10(10D) of the same act says that money received from maturity or death claim is not taxed.
Rebate
LIC Jeevan Kiran 870 plan offers rebates based on Sum Assured we chose:
Under Regular Premium Payment Mode:
AGE | Less than Rs. 50 Lakhs | Rs. 50 Lakhs to less than Rs. 1 crore | Rs. 1 crore to less than Rs. 2 crores | Rs. 2 crores to less than Rs. 5 crores | Rs. 5 crore and above |
Up to 30 years | NIL | 24 % | 32% | 43% | 50% |
31 to 50 years | NIL | 12% | 17% | 25% | 30% |
51 years and above | NIL | 9% | 9% | 18% | 20% |
Under Single Premium Payment Mode:
AGE | Less than Rs. 50 Lakhs | Rs. 50 Lakhs to less than Rs. 1 crore | Rs. 1 crore to less than Rs. 2 crores | Rs. 2 crores to less than Rs. 5 crores | Rs. 5 crore and above |
Up to 30 years | NIL | 20% | 28% | 35% | 40% |
31 to 50 years | NIL | 10% | 15% | 20% | 24% |
51 years and above | NIL | 8% | 12% | 15% | 18% |
In Online Sale:
Premium Payment | Single Premium |
Single Premium | 2% |
Regular Premium | 10% |
Loan Facility
Loan facility is not available with Jeevan Kiran 870 Term Plan.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Revival Period
The policy will expire if premiums are not paid within the grace period. If necessary, lapsed insurance may be revived within five years, starting on the first unpaid premium date and before the date of maturity.
Surrender Value
The Policyholder can surrender the policy at any time during the policy term, provided two years’ premiums have been paid.
Under Single Premium Mode, the guaranteed surrender value will be:
• For the first 3 Years: 75% of the Single premium Paid.
• After 3 Years: 90% of the Single premium Paid.
Under Regular Premium Payment Mode:
The Special Surrender Value (SSV) is subject to revision and will be decided upon periodically by the Corporation. The Rider(s), if any, will not have any surrender value available. The policy expires, and no further benefits are available upon payment of Surrender value during the Policy Term.
Free Look Period
If a policyholder is dissatisfied with the terms and conditions of the insurance policy. In that case, they have 30 days from receipt to return and get a full refund after deducting examination charges, stamp duty, and any other charges.
You can even visit LIC India official website to know more about LIC Jeevan Kiran plan.
Jeevan Kiran Premium and Maturity Calculation
To illustrate the benefits and claims process for LIC Jeevan Kiran Plan 870, let’s consider a complete scenario involving a policyholder who opts for a rider.
Policyholder: Ashok
Age: 30 years
Sum Assured: ₹50,00,000
Policy Term: 20 years
Premium Payment Term: 20 years
Annual Premium: ₹22,500 (for non-smoker)
Rider Selected: LIC’s Accidental Death and Disability Benefit Rider
Premium Calculation
1. Base Premium:
Annual Premium = ₹22,500
2. GST Calculation (18%):
GST Amount = ₹22,500 × 0.18 = ₹4,050
3. Total Annual Premium Including GST:
Total Annual Premium = ₹22,500 + ₹4,050 = ₹26,550
Death Benefit Scenario
If Ashok dies within the policy term (after the commencement of risk but before maturity), the claim amount will depend on the following:
- 1. Death Benefit Calculation:
For Regular Premium Payment:
Highest of:
7 times the annualized premium: 7 *22,500 = ₹1,57,500$$
105% of total premiums paid up to date of death:
If he has paid for 5 years: 5 * 22,500 = ₹1,12,500$$ → 105% of 1,12,500 = ₹1,18,125
Basic Sum Assured: ₹50,00,000
Therefore, the Death Benefit payable to the nominee will be:
Claim Amount: ₹50,00,000 (as it is higher than other calculations).
2. Accidental Death Rider Benefit:
If Mr. Ashok dies due to an accident while the rider is active:
The Accidental Benefit Sum Assured (let’s assume it is also ₹50,00,000) will be paid in addition to the death benefit.
Total Claim Amount = Basic Sum Assured + Accidental Benefit = ₹50,00,000 + ₹50,00,000 = ₹1 Crore.
Summary of Claim Process
In case of Mr. Ashok’s death during the policy term:
The nominee will receive a total claim amount of either ₹50,00,000 (in case of natural death) or ₹1 Crore (in case of accidental death).