LIC Jeevan Kiran Plan
LIC Jeevan Kiran plan is a term insurance plan in which the premiums paid are returned at the end of the policy term. Such plans are called TROP – Term with Return Of Premium. This plan is suitable for those who wish have a life cover but want the premiums to be returned in case no claim is made during the policy term.
| Launch Date | 27-July-2023 |
| Table Number | 870 |
| Product Type | Term Insurance with Return of Premium |
| UIN | 512N353V01 |
Key Features
- Life cover throughout the policy term
- Premiums are returned in case of survival till the end of the policy term
- Single Premium & Regular Premium options to pay premiums
- High Sum Assured rebates are available
- Option to take 2 additional riders
Benefits
The amount which the nominee receives in the unfortunate event of the death of the policyholder is as follows:
For Regular & Limited Pay Premium payment plans, highest of:
- 7 times annualized premium
- 105% of all premiums paid
- Basic Sum Assured
For Single Premium plans, highest of:
- 125% of the Single Premium
- Basic Sum Assured
Death Benefit in instalments: The policyholder can also decide if the death benefits should be paid in regular instalments or as a lumpsum. You can also decide if part amount should be in lumpsum and part amount in regular instalments. The instalment part would be spread over a 5-year period and can be paid monthly, quarterly, half-yearly or annually. The decision of lumpsum or payment in instalments has to be taken by the policyholder and cannot be changed by the nominee.
If the policyholder survives the policy term, all premiums paid are returned. The tax amount, any extra premium charged or rider premiums will not be returned.
The maturity benefits can also be taken in instalments. This is known as the Settlement Option. You can also decide if part amount should be in lumpsum and part amount in regular instalments. The instalment part would be spread over a 5-year period and can be paid monthly, quarterly, half-yearly or annually.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under Section 80C. The Death Benefit is tax free under section 10(10)D subject to fulfillment of terms and conditions. The tax benefits will be as per the income tax laws applicable from time to time.
You can opt to take additional protection benefits in the form of riders. You will need to pay additional premiums to avail these riders. The following 2 riders are available with this plan.
- LIC’s Accidental Death & Disability Benefit Rider – In case of death or disability due to an accident, this additional benefit will be paid.
- LIC’s Accidental Benefit Rider – In case of death of the policyholder due to an accident, the rider benefit is paid to the nominee in addition to the plan benefits
How it works
LIC Jeevan Kiran plan is term insurance plan which is useful for those who want the return of premiums in case the policyholder does not die during the policy term.
- Decide on the amount of cover
- Decide on the policy term. It can vary between 10 to 40 years
- Decide between Regular Premium, Limited Premium or Single Premium payment options
- In case of Regular or Limited premium, decide to pay premiums monthly, quarterly, half-yearly or annually
- Decide if you wish the nominee to receive the payments in lumpsum or regular instalments.
- Decide if you wish to receive the survival benefits in lumpsum or regular instalments.
Sample illustration of premiums in LIC Jeevan Kiran Policy
The below illustration is for a healthy Male (non-tobacco user) opting for a cover as follows. The premiums displayed are exclusive of tax.
Sum Assured = Rs. 20 lakhs
Annual Premium (in Rs.)
| Age (years) | Policy Term (years) | |||
| 10 | 20 | 30 | 40 | |
| 20 | 20,060 | 9,440 | 8,000 | 8,280 |
| 30 | 22,500 | 12,080 | 11,600 | 12,320 |
| 40 | 35,140 | 21,820 | 20,520 | 21,300 |
| 50 | 72,700 | 42,400 | 38,160 | NA |
| 60 | 1,27,220 | 75,000 | NA | NA |
Single Premium (in Rs.)
| Age (years) | Policy Term (years) | |||
| 10 | 20 | 30 | 40 | |
| 20 | 51,340 | 51,940 | 60,900 | 77,080 |
| 30 | 59,000 | 70,600 | 96,680 | 1,25,820 |
| 40 | 99,060 | 1,39,680 | 1,85,480 | 2,34,220 |
| 50 | 2,24,020 | 2,86,260 | 3,60,780 | NA |
| 60 | 4,18,500 | 5,26,820 | NA | NA |
Compare premiums from top insurers to get the cheapest term insurance plan.
Eligibility
| Minimum | Maximum | |
| Sum Assured | 15,00,000 | No Limit |
| Policy Term (years) | 10 | 40 |
| Entry Age (years) | 18 | 65 |
| Age at Maturity (years) | 28 | 80 |
| Payment Modes | Single & Regular Pay | |
Note: Minimum premium in case of Regular Pay is Rs. 3,000 and for Single Pay it is Rs. 30,000
FAQs
Can I surrender the LIC Jeevan Kiran Policy?In case you surrender the policy, a % of the premiums paid will be paid back to you as the Surrender Value. You need to get in touch with LIC to get the exact surrender value which is based on the policy term and the number of years of premiums which has been paid.
Can I revive the LIC Jeevan Kiran Policy?In case you miss paying the premiums, the policy will lapse. A lapsed policy can be revived within 5 years of the last unpaid premium. You will have to pay all the premiums along with any fees and interest components. You may be subjected to new terms at the time of revival.
What is the Suicide Exclusion in this plan?In case the policyholder commits suicide within 12 months of purchasing the plan, the premiums would be paid to the nominee as follows:
- Regular Pay Plans – 80% of premiums paid will be paid to the nominee. The plan will cease to exist and cover will cease.
- Single Premium Plan – 90% of the single premium paid will be refunded to the nominee. The plan will cease to exist and cover will cease.
Can I get a loan against this policy?No loan is available against this LIC Jeevan Kiran plan.
