LIC Jeevan Pragati Plan

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LIC Jeevan Pragati Plan Review

LIC Jeevan Pragati Policy is a simple endowment plan which offers savings and protection at the same time.


 

Launch Date	Table Number	Product Type	Bonus	UIN
3rd February, 2016	838	Endowment	Yes	512N306V01

How it works - You pay a regular premium for a policy term of your choice. You will now be eligible to a life cover called the “Basic Sum Assured”. The life cover will increase automatically with every block of 5 policy terms - details of which are mentioned below. You can also avail the 'Accidental Death and Disability Rider' along with the cover. The rider will come at an additional cost.
 

What you get in LIC Jeevan Pragati Policy

Maturity Benefit (in case the policyholder survives till the end of the policy term) –
At the end of the policy term you will get “Basic Sum Assured” + “Simple Reversionary Bonus” (which you have received till date) + “Final Additional Bonus”.

Death Benefit (in case the policyholder dies at any time during the policy term) –
The nominee of the policyholder will now get “Sum Assured on Death” + “Simple Reversionary Bonus” (which have been received till date) + “Final Additional Bonus”.

Explanation of the terms used above:

Basic Sum Assured – this is the amount of cover which you are eligible for when you buy the plan.

Simple Reversionary Bonus – In this plan you will be eligible for a bonus which will be declared every year by LIC. This bonus may change from year to year. You can find the historical details of Bonus declared by LIC for various plans here.

Sum Assured on Death – this is based on the number of years that the policy has been active. This is calculated as follows: 

Highest of:

• 10 times the Annualised Premium
• 100% of Basic Sum Assured in case of death within 0 to 5 years of policy term
• 125% of Basic Sum Assured in case of death within 6 to 10 years of policy term
• 150% of Basic Sum Assured in case of death within 11 to 15 years of policy term
• 200% of Basic Sum Assured in case of death within 16 to 20 years of policy term

Final Additional Bonus – This plan is also eligible for a one-time bonus at the end of the policy term. This is like a loyalty bonus for long term plans (usually reserved for policy terms greater than 15 years). The loyalty bonus is also declared by LIC every year. 

 
Suppose Akshay buys this plan with the following details:
 

Akshay's age	Basic Sum Assured	Policy Term
27 years	Rs. 2,50,000	20 years

The premium inclusive of Service Tax would be as follows:
 

Annually	Half Yearly	Quarterly	Monthly
Rs. 12,773	6451	3259	1086

 

LIC Jeevan Pragati Premium Calculator

Use this to get an estimate of the premium for LIC Jeevan Pragati plan. Actual premium may vary according to underwriting rules applicable.  

Now let us see the benefits which Akshay will get in this plan.

Death Benefit - In case of Akshay's death, his nominee will be paid the get “Sum Assured on Death” + “Simple Reversionary Bonus” (which have been received till date) + “Final Additional Bonus”. Let us assume that Akshay's unfortunate death was after 7 years. Based on this the calculation would be as follows:

(A) Sum Assured on Death = 125% of Basic Sum Assured = 125% of Rs. 2,50,000 = Rs. 3,12,500

(B) Simple Reversionary Bonus = Rs. 10,500 x 7 years = Rs. 73,500
Here we have assumed that a Bonus of Rs. 42 per 1000 Sum Assured has been declared every year. So the bonus every year would be 42 x 2,50,000/1,000 = Rs. 10,500

(C) Final Additional Bonus = Since Final Additional Bonus is generally paid only if one has paid 15 years of premium, there will be no payout under this head. His nominee would have received an amount under this head in case the death had happened after 15 years.

So in case Akshay dies after paying 7 premiums, the Death Benefit payable to his nominee would be = (A) + (B) + (C) = Rs. Rs. 3,12,500 + Rs. 73,500 + Rs. 0 = Rs. 3,86,000

Death Benefit in LIC Jeevan Pragati in this example = Rs. 3,86,000


Click here to know Bonus Rates of LIC Jeevan Pragati Plan
 

LIC Jeevan Pragati Death Benefit Calculator

You can use this to get a fairly accurate estimate of the death benefit of LIC Jeevan Pragati plan of yours. The death benefit amount of LIC Jeevan Pragati is totally tax free.


 

Now let us see how much Akshay would get in case as Maturity Value in LIC Jeevan Pragati

Maturity Benefit - At the end of the policy term, Akshay will be paid the “Basic Sum Assured” + “Simple Reversionary Bonus” (which have been received till date) + “Final Additional Bonus”. Based on this the calculation would be as follows:

(A) Basic Sum Assured = Rs. 2,50,000

(B) Simple Reversionary Bonus = Rs. 10,500 x 20 years = Rs. 2,10,000
Here we have assumed that a Bonus of Rs. 42 per 1000 Sum Assured has been declared every year. So the bonus every year would be 42 x 2,50,000/1,000 = Rs. 10,500

(C) Final Additional Bonus = Rs. 12,500 
Here we have assumed a Final Addtional Bonus rate of Rs. 50 per 1000 Sum Assured = 50 x 2,50,000/1,000 = Rs. 12,500

So Akshay will get the following amount as Maturity Value = (A) + (B) + (C) = Rs. Rs. 2,50,000 + Rs. 2,10,000 + Rs. 12,500 = Rs. 4,72,500

Maturity Benefit in LIC Jeevan Pragati in this example = Rs. 4,72,500
 

LIC Jeevan Pragati Maturity Value Calculator

You can use this to get a fairly accurate estimate of the maturity value of LIC Jeevan Pragati plan of yours. The amount of LIC Jeevan Pragati Returns is totally tax free.

Jeevan Pragati Maturity Value Calculator

Calculate the maturity amount of LIC Jeevan Pragati Plan

What is the Sum Assured in your plan?

Rs.

What is the Policy Term?

years

Calculate

Details of your Plan:

Sum Assured : = Rs. 5,00,000

Maturity Amount: = Rs. 35,000

Assumptions :
Simple Reversionary Bonus is assumed to be Rs. 40 per 1000 Sum Assured
Final Addition Bonus is assumed to be Rs. 50 per 1000 Sum Assured

Wherever declared by LIC, the actual values have been taken.

   

Eligibility Conditions in LIC Jeevan Pragati Policy

 

Age	12 to 45 years
Policy Term	12 to 20 years
Maximum Age at Maturity	65 years
Cover Amount	Minimum - Rs. 1,50,00 Maximum - No limit

 

Tax Benefits in LIC Jeevan Pragati

• The premiums paid by you are exempt from Income tax under Section 80 C.
• The maturity amount is also tax free under section 10(10D)

​LIC Jeevan Pragati Surrender Value Calculator

You can surrender the policy after paying complete 3 years of premium. You can use this calculator to get a fairly accurate estimate of the surrender value of LIC Jeevan Pragati plan of yours.

Jeevan Pragati Surrender Value Calculator

Calculate the Surrender amount of LIC Jeevan Pragati Plan

What is the Sum Assured in your plan?

Rs.

Policy Term?

years

Annual Premium?

Rs.

Premium Paid Years

years

Calculate

Details of your Plan:

Sum Assured : = Rs. 5,00,000

Surrender Value: = Rs. 35,000

 

What happens if...

You stop paying the premium – If you stop paying the premium, you have the option of surrendering the plan and gettting the Surrender Value as a payout. Please note that the plan is eligible for a Surrender Value only if 3 years of premiums have been paid. In case you have paid premiums for 3 years, you will get nothing. 
 
You want to surrender the policy – You can surrender the policy after paying complete 3 years of premium.

You want a loan against your policy – You can opt for loan facility after paying premiums for 3 years.

You've chosen the wrong plan or don't feel like continuing immediately after you receive your policy documents – There is a free look period of 15 days from the date of receipt of policy. You can return the plan and the premiums will be refunded to you after some basic deductions of stamp paper costs and costs of medicals (in case they were conducted).

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