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LIC Jeevan Kiran (No. 870) Return-Of-Premium Term Plan Review (2023)?

LIC has launched a new term life insurance plan in 2023 – The name of the new policy is LIC Jeevan Kiran (Plan No. 870). It’s a simple a non-linked, non-participating, term life insurance policy but with widow goody that it returns when the total premium paid on survival (maturity) to the policyholder.

This policy (LIC Table No. 870) has been launched for the first time in 2023 under the UIN 512N353V01.

LIC Website link to Policy page – Link

LIC once offers a pure term plan named, LIC New Tech Term plan. So for some reason, instead of just offering an spare optional goody of return of premium on maturity on the existing plan, LIC decided to launch a new plan itself named LIC Jeevan Kiran.

While you are once enlightened that pure term life insurance is the weightier form of life insurance, many in India are still uncomfortable with the thought of getting no survival or maturity benefits in Term Plans. Simply speaking, you don’t get when anything if you survive the policy term. So to vamp such people, LIC came up this LIC Jeevan Kiran plan, which is a new version of the term plan which has Return of Premium Term Plan option. Many insurers offer such Return of Premium Term Plans which are moreover tabbed TROP (Term Return of Premium) plan.

If you want to know increasingly well-nigh this LIC Jeevan Kiran Plan Review (2023) article, then you will get to know all the LIC Jeevan Kiran Plan Details and LIC Jeevan Kiran Policy Benefits here.

Let’s see the features now.

Features of LIC Jeevan Kiran Plan (Table 870)

LIC New Jeevan Kiran Term Plan, is a traditional term life insurance plan with spare full-length of giving when the ‘return of premium‘ on maturity/survival to the policyholder. So, not only do you get the life imbricate throughout the policy tenure, you moreover get when all the premiums that you paid over the years during the policy tenure on maturity date.

Now let’s have a squint at the Policy Details of Jeevan Kiran Plan.

The Eligibility Criteria of the LIC Jeevan Kiran Plan and its features are listed below:

The Minimum Entry Age for the policy is 18 years
The Maximum Entry Age for the policy is 65 years
The Minimum Maturity Age for the policy is 28 years
The Maximum Maturity Age for the policy is 80 years
The Policy Term is 10 years to 40 years.
The Premium Paying Term is same as policy term. In specimen of single premium policy, the premium payment term will obviously be 1 year as it has to be paid only once.
The Minimum Sum Assured is Rs 15,00,000 or Rs 15 lakh.
There is no upper limit on the Maximum Sum Assured for this policy.

Maturity Benefits of LIC Jeevan Kiran Plan

On Life Unpreventable surviving till policy maturity, an value tabbed “Sum Unpreventable on Maturity” which is equal to “Total Premiums Paid” under Regular Premium Payment policy shall be payable.

You are moreover unliable to receive this maturity goody in parts over 5 years in yearly, half-yearly, quarterly, or monthly options. But you have to segregate the option at least 3 months surpassing the maturity of the policy.

There are no uneaten LIC Bonus Rates that are workable for this policy and no bonuses will stockpile or get paid at any time.

Also, there is No Compounding effect on return of premiums. On maturity, you get when the word-for-word value of total premiums you paid over the years without any uneaten interest.

Death Benefits of LIC Jeevan Kiran Plan

The Death goody payable on death of the life unpreventable during the policy term shall be “Sum Unpreventable on Death” – which would be higher of i) 7 times of Annualized Premium; or ii) 105% of the “Total Premiums Paid” up to the stage of death

Sample Premium Illustrations of LIC Jeevan Kiran Plan (2023)

Let’s have a squint at the premium calculations for LIC Jeevan Kiran Policy now.

As per the policy brochure misogynist on the website, here are the sample premiums for the Basic Sum Unpreventable of Rs 20 Lakh with variegated month and policy terms for regular premium payment term:

Here is the details of the premium –

For a 20-year old person ownership LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 20,060 per year.
For a 20-year old person ownership LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 9440 per year.
For a 20-year old person ownership LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 8000 per year.
For a 20-year old person ownership LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 8280 per year.

For a 30-year old person ownership LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 22,500 per year.
For a 30-year old person ownership LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 12,080 per year.
For a 30-year old person ownership LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 11,600 per year.
For a 30-year old person ownership LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 12,320 per year.

For a 40-year old person ownership LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 35,140 per year.
For a 40-year old person ownership LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 21,820 per year.
For a 40-year old person ownership LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 20,520 per year.
For a 40-year old person ownership LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 21,300 per year.

For a 50-year old person ownership LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 72,700 per year.
For a 50-year old person ownership LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 42,400 per year.
For a 50-year old person ownership LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 38,160 per year.

For a 60-year old person ownership LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 1.27 lakh per year.
For a 60-year old person ownership LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 75,000 per year.

LIC moreover offers some rebate for policies with higher premiums. The rebates are as follows:

For sum unpreventable Rs 50 lakh to Rs 1 crore – Rebate of 24% of yearly premium for those weather-beaten up to 30 years, 12% for those weather-beaten 31-50 and 9% for those whilom 51
For sum unpreventable Rs 1 to 2 crore – Rebate of 32% of yearly premium for those weather-beaten up to 30 years, 17% for those weather-beaten 31-50 and 13% for those whilom 51
For sum unpreventable Rs 2 to 5 crore – Rebate of 43% of yearly premium for those weather-beaten up to 30 years, 25% for those weather-beaten 31-50 and 18% for those whilom 51
For sum unpreventable whilom Rs 5 crore – Rebate of 50% of yearly premium for those weather-beaten up to 30 years, 30% for those weather-beaten 31-50 and 20% for those whilom 51

LIC moreover offers some rebate for online sale of policies without any assistance of Agent / intermediary. The rebate is 10% of yearly premium.

Example of LIC Jeevan Kiran Plan (2023)

Suppose a 30-year old made purchases LIC Jeevan Kiran policy for Rs 20 lakh Sum Unpreventable with 30 year policy term. The overturn premium will be Rs 11,600 per year to be paid for each of the 30 years.

In this case, if the policy holder expires unendingly during the 30-year policy tenure his nominee will receive the Rs 20 lakh sum unpreventable death goody as a lump sum value and the policy gets closed.
In specimen the policy holder survives the policy term of 30 years, then he will receive the maturity goody of Rs 3,48,000 (30 years X Rs 11,600). So word-for-word sum of premiums paid till stage or full tenure is returned when with no spare interest or bonuses.

If you compare this Jeevan Kiran which is a Return of Premium plan with simple plain term plan then here are the differences –

In specimen of death, both simple Term Plan and LIC Jeevan Kiran Return-of-Premium Term Plan pay the same amount.
In specimen of survival (or maturity), simple Term Plan pays nothing. But the LIC Jeevan Kiran Return-of-Premium plan gives when all the premiums you paid over the years.
Most importantly, the premium for Return-of-Premium plan will be much higher from that of the simple term plan.

Many insurance teachers will try to fool by saying that these return of premium plans are basically ‘free insurance’ as it returns when the premium. But that is not true as if you take inflation into account, then the very present value of premiums returned by LIC Jeevan Kiran without 20-30 years would be much less than what it is today.

Loan Facility on LIC Jeevan Kiran Plan

No loan facility is misogynist under LIC Jeevan Kiran policy.

Optional Riders Under LIC Jeevan Kiran Plan

LIC Jeevan Kiran Plan offers several optional riders, through which the policyholder can add to their coverage by paying an spare premium:

LIC Willy-nilly Death & Powerlessness Goody Rider (UIN: 512B209V02) – In the event of an accident, the Wrecking Goody Sum Unpreventable will be paid in a lump sum to the beneficiary. Whereas in the specimen of disability, welling out of an wrecking within 180 days from the stage of the accident, an value equal to the Wrecking Goody Sum Unpreventable will be paid in equal monthly installments for 10 years. All future premiums will be waived in the event of willy-nilly powerlessness welling from an accident.
LIC’s New Term Assurance Rider (UIN: 512B210V01) – This rider is misogynist at inception of the policy only. The goody imbricate under this rider shall be misogynist during the policy term. If this rider is opted for, an value equal to Term Assurance Rider Sum Unpreventable shall be payable on death of the Life Unpreventable during the policy term. The premium for LIC’s Willy-nilly Death and Powerlessness Goody Rider shall not exceed 100% of premium under the wiring plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the wiring plan Each of whilom Rider Sum Unpreventable cannot exceed the Basic Sum Unpreventable under the Basic plan

Free Squint Period – If the Policyholder is not satisfied with the Terms and Conditions of the policy, the policy may be returned within 30 days from the stage of receipt of payment.

Surrender of LIC Jeevan Kiran Plan

Under Regular Premium payment, the policy can be surrendered by the Policyholder at any time during the policy term provided two full years’ premiums have been paid. Under Single Premium payment, the policy can be surrendered by the policyholder at any time during the policy term. The Surrender Value payable shall be higher of Guaranteed Surrender value (GSV) and Special Surrender Value (SSV).

How to purchase LIC Jeevan Kiran Plan online?

Step-by-step process to buy LIC’s Jeevan Kiran Plan Online:

Log-on to LIC website (www.licindia.in) or using this link, for ownership this online product. Click on ‘Buy Policies Online’. Select plan LIC Jeevan Kiran Plan.
Click on ‘Buy Online’. Segregate your desired Purchase Price, Policy Variant, Stage of Birth, Gender, Smoking status, etc.
After filling in the details, a premium calculator will summate the premium or the chosen parameters.
Enter other details such as Name, Address, Occupation, Qualification etc. displayed on the screen and well-constructed the proposal form online.
Pay premium online and fulfil the underwriting requirements, if any.

That’s how you can buy LIC Plan 870 online with rebates of on purchase amount.

Should you buy LIC’s Jeevan Kiran Plan (870) in 2023?

LIC Jeevan Kiran Plan is a typical term insurance plan but with the widow goody of return of premium option (which comes at a higher forfeit of higher premiums).

But a plain, standard-term plan that pays out the sum unpreventable in specimen of the policyholder’s death is the purest and cheapest form of life insurance and that is prudent primarily. Such policies are pure risk covers where the policyholder does not get any value as maturity proceeds at the end of the tenure.

LIC Jeevan Kiran is a Return-of-premium plan designed for those individuals who want to purchase term plan but finger that premiums paid under pure-term plans ‘get wasted’. So if you are one among them, then LIC Jeevan Kiran can be considered. If you have a strong preference for LIC when it comes to purchasing insurance, then you can go for this or other term plans by LIC named LIC New Tech Term. Else, if you search for similar term plans by other private insurance companies, then you will find cheaper options as well.

Before you decide to purchase life insurance, you should need correct answers to first question – How to summate correct life insurance cover?, and that is considering right insurance imbricate varies from one person to other. Rs 1 crore imbricate may not be large unbearable for everyone. Do read Is Rs 50 lakh or Rs 1 Crore insurance enough to know more.

Also, you don’t need to purchase a policy that covers you till the age of 100 (which may insurance companies are pushing for these day). Do read what is the right tenure for life insurance in this detailed vendible titled – How to segregate right life insurance tenure?

Hopefully, you would have found this LIC Jeevan Kiran Review useful and the policy details and LIC Jeevan Kiran Policy Benefits (2023) in India would be well-spoken by now. But please make sure you understand and assess the suitability of this product first.

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