LIC Jeevan Pragati 838 is a plan with the premium paying terms equal to policy term, non-linked Endowment Assurance Plan with Profit. There is something different than other plans is the Increment in Death Sum Assured after every 5 years during the policy term.That combines protection with savings along with rising in risk cover after every 5 years. Other benefits are also available under this plan like tax benefits, loan facility and rider benefits.
Sum Assured: Minimum limit for the sum assured is Rs. 1.5 lakh and there is no maximum limit.
Policy Term: 12 to 20.
Premium Paying Term: Policy Term.
Entry Age: The minimum entry age of the policy holder should be 12 years and the maximum age limit is 45 years.
Maximum Maturity Age: 65 Years.
Premium Payment Mode: Premium can be paid Monthly, Quarterly, Half Yearly or Yearly.
Maturity Benefits: on maturity, basic sum assured along with vested simple reversionary bonus and the final additional bonus is paid to the policy holder.
Death Benefits: If the Death happens after the commencement of risk, the nominee will get:
Base Sum Assured + Simple Reversionary Bonus (every year) + Final Additional Bonus (applicable in the year of death)
Rider benefits: Accidental Death benefit is available during the policy term; accident benefit sum assured will be paid along with death benefit under the basic plan. Disability benefits are paid till 65 years of age of the policy holder.
Income Tax Benefit: Premium paid in this policy is tax exempted under section 80C. The maturity benefits are also exempted from tax under section 10(10D).
Liquidity Benefit: Policy holder can take a loan under this policy after completion of 3 full years of the Policy.
For simplicity study following table
|Min Age||12 Year|
|Max Age||45 Year|
|Max Maturity Age||65 Year|
|Policy Term||12 Year to 20 Year|
|Premium Paying Term||12 Year to 20 Year|
|Min Sum Assured||Rs. 1,50,000/-|
|Max Sum Assured||Any|
An example of Jeevan Pragati Plan, 838
Suppose someone of 30 years age is going to apply for policy 838 Jeevan Pragati Plan for the Basic Sum Assured Rs. 1000000 and 20 years term. Following are Key points of the policy.
“Jeevan Pragati” Table 838
Age: 30 Year
Basic Sum Assured: Rs. 1000000/-
|Premium Paying Term||20 Year|
|Policy Term||20 Year|
|Basic Sum Assured||Rs. 10,00,000/-|
|Double Accidental Benefit||Rs. 10,00,000/-|
|Death Sum Assured||0 to 5 Year Rs. 10,00,000/-|
6 to 10 Year Rs. 12,50,000/-
11 to 15 Year Rs. 15,00,000/-
16 to 20 Year Rs. 20,00,000/-
|Premium First Year||Rs. 50,667/-|
|Premium second Year Onwards||Rs. 49,576/-|
|Total Premium Paid||Rs. 9,92,611/-|
|Money Back At the Year||NA|
|Money back %||NA|
|Total Money Back||NA|
|Maturity Return||Rs. 18,70,000/-|
|Total Return||Rs. 18,70,000/-|
|Life Time Cover||NA|
Above Calculations are approximate and according to current bonus rate. It may vary according to the rate of bonus and taxes.