LIC has launched “Jeevan Pragati Policy” (Table Plan No. 838) in Feb 2016. Unique Identification number of Jeevan Pragati Plan is 512N306V01. This policy is
- with profit
- endowment (savings-cum-protection) policy
- non-linked (not linked to stock market)
This is the third policy launched by LIC in 2016 after LIC Jeevan Labh and Jeevan Shikhar
In this policy, the risk cover keeps on increasing every 5 year. This is an important feature as it provides adequate risk cover against inflation as the years passes. You can also add accidental benefit rider.
Key Features
- Increasing Life Cover every 5 years (25% risk cover increased every 5 years)
- Option to add accidental rider
- Premium paid is eligible for deduction under 80(C)
- Maturity amount will be tax free under 10(10D)
Optional Rider
LIC’s Accidental Death and Disability Rider UIN (512B209V01) is available with this plan whereby an additional amount equal to the Accidental Benefit Sum Assured is payable on death due to accident, provided the rider is in full force at the time of the accident.
| LIC Jeevan Pragati (Table 838) | |
| Age at Entry | 12 Years (Completed) |
| Maximum Age at Entry | 45 Nearest Birthday |
| Maximum Maturity Age | 65 Nearest Birthday |
| Policy Term | 12 to 20 Years |
| Minimum Sum Assured | 1,50,000 and above (in multiple of 10,000) |
| Maximum Sum Assured | No Limit |
| Premium Paying Mode | Yearly, Half Yearly, Quarterly, Monthly (ECS Only) |
Maturity Benefit: Sum Assured + Bonus + Final Addition Bonus (FAB) will be paid as maturity.
Returns: In terms of maturity, it is just like a normal endowment plan, where the returns vary
- from 6.53% (for a 12-year old person investing Rs 10 lakh or more for the maximum term of 20 years) to
- 4.33 % (for a 45-year old person investing Rs 1.5 lakh for the minimum term of 12 years)
Note that the maturity amount will be calculated only on the basic sum assured and not on enhanced sum assured on death.
Death Benefit : Death benefit will be higher of 1) 10 times of annualized premium or 2) Claim amount as per table below:
| Year of Death | Death Claim Amount |
| During 0-5 years of Policy Term | 100 % of Sum Assured + Accumulated Bonus at the time of Death |
| During 6-10 years of Policy Term | 125 % of Sum Assured + Accumulated Bonus at the time of Death |
| During 11-15 years of Policy Term | 150 % of Sum Assured + Accumulated Bonus at the time of Death+ FAB |
| During 16-20 years of Policy Term | 200 % of Sum Assured + Accumulated Bonus at the time of Death+ FAB |
Note: Final Addition Bonus (FAB) is not applicable before 15 Years
Death benefit will not be less than the 105% of total premium paid up to the death of life assured.
Other points
| Premium Payment Mode rebate | 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly |
| Rebate on High Sum Assured | 0% up to 2,90,000 |
| (Per 1000 of Sum Assured) | 1.50% for 3,00,000 to 4,90,000 |
| 2.00% for 5,00,000 to 9,90,000 | |
| 2.25% for 10,00,000 and above | |
| Loan | After 3 years |
| Surrender | After 3 years of full premium payment |
Premium Calculator for LIC Jeevan Pragati (Table Plan No 838)
You can check premoum on the LIC premium calculator below or check in the table chart attached.
https://www.licindia.in/Customer-Services/Premium-Calculator
pdf file – lic-jeevan-pragati-premium-table
Summary
The only difference with Jeevan Pragati plan is that the risk cover increases every 5 years.
I am not big fan of traditional LIC plans as I personally prefer to keep savings and insurance separate. I normally prefer to take Life Term insurance (for life insurance) and Mutual funds (for investment).
Feel free to ask your LIC and other insurance queries through the comments box below.