In India, buying life insurance has historically been a confusing process. With hundreds of plans offering complex combinations of bonuses, money-back payouts, and market-linked returns, the core purpose of insurance—protecting your family’s financial future—often gets lost.
LIC Saral Jeevan Bima Plan 859 Calculator
Plan No. 859 (UIN: 512N341V01) - A Non-Linked, Non-Par, Individual Pure Risk Premium Life Insurance Plan
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To solve this problem and make life insurance accessible, transparent, and strictly standardized for every Indian, the Life Insurance Corporation of India (LIC) introduced the LIC Saral Jeevan Bima Plan 859. As the name “Saral” suggests, it is a simple, no-nonsense, pure protection term insurance policy.
Because this plan offers multiple premium payment methods (Single, Regular, and Limited) and factors in a unique 45-day waiting period, calculating your exact premium can be slightly tricky. This is exactly where the LIC Saral Jeevan Bima Plan 859 Calculator comes to your rescue. In this comprehensive guide, we will decode how this standardized plan works, explore its incredible affordability, and show you how to use the calculator to lock in the perfect safety net for your loved ones.
What is the LIC Saral Jeevan Bima Plan 859?
The LIC Saral Jeevan Bima Plan (UIN: 512N341V01) is a Non-Linked, Non-Participating, Individual, Pure Risk Premium Life Insurance Plan.
Let’s break down that financial terminology:
- Pure Risk Cover: This policy exists strictly to protect your family if you pass away. There is no maturity benefit, no survival benefit, and no investment component. If you survive the policy term, the policy expires and no money is refunded.
- Standardized Plan: This plan was mandated by the Insurance Regulatory and Development Authority of India (IRDAI). Every insurance company in India offers a “Saral Jeevan Bima” plan with the exact same features, rules, and exclusions. However, buying it from LIC gives you the added advantage of sovereign trust and India’s highest Claim Settlement Ratio.
Why is a “Pure Risk” plan beneficial? Because your premium is not being invested in the stock market or fixed deposits, the cost of the insurance is incredibly cheap. It allows a lower-middle-class breadwinner to easily afford a ₹25 Lakh life cover to secure their family’s future.
Quick Overview: LIC Saral Jeevan Bima Plan 859 Details
Before you open the premium calculator, it is crucial to understand the official eligibility criteria and boundaries of this policy. Here is a clear, accurate snapshot:
| Policy Parameter | Official Specifications |
|---|---|
| Plan Name & Number | LIC Saral Jeevan Bima Plan 859 |
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 65 Years (Last Birthday) |
| Maximum Maturity Age | 70 Years (Nearest Birthday) |
| Policy Term (Tenure) | 5 Years to 40 Years |
| Minimum Basic Sum Assured | ₹5,00,000 (₹5 Lakhs) |
| Maximum Basic Sum Assured | ₹25,00,000 (₹25 Lakhs) (Can go higher subject to LIC underwriting) |
| Premium Payment Options | Regular Premium, Limited Premium (5 or 10 yrs), Single Premium |
Why You Must Use the LIC Saral Jeevan Bima Plan 859 Calculator
Term insurance premiums depend entirely on your age, the policy term you select, and how you choose to pay your premiums. Using the LIC Saral Jeevan Bima Plan 859 Calculator is a non-negotiable step before you buy the policy.
Here is why this digital tool is your best financial companion:
- Instant GST Calculation: Term insurance attracts an 18% GST. The calculator instantly processes the base premium and the tax, showing you the exact gross amount you need to pay.
- Payment Mode Comparison: The plan allows you to pay your premiums normally (Regular), pay them off quickly in 5 or 10 years (Limited Pay), or pay a one-time lump sum (Single Pay). The calculator lets you compare the total cash outflow for all three options side-by-side.
- Budget Optimization: By tweaking your Sum Assured between ₹5 Lakhs and ₹25 Lakhs, you can find a premium that perfectly fits your monthly household budget without causing financial strain.
The Crucial “45-Day Waiting Period” Explained
Because Saral Jeevan Bima is designed to be highly accessible with relaxed medical underwriting, IRDAI introduced a strict 45-Day Waiting Period from the date the risk commences.
- If Death occurs due to an Accident within 45 Days: LIC will pay the full 100% of the Basic Sum Assured to the nominee.
- If Death occurs due to Natural Causes/Illness within 45 Days: LIC will not pay the Sum Assured. Instead, they will simply refund 100% of the premiums paid (excluding taxes).
- After 45 Days: The policy is fully active. Whether the death is accidental or natural, LIC will pay the full Basic Sum Assured to the nominee.
Step-by-Step Guide: How to Use the Calculator
Getting an accurate quote takes less than two minutes. Here is how you should input your data into the premium calculator:
- Step 1: Enter Your Age & Gender: Women have a higher life expectancy in India. Therefore, the calculator will automatically apply special, discounted premium rates for female applicants.
- Step 2: Input the Sum Assured: Enter your desired cover. The minimum is ₹5 Lakhs, and it goes up to ₹25 Lakhs (in multiples of ₹50,000). A solid financial rule is to choose a Sum Assured that covers your outstanding debts and provides at least 10 times your annual income.
- Step 3: Select Policy Term: How long do you want the cover? Ideally, align this with your retirement age. If you are 35 and plan to retire at 60, choose a 25-year term.
- Step 4: Choose Premium Payment Term (PPT):
- Regular Pay: Pay premiums every year until the term ends.
- Limited Pay: Pay for a shorter duration (either 5 years or 10 years) but enjoy the cover for the full term.
- Single Pay: Make one large lump-sum payment upfront.
- Step 5: Select Payment Mode: If you chose Regular or Limited Pay, select how often you want to pay (Yearly, Half-Yearly, or Monthly).
Hit “Calculate” to instantly view your customized premium breakdown.
Real-Life Case Study: Seeing the Math in Action
Let’s look at a practical scenario to understand why this pure term plan is an absolute necessity for middle-income families.
Meet Rahul (Age 30, Salaried Employee):
Rahul earns a modest salary and is the sole breadwinner for his wife and aging parents. He wants to ensure they do not end up on the streets if something happens to him.
He opens the LIC Saral Jeevan Bima Plan 859 Calculator with these exact inputs:
- Sum Assured: ₹25,00,000 (₹25 Lakhs)
- Policy Term: 30 Years (Coverage till he turns 60)
- Payment Mode: Regular Premium (Yearly)
The Output:
The calculator reveals that Rahul’s base premium is incredibly affordable—roughly around ₹4,500 to ₹5,500 per year (including GST, subject to final underwriting).
Think about that math. For roughly ₹15 a day—less than the cost of a cup of tea—Rahul has guaranteed that his family will receive a tax-free ₹25 Lakh check if the worst happens. This money can replace his income for several years, allowing his family to live with dignity.
Hidden Features, Surrender Values & Rebates
While the lic calculator shows you the premium, the official LIC brochure contains several crucial features you need to be aware of:
1. The Reality of Surrender Value
Because 100% of your premium goes toward covering the risk of death, there is no surrender value if you choose the “Regular Premium” mode. If you stop paying, the policy simply lapses. However, if you choose “Limited Pay” or “Single Pay”, the policy does acquire a partial surrender value based on a specific formula if you decide to exit early.
2. High Sum Assured Rebates
LIC wants you to buy adequate coverage. Therefore, if you opt for a higher Sum Assured (e.g., ₹25 Lakhs), LIC gives you a rebate. The cost of insurance per ₹1,000 of coverage actually drops compared to someone buying just the minimum ₹5 Lakh cover.
3. Grace Period & Lapsation
If you miss your premium due date, LIC provides a Grace Period of 30 days for Yearly and Half-Yearly payments, and 15 days for Monthly payments. If you fail to pay within this period, the policy lapses and your life cover stops.
4. No Loan Facility
Pure risk term insurance plans do not build any cash value over time. Because there is no underlying cash value, LIC does not offer any loan facility against the Saral Jeevan Bima Plan 859.
Tax Benefits Under LIC Saral Jeevan Bima Plan 859
A smart term insurance plan protects your family tomorrow while saving you money today. Plan 859 is highly tax-efficient:
- Section 80C Deductions: The premiums you pay annually are fully deductible from your taxable income, up to a maximum limit of ₹1.5 Lakhs per financial year.
- Section 10(10D) Exemptions: In the tragic event of a claim, the entire death benefit payout (whether ₹5 Lakhs or ₹25 Lakhs) received by your nominee is 100% tax-free under Indian tax laws.
FAQs
Q1: Can I buy the LIC Saral Jeevan Bima Plan 859 online?
Yes. You can purchase this policy both offline through a licensed LIC agent and directly online via the official LIC India website. Buying it online often fetches you a slight discount on the premium.
Q2: Is a medical examination mandatory for this policy?
One of the biggest advantages of the “Saral” plan is its relaxed underwriting. For standard cases within the ₹25 Lakh limit, extensive medical tests are usually waived off, and the policy is issued based on a simple declaration of good health (though LIC reserves the right to ask for medicals if deemed necessary).
Q3: What happens if the policyholder commits suicide?
Insurance companies have strict rules to prevent fraud. If the policyholder commits suicide within 12 months from the date of risk commencement or revival, the death benefit will not be paid. LIC will only refund 80% of the premiums paid (excluding taxes).
Q4: Will my premium increase as I get older?
Absolutely not. This is the greatest advantage of buying term insurance at a young age. Once your policy is issued, the base premium is “locked in” for the entire policy term. A premium secured at age 30 will remain exactly the same when you are 59.
Q5: Can I attach riders to this plan?
No. To keep the plan “Saral” (Simple) and standardized as per IRDAI guidelines, no optional riders (like Accidental Death or Critical Illness) can be attached to the LIC Saral Jeevan Bima Plan 859.
Conclusion
Assuming that “nothing will happen to me” is a dangerous gamble when your family’s shelter, food, and lifestyle are on the line. Term insurance is the only financial product in the world that you must purchase before you actually need it. Once your health declines, no amount of money can buy you a life cover.
The LIC Saral Jeevan Bima Plan 859 perfectly blends the unmatched sovereign trust of India’s largest insurer with the extreme affordability of a standardized term plan. It is the ultimate foundation for any serious financial portfolio, especially for those buying insurance for the first time.
Do not procrastinate on your family’s financial security. Take three minutes right now to use the LIC Saral Jeevan Bima Plan 859 Calculator. Input your age, select an adequate Sum Assured, and lock in a premium that guarantees your loved ones will never have to struggle financially—no matter what life throws your way.
