Jeevan Kiran Plan 870

Jeevan Kiran Plan 870

LIC’s Jeevan Kiran Plan 870 is a Non-Linked, Non-Participating, Individual, Pure Term Insurance Plan launched by LIC of India on 27th July 2023. It’s specially designed for individuals who seek financial protection for their families at a low premium and also want to receive their premiums back if they survive the policy term.

This plan is ideal for working professionals with dependents, such as children and aging parents.

“Term Insurance with Return of Premium” means: if the policyholder survives till maturity, all premiums paid are returned!


🧾 Key Features of LIC Jeevan Kiran Plan 870

FeatureDetails
Plan TypePure Term Plan with Return of Premium
Launch Date27th July 2023
Premium OptionsSingle Premium or Regular Premium
Premium Payment ModeYearly / Half-Yearly / Single
Policy Term10 to 40 years
Maturity BenefitReturn of Premium (ROP)
Death BenefitFull Sum Assured
Online PurchaseAvailable via LIC New Business Platform
Settlement OptionMaturity or Death claim in 5-year installments available
Premium CategoriesSmoker & Non-Smoker rates
Rider OptionAccident Benefit Rider (optional)
Loan FacilityNot available
Tax BenefitsSection 80C and Section 10(10D)

🎯 Who Can Buy LIC Jeevan Kiran Plan?

ParameterMinimumMaximum
Age at Entry18 years (last birthday)65 years (last birthday)
Maturity Age28 years80 years (last birthday)
Policy Term10 years40 years
Basic Sum Assured₹15 LakhsNo Upper Limit (subject to underwriting)
Minimum Premium₹3,000 (Regular) / ₹30,000 (Single)

💸 Premium Payment Options

You can choose between:

  • Regular Premium: Pay every year (or half-yearly) throughout the policy term
  • Single Premium: Pay one-time lump sum

📈 Rebates and Loadings

High Sum Assured Rebate

Applicable for higher sum assured values.

  • Regular Premium: Rebate as a % of Annual Premium
  • Single Premium: Rebate as a % of Single Premium

(Exact rebate chart is available in the official brochure)


⚖️ Mode Loading (for Regular Premium)

ModeLoading (Extra Charge)
YearlyNIL
Half-Yearly2% of Tabular Annual Premium

🔐 Benefits of LIC Jeevan Kiran Plan 870

1️⃣ Death Benefit

In case of death during the policy term (after the date of commencement of risk), the nominee will receive the Sum Assured on Death, provided the policy is in force.

📌 For Regular Premium:

Sum Assured on Death is the highest of:

  • 7 times of Annualized Premium, OR
  • 105% of Total Premiums Paid, OR
  • Basic Sum Assured

📌 For Single Premium:

Sum Assured on Death is the higher of:

  • 125% of Single Premium, OR
  • Basic Sum Assured

2️⃣ Maturity Benefit – Return of Premium

If the policyholder survives till the end of the policy term, they get back:

  • Total premiums paid (excluding taxes, rider premiums, and extra premiums, if any)
  • In some cases, 105% of total premiums paid

🎉 This makes LIC Jeevan Kiran a no-loss protection plan for those who outlive the term.


🧑‍💼 Example of LIC Jeevan Kiran Plan 870 with Return of Premium

Let’s understand how this plan works through an example:

👤 Mr. Mohan’s Policy Details

DetailsValues
Age30 years
Sum Assured₹50,00,000
Policy Term20 years
Premium PaymentRegular (Yearly)
Yearly Premium (incl. GST)₹22,952

➕ If Mr. Mohan dies during the policy term:

  • His nominee will receive ₹50,00,000 as death benefit

➕ If Mr. Mohan survives till maturity (2043):

  • He will receive Return of Premium:
    ₹22,952 × 20 years = ₹4,59,040

🔁 Either way, financial protection is guaranteed.


🔁 Other Policy Features

🕊️ Grace Period

  • 30 days grace for yearly and half-yearly premiums
  • Policy continues during grace period with full life cover

🔁 Policy Revival

  • If lapsed, can be revived within 5 years from the date of the First Unpaid Premium (FUP)

📆 Surrender Value

  • Single Premium: Surrender anytime; Value = Higher of GSV or SSV
  • Regular Premium: Surrender allowed only after 2 full years’ premiums are paid

Loan Facility

  • Not available under this plan

📃 Free Look Period

  • 15 days from receipt of policy documents to cancel the policy if not satisfied

💼 Tax Benefits

  • Premiums paid qualify for deduction under Section 80C
  • Death/maturity payouts are tax-free under Section 10(10D) (as per current laws)

📲 Buy Online

You can purchase LIC Jeevan Kiran Plan 870 through LIC’s New Business Platform using:

  • Credit/Debit Card
  • UPI / Net Banking
  • Mobile Wallets

No need to visit a branch — complete process is 100% digital!


🧾 Summary – Is Jeevan Kiran Plan Right for You?

✅ Ideal for:

  • Salaried professionals and entrepreneurs
  • People seeking pure term insurance + return of premium
  • Those with family responsibilities (kids, spouse, elderly parents)

✅ Best Features:

  • High life cover at low premium
  • Return of premiums on survival
  • Flexible terms from 10 to 40 years
  • Settlement in lump sum or installments

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