LIC Saral Jeevan Bima Plan 859 (Table No. 859) is a simple, easy-to-understand pure term life insurance plan launched by LIC of India on 16th April 2021. It is a Non-Linked, Non-Participating, Individual term insurance policy designed to offer financial security to your loved ones in the event of your untimely demise—at a very affordable premium.
Unlike traditional plans, this policy offers no maturity or survival benefits, making it a low-cost, high-cover protection plan. It is part of IRDAI’s initiative to bring standardized term insurance to all.
✅ Key Highlights of LIC Saral Jeevan Bima (859)
| Feature | Details |
|---|---|
| Plan Type | Non-Linked, Non-Participating, Pure Term Insurance Plan |
| Launch Date | 16th April, 2021 |
| Coverage | Death benefit only (No survival or maturity benefit) |
| Affordability | Low premium, high coverage |
| Sum Assured | Minimum ₹5 Lakhs, Maximum ₹25 Lakhs (in multiples of ₹50,000) |
| Policy Term | 5 to 40 years |
| Premium Payment Options | Single, Regular, Limited (5 or 10 years) |
| Entry Age | 18 to 65 years (last birthday) |
| Maximum Maturity Age | 70 years |
| Loan Facility | Not available |
| Tax Benefits | Under Sec 80C & Sec 10(10D) of Income Tax Act |
💡 Why Choose Saral Jeevan Bima Plan?
- Low-cost term life insurance for everyone
- Simple, transparent, and standardized plan
- Flexible policy term and premium payment options
- Financial protection for your family
- Available both online and offline
- Tax benefits on premiums and death payouts
📜 Eligibility & Policy Parameters
| Criteria | Details |
|---|---|
| Minimum Entry Age | 18 years (Last Birthday) |
| Maximum Entry Age | 65 years (Last Birthday) |
| Maximum Maturity Age | 70 years (Last Birthday) |
| Policy Term | 5 to 40 years |
| Premium Paying Term (PPT) | Regular: Same as policy term Limited: 5/10 yrs Single Premium |
| Sum Assured | ₹5,00,000 to ₹25,00,000 |
| Premium Payment Mode | Yearly, Half-Yearly, Quarterly, Monthly, Single |
📌 Premium Rebates & Loadings
A) High Sum Assured Rebate
| Basic Sum Assured (₹) | Rebate per ₹1,000 SA |
|---|---|
| ₹5,00,000 – ₹9,50,000 | NIL |
| ₹10,00,000 – ₹14,50,000 | 0.10% |
| ₹15,00,000 – ₹19,50,000 | 0.20% |
| ₹20,00,000 and above | 0.25% |
B) Online Purchase Discount
| Premium Payment Term | Rebate |
|---|---|
| Single Premium | 2% |
| 5 – 9 years | 5% |
| 10 – 14 years | 6% |
| 15 years and above | 7% |
C) Mode Loading (Extra Charge)
| Mode | Loading % on Annual Premium |
|---|---|
| Yearly | NIL |
| Half-Yearly | 2% |
| Monthly (ECS/NACH) | 3% |
💰 Benefits of Saral Jeevan Bima
🪦 1. Death Benefit
Waiting Period: 45 days from the start of risk
(Only accidental death covered during this period)
👉 During Waiting Period (First 45 Days)
- Death (Non-Accidental): Refund of total premiums paid (excluding taxes)
- Accidental Death: Full Sum Assured on Death is paid
👉 After Waiting Period (Post 45 Days)
If death occurs after the 45-day waiting period, full Sum Assured on Death is paid to the nominee.
Sum Assured on Death (Regular / Limited Premium):
Highest of:
- 10 times of annualized premium, or
- 105% of all premiums paid, or
- 100% of Basic Sum Assured
Sum Assured on Death (Single Premium):
Higher of:
- 125% of Single Premium, or
- 100% of Basic Sum Assured
🎁 2. Maturity Benefit
None.
This is a pure term plan, so if you survive the policy term, nothing is payable.
🔁 Surrender & Cancellation
❌ Loan Facility:
Not available under this plan.
❌ Surrender Value:
No surrender value for regular premium plans. However, policy cancellation value is available under:
1. Single Premium Policies:
Cancellation Value =
70% × Single Premium Paid × (Unexpired Term / Total Policy Term)
2. Limited Premium Payment:
Available only if premiums paid for at least 2 full years.
Cancellation Value =
70% × Total Premium Paid × (Unexpired Term / Total Policy Term)
👨💼 LIC Saral Jeevan Bima Example
Let’s take an example to understand the policy better:
Policyholder: Sandeep
| Details | Values |
|---|---|
| Age | 30 years |
| Sum Assured | ₹25,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Purchase Year | 2021 |
| Yearly Premium (incl. GST) | ₹11,623 |
📅 Maturity Scenario
| Maturity Year | Age at Maturity | Total Premium Paid | Maturity Amount |
|---|---|---|---|
| 2041 | 50 years | ₹2,32,460 | NIL |
Since this is a term plan, there is no maturity benefit even if you survive the policy term.
⚰️ Death Claim Scenario
Let’s assume Sandeep unfortunately dies in the year 2034, i.e., in the 13th policy year (Age: 42):
| Total Premium Paid Till Date | ₹1,62,722 |
|---|---|
| Death Benefit Payable | ₹25,00,000 (Tax-Free) |
The nominee will receive ₹25 lakhs, and the policy will terminate.
⚠️ Important Points to Note
- No riders are available under this plan
- 45-day waiting period from the start of risk (accidental deaths are covered)
- No loan or surrender for regular premium payers
- Best suited for people looking for low-cost, pure risk coverage
📝 Final Thoughts
LIC Saral Jeevan Bima (859) is a straightforward, affordable term insurance policy that serves the core purpose of financial protection. With flexible terms, standardized benefits, and simplified eligibility, it’s an ideal plan for anyone looking for basic life coverage without frills.
Before you buy, always:
- Go through the official brochure
- Evaluate your needs
- Compare with similar term plans available in the market
