Learn about LIC Saral Jeevan Bima (Plan 859), a straightforward, pure risk life insurance plan that provides your loved ones with assured protection while you are away.
LIC Saral Jeevan Bima Plan 859
Plan No. 859 (UIN: 512N341V01) – A Non-Linked, Non-Par, Individual Pure Risk Premium Life Insurance Plan
Why Choose Saral Jeevan Bima?
Pure Risk Cover with No Maturity Payouts
- A lump-sum death benefit and no survival or maturity benefit are provided by this individual pure risk life insurance plan, which is non-linked and non-participating.
- Perfect for people who prefer simple, affordable protection over investment + insurance combined.
Flexible Premium Options
Choose a premium pattern that works for you:
- Single Premium – one-time payment
- Regular Premium – annual, half-yearly or monthly modes
- Premium rebates available for online proposals (e.g. 5% to 7% rebate depending on term)
Broad Eligibility & Sum Assured Range
- The sum guaranteed is at least ₹5,00,000 and can reach ₹25,00,000 in multiples of ₹50,000.
- Policy Term: Depending on age, from five to forty years
- Entry Age: Depending on the premium option, this ranges from 8 to 65 years old (check the most recent brochure).
Transparent Conditions & Provisions
- Waiting period: 45 days after the risk started (no death coverage during that time).
- Suicide exclusion:
• For regular/limited premiums, only 80% of premiums paid (not including excess amounts) are reimbursed within a year of commencement or revival.
• 90% of the single premium will be returned if there is a suicide within the first 12 months. - No policy loan is allowed under this plan.
- Surrender / Cancellation Value:
• A cancellation value of 70% × (Single Premium) × (Unexpired Term / Original Term) is available right away for single premium policies.
• Only if at least two complete years’ worth of premiums have been paid for limited premium policies (such as those with five or ten years).
• No surrender value for regular premium policies.
Revival & Lapse
- The policy lapses if premiums are not paid on time, but it can be revived with unpaid premiums and interest for up to five years prior to maturity.
- For a reference year, the interest rate for a recent revival was approximately 9.50% p.a. (half-year compounding).
Real-World Illustrations & Numbers
Sample Premium Table (exclusive of taxes)
(Indicative — for basic sums assured, for certain ages)
| Age | Annual Premium | Half-yearly | Monthly |
|---|---|---|---|
| 25 | ₹ 41,610 | ₹ 3,850 (approx) | ₹ 331 (via monthly mode) |
| 30 | ₹ 52,260 | ₹ 4,670 | ₹ 401 |
| 35 | ₹ 70,840 | ₹ 6,110 | ₹ 525 |
| 40 | ₹ 98,630 | ₹ 8,340 | ₹ 716 |
Note: The aforementioned numbers do not include additional amounts or applicable taxes. Online loadings or rebates (such as a 5% rebate for specific terms) might be applicable.
Interpretation:
- Depending on underwriting, a 30-year-old looking for ₹10,000,000 in coverage might pay about ₹52,260 annually.
- Those who desire a pure death benefit devoid of surplus or bonuses are the target market for this policy.
- Costs are typically lower than those of endowment or ULIP plans for the same amount assured because there is no maturity benefit.
Market Context & Need
- Many families in India do not have basic life insurance, and the penetration of term and pure risk insurance is still low.
- Industry statistics show that LIC is still among the biggest insurers, with a claim settlement ratio that frequently exceeds 95%.
- “Your life insurance should be lean, pure, and transparent — don’t overpay for embedded investments you don’t need,” insurance industry experts frequently stress.
For instance, independent insurance analyst Rajiv Sharma (2023) commented:
“Clients are generally better off keeping their investments and insurance separate. A pure risk policy such as Saral Jeevan Bima provides a clear, affordable, and uncomplicated claim benefit.
How It Works — Step by Step
- Get a quote / apply — online or via LIC/agent
- Underwriting / medical checks (as per age/health)
- Pay the premium — either single or recurring
- Policy becomes active (after waiting period)
- In case of death during policy term, the nominee receives Sum Assured.
- The policy terminates after payout; no further benefits.
FAQs
No. This is a pure risk (term) plan. There is no maturity or survival benefit under the plan.
₹5,00,000 (in multiples of ₹50,000) is the minimum.
For regular premium plans: No surrender value is available.
For single premium / limited premium: policy cancellation (cancellation value) may be available under certain conditions (e.g. 70% × unpaid term proportion)
No loans are permitted under this plan.
The policy will lapse if not revived within the grace period
Revival allowed up to 5 years, with outstanding premiums + interest, subject to underwriting approval
Waiting period: 45 days from policy commencement — no death benefit during this time.
Suicide clause: For death by suicide within first 12 months, only partial refunds (80% or 90% of premiums) are payable depending on premium mode.
Premiums paid and benefits received may be eligible under existing Income Tax laws (Section 80C / 10(10D) etc), subject to conditions. Always consult a tax professional.
Up to 5 consecutive years from first unpaid premium, before maturity.