LIC Jeevan Pragati Table 838 will be the next launch from LIC of India. LIC Jeevan Pragati is non-linked, with profit, endowment insurance plan. LIC Jeevan Pragati will be the third launch by LIC in the year 2016, prior to this LIC has already launched LIC Jeevan Labh and LIC Jeevan Sikhar in 2016. The Key attraction of Jeevan Pragati plan is sum assured on death increases automatically after 5 years during the term of the policy. Key features and benefits details of LIC Jeevan Pragati Plan Table 838 is given below.
Key Features of LIC Jeevan Pragati Table 838
• Minimum Basic Sum Assured: Rs. 1,50,000/-
• Maximum Basic Sum Assured: No Limit (Multiple of Rs. 10,000/- only)
• Minimum Policy Term: 12 years
• Maximum Policy Term: 20 years
• Minimum Entry Age: 12 years (completed)
• Maximum Entry Age: 45 years (nearer birthday)
• Maximum Age at Maturity for Life Assured: 65 years
• Mode of Premium Payment: Yearly, half-yearly, quarterly & monthly
• Accidental Death & Disability Benefit Rider is available on payment of additional premium.
• Minimum Accident Benefit Sum Assured is Rs 10,000
• Maximum Accident Benefit Sum Assured is an amount equal to the Basic Sum Assured subject to the maximum of Rs 1 Cr.
• Minimum entry age for the rider is 18 years.
LIC Jeevan Pragati Benefit Details
Maturity Benefit LIC Jeevan Pragati – Maturity benefit on survival at the end of policy term will be “Sum Assured on Maturity + Simple Reversionary Bonus + Final Additional Bonus (if any)”. The Sum Assured on Maturity is basic sum assured.
The risk commencement under this plan will begin immediately from the date of issue of policy.
Death Benefit LIC Jeevan Pragati – On the unfortunate death of the life assured during the policy term, the death benefit shall be payable to the nominee. The death benefit will be “Sum Assured on Death + Vested Simple Reversionary Bonus + Final Additional Bonus (if any). The Sum Assured on Death automatically increases after every five years. In other words, risk cover increases with time.
Sum Assured on Death is defined as the higher of 1) 10 times of annualized premium or (2) Absolute amount assured to be paid on death, which will be.
1) During the first five policy Years – 100% of the Basic Sum Assured.
2) During 6th to 10th policy Years – 125% of the Basic Sum Assured.
3) During 11th to 15th policy Years -150% of the Basic Sum Assured.
4) During 16th to 20th policy Years – 200% of the Basic Sum Assured.
LIC Jeevan Pragati Policy
LIC Jeevan Pragati Example & Calculation
Suppose Mr.X age 30 years takes LIC Jeevan Pragati Policy of 3 Lac for 20 years policy term. Mr.X needs to pay premium amount of 15305 Rs annually.
If Mr.X survives policy term 20 years, he will get SA+Bonus+FAB as maturity benefit, which will be approximate Rs.678000. So, overall return of this policy will be in range of 6-7%.
Should you buy LIC Jeevan Pragati?
Looking at first instance LIC Jeevan Pragati seems to be good option from risk coverage point of view. As risk coverage is increasing along with policy term. However, I feel term plan is better alternative compare to LIC Jeevan Pragati plan where you can get very high risk coverage with low premium rate.
You can get term plan with risk coverage of 1 Cr at age of 30 years with yearly premium of 9000 Rs/-.Whereas, under LIC Jeevan Pragati you need to pay approximate 15000 Rs for risk coverage of 3 Lac to 6 Lac.
So from risk coverage point of view it is big NO for LIC Jeevan Pragati.
From investment return point of view this policy is likely to give return 6-7% on maturity, so if you are happy with 6-7% return LIC Jeevan Pragati is for you.
LIC Jeevan Pragati Poster