HomePersonal FinanceLife InsuranceLIC Saral Jeevan Bima - Plan 859 - Term Plan

LIC Saral Jeevan Bima – Plan 859 – Term Plan

LIC Saral Jeevan Bima (Plan 859) is standard term plan offered by LIC. This term plan is as per guideline of IRDAI for the Saral Jeevan Bima. It is standard individual term life insurance product. The key features, benefits of Saral Jeevan Bima remains same across insurance companies. LIC has started offering this plan from 16th April, 2021. In addition to Saral Jeevan Bima LIC is also offering other term plan such as LIC Tech Term Plan and LIC Jeevan Amar Plan. LIC Saral Jeevan Bima Plan 859 is non-linked, non-participating pure risk insurance plan. You can purchase LIC Saral Jeevan Bima Plan 859 online as well as offline. In this post, let’s take a look at LIC Saral Jeevan Bima Key features, eligibility and benefits. At the last we will also discuss that should you opt for LIC Saral Jeevan Bima?

LIC Saral Jeevan Bima

LIC Saral Jeevan Bima – Plan 859 – Features, Benefits & Eligibility

Features & Eligibility

Minimum Age Entry – 18 Years

Maximum Age Entry – 65 Years

Policy Term – 5 Years to 40 Years

Maximum Maturity Age – 70 Years

Sum assured – 5 Lakh to 25 Lakh

Loan – No Loan option

Premium Payment Option – Yearly, Half Yearly, Monthly, Limited (5 or 15 Years) and Single Premium


Maturity Benefits – On survival till the end of policy term No Maturity Benefits payable

Death Benefits –

(a) During waiting period of 45 days from the date of commencement of Risk – On death during waiting period all premium received excluding tax shall be payable to the nominee. In case of death during waiting period due to accident and all premium due is paid “sum assured on the death” shall be payable to the nominee.

For regular premium and limited premium policies – sum assured on death is defined as the highest of –

  • 10% of annualized premium or
  • 105% of all the premium paid as on date of death or
  • 100% of basis sum assured is paid

For single premium policliies – sum assured on death is defined as the highest of –

  • 125% of single premium
  • 100% of basic sum assured is paid

(b) After Waiting period of 45 days from the date of commencement of risk –

If all premium are paid by the policy holder sum assured on the death shall be payable to the nominee.

LIC Saral Jeevan Bima Plan 859 Example

Suppose person X of 30 years’ age purchase LIC Saral Jeevan Bima Plan with sum assured of 25 Lakh with policy term of 20 years. Suppose he pay Rs.3000 yearly for this policy.

This means policy holder needs to pay Rs.3000 every year for this policy. In case policy holder survives till the maturity age nothing is payable at the time of maturity. If policy holder dies during policy term sum assured 25 Lakh will be paid to the nominee.

Difference Between normal term plan and LIC Saral Jeevan Bima

Term PlanLIC Saral Jeevan Bima
Normal Term insurance is not available for the lower sum assured such as 5 Lakh. Sum assured starts with 25 Lakh and above.LIC Saral Jeevan Bima allows you to purchase term plan from 5 Lakh to 25 Lakh.
Customized Plan this means insurance company can decide features and benefits associated with the plan.Standard Plan issued as per IRDAI guideline where features and benefits are as per IRDAI.
The premium of term plan is much lower compared to Saral Jeevan BimaThe premium of Saral Jeevan Bima is higher as terms and conditions and features are standard.

Should you buy LIC Saral Jeevan Bima?

Saral Jeevan BIma is for low income group people. Saral Jeevan Bima is offered by multiple insurers. So it is advisable to check claim settlement ratio by the insurance company. LIC offers best claim settlement. However, whenever you are buying term plan it is important to look at premium paid and sum assured.

LIC Saral Jeevan Bima is offered at much higher premium compared to other term plans. The sum assured is also limited 25 Lakh. Thus it is advisable to go for normal term plan instead of Saral Jeevan Bima.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.