LIC's Saral Jeevan Bima Plan 859 was launched by (LIC of India) on 16th April, 2021, It's a Non-Linked, Non-Participating, Individual pure term Life Insurance Plan designed to provide a standard term insurance plan offered by the Life Insurance Corporation of India. It is designed to provide financial protection to individuals and their families in case of unfortunate demise at an affordable premium during the policy term.

key features of LIC's Saral Jeevan Bima Plan 859

• Term Insurance: It is a pure term insurance plan, which means it provides only death benefit and no maturity or survival benefits.

• Affordability: The plan is designed to be affordable and accessible, making it easier for individuals to secure life insurance coverage.

• Sum Assured: The minimum sum assured under this plan is Rs. 5 lakh, and there is no upper limit (subject to underwriting).

• Policy Term: The policy offers a choice of policy terms ranging from 5 to 40 years, allowing flexibility based on individual needs.

• Premium Payment Options: Premiums can be paid regularly throughout the policy term or limited to a shorter duration like 5 or 10 years.

• Eligibility: The plan is available for individuals aged between 18 years and 65 years, ensuring coverage for a wide age group.

• Riders: Additional riders for accidental death and disability may be available for enhanced coverage, though specific details can vary.

• Tax Benefits: Premiums paid towards the policy are eligible for tax benefits under Section 80C of the Income Tax Act, and the death benefit received is tax-free under Section 10(10D), subject to provisions of the law.

LIC Saral Jeevan Bima 859 Parameter

Rebates

Rebate means discount on premium. Two rebates and One loading in this policy.

High Sum Assured Rebate: High Sum assured Rebate Based on Sum assured means Policy Value.

Rebate under Online Sale

Mode Loading: Mode Loading given based on premium payment mode chosen.

Also Read this : LIC's best tern insurance plan with return of premium

Benefits

Maturity Benefits

LIC Saral Jeevan Bima Plan 859 Maturity Benefit = On survival of the life assured to the end of the policy term, no maturity benefit is payable.

Death Benefits

(A) During waiting period of 45 days from the Date of Commencement of Risk:

1. On Death (due to any reason other than accident) during waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, shall be paid.
2. On Death due to accident provided all due premiums have been paid, "Sum Assured on Death" shall be payable to the nominee.

For Regular Premium and Limited Premium Payment policies: "Sum Assured on Death"
is defined as the highest of:

• 10 times of annualized premium; or
• 105% of all the premiums paid as on date of death; or
• Absolute amount assured to be paid on death i.e. 100% of Basic Sum Assured.

For Single Premium policies: "Sum Assured on Death" is defined as the higher of:

• 125% of Single Premium.
• Absolute amount assured to be paid on death i.e. 100% of Basic Sum Assured.

(B) After waiting period of 45 days from the Date of Commencement of Risk:

On Death after waiting period during the policy term including death due to accident provided
all due premiums have been paid, "Sum Assured on Death" shall be payable to the nominee,

An "Accident" for the purpose of this policy is defined as "An Accident is a sudden, unforeseen
and involuntary event caused by external, violent and visible means."

RIDERS

No riders are available under this plan

SURRENDER VALUE:

No surrender value shall be available under this Plan.
However, on surrender of policy, policy cancellation value shall be payable' in the following cases
as given below:

• Regular Premium policies: No policy cancellation value shall be payable.
• Single Premium Policies:

The policy shall acquire policy cancellation value immediately after receipt of Single Premium
and the same is payable upon the policyholder applying for the same before the stipulated date
of maturity.

The amount of policy cancellation shall be calculated using the following formula:
70% * Single Premium Paid* (Unexpired Policy Term / Original Policy Term)

The Single Premium mentioned above is exclusive of taxes but inclusive of extra premiums
charged due to underwriting decisions, if any.

Limited Premium Payment:

Policy cancellation value shall only be payable if premiums have been paid for at least two (2)
consecutive full years and the same is payable upon the Policyholder applying for the same
before the stipulated date of maturity or at the end of the revival period if the policy is not
revived.

The amount of policy cancellation value shall be calculated by using the following formula:
70% * Total Premium Paid* (Unexpired Policy Term / Original Policy Term)

Read also : LIC new Jeevan Anand plan 915 lifetime plan

LIC Saral Jeevan Bima Plan 859 with an Example

An example of Sandeep who is purchasing this Plan with following details.

As per above example, policy holder needs to pay the premium of Rs. 11,623/- per year for 20 years (Premium Paying Term) and after completion of 20 years (Policy Term).

Maturity Details

If Policy holder survives 20 years, then Maturity will be as under.

Death Claim Details

In case of death during policy term ( Before 20 years ), Sum Assured Rs. 2500000 will be paid to nominee.

Suppose if, unfortunate death of policy holder happens in year 2034 (at age 42), then by that time total premium paid will be Rs. 1,62,722 and nominee will get death claim as Rs. 25,00,000 in case of normal death or accidental death and policy will be stop.