Saral Jeevan Bima Plan 859
Saral Jeevan Bima Plan 859 is a standard term insurance plan offered by the Life Insurance Corporation of India (LIC). It is designed to provide financial protection to individuals and their families in case of unfortunate demise during the policy term.
Introduction: Why Every Family Needs Protection
In India, financial planning is often focused on savings, gold, or property—but the most important pillar of security is life insurance. Imagine if the family’s breadwinner passes away unexpectedly. The sudden loss of income could derail children’s education, home loan repayment, or even daily expenses.
That’s where a term insurance plan like LIC Saral Jeevan Bima Plan 859 steps in. It’s not about wealth creation; it’s about financial security.
Launched as per IRDAI’s directive to standardize term insurance, LIC’s Saral Jeevan Bima is a pure protection plan—simple, affordable, and designed for all sections of society.
This blog will cover:
- What is Saral Jeevan Bima (859)?
- Eligibility & key features
- Benefits explained with examples
- Investor scenarios with real-life insights
- Tabular comparisons
- Analyst opinions
- FAQs (Google-friendly)
- Final verdict
What is LIC Saral Jeevan Bima Plan 859?
LIC Saral Jeevan Bima (Plan 859) is a pure term life insurance policy. It offers financial protection to your family in case of your untimely death.
Unlike investment-oriented LIC policies, this plan is non-linked, non-participating, and without maturity benefit. Meaning:
- You pay premiums regularly (or single/limited pay).
- If the policyholder dies during the term → Sum Assured is paid to nominee.
- If the policyholder survives till maturity → no payout (like a traditional term plan).
Key Features of LIC Saral Jeevan Bima 859
| Feature | Details |
|---|---|
| Plan Type | Pure Protection Term Insurance |
| Plan No. | 859 |
| Entry Age | 18 to 65 years |
| Maturity Age | Maximum 70 years |
| Policy Term | 5 years – 40 years |
| Sum Assured | ₹5 Lakhs – ₹25 Lakhs |
| Premium Payment | Single, Regular, or Limited (5/10 years) |
| Death Benefit | Sum Assured payable to nominee |
| Maturity Benefit | Nil |
| Loan Facility | Not available |
| Tax Benefits | Premiums under 80C, Death benefit under 10(10D) |
Benefits of Saral Jeevan Bima (859)
- Simple & Transparent – No complex riders or hidden clauses.
- Affordable Premiums – Especially designed for lower and middle-income families.
- Wide Eligibility – Covers self-employed, salaried, and even those without regular income.
- Flexible Premium Payments – Single, regular, or limited pay.
- Tax Savings – Premiums deductible under Section 80C.
- Family Security – Nominee gets lump-sum death benefit.
LIC Saral Jeevan Bima – Death Benefit Details
The death benefit depends on premium payment mode:
- Single Premium: Higher of 125% of single premium OR absolute sum assured.
- Regular/Limited Premium: Highest of –
- 10 × annual premium,
- 105% of total premiums paid, OR
- Absolute Sum Assured.
Tabular Example – Premium & Payout Illustration
Case 1: 30-Year-Old, ₹10 Lakh Cover, 20-Year Term
| Premium Mode | Annual Premium (Approx.) | Death Benefit | Maturity Benefit |
|---|---|---|---|
| Regular Pay | ₹3,200 | ₹10 Lakh | Nil |
| Limited Pay (10 years) | ₹4,100 | ₹10 Lakh | Nil |
| Single Premium | ₹55,000 (one-time) | ₹10 Lakh | Nil |
Case 2: 40-Year-Old, ₹15 Lakh Cover, 25-Year Term
| Premium Mode | Annual Premium (Approx.) | Death Benefit |
|---|---|---|
| Regular Pay | ₹6,500 | ₹15 Lakh |
| Limited Pay (10 years) | ₹8,200 | ₹15 Lakh |
| Single Premium | ₹95,000 (one-time) | ₹15 Lakh |
Multiple Investor Scenarios
Scenario 1: Young Professional (Age 28)
Ravi, a software engineer, buys ₹20 Lakh cover for 25 years.
- Annual premium: ~₹4,500.
- If he passes away at 40, his family receives ₹20 Lakh lump sum.
- If he survives till 53, no benefit—but he enjoyed peace of mind at low cost.
Scenario 2: Middle-Class Shopkeeper (Age 40)
Suresh invests in ₹15 Lakh cover, 20-year term with limited pay (10 years).
- Pays ~₹8,000 annually for 10 years.
- Dies at age 55 → family gets ₹15 Lakh.
- If he survives, policy ends at 60 with no payout.
Scenario 3: Homemaker as Nominee
Ramesh, a 35-year-old cab driver, opts for ₹10 Lakh cover.
- Premium ~₹3,000 annually.
- Dies in road accident at 42 → wife receives ₹10 Lakh, ensuring kids’ education continues.
Analyst Opinions on Saral Jeevan Bima
- Financial Planners: Best for first-time insurance buyers; ensures protection without frills.
- Insurance Experts: Good for low-income and self-employed Indians who otherwise struggle to get cover.
- Analyst Caution: Coverage limit (₹25 Lakhs) may be low for high-earning individuals. Better as base cover, supplemented with larger term insurance.
Investor Insights & Comparisons
- Compared to FD/PPF: FDs & PPF are savings tools, not protection. Saral Jeevan Bima ensures family’s survival in case of early death.
- Compared to Other LIC Plans: Other LIC policies combine savings + insurance but with higher premiums. This one is affordable pure protection.
- Compared to Private Term Plans: Premiums may be higher than some online private insurers, but LIC offers trust & reach across India.
LIC Saral Jeevan Bima 859 – Advantages & Limitations
Advantages ✅
- Affordable entry-level term insurance.
- Available even to self-employed and informal sector workers.
- Multiple payment modes.
- Trusted LIC brand.
Limitations ❌
- Maximum cover limited to ₹25 Lakhs (not sufficient for HNIs).
- No maturity/survival benefit.
- No riders like critical illness or accidental death.
FAQs on LIC Saral Jeevan Bima (Google-Friendly)
Q1. What is the minimum cover under LIC Saral Jeevan Bima?
👉 ₹5 Lakhs.
Q2. What is the maximum cover?
👉 ₹25 Lakhs.
Q3. Can NRIs buy this plan?
👉 Only available for Indian residents.
Q4. Is maturity benefit available?
👉 No, it’s a pure protection plan.
Q5. Can I buy this policy online?
👉 Yes, LIC offers both online & offline purchase.
Q6. What if I miss premium payment?
👉 Grace period available; if not paid, policy lapses. Revival possible.
Q7. Is there a waiting period?
👉 Yes, 45-day waiting period. Death during this period (other than accident) is not covered.
Final Verdict: Should You Buy LIC Saral Jeevan Bima 859?
LIC Saral Jeevan Bima is a must-have entry-level term insurance plan for Indians who want:
- Simple, affordable, and transparent coverage.
- No hidden conditions, no complex riders.
- Trusted LIC assurance for their family’s future.
It’s best suited for:
- First-time insurance buyers.
- Self-employed & low-income individuals.
- Those who want LIC-backed protection at low premiums.
Not ideal for:
- High-income professionals needing ₹1 Crore+ coverage (better to combine with other term plans).
👉 In summary: Saral Jeevan Bima is LIC’s way of saying – “Simple Insurance, Assured Protection.” It ensures that no Indian family is left unprotected due to affordability issues.
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