LIC's Jeevan Pragati Plan 838

LIC Jeevan Pragati Plan 838 is an endowment insurance policy by LIC of India, designed for easy savings and growing life cover. It was launched on 3rd February 2016 and subsequently withdrawn from sale on 16th January 2020. ​

Introduction to LIC Jeevan Pragati Plan 838

LIC Jeevan Pragati Plan 838 is a non-linked, with-profit endowment assurance plan. This means it combines both savings and protection, plus guaranteed and bonus returns. The plan’s unique feature is that its insurance cover (sum assured on death) increases every five years during the policy term.​

Users could access online calculators to estimate premiums, expected maturity, and yearly risk cover based on their own age and tenure preferences. This made planning simple and transparent for ordinary customers.​

Official Launch and Withdrawal Dates

• Launch date: 3rd February 2016​
• Discontinue/Withdraw date: 16th January 2020​

During this period, it became a popular savings plan for middle-income earners who wanted step-up protection and simple, steady saving options.

Key Features of Jeevan Pragati Plan 838

Core Plan Benefits

• Term: Choice of 12–20 years.​
• Guaranteed Sum Assured: Minimum ₹1,50,000, no upper limit.
• Bonus additions: Reversionary and final ADD bonuses declared by LIC at maturity.​
• Risk Cover Increases: Every 5 years, life cover increases automatically.
• Tax Benefits: Premiums under Sec 80C, maturity benefit under Sec 10(10D).
• Loan & Surrender options: After three full years of premium paid.

Automatic Increase in Life Cover

So, as the policyholder’s need grows with age and responsibilities, the risk cover increases to protect the family better.​

Eligibility Criteria

Table: LIC Jeevan Pragati Plan 838 Eligibility at a Glance

The plan was open for individuals from age 12 (completed) to 45, with varying options for term length and insurance amount to suit individual and family needs.​

How Does the Jeevan Pragati Calculator Work?

The LIC Jeevan Pragati Plan 838 calculator lets users quickly estimate their premiums, maturity value, and increasing insurance cover. It’s simple to use—users input age, sum assured, policy term, and payment frequency and get instant, clear results for financial planning.​

Steps to Use the Calculator

1. Enter your age (at entry).
2. Select the desired policy term (12–20 years).
3. Input basic sum assured (minimum ₹1,50,000).
4. Choose payment mode (yearly, half-yearly, quarterly, or monthly).
5. Click “Calculate.”

Results generated:

• Year-wise premium due (after mode rebates).
• Year-wise risk cover (sum assured at death, increasing every 5 years).
• Total maturity value (sum assured + bonuses).
• Total premium payable over policy term.

These online calculators are provided by leading insurance educational sites and official LIC agents for simple, error-free planning.​

Maturity and Death Benefits Explained

Maturity Benefit

At policy maturity, the policyholder receives:

• Basic Sum Assured (the amount chosen at policy inception),
• Vested Bonus (reversionary bonuses declared annually by LIC), and
• Final Additional Bonus (if declared in the year of maturity).

All the above are paid as a lump sum, entirely tax-free under section 10(10D).​

Death Benefit Structure

In case of death during the policy term, the nominee receives a sum based on when the death occurs:

However, the death benefit is never less than 105% of all premiums paid (excluding any taxes or extra premiums) or 10 times the annualized premium, whichever is higher.​

Bonuses

What Are Bonuses in Jeevan Pragati?

This policy is “with profits”—LIC declares simple reversionary bonuses each year, adding extra returns to your policy. At maturity or death, these vested bonuses increase your lump sum. If LIC declares a final additional bonus in the year of maturity, it’s also paid out.

• Simple Reversionary Bonus: Declared yearly per ₹1,000 sum assured.
• Final Additional Bonus (FAB): May be declared by LIC in maturity year.

Calculators usually provide estimated returns based on past bonus rates, but actual payout depends on future LIC declarations.​

Additional Riders

Jeevan Pragati offered optional Accident Benefit and Disability Riders for extra protection at a nominal cost—providing accidental death and disability coverage as a lump sum or regular payout, depending on claim type.​

How to Calculate Premium and Maturity with an Example

Sample Calculation

Suppose:

• Entry Age: 30 years
• Sum Assured: ₹3,00,000
• Policy Term: 20 years
• Payment Mode: Yearly

Step-by-Step Calculation

1. Yearly premium: Use a licensed online calculator or agent, which considers your age, sum assured, and term.
2. Mode Rebate: 2% for annual payment, 1% for half-yearly.
3. High Sum Assured Rebate: For ₹3,00,000–₹4,90,000, a rebate of 1.5 per 1,000 sum assured applies.​

Over the 20 years:

• Sum assured on death increases every five years (₹3,00,000 → ₹6,00,000 in 16–20th year).
• At maturity, sum assured + vested bonus + final additional bonus is paid to the policyholder.

Policy Surrender, Loans, and Tax Benefits

Surrender Value

The policy can be surrendered after you have paid at least three full years’ premiums. You can check the surrender value using an external LIC surrender calculator for realistic estimates based on your actual premiums and plan year.​

Loan Facility

On completion of three full years’ premium payments, you can take a loan against your policy. The loan amount is a percentage of the surrender value, and the rules may change as per LIC’s current policy.​

Taxation

• Premium Paid: Eligible for deduction under section 80C (up to ₹1,50,000 per annum).
• Maturity/Death Benefits: Entire proceeds are fully exempt from income tax under section 10(10D), subject to prevailing tax rules.​

Policy Exclusions and Grace Period

• Suicide Clause: If the policyholder commits suicide within 12 months of start/revival, only 80% of premiums paid returned (minus taxes/extra charges).​
• Grace Period: 30 days for yearly/half-yearly payments, 15 days for monthly payments—if not paid, the policy lapses but can be revived within a specific time frame.

How Jeevan Pragati Stands Out

• Automatic Increase in Cover: Adapts to rising protection needs as you age—unlike traditional endowment policies where cover remains level.
• Simple Eligibility: Entry age flexibility and no cumbersome medical exams for healthy, young applicants.​
• Bonuses: With-profits ensures policyholders share in LIC’s yearly surplus via regular bonus additions.
• Loans and Surrender: Helpful for emergencies after 3 years.

Pros and Cons

Frequently Asked Questions (FAQs)

Conclusion

The LIC Jeevan Pragati Plan 838 was a simple, reliable tool for building savings with growing life cover. Its automatic growth in life insurance, tax-free maturity, and flexible tenure made it extremely user-friendly for Indian families seeking safe, steady protection. Although it’s discontinued, those with active policies retain all benefits and can use online calculators to track their policy value.​

For any user wanting maximum transparency, accurate calculation tools, and steady benefits, LIC Jeevan Pragati set a benchmark during its operational years. For more information, refer to the LIC India official website or speak with a qualified insurance advisor.