LIC Jeevan Sugam Plan 813

LIC Jeevan Sugam Plan 813 is a life insurance policy launched by the Life Insurance Corporation of India (LIC) in 2013. It is a non-linked, single premium endowment plan that aimed to provide policyholders a combination of risk cover and maturity benefits over a fixed policy term.

What is LIC Jeevan Sugam Plan 813?

LIC Jeevan Sugam Plan 813 is a close-ended, non-linked insurance plan where you pay a single premium upfront. The plan offers a high level of life cover for 10 years and promises a maturity sum assured along with loyalty additions (if any) on survival till the maturity date. This plan was launched by LIC on 25th February 2013 and was available for sale for only 45 days. It was subsequently withdrawn from sale on 11th April 2013.

Because of its limited sale period and unique benefits, the LIC Jeevan Sugam Plan 813 became popular among investors looking for a short-to-medium term insurance plan with good returns and tax benefits.

Key Features of LIC Jeevan Sugam Plan 813

Here are the primary highlights of the LIC Jeevan Sugam Plan 813:

• Single Premium Plan: You pay the premium amount just once at the start of the policy.
• Policy Term: Fixed at 10 years from the date of commencement.
• Death Benefit:
  • If the insured dies within the first 5 years, the nominee receives 10 times the single premium paid (excluding any extra premium charged).
  • If death occurs after 5 years, the nominee receives the sum assured plus loyalty additions.
• Maturity Benefit: On surviving the full term of 10 years, the policyholder receives the maturity sum assured plus loyalty additions.
• Loyalty Addition: LIC may declare loyalty additions based on its experience with this plan’s policies, payable on death after 5 years, on surrender during the last policy year, or on maturity.
• Minimum Age to Join: 8 years.
• Maximum Entry Age: 45 years.
• Minimum Sum Assured: Rs. 60,000.
• No Maximum Limit: There is no upper limit on the sum assured.
• Loan Facility: Policyholders can avail of a loan against the policy during the term.
• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.

Eligibility Criteria

To invest in LIC Jeevan Sugam Plan 813, the following conditions had to be met:

• Age at Entry: Between 8 and 45 years.
• Policy Term: Exactly 10 years.
• Premium Payment: Single premium only.
• Minimum Sum Assured of Rs. 60,000.
• The plan was open for sale only for 45 days from launch (from 25th February 2013 to 11th April 2013).

Since it was a limited period offering, the plan is no longer available for purchase, but understanding it can help users evaluate such single premium plans in the market.

Benefits of LIC Jeevan Sugam Plan 813

The plan combined safety and returns thoughtfully. Below are the summarized benefits:

Death Benefit

If the insured person passes away during the policy term, the nominee receives a high death benefit:

• Death within the first 5 years: 10 times the single premium paid is paid out.
• Death after 5 years: Sum assured plus loyalty additions (if any) are paid.

This ensured financial security for the policyholder’s family during the policy tenure.

Maturity Benefit

If the policyholder survives the full 10-year term, the maturity benefit payable includes:

• The maturity sum assured chosen at policy inception.
• Loyalty additions declared by LIC depending on overall claims experience.

This maturity amount acts as a good corpus for future financial needs.

Loyalty Addition

Loyalty additions are a bonus or extra amount paid by LIC based on its profit and experience with the plan. These are payable:

• On death after 5 policy years.
• On surrender during the last policy year.
• On maturity.

This loyalty addition enhances the overall returns for the policyholder.

Tax Benefits

Policyholders could claim tax benefits for the premium paid under Section 80C of the Income Tax Act, reducing the taxable income and thus the tax burden.

Loan Facility

The plan allowed policyholders to take loans against the policy during the policy term, providing liquidity in times of financial need.

How LIC Jeevan Sugam Plan 813 Calculator Works

Since LIC Jeevan Sugam Plan 813 is a single premium plan with fixed benefits, the calculator helps estimate the premium amount needed for a chosen sum assured and shows expected benefits such as maturity amount, death benefit, and loyalty additions.

The calculator works based on inputs like:

• Age of the policyholder.
• Desired sum assured or maturity amount.
• Single premium amount.
• Policy term (fixed at 10 years).

The output generated by the calculator will typically include:

• Required single premium to get the desired sum assured.
• Maturity sum assured along with any expected loyalty addition.
• Death benefit amount in case of untimely death during policy tenure.
• Yearly benefit illustration (if applicable).

Since the plan is withdrawn, the calculator is mainly useful for historical reference or comparison with other plans.

Why Use LIC Jeevan Sugam Plan 813 Calculator?

The calculator is helpful for those who want to:

• Understand how much premium they needed to pay upfront for this plan.
• Estimate the returns they could have expected on maturity.
• See the death benefit cover they would have gained.
• Compare this plan’s benefits with other single premium endowment plans.
• Plan their finances with knowledge of such limited-period offerings for better insurance decisions.

Sample Calculation Illustration

For example, if a policyholder aged 30 wanted a maturity sum assured of Rs. 6,00,000, the single premium payable might be around Rs. 3,37,590 as per the official illustration. The death benefit during the first five years would be 10 times the premium (Rs. 33,75,900) and after five years, the sum assured plus loyalty addition would be payable.

Additional Important Points

• The plan was not linked to market performance; hence it was free from market risks.
• Being a close-ended plan, it was available only for a limited 45-day period.
• It offered guaranteed maturity sum assured with additional loyalty amounts depending on LIC’s profits.
• No renewal premiums were needed since the premium was paid once.

Frequently Asked Questions

Conclusion

LIC Jeevan Sugam Plan 813 was designed to provide customers with a simple, safe, and short-term insurance plan with guaranteed benefits. Its single premium structure made it easy for investors to lock in protection and returns without worrying about recurring payments.

Though the plan was withdrawn shortly after its launch, its features like high death cover, loyalty additions, and maturity benefits still make it a valuable reference for those evaluating other LIC single premium plans.