LIC Jeevan Vaibhav Plan 809

Life Insurance Corporation of India (LIC) has introduced several plans over the years to cater to the diverse financial needs of individuals seeking a secure future for themselves and their loved ones. One such notable offering was the LIC Jeevan Vaibhav Plan 809, a single premium endowment assurance plan providing both insurance cover and assured returns.

Introduction to LIC Jeevan Vaibhav Plan 809

The LIC Jeevan Vaibhav Plan 809 is a single premium, non-linked, close-ended endowment assurance plan. This means that policyholders pay a single lump sum premium at the time of purchase and enjoy the dual benefits of a life cover and guaranteed returns at maturity. The plan also comes with loyalty additions, if applicable, which enhance the maturity or death benefits.

This plan stood out for its simplicity and attractive returns, targeting individuals who prefer a single premium payment rather than regular installments and want their money to grow securely over a fixed term.

Launch and Withdrawal Dates

The LIC Jeevan Vaibhav Plan 809 was launched on 21st May 2012. However, being a close-ended plan, it was available for sale only for a limited period—specifically, for a maximum of 120 days from the date of launch. Consequently, the plan was withdrawn from sale around July 2012.

Though it is no longer available for new policyholders, existing Jeevan Vaibhav policyholders continue to enjoy the benefits as per the terms and conditions stated at the time of purchase.

Eligibility Criteria

Before we dive into the calculation aspects, understanding the eligibility criteria is essential:

• Minimum Entry Age: 8 years (completed)
• Maximum Entry Age: 65 years (nearest birthday)
• Policy Term: Fixed at 10 years for all policyholders
• Minimum Sum Assured: Rs. 2,00,000
• Maximum Sum Assured: No upper limit (multiples of Rs. 10,000)

These conditions ensured the plan was suitable for a wide range of individuals, from young children (with guardian consent) to adults nearing retirement age.

Key Features and Benefits

Single Premium Payment

• The plan required a single premium payment at the time of purchase. No further premiums were payable during the policy term.

Sum Assured on Death

• If the policyholder dies during the policy term (except during the last policy year), the basic sum assured is paid to the nominee as a death benefit.
• If death occurs during the last policy year, the nominee receives the sum assured plus any loyalty additions.

Maturity Benefit

• At the end of the 10-year term, the policyholder receives the sum assured along with applicable loyalty additions.
• Loyalty additions are a form of bonus paid by LIC as a reward for policyholders who have maintained their policy till maturity.

Loan Facility

• Policyholders were eligible to avail of loans against their policy after completing one year of the policy term, providing liquidity when required.

Guaranteed Returns

• The plan promised guaranteed returns as part of the maturity benefits, making it ideal for conservative investors seeking a low-risk investment.

Using the LIC Jeevan Vaibhav Plan 809 Calculator

A calculator customized for this plan helps potential buyers and existing policyholders estimate the crucial financial figures. These include the premium payable, maturity proceeds, loyalty additions, and death benefit amounts.

What is an LIC Jeevan Vaibhav Plan 809 Calculator?

The calculator is a digital tool, often available online, which requires basic inputs such as the policyholder’s age, sum assured, and policy term (fixed at 10 years), and then computes:

• The single premium amount to be paid
• Total maturity value, including loyalty addition
• Death benefit payable depending on timing
• Estimated internal rate of return (IRR) on the investment
• Loan eligibility amount

Benefits of Using the Calculator

• Financial Planning: Helps individuals plan their investment and understand their potential returns upfront.
• Quick Calculations: Eliminates manual calculations, saving time and reducing errors.
• Decision Making: Aids in deciding whether the plan suits personal financial goals and risk appetite.
• Transparency: Offers clear visibility into benefits, ensuring informed purchase decisions.

How to Use the LIC Jeevan Vaibhav Plan 809 Calculator?

To effectively use the LIC Jeevan Vaibhav calculator, follow these straightforward steps:

1. Enter Your Age: Your nearest age at the time of purchasing the policy.
2. Input Sum Assured: Minimum Rs. 2,00,000 and above in multiples of Rs. 10,000.
3. Policy Term: This is fixed at 10 years.
4. Receive Calculations:
   • The premium amount (usually fixed based on sum assured and age)
   • Projected maturity amount (Sum Assured + Loyalty Addition)
   • Death benefit
   • Loan eligibility
   • IRR on the policy

Many LIC calculator tools also allow downloading or printing the results for record-keeping or sharing with financial advisors.

Sample Calculation Example

Let’s consider a hypothetical example to understand the calculation:

• Age of policyholder: 30 years
• Single Premium paid: Rs. 95,000
• Sum Assured: Rs. 2,00,000
• Policy term: 10 years

Using the calculator, you may find:

• Maturity Value: Rs. 2,25,000 (Sum Assured + loyalty bonus)
• IRR: Approximately 8.6%
• Death Benefit: Rs. 2,00,000 (before the last policy year), Rs. 2,25,000 (during last policy year)
• Loan eligibility: Available after 1 year at an interest rate prescribed by LIC

Please note these numbers are illustrative and based on typical calculations from the plan’s brochures.

Loyalty Additions Explained

Loyalty additions are extra benefits payable only if the policyholder survives till maturity or dies in the last policy year. LIC periodically declares loyalty additions based on the corporation’s experience and profits from the invested funds.

The lease can result in a higher maturity amount than just the sum assured, enhancing the overall return on your investment.

Advantages of LIC Jeevan Vaibhav 809 Plan

1. Single Premium: Makes it easy for those who prefer not to worry about recurring payments.
2. Guaranteed Returns and Sum Assured: Provides safety of capital and assured benefits.
3. Loan Facility: Provides access to funds in times of emergency.
4. Suitable for All Ages: Available for individuals starting from 8 years to 65 years.
5. Simple Plan Design: Easy to understand without complicated terms or investment fluctuations.

Limitations of the Plan

• It was a limited period offering and is no longer available to new customers.
• Fixed policy term of 10 years may not suit everyone’s financial timeline.
• No regular bonuses—only loyalty additions, so returns depend on LIC’s discretion.
• Premium amount fixed, not flexible like some other plans.
• No riders or add-ons like critical illness or accidental death benefits.

Important Considerations Before Buying

If the plan were still available, customers would need to consider:

• Their need for a lump sum investment rather than monthly premiums
• The 10-year lock-in period and liquidity needs during this time
• Comparing returns with alternative investment avenues like Fixed Deposits, PPF, or mutual funds
• Whether the assured returns and associated risk comfort align with personal financial goals

Current Status and Alternatives

Since LIC Jeevan Vaibhav Plan 809 was withdrawn shortly after launch in 2012, it is no longer a viable option for new policyholders. However, LIC continues to offer other endowment and single premium plans with similar features but updated benefits.

Those interested in similar plans may explore LIC’s current offerings on the official LIC website or consult LIC agents for the latest products. Examples include plans like LIC Jeevan Vriddhi (Plan 808) or LIC Jeevan Sugam (Plan 813), which came after and share some features with Jeevan Vaibhav.

Where to Access LIC Jeevan Vaibhav Plan 809 Calculator?

Several insurance-related websites and LIC specialized portals offer the LIC Jeevan Vaibhav calculator for customers who want to see ongoing policy projections or for agents helping clients:

• LIC’s official website and related insurance portals
• LIC feature-rich calculator websites such as liccalculators.net
• Financial advisory websites that provide LIC policy tools

Make sure to use calculators updated to the latest official policy conditions for accurate results.

Comparison With Similar Plans

Two popular single premium plans from LIC were:

Frequently Asked Questions

Conclusion

The LIC Jeevan Vaibhav Plan 809 was a unique, single premium endowment assurance plan offered by LIC India with attractive death and maturity benefits, guaranteed returns, and loyalty additions. Though it was available for a limited period in 2012, it remains a reference point for understanding LIC’s single premium plans and how such plans can combine security with growth.

Using a dedicated LIC Jeevan Vaibhav Plan 809 Calculator provided clarity and empowerment for customers, aiding their decision-making by projecting premiums, benefits, maturity values, and internal rates of return.