LIC's New Jeevan Mangal Plan 840 Calculator
Micro Insurance Plan with Accidental Death Benefit
Plan Number: 840 (UIN: 512N287V02)
Launch Date: January 9, 2014
Withdrawal Date: February 1, 2020
Plan Type: Micro Insurance Plan with Return of Premiums on Maturity
Sum Assured Range: ₹50,000 - ₹2,00,000
Calculation Results
- Maturity Benefit equals total premiums paid during the policy term
- Death Benefit is higher of: Sum Assured or Total Premiums Paid
- Accidental Death Benefit: Sum Assured + Additional Sum Assured (Double Cover)
- In-built Accidental Death Benefit Rider included at no extra cost
- No loan facility available under this plan
- Minimum premium installment: ₹500
- Premium rates are as per LIC official data
LIC New Jeevan Mangal Plan 840 is a micro-insurance plan from Life Insurance Corporation of India (LIC), designed to provide affordable financial protection primarily for low-income groups. The plan combines life insurance with a unique return of premium feature at maturity, making it a value proposition for those seeking both security and savings. The plan was launched on January 9, 2014, and was withdrawn on April 1, 2016.
What is LIC New Jeevan Mangal Plan 840?
LIC New Jeevan Mangal Plan 840 is a term assurance policy targeted at economically weaker sections, with the return of total premiums paid if the policyholder survives the term. It stands out because of its low premium, built-in accidental death cover, and micro-insurance focus, meaning it is accessible even to those with very modest incomes.
Plan Launch and Withdrawal
- Launch Date: January 9, 2014.
- Withdraw Date: April 1, 2016.
Key Features
- Plan Type: Micro Insurance / Term Assurance.
- Entry Age: 18 – 55 years (some sources mention up to 60 years).
- Maximum Maturity Age: 65 years.
- Policy Term: 10 to 15 years (regular premium), 5 to 10 years (single premium).
- Sum Assured: Minimum ₹50,000 and maximum ₹2,00,000.
- Premium Payment Modes: Yearly, Half-Yearly, Quarterly, Monthly, Weekly, and Single Premium.
- Free Look Period: 15 days.
- Loan Facility: Not available.
- Accidental Benefit: In-built accidental death cover
Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 55 or 60 years |
| Minimum Sum Assured | ₹50,000 |
| Maximum Sum Assured | ₹2,00,000 |
| Policy Term | 10-15 years (Regular), 5-10 years (Single) |
| Premium Payment Modes | Multiple (see above) |
How Does It Work?
This plan is simple and transparent. The policyholder chooses a sum assured and duration. Premiums can be paid either regularly or as a lump sum. If the policyholder survives the term, all premiums paid are returned. If the policyholder dies during the policy term, the nominee receives the sum assured. In case of accidental death, the nominee receives double the sum assured.
- Accidental Death: Nominee gets Sum Assured + additional amount equal to the Sum Assured as Accidental Death Benefit.
- Non-Accidental Death: Nominee gets Sum Assured on Death.
Benefits of LIC New Jeevan Mangal Plan 840
Maturity Benefit
If the policyholder outlives the policy tenure, the total premiums paid (excluding tax and extra premiums if any) are returned as maturity benefit.
Death Benefit
- Death (other than accident): Higher of the Sum Assured or 10 times the annual premium is paid.
- Death (due to accident): Nominee receives double the sum assured.
In-Built Riders
- Accidental Death Benefit: No extra cost, covers double the sum assured on accidental death.
Tax Benefits
- Premiums paid are eligible for deduction under Section 80C of the Income Tax Act, 1961.
- Maturity and death benefits are exempt under Section 10(10D) of the Income Tax Act, as per applicable terms.
Surrender and Revival
- The policy could be surrendered after 1 policy year.
- Revival of lapsed policy is possible within 2 years of first unpaid premium.
No Loan Facility
This plan doesn’t offer any loan facility.
LIC New Jeevan Mangal Calculator: How to Calculate Premiums
LIC provides an easy-to-use premium calculator for the New Jeevan Mangal Plan. You need to input your age, sum assured, policy term, and premium payment mode. The calculator displays the annual or single premium that you need to pay for the selected sum assured.
Sample Premium Rate Chart
Annual Premium for ₹1,000 Sum Assured
| Age (in years) | Policy Term 10 Years | Policy Term 15 Years |
|---|---|---|
| 20 | ₹58.85 | ₹36.85 |
| 30 | ₹60.15 | ₹38.15 |
| 40 | ₹66.45 | ₹43.60 |
| 50 | ₹83.60 | ₹56.15 |
Single Premium for ₹1,000 Sum Assured
| Age (in years) | Policy Term 10 Years | Policy Term 15 Years |
|---|---|---|
| 20 | ₹175.30 | ₹138.65 |
| 30 | ₹179.25 | ₹144.40 |
| 40 | ₹199.85 | ₹172.00 |
| 50 | ₹269.45 | ₹247.40 |
Premium rates are per ₹1,000 sum assured.
Example Calculation
Suppose a 35-year-old takes a 10-year policy with a sum assured of ₹1,00,000, and chooses regular, annual payments.
- Annual Premium: For a 35-year-old, annual premium rate (approx) for 10 years is ~₹60 per ₹1,000 sum assured.
- So, premium = ₹60 x 100 = ₹6,000 per year (excluding taxes).
- If the policyholder survives 10 years, they get back ₹60,000 (all premiums paid) as maturity value.
- If the policyholder dies in an accident during policy term, nominee gets ₹2,00,000 (double the sum assured) as death benefit.
Advantages and Disadvantages
| Advantage | Limitation |
|---|---|
| Very affordable premiums | No policy loan available |
| Return of full premiums on survival | Limited maximum sum assured |
| Accidental death cover at no extra cost | Plan is now withdrawn and not available |
| Simple documentation, quick issue | No survival benefit apart from refund |
| Multiple premium payment options |
Important Points Before You Buy
- Policy No Longer Available: This plan was withdrawn by LIC from April 1, 2016. Existing policyholders can continue, but new policies are not issued now.
- Check Policy Documents: Always read your policy documents for terms, exclusions, and conditions.
- Right to Cancel: Free-look period of 15 days allows you to cancel after buying, if dissatisfied.
Frequently Asked Questions
What is LIC New Jeevan Mangal Plan 840?
It’s a micro-insurance term plan that combines low-cost life cover with a return of premium feature, aimed to provide financial protection for low-income groups.
What is the minimum and maximum entry age?
The minimum entry age is 18 years, and the maximum is 55 or 60 years, depending on source and plan specifics.
What is the minimum and maximum sum assured?
The minimum sum assured is ₹10,000 or ₹50,000, while the maximum is ₹2,00,000.
What are the premium payment modes available?
Premiums can be paid yearly, half-yearly, quarterly, monthly, fortnightly, weekly, or in a single lump sum as a single premium.
What benefits are provided by the plan?
On policyholder’s death during the term, the nominee gets the sum assured. If death is accidental, the nominee receives double the sum assured. On surviving the policy term, the total premiums paid are refunded as maturity benefit.
Conclusion
LIC New Jeevan Mangal Plan 840 was an innovative micro-insurance product with a return of premium benefit, allowing low-income individuals to provide financial protection to their families at an affordable cost. The in-built accidental death benefit, variety of payment modes, and maturity returns made it unique. Although the plan is now withdrawn, it remains an example of LIC’s focus on inclusion and financial security for all sections of society.