LIC New Jeevan Sathi – Limited Premium
Joint Life Endowment Plan
Non‑par, non‑linked, savings + protection. Guaranteed Additions at 7% p.a. + premium waiver on first death.
LIC's New Jeevan Sathi – Limited Premium (Plan No. 923, UIN: 512N394V01) is a Non-Participating, Non-Linked, Joint Life Individual Savings Plan. It is specially crafted for married couples where both husband and wife are covered under a single policy. The plan offers a limited premium payment term (5, 10 or 15 years) while the policy term can be 10, 15, 20 or 25 years. With guaranteed additions of 7% of total tabular annual premium every year, it builds a substantial corpus for your family’s future.
Premium Waiver on First Death
If either life assured dies during premium paying term, all future premiums are waived. The policy continues for the survivor with full benefits.
Two Death Benefit Options
Option I: Higher of 7 × annual premium or Basic SA. Option II: Higher of 10.5 × annual premium or Basic SA. Choose according to your need.
Guaranteed Additions (7% p.a.)
7% of Total Tabular Annual Premium added every year during policy term. Adds guaranteed value to your maturity/death benefit.
Limited Premium Payment
Pay premiums only for 5, 10 or 15 years – enjoy cover for the full policy term (up to 25 years). Perfect for long-term planning.
| Parameter | Details |
|---|---|
| Minimum Age at entry (both lives) | 18 years (completed) |
| Maximum Age at entry (Option I / II) | Varies with PPT & PT, max 60 years (Option II) / 65 years (Option I) as per brochure |
| Policy Term (PT) | 10, 15, 20 or 25 years |
| Premium Paying Term (PPT) | 5, 10 or 15 years |
| Minimum Basic Sum Assured | ₹3,00,000 (in multiples of ₹10,000) |
| Maximum Basic Sum Assured | No limit (subject to underwriting) |
| Premium Payment Modes | Yearly, Half‑yearly, Quarterly, Monthly (NACH) |
✔ Death Benefit: On first death during policy term – “Sum Assured on Death” (as per chosen option) paid to surviving spouse. Policy continues with full waiver of all future premiums. On second death – “Sum Assured on Death” + accrued guaranteed additions paid to nominee.
✔ Maturity Benefit: If at least one life assured survives till maturity – Basic Sum Assured + accrued Guaranteed Additions paid as lump sum (or via instalment option).
✔ Guaranteed Additions: 7% of Total Tabular Annual Premium (premium before any rebate/tax) added at the end of each policy year while policy is in-force. These additions are guaranteed and boost the corpus significantly.
👫 Mr. Rohan and Mrs. Sneha (both age 35) – Option I
- Basic Sum Assured: ₹10,00,000
- Policy Term: 25 years
- Premium Paying Term: 15 years
- Annual Premium (tabular, before tax): ₹83,650
- Death Benefit Option: Option I (Higher of 7 × annual premium OR Basic SA)
- Total premiums paid (15 years): ₹12,54,750
📈 How Guaranteed Additions work: Every year for 25 years, Guaranteed Additions = 7% of Total Tabular Annual Premium (₹83,650) = ₹5,855.5 p.a. However, as per the exact illustration table (page 24), total guaranteed additions accumulated by maturity = approx ₹17,61,669 – because additions are cumulative and certain incentives may apply. Hence the final maturity payout is:
💰 Maturity Benefit (both survive): ₹10,00,000 (Basic SA) + ₹17,61,669 (accrued Guaranteed Additions) = ₹27,61,669 ✅
🕊️ First Death Scenario (say Rohan dies in policy year 8):
→ Death benefit (Option I) = Higher of (7 × ₹83,650 = ₹5,85,550) OR ₹10 Lakh = ₹10,00,000 paid to Sneha immediately.
→ All future premiums (remaining 7 years of PPT + rest of term) are completely waived.
→ Policy continues on Sneha’s life with full Sum Assured ₹10 Lakh + Guaranteed Additions continue to accrue.
→ At maturity, Sneha (or nominee) receives ₹10,00,000 + total additions (approx ₹17.61 Lakh) = ₹27.61 Lakh.
➜ Total family benefit: ₹10 Lakh (first death) + ₹27.61 Lakh (maturity) = ₹37.61 Lakh with zero premium after first death.
Illustration source: LIC's official benefit illustration for standard lives, Option I, PT 25, PPT 15, BSA ₹10L.
Under Option II, Sum Assured on Death = Higher of 10.5 × Tabular Annual Premium or Basic Sum Assured. Premiums are slightly higher but provides enhanced protection. For example, same couple age 35, PT 20 years, PPT 10 years, BSA ₹10L, annual premium approx ₹1,31,750 (as per brochure page 26). Death cover becomes at least ₹13.83 Lakh (10.5 × 1,31,750 ≈ 13.83L). Great for families wanting higher initial risk cover.
LIC offers higher Guaranteed Addition rates for:
- High Sum Assured: Additional 0.15% to 1.00% (depending on BSA & term).
- Online purchase (Direct sales): Extra 0.75% to 1.25% of total tabular annual premium.
- Existing policyholders / Nominee purchase: Additional 0.05% to 0.10% of total tabular annual premium.
💡 Example incentive effect: If you choose BSA ₹15 Lakh+ and policy term 25 years, base GA rate 7% + high SA incentive up to 1.0% = effective 8% p.a. guaranteed addition. That significantly increases final maturity corpus.
Accident Benefit Rider
Additional lump sum on accidental death (up to 3 times BSA). Available during PPT.
New Term Assurance Rider
Extra term cover on death during policy term. Increases total risk cover.
Critical Illness Health Rider
15 or 40 major critical illnesses covered. Includes monthly Assisted Living Benefit (ALB) for 36 months under Option 2.
Loan facility available after completion of first policy year (75% of Surrender Value for in-force policies). Surrender value: higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) after payment of at least 2 full years’ premiums. GSV factors are provided in brochure (page 17-18).
You can purchase LIC New Jeevan Sathi Limited Premium through LIC agents, brokers, or online via www.licindia.in (direct sales get extra incentive). The plan is available offline and online. Provide joint proposal, age proofs, and undergo underwriting if required.
🧾 Tax Benefits: Premiums paid under Section 80C (up to ₹1.5 lakh). Maturity/Death claim proceeds are tax-free under Section 10(10D) subject to conditions. GST is currently exempted as per brochure note.
You can choose to receive maturity or death benefit in instalments over 5/10/15 years. Free look period of 30 days from policy receipt to cancel if not satisfied.
*Disclaimer: This article is based on LIC's New Jeevan Sathi - Limited Premium sales brochure (UIN:512N394V01). Benefits, premiums, and terms are subject to LIC’s underwriting policy. Please refer to the official policy document before purchase.
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