LIC has launched a new term life insurance plan in 2023 – The name of the new policy is LIC Jeevan Kiran (Plan No. 870). It’s a simple a non-linked, non-participating, term life insurance policy but with added benefit that it returns back the total premium paid on survival (maturity) to the policyholder.
This policy (LIC Table No. 870) has been launched for the first time in 2023 under the UIN 512N353V01.
LIC Website link to Policy page – Link
LIC already offers a pure term plan named, LIC New Tech Term plan. So for some reason, instead of just offering an additional optional benefit of return of premium on maturity on the existing plan, LIC decided to launch a new plan itself named LIC Jeevan Kiran.
While you are already aware that pure term life insurance is the best form of life insurance, many in India are still uncomfortable with the thought of getting no survival or maturity benefits in Term Plans. Simply speaking, you don’t get back anything if you survive the policy term. So to attract such people, LIC came up this LIC Jeevan Kiran plan, which is a new version of the term plan which has Return of Premium Term Plan option. Many insurers offer such Return of Premium Term Plans which are also called TROP (Term Return of Premium) plan.
If you want to know more about this LIC Jeevan Kiran Plan Review (2025) article, then you will get to know all the LIC Jeevan Kiran Plan Details and LIC Jeevan Kiran Policy Benefits here.
Let’s see the features now.
Features of LIC Jeevan Kiran Plan (Table 870)
LIC New Jeevan Kiran Term Plan, is a traditional term life insurance plan with additional feature of giving back the ‘return of premium‘ on maturity/survival to the policyholder. So, not only do you get the life cover throughout the policy tenure, you also get back all the premiums that you paid over the years during the policy tenure on maturity date.
Now let’s have a look at the Policy Details of Jeevan Kiran Plan.
The Eligibility Criteria of the LIC Jeevan Kiran Plan and its features are listed below:
- The Minimum Entry Age for the policy is 18 years
- The Maximum Entry Age for the policy is 65 years
- The Minimum Maturity Age for the policy is 28 years
- The Maximum Maturity Age for the policy is 80 years
- The Policy Term is 10 years to 40 years.
- The Premium Paying Term is same as policy term. In case of single premium policy, the premium payment term will obviously be 1 year as it has to be paid only once.
- The Minimum Sum Assured is Rs 15,00,000 or Rs 15 lakh.
- There is no upper limit on the Maximum Sum Assured for this policy.
Maturity Benefits of LIC Jeevan Kiran Plan
On Life Assured surviving till policy maturity, an amount called “Sum Assured on Maturity” which is equal to “Total Premiums Paid” under Regular Premium Payment policy shall be payable.
You are also allowed to receive this maturity benefit in parts over 5 years in yearly, half-yearly, quarterly, or monthly options. But you have to choose the option at least 3 months before the maturity of the policy.
There are no extra LIC Bonus Rates that are applicable for this policy and no bonuses will accrue or get paid at any time.
Also, there is No Compounding effect on return of premiums. On maturity, you get back the exact amount of total premiums you paid over the years without any extra interest.
Death Benefits of LIC Jeevan Kiran Plan
On Life Assured surviving till policy maturity, an amount called “Sum Assured on Maturity” which is equal to “Total Premiums Paid” under Regular Premium Payment policy shall be payable.
The Death benefit payable on death of the life assured during the policy term shall be “Sum Assured on Death” – which would be higher of i) 7 times of Annualized Premium; or ii) 105% of the “Total Premiums Paid” up to the date of death
Sample Premium Illustrations of LIC Jeevan Kiran Plan (2025)
Let’s have a look at the premium calculations for LIC Jeevan Kiran Policy now.
As per the policy brochure available on the website, here are the sample premiums for the Basic Sum Assured of Rs 20 Lakh with different ages and policy terms for regular premium payment term:
Here is the details of the premium –
- For a 20-year old person buying LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 20,060 per year.
- For a 20-year old person buying LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 9440 per year.
- For a 20-year old person buying LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 8000 per year.
- For a 20-year old person buying LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 8280 per year.
- For a 30-year old person buying LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 22,500 per year.
- For a 30-year old person buying LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 12,080 per year.
- For a 30-year old person buying LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 11,600 per year.
- For a 30-year old person buying LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 12,320 per year.
- For a 40-year old person buying LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 35,140 per year.
- For a 40-year old person buying LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 21,820 per year.
- For a 40-year old person buying LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 20,520 per year.
- For a 40-year old person buying LIC Jeevan Kiran policy with 40-year Policy Term, the premium is Rs 21,300 per year.
- For a 50-year old person buying LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 72,700 per year.
- For a 50-year old person buying LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 42,400 per year.
- For a 50-year old person buying LIC Jeevan Kiran policy with 30-year Policy Term, the premium is Rs 38,160 per year.
- For a 60-year old person buying LIC Jeevan Kiran policy with 10-year Policy Term, the premium is Rs 1.27 lakh per year.
- For a 60-year old person buying LIC Jeevan Kiran policy with 20-year Policy Term, the premium is Rs 75,000 per year.
LIC also offers some rebate for policies with higher premiums. The rebates are as follows:
- For sum assured Rs 50 lakh to Rs 1 crore – Rebate of 24% of annual premium for those aged up to 30 years, 12% for those aged 31-50 and 9% for those above 51
- For sum assured Rs 1 to 2 crore – Rebate of 32% of annual premium for those aged up to 30 years, 17% for those aged 31-50 and 13% for those above 51
- For sum assured Rs 2 to 5 crore – Rebate of 43% of annual premium for those aged up to 30 years, 25% for those aged 31-50 and 18% for those above 51
- For sum assured above Rs 5 crore – Rebate of 50% of annual premium for those aged up to 30 years, 30% for those aged 31-50 and 20% for those above 51
LIC also offers some rebate for online sale of policies without any assistance of Agent / intermediary. The rebate is 10% of annual premium.
Example of LIC Jeevan Kiran Plan (2025)
Suppose a 30-year old made purchase LIC Jeevan Kiran policy for Rs 20 lakh Sum Assured with 30 year policy term. The annul premium will be Rs 11,600 per year to be paid for each of the 30 years.
- In this case, if the policy holder expires anytime during the 30-year policy tenure his nominee will receive the Rs 20 lakh sum assured death benefit as a lump sum amount and the policy gets closed.
- In case the policy holder survives the policy term of 30 years, then he will receive the maturity benefit of Rs 3,48,000 (30 years X Rs 11,600). So exact sum of premiums paid till date or full tenure is returned back with no additional interest or bonuses.
If you compare this Jeevan Kiran which is a Return of Premium plan with simple plain term plan then here are the differences –
- In case of death, both simple Term Plan and LIC Jeevan Kiran Return-of-Premium Term Plan pay the same amount.
- In case of survival (or maturity), simple Term Plan pays nothing. But the LIC Jeevan Kiran Return-of-Premium plan gives back all the premiums you paid over the years.
- Most importantly, the premium for Return-of-Premium plan will be much higher from that of the simple term plan.
Many insurance agents will try to fool by saying that these return of premium plans are basically ‘free insurance’ as it returns back the premium. But that is not true as if you take inflation into account, then the actual present value of premiums returned by LIC Jeevan Kiran after 20-30 years would be much less than what it is today.
Loan Facility on LIC Jeevan Kiran Plan
No loan facility is available under LIC Jeevan Kiran policy.
Optional Riders Under LIC Jeevan Kiran Plan
LIC Jeevan Kiran Plan offers several optional riders, through which the policyholder can add to their coverage by paying an additional premium:
- LIC Accidental Death & Disability Benefit Rider (UIN: 512B209V02) – In the event of an accident, the Accident Benefit Sum Assured will be paid in a lump sum to the beneficiary. Whereas in the case of disability, arising out of an accident within 180 days from the date of the accident, an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments for 10 years. All future premiums will be waived in the event of accidental disability arising from an accident.
- LIC’s New Term Assurance Rider (UIN: 512B210V01) – This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy term. The premium for LIC’s Accidental Death and Disability Benefit Rider shall not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan Each of above Rider Sum Assured cannot exceed the Basic Sum Assured under the Basic plan
Free Look Period – If the Policyholder is not satisfied with the Terms and Conditions of the policy, the policy may be returned within 30 days from the date of receipt of payment.
Surrender of LIC Jeevan Kiran Plan
Under Regular Premium payment, the policy can be surrendered by the Policyholder at any time during the policy term provided two full years’ premiums have been paid. Under Single Premium payment, the policy can be surrendered by the policyholder at any time during the policy term. The Surrender Value payable shall be higher of Guaranteed Surrender value (GSV) and Special Surrender Value (SSV).
How to purchase LIC Jeevan Kiran Plan online?
Step-by-step process to buy LIC’s Jeevan Kiran Plan Online:
- Log-on to LIC website (www.licindia.in) or using this link, for buying this online product. Click on ‘Buy Policies Online’. Select plan LIC Jeevan Kiran Plan.
- Click on ‘Buy Online’. Choose your desired Purchase Price, Policy Variant, Date of Birth, Gender, Smoking status, etc.
- After filling in the details, a premium calculator will calculate the premium or the chosen parameters.
- Enter other details such as Name, Address, Occupation, Qualification etc. displayed on the screen and complete the proposal form online.
- Pay premium online and fulfil the underwriting requirements, if any.
That’s how you can buy LIC Plan 870 online with rebates of on purchase amount.
Should you buy LIC’s Jeevan Kiran Plan (870) in 2025?
LIC Jeevan Kiran Plan is a typical term insurance plan but with the added benefit of return of premium option (which comes at a higher cost of higher premiums).
But a plain, standard-term plan that pays out the sum assured in case of the policyholder’s death is the purest and cheapest form of life insurance and that is primarily advisable. Such policies are pure risk covers where the policyholder does not get any amount as maturity proceeds at the end of the tenure.
LIC Jeevan Kiran is a Return-of-premium plan designed for those individuals who want to purchase a term plan but feel that premiums paid under pure-term plans ‘get wasted’. So if you are one among them, then LIC Jeevan Kiran can be considered. If you have a strong preference for LIC when it comes to purchasing insurance, then you can go for this or other term plans by LIC named LIC New Tech Term. Else, if you search for similar term plans by other private insurance companies, then you will find cheaper options as well.
Before you decide to purchase life insurance, you should need correct answers to first question – How to calculate correct life insurance cover?, and that is because right insurance cover varies from one person to other. A Rs 1 crore cover may not be large enough for everyone. Do read Is Rs 50 lakh or Rs 1 Crore insurance enough to know more.
Also, you don’t need to purchase a policy that covers you till the age of 100 (which many insurance companies are pushing for these days). Do read what is the right tenure for life insurance in this detailed article titled – How to choose right life insurance tenure?
Hopefully, you would have found this LIC Jeevan Kiran Review useful and the policy details and LIC Jeevan Kiran Policy Benefits (2025) in India would be clear by now. But please make sure you understand and assess the suitability of this product first.