LIC’s Navjeevan Plan 853 -Details with Premium and Benefit Calculators
LIC’s Navjeevan Plan 853 -Details with Premium Maturity Benefit and Insurance coverage calculators. LIC has introduced Navjeevan (853) – a new non-linked, with-profit endowment assurance plan on 18th March 2019.
Navjeevan plan is available in two premium modes.
- Single premium (One-time payment as a single lump sum amount)
- Five-year limited premium payment.
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LIC’s Navjeevan plan 853 – Salient Features
- The term of the plan available is 10 to 18 years.
- Premium paying term single or five years.
- For Single payment mode, absolute death sum assured shall be 10 times of tabular single premium for the chosen basic sum assured.
- In case of limited payment mode, a person above 45 years of age will have to choose an absolute death Sum Assured between
- 10 times of annualized premium or
- 7 times of annualized premium.
- If the person is below 45 years of age absolute death sum assured shall be 10 times of annualized premium.
- The policy shall participate in the profits of the corporation in the form of loyalty additions available at the time of exit from the policy by death or maturity (Subject to certain conditions mentioned later in this post)
| LIC’s Navjeevan – Eligibility Conditions and Restrictions | |||
|---|---|---|---|
| Premium Mode | Criteria | Minimum | Maximum |
| Single Premium | Age at entry | 90 days completed | 44 years (nbd) |
| Regular Premium | Age at entry | 90 days (Option 1) | 60 Years (Option 1) |
| 45 years (Option 2) | 65 Years (Option 2) | ||
| Single / Regular | Term | 10 Years | 18 Years |
| Single / Regular | Premium | 1,00,000 | No limit |
LIC’s Navjeevan plan 853 – Premium and benefit calculator.
Online premium and benefit calculator of LIC’s Navjeevan plan 853 is intended to help you to understand all the benefits of the plan easily. It can help you to calculate premium payable for various modes and get the benefits such as insurance coverage, Maturity Benefit, Tax benefits etc.
If you are unable to view the calculator properly Click here to open Navjeevan calculator in a separate page.
LIC’s Navjeevan Plan 853 – Maturity benefits.
On the life assured surviving to the end of the policy term, (Provided all due premiums have been paid) Basic sum assured + Loyalty addition (if any) shall be payable. In single premium as well as limited payment policy the maturity benefit shall be Sum assured + loyalty addition.
Navjeevan Plan 858 -Eligibility of loyalty addition
Policies shall be eligible for declared loyalty additions at the time of exit by way of maturity or death, provided the premium has been paid for at least five policy years and five years have been completed at the time of exit.
Declared loyalty additions will be considered in the surrender value calculations of both single as well as limited premium payment plan also, provided, five full-year premium has been paid.
Navjeevan – How much returns you can expect?
As LIC of India has not declared Loyalty Addition rates we will not be able to accurately predict the maturity value of Nav Jeevan plan. But there is a way to reasonably predict the loyalty addition rates.
Benefit illustrations provided by LIC can throw light on the possible loyalty addition rates. LIC of India provides benefit illustrations at 8% gross investment returns scenario as per the IRDA instructions. If we analyze the benefit illustrations of LIC plans we can understand that most of the plans offer bonus rates higher than 8% scenario.
| NavJeevan – 853 | ||
|---|---|---|
| Expected loyalty addition rates @ 8% gross investment returns as per benefit illustration | ||
| Term | Single premium | Regular Premium |
| 10 | 70 | 75 |
| 11 | 80 | 90 |
| 12 | 90 | 105 |
| 13 | 90 | 105 |
| 14 | 100 | 120 |
| 15 | 110 | 140 |
| 16 | 110 | 145 |
| 17 | 130 | 165 |
| 18 | 150 | 185 |
You can use the calculator provided above to get the indicative maturity benefit using 8% gross investment scenario.
LIC’s Navjeevan Plan 853 – Death coverage
Date of Commencement of Risk
If the age at entry of the life assured is less than 8 years, the risk will commence either one day before the completion of 2 years or one day before the policy anniversary coming after the completion of 8 years of age whichever is earlier.
Amount of Death Coverage Available
In case of in force policies where the
- On death during the first five policy years
- Before the commencement of risk – Refund of premium(s) paid without interest shall be payable
- After the commencement of risk – Sum Assured on death shall be payable
- On death after completion of five policy years
- Sum Assured at death + loyalty addition applicable shall become payable.
Sum Assured at Death – What does it mean?
For Single premium
Sum Assured at death is defined as the higher of
- Guaranteed Sum Assured (Basic Sum Assured)
- Absolute amount assured to be paid on death. ( 10 times of tabular single premium of chosen ‘Basic Sum Assured’)
For Limited Premium
Sum Assured at death is defined as the higher of
- Guaranteed Sum Assured on Maturity (Basic Sum Assured)
- Absolute amount assured to be paid on death. ( 10 times of Annualised premium)
Calculation of Death Coverage – Examples and Illustrations
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| Example of Calculation of Death Coverage (under various options opted by the policy holders) | ||||
|---|---|---|---|---|
| Premium Mode | Single Premium | Regular Premium (Case 1) | Regular Premium (Case 2) | Regular Premium (Case 3) |
| Age of policy holder | 40 Years | 40 Years | 50 Years | 45 Years |
| Policy Term | 12 Years | 12 Years | 12 Years | 10 Years |
| Basic Sum Assured | 5,00,000 | 5,00,000 | 5,00,000 | 5,00,000 |
| How to take premium | Tabular Single premium for the chosen Basic Sum Assured (before rebate) | Annualized premium after allowing for modal loading but (before other rebates) | Annualized premium after allowing for modal loading but (before other rebates) | Annualized premium after allowing for modal loading but (before other rebates) |
| Calculation Method | (Tabular Single Premium)*Basic Sum Assured/1000) | (Annualized Premium)*(1+Modal Loading)*(Basic Sum Assured/1000) | (Annualized Premium)*(1+Modal Loading)*(Basic Sum Assured/1000) | (Annualized Premium)*(1+Modal Loading)*(Basic Sum Assured/1000) |
| Actual calculation | (67950)*(500000/1000) | (138.50)*(1+2%)*(500000/1000) | (139.65)*(1+2%)*(500000/1000) | (151.80)*(1+2%)*(500000/1000) |
| Calculated Amount | 3,39,750 | 70,635 | 71,221.50 | 77,418 |
| Sum Assured on Death Calculation | Higher of (500000 or 10* 3,39,750) | Higher of (500000 or 10* 70635) | Higher of 500000 or 7* 71221.5 | Higher of 50000 or 7*77418 |
| Actual Sum assured on Death | Rs. 33,97,500 | 7,06,350 | 5,00,000 | 541926 |
LIC’s Navjeevan Plan – 853 – What are the unique benefits
LIC’s Navjeevan plan has some unique features which can be useful at times. Let us have a detailed look.
Navjeevan is Income Tax Ready
Navjeevan Plan offers minimum insurance coverage of 10 times the premium paid. This is highly advantageous for getting income tax rebates under section 80C. Both Single, as well as regular premium plan, can be used for income tax purpose.
In order to get income tax rebate the premium paid in a financial year for a plan should not exceed 20% of the Sum Assured of it.
Navjeevan – only single premium plan with Accident and Disability rider
Normally single premium plans do not have Accident benefit Rider option. But LIC is offering this benefit for the first time with Navjeevan plan.
Incidentally, the limited premium payment option of Navjeevan also offers accident and disability rider. So by just paying accident benefit premium for 5 years accident coverage up to 18 years can be availed.
Navjeevan is Senior Citizen Ready – Maximum age at entry of 65 Years
LIC of India generally offers plans with age at entry is restricted up to the age of 50 or 55 years. Even the basic endowment assurance plan can be taken only up to the age of 55 Years. It is great to get minimum coverage of 7 times of the premium paid (Under Option 2) for a 65 age old person. On the other hand, a sixty-year person can avail a coverage up to 10 times the premium paid.
Navjeevan is Pension Ready with Tax-free Annuity
Settlement option available for maturity amount can make Navjeevan a pension plan to some extent. Maximum settlement period available is 15 years. When you opt for settlement option with the monthly mode the maturity amount shall be available as an annuity for a period up to 15 years.
As the settled maturity amount is tax-free under section 10 (10D ) of the income tax act, unlike other pension plans where the annuity is taxable, Navjeevan offers a tax-free pension.
Navjeevan -Rebates and Loading on premium
| Navjeevan – Plan 853 – Rebates and Loading on premium | |||
|---|---|---|---|
| Rebates for higher Sum Assured | |||
| Sum Assured | Single Premium | Regular Premium | |
| Rs. 1,00,000 to 1,80,000 | Nil | Nil | |
| Rs. 2,00,000 to 4,80,000 | Rs 20 | Rs 5 | |
| Rs 5,00,000 to 9,50,000 | Rs 25 | Rs. 7 | |
| Rs 10,00,000 | Rs.35 | Rs. 9 | |
| Modal Loading – Loading as a % of tabular annual premium | |||
| Yearly | Nil | Half Yearly | 2% Extra |
| Quarterly | 3% Extra | Monthly (NACH) and SSS | 3.5 % Extra |
| Rebate for Online Sale | |||
| Single Premium | 2 % | Limited Premium | 5 % |
Navjeevan Plan 853 – Riders and Options Available
Let us have a look at the riders and options available under the plan.
Accidental Death and Disability Rider
This rider can be opted only at the time of inception of the plan. If this rider is opted for, in case accidental death of the life assured, the accidental death sum assured is paid along with the death benefit as a single lump sum payment.
In case of accidental disability arising due to an accident (within 180 days from the date of accident) an amount equal to the accident benefit sum assured will be paid in monthly installment spread over 10 years and the future premiums for the rider as well as premiums for that portion of the sum assured shall be waived.
Settlement Option – Get maturity in instalments
Settlement option can be used to receive the maturity benefit or death benefit in installments over a chosen period of 5 or 10 or 15 years instead of lump sum amount. Whole maturity amount or a part of it can be used for settlement option. The interest rates applicable for arriving at the installment payments under settlement option shall be fixed by the corporation from time to time.
Settlement option is available in Yearly, Half-yearly, Quarterly or Monthly mode subject to the minimum settled amount of 50000, 25000, 15000 and 5000 for respective modes.
Commutation is available any time after the settlement option has been executed and this adds to the flexibility of the settlement option. The amount available shall be ‘discounted value of all future installments due‘ or ‘The original amount for settlement option was exercised‘ less ‘Sum of total installment already paid‘.
Read more: Settlement option of LIC policies
Download Navjeevan Plan 853 proposal form
Click the links given below to download the proposal form for LIC’s Navjeevan -Plan 853.
- Navjeevan – Proposal form for adults – Form No 506
- Navjeevan – Proposal form for minors – Form No 507
- Navjeevan – Proposal form for minors (without medical examination) – Form No 508
You may be also interested in :
Premium and maturity calculator all LIC policies
For more details refer to LIC of India web site.
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Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
Excellent Anish…beacuse your clear explanation i have purchased this plan.thank you so much.
Hi Rajesh, Thank you for the nice words of appreciation.
If one died before first five year policy, will he get 10 times of Single premium + all premium paid
Hi Azim,
Yes, but loyalty additions won’t be available. Please use the updated calculator to understand more.
How much will be the loyalty additional for limited premium
And for 13 year term
As the loyalty addition rates are not declared, I cannot give you an accurate estimation of possible loyalty additions. But 8 % gross investment return scenario gives us a direction towards what could be the loyalty additions. I have implemented 8% scenario in the calculator. Please use the calculator again to get an answer to your query.
Hi Anish,
Kindly explain, If I plan for a Sum assured of 15Lac, My premium/month shows 19549*12=234588 for 1st year & from 2nd yr to 10th year, my premium is 19128*108 months = 2065824 , Total Premium payed by me = (234588 + 2065824 = 23,00,412/-) whereas I will be getting only sum assured = 15,00,000/- + LA. So what are my benefits for pay premium as my 10 yrs Premium itself is more than the sum assured.
In Nav Jeevan Plan premium payment is only for five years. Please check the calculation once again. Total premium and benefits are shown in the calculation itself. If you have any doubts please let me know.
Is there any medical requirement for a 64 year old prospect for table no. 853 for one lac S.A.?
Yes, Medical report is required for taking the policy. Medical requirements are Full medical report + ECG + Fasting Blood sugar (FBS).
Sum Assured – 15 Lac, Premium/ month(1 yr ) = 19,549*12 = 2,34,588/-, Premium/ month(2 yr to 5 yr = 48 Months ) = 19,128*48 = 9,18,144 /-. Total premium paid = 234588 + 918144 = 11,52, 732/-, After 10 yrs , I will get 16,05,000 Lac. But if this is done in FD for 5 yrs @ 7%P.A = 11,52, 732 * 7% = 80691/yr * 5 = 4,03,456, Total = 1152732 + 403456 = 15,56,188/-. So why should one go/choose this plan.
Dear Anand,
While comparing it with other investments we should consider the following facts.
Hope your doubts are cleared.
Please explain Abbot full medical reports? What is the requirement?
A full medical report is a single basic medical examination done by LIC approved doctor. First, this report has to be obtained and then other reports.
Can a person do under option 2 in lic’s plan 853?
What should be ideal for him to invest in regular premium paying mode in lic’s Navjivan policy ?
Dear sir, Maturity settlement option, you mentioned 5,10,15 yrs. Now 15 yrs option available or not
Yes, 15-year settlement option is available and Navjeevan is the only plan with 15-year settlement option. For all other plans, it is less than or equal to 10 years.