LIC Jeevan Pragati Insurance Plan No 838 – What is new?

LIC new Jeevan Pragati Insurance plan no 838LIC Jeevan Pragati Insurance Plan No 838 Review

Yesterday, LIC of India has launched a new endowment policy, LIC Jeevan Pragati – Table no. 838. LIC Jeevan Pragati is a non linked endowment insurance plan. Generally LIC launches insurance plans during tax season, i.e. Jan to Mar. During this season this is the third insurance plan from LIC after LIC Jeevan Labh and LIC Jeevan Shikhar. What are the features of LIC Jeevan Pragati Insurance plan? What are the benefits of LIC Jeevan Pragati Plan? Should you consider such endowment plans?

Also Read: Top 10 Term Insurance Plans in India for 2016

Features of LIC Jeevan Pragati Insurance Plan

  • LIC Jeevan Pragati refers to “progress”.
  • The plan was launched yesterday, i.e. 3rd February, 2016.
  • It is a non-linked endowment plan.
  • This insurance plan is available for 12 to 20 years tenure.
  • Min age of entry is 12 years and maximum age of entry is 45 years.
  • Maximum age at maturity is 65 years.
  • The minimum basic sum assured is Rs 1.5 Lakhs.
  • Maximum basic sum assured – No upper limit
  • Loan facility available in this plan after payment of 3 years of full premium.
  • Policy can be surrendered after payment of 3 years of full premium.
  • Like any other insurance plan, it offers various payment period options i.e. monthly, quarterly, half-yearly and yearly.

What are the benefits available in this plan?

Death Benefit: In case of death of the insured before the completion of the tenure of the insurance plan, the nominee would get Sum Assured on Death + Vested simple reversionary Bonuses + Final Additional Bonus (if any).

Sum Assured on Death is computed as follows:

a) 10 times of annualized premium or

b) Absolute sum assured which is

  • During 0 to 5 years of policy period: 100% of Basic sum Assured (BSA)
  • During 6 to 10 years of policy period: 125% of Basic sum Assured (BSA)
  • During 11 to 15 years of policy period: 150% of Basic sum Assured (BSA)
  • During 16 to 20 years of policy period: 200% of Basic sum Assured (BSA)

Death benefit shall not be less than 105% of total premiums paid as on date of death.

The premiums mentioned above exclude taxes, extra charges, and Rider Premiums, if any.

Maturity Benefit: At the maturity, policy holder would get Basic Sum Assured + vested simple reversionary Bonuses + Final Additional Bonus (if any).

Also Read: LIC's New Endowment plus ULIP Plan – Should you invest?

Are there any Riders available in LIC Jeevan Pragati?

Currently there is only one optional benefit / rider available in this plan with additional premiums which is Accidental death and disability benefit rider.

What are the rebates available in LIC Jeevan Pragati Insurance Plan?

There are two rebates available. Premium payment mode rebate and High Basic Sum Assured Rebate.

Premium payment mode rebate

High Basic Sum Assured Rebate

Also Read: Which are the best health insurance plans for parents or senior citizens?

Should you consider LIC Jeevan Pragati?

Like I indicated earlier, I am against money back plans or endowment plans. All such plans from LIC would give an approx return of 4% to 6% per annum. One unique feature in this plan is increasing risk after every 5 years. However, it is not that good plan in initial years. After 10 years, your risk coverage is increased to 150% of basic sum assured. Apart from this, I could not see anything new in this plan. If you are a low risk taker and does not believe in investing in financial markets or does not willing to take the risk from stock markets, it is safe to invest in such endowment plans from LIC.

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LIC Jeevan Pragati Insurance Plan No 838


  1. Hi suresh.. Thanks fir ur explanation.. would u be able to suggest any Good endowment plans for a 34 year old.. Endowment for 1 cr or 2 cr?

  2. Suresh,

    Very good article and the way you write with product analysis is simply superb. You are correct, Endowment policies are not helpful to provide enough coverage as well as returns. I believe, we should not combine Insurance and Investment. For Insurance, we should go with Term policies only.

  3. suresh jii… out of 100 rupees for example.. whats the ideal way to save for investment and insurance at the age of 25… postal insurance is having bonus around 6.5%… so for 35years..i think its some what good to take one.. we cannot invest all the amount in equities and share markets…

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