LIC Jeevan Sugam Insurance Plan – Review
Last week India’s largest insurance company, LIC has launched a single premium insurance plan, Jeevan Sugam Insurance Plan. In this article, we would discuss about the key features of this LIC Jeevan Sugam insurance plan, Benefits, risks and to whom this insurance plan is best suitable for.
LIC Jeevan Sugam Insurance Plan
LIC Jeevan Sugam is a non linked single premium insurance plan. This insurance plan is close ended and is available for a limited time only.
Key features of LIC Jeevan Sugam insurance plan
Jeevan Sugam insurance plan is a single premium insurance plan where the risk cover is there up to 10 times the single premium paid. Maturity amount equals to maturity sum assured along with loyalty additions (if any).
Also read: Top Health insurance plans in India for Parents / Seniors
Eligibility, terms and conditions:
- Minimum age entry: 8 years
- Maximum age entry: 45 years
- Death sum assured: 10 x single premium (< 5 years from policy date) and 10 x single premium + loyalty additions (if any) after 5 years from policy date
- Minimum maturity sum assured: ₹ 60,000
- Maximum maturity sum assured: No limit
- Policy term: 10 years
- Premium: Single premium
Benefits of LIC Jeevan Sugam Insurance Plan
Death Benefits:
On death within 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged would be payable
On death after 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged + loyalty additions (if any) would be payable
Maturity Benefit: Maturity sum assured along with loyalty additions (if any) would be payable on maturity of 10 years.
Loyalty additions would be purely based on LIC’s claim experience.
Income tax benefit: Life Insurance premiums paid up to ₹. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C of income tax act and the maturity amounts are tax free under section 10(10) D subject to fulfillment of terms and conditions.
Additional incentives:
Yes, the incentive amounts would be paid if the maturity amount exceeds ₹ 150,000. The incentive is computed on maturity amount. If the maturity sum assured chosen is ₹ 4 lakhs, then the incentive would be 4.5% on ₹ 4 Lakhs = ₹ 18,000. The total maturity amount would be ₹ 418,000 + loyalty additions (if any).
Maturity amount Incentive
150,000 Nil
151,000 to ₹ 399,000 3.5%
₹ 400,000+ 4.5%
Loan Facility:
Loan facility is available in this insurance plan up to 42% of the Surrender Value in the 1st policy year and up to 60% of the Surrender Value from the 2nd policy year onwards as on the date of sanction of loan. Surrender Value for 1st year is 70% of single premium paid and thereafter it is 90% of single premium.
You may also like this article: How to choose best term insurance plan
Premium computations:
Premiums would be computed based on the sum assured + age of the insurer.
Final thoughts, should we buy this LIC Jeevan Sugam policy?
Assuming that a youngster of 30 years has taken this policy for a maturity amount of ₹ 100,000, then the amount of single premium would be ₹ 56,200. If we compute the IRR (Investment rate of return) keeping away the loyalty additions, then it works out to be ₹ 5.92%. Similar way, if we compute for 40 years insured person, for ₹ 100,000 maturity amount the single premium works out to be ₹ 62,935 and IRR comes to 5.28%.
This policy would be best suitable for youngsters who want insurance risk coverage + income tax benefit. If you are already invested in other insurance policies and you have sufficient investments to cover section 80C exemptions, this plan may not benefit you. If you are looking purely from investment perspective, there are better investment options like PPF, NSC etc., which gives higher returns than the returns provided by LIC Jeevan Sugam.
Readers, I invite your valuable suggestions and feedback on this article.
If you enjoyed this article, share the link in Facebook/Twitter. The links are provided below.
Suresh
LIC Jeevan Sugam Insurance Plan
- 10% Muthoot Fincorp NCD – April-2025 – Issue Details and Review - April 29, 2025
- Best Mutual Funds to Invest in 2025 as per Perplexity AI - April 27, 2025
- Ather Energy IPO Review – Should you Invest or Avoid? - April 26, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
I have taken 1 Jeevan sugam plan 813 on 2013, as my age at that time was 23 years. How much I will received after completing of 10 years plan. According to plan I have taken plan
of ₹ 41820. So after completion of plan, how much return I wll get.
Hi,
This is samarendra, i am 34 yr old.
i have already 2 polices, one from LIC ie, 30k per annum and another is from MAX, 30k per annum.
i am looking for another policy, i can invest 40k-50k per annum. but return should be high.
i have gone through few comments, as per your guideline if its insurance policy then return will be less
i want more maturity value, not looking for any insurance
please suggest me which policy will be good.
Looking forward your reply
Regards,
Samar
Hii,
first of all many thanks for this valuable website which I have found accidently. I am 29 yeasrs old & just joined my new job with a salary with pay scale 7640-440(1)-8080-480(2)-9040-540(5)-11740-625(2)-12990-760(3)-15270-790(2)-16850-840(5)-21050. As I am totally new to the government service ( I have worked in private sector earlier having fixed monthly pay ) , I find it difficult to understand the pay scale . Could you please explain it to me ?? Also, based on this pay scale , could you please help me to decide to choose some investmnet plan ? I am 29 years old, planning to married at 31 . My aim is to back up for any type of emergency, childrens education , health ( but me & my family will get health insurance from the employer, ).Could you please help me to decide my future financial planning ?? Thanks in advance .
Rakesh, I am working in private sector and hence this scale, I would not be able to help you in making you understand. Good that you are planning your financial sbefore marriage. If you are looking for marraige expenses, my suggestion is to invest in bank RD every month as it would be for short term of 2 years. For long term, you should invest in mutual funds through SIP (Rs 1,000 per mutual fund scheme). You can choose like ICICI Pru blue chip fund or UTI Opps fund or Reliance equity opps fund etc.
Hi,suresh
i am 25 year old i am looking for some investment for 15-20 years.I am looking for invest 2000.00Rs in mutual fund and 1000.00 Rs in some lic policy .can u guide me to choose the best option available in the market.
Thanks and Regards
Nitin chauhan
Hi Nitin, Invest in largecap or diversified funds like ICICI Pru focussed blue chip fund,BNPP Equity fund, UTI India life style fund or UTI Opps fund or Quantum long term equity fund and Birla SL Gen Next. You can pick any of these funds. Regd LIC, you should be clear whether you want to take for insurance protection or for investment. Consider taking LIC term policy if you are looking for protection. For investment look for Recurring deposit or mutual funds as they would provide more returns in long run
Dear sir,
i am 49years old working ,i would like to invest single premium for 8 to 10 years,please let me know if any good policy.
thank you
Dilip
Dilip, There are several policies like LIC Jeevan Bachat etc., Majority of them gives 4% to 5% annualised returns.
I m 27 yrs old. I have rs10000 monthly for disposal for savings
Curremtly i dont have any insurance policy or any otjer investment products. Please advise where should i put the money for secure futire and good return.
Preeti, If you do not have insurance, make this as your primary objective. Consider taking any term insurance policy like LIC Amulya Jeevan or ICICI Pru Term insurance or HDFC Click 2 protect. It may cost you less than Rs 4,000. Balance you can start investing in diversified mutual funds like Birla Sun Life Frontline or HDFC Top-200 or Franklin India blue chip fund etc.
Invest 1,00,000 in PPF annualy. That is the best investment in all terms. For insurance, take a term plan from LIC.
I echo you Chirag.
I pay Rs. 60000/- for this policy in march 2013, but I didnt get bond (Taliparamba Branch)
Rajeev, please contact your LIC Branch. It should not take so much time
Hi,
i have recetly done a big investment which is buying a house. I have done the half payment of the house and remain will be based on the construction of the house. I am 30 and working in Bangalore. I have not done any other investment. No PPF, PF, FD, withdrow all of Mutual funds for house 🙂
I am planning to invest atlest 1lac now. Do you suggest me to invest in LIC / PPF or Market ? If your answer is to first invest in LIC thn provide me few best options.
Thanks
Suraj, What is the purpose of your investment? LIC is only for insurance. Some people even look for insurance cum investmetn products in LIC. I feel you would get very less returns of < 6%. Why do you want in such products. I would not suggest you to invest lumpsum in stock market. But you can invest systematicaly (SIP) in stock market or in Mutual funds. PPF look only for tax savings. LIC for insurance. For lumpsum you can invest in debt mutual funds where you would get 9% to 11% returns.
Hai
i want 5 years planing for 5 lakhs pls tell the deatails.
Lakshman, it would depend on various parameters. What is your risk appetite. If you are high risk, invest in sector based mutual funds. If you are moderate risk taker, invest in diversified mutual funds or large cap mutual funds. Low risk investors, invest in bank FD or debt mutual funds or balanced mutual funds or Post office MIS scheme.
i have just starter a job and my annual salary is 2.5 p.a..so please guide me where to invest a fix amount per month(around 5000)
Vaibhav, Start investing in debt and balanced mutual funds. Once you are familiar, you can invest in diversified mutual funds and other investment optoins
sir
presently i have 4 policies i am 37years ,married have a 8 year old son. My yearly income is Rs.1300000.
kotkak -smart advantage for 20 years started on2009 sum insured is 1500000.
kotak money back for 20 years started on 2010 sum insured is Rs 200000
Lic bima gold sum insured is 270000 ,will mature on feb 2037
and Lic jivan saral sum insured is Rs 300000 ,will mature on oct. 2045
sir kindly guide me ,do i need to buy more insurance ? hows jivan sugam policy for me? i can invest upto 70000/- as a single premium . should i continue with above policies?
kindly reply
satish datey
Satish, all insurance policies would have positves and drawbacks. Since you have invested in money back policies they provide returns ranging between 5% to 6.5% p.a. Instead of buying more money back policies, check whether you have sufficient insurance and consider taking term insurance policies which comes wit high risk coverage but low insurance premium. Balance you can invest in high return investment options like mutual funds or bank fixed deposits or others
sir,
i want to invest Rs. 10000 p.m indifferent SIPs .pl.guide me which are the best players and for what duration should i invest. Actually i want To sum up amount for my childs future study > he is 8 years old.i have 2 running sips from birla sunlife frontline_growth worth rs.1000 each.
regards
satish
Hi Satish, Invest in diversified mutual funds and balanced mutual funds. Pls see this article. https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/
Suresh
An insurance officer came and told me that one policy of mine LIC Jeevan Shree paid by my dad for around 58 grand is lying idle as he didnt continue paying premiums regurarly…i thanked him for that…he wants me to invest in a new policy and i feel obliged as i had thought that the money was lost till he came on his own….For invst on the 1st of April i invest 1 lakh in PPF and 31K in NPS …so tax beenfits are useless for me…i have no debt also…any lic policy with good returns comparable to FD so i can clear the obligation…on the net i didn't find a single policy comparable
Arjun, I could see the frustration in your mail. I look only from one angle. Insurance policies are meant for risk coverage and not for providing returns on your investment. All insurance policies provide returns of 4% to 6% per annum as their objective is not for providing returns. How one can compare a FD with insurance policy where former objective is only returns and later objective is risk coverage + returns. My suggestion to you Arjun, if you think you want good returns on your yearly investment, consider taking term policy where you need to pay small amount for high risk coverage and invest balance in equity linked saving schemes (ELSS) and public provident fund. This way all your objectives are met.
sir i want invest for my deaughter she is 1.3years please saugest me for hi return when she is after 18 years
Devendra, Invest in large cap and diverisfiied mutual funds. These are good for long term and you would get high returns if you invest for 10-15 years.
sir, my son is 06 month old, i want to invest some amount for his future/education.my income is 30 thousand per month. I m putting 10 thousand in pf.
Please guide me.
Mahendrakumar, Apart from PF, what other investment you have done? Depending upon your risk capacity, you can invest variety of investment options like stocks, mutual funds, bank FD’s. If you are looking for mutual funds, please invest in largecap and diversified mutual funds like ICICI Prufocussed blue chip, UTI Opps fund and Reliance equity oppos funds.
Sir I am working in PSU
I have an PPF account & investment good proportion of my salary in it
i want to invest a money apart from ppf &NSC
suggest me where i should invest in LIC or Infrastructure bonds
Sachin, what is your investment objective ? LIC is not for investment. It is only for security. Infrastructure bonds are only for tax saving options. If you are looking for tax saving options, look for ELSS. If you are looking for investment, why don’t you try investing in mutual funds. They may carry moderate risk, but you would gain more in long term.
Sir,
Thanks for your suggestion, Suggest me in which mutual i should invest
where risk is minimal, also sir, i am not familiar with mutual funds, kindly guide
me. as for me, objective is to save tax & get good return by investing in worthful
sources.
If you want to invest in mutual fund and looking for tax saving, you can invest in ELSS or Rajiv Gandhi equity saving scheme mutual funds. Pls read this article about RGESS schemes and ELSS schemes. https://myinvestmentideas.com/2013/03/rgess-eligible-mutual-funds-nfo-which-are-open-now/ and for ELSS see https://myinvestmentideas.com/2012/09/best-tax-saving-schemes-india-sep-2012/
pls let me know about LIC single premium insurance plan with high returns…
Hi Soman, All insurance policies would give returns ranging between 5% to 6.5%. Don’t look insurance policies as invesmtent options. You should look more from security point of view and see what all would be covered with less costs.
Dear Mr. Suresh
I need to invest 7Lac for my child education who is 8years old.
Please advise
Thanks
Srini
Srini, you should be clear about whether you want to take. Is it insurance or investment for your child. I feel, you shud look for investment. If you are looking to invest for child education, you should invest in largecap and diversified mutual funds for 8 to 10 years. Please see our top-10 mutual funds article.
What should be the minimum amt of premium in jeevan sugam? what is the last date of this policy?
Pradnya, It would depend on premium rates indicated by age. e.g. 30 years age person, the premium rate is indicated as Rs 562.65 for every Rs 1,000 maturity. So if Rs 60,000 is minimum maturity policy to be taken, the premium would be Rs.562.65 x 60 = Rs 33,759. So a 30 year person need to take a minimum maturty policy of Rs 60,000 and pay a premium of Rs 33,759.
nice information…
pls let me know about LIC single premium insurance plan with high returns…
Soman, I am planning to write an article on single premium insuance plans and comparison among them. You would see an article early next week.
Lic’s eterm policy. Do they evaluate Sum Assured by referring my economical value. I’m salaried employee earning 10,000 P.M and planing to buy 1cr eterm plan with premium around 14,600 annually for 30 yrs.