LIC Saral Jeevan Bima (Plan No 859) – Features, Eligibility, Benefits and Review

LIC Saral Jeevam Bima Policy ReviewLIC Saral Jeevan Bima – Plan No 859 – Review

LIC has launched Saral Jeevan Bima Policy now which is standard term insurance plan. Earlier IRDA has issued guidelines for life insurance companies to come up with simple and standard term life insurance plans. Such term life insurance plans are aimed to provide pure risk coverage without any restrictions on providing documentation while taking the insurance plan. Should you opt for LIC Saral Jeevan Bima Plan No. 859? This article provides LIC Saral Jeevan Bima details, eligibility, benefits, negative factors and who should consider this standard term plan.

Also Read: LIC Bachat Plus gives 6.5% returns – Should you invest?

What is LIC Saral Jeevan Bima (Plan No 859)?

This is simple and standard term life insurance plan product that is designed to provide pure risk coverage to the life insured. Policy holders can choose as low as Rs 5 Lakhs as risk coverage. They need not worry about providing documentation like education checks or provide income proofs to consider this term insurance plan.

LIC has issued circular on 15th April, 2021 about this policy which is launched from 16th April, 2021. Generally LIC keep using words Yojana, however, since the naming convention is decided by IRDA they had to just prefix Saral Jeevan Bima for this plan to LIC name.

They had LIC Jeevan Saral Plan 165 plan which was discontinued in 2014. One should not get confused with the old name. Just go with plan number.

Features and Eligibility of LIC Saral Jeevan Bima – Plan no. 859

This is non-linked, non participating, pure risk term insurance plan. In simple words, this is a term insurance plan.

One can choose a premium payment term of 5 years to 40 year tenure and get adequate life risk coverage.

LIC Saral Jeevan Bima coverage would be up to 70 years of age.

Minimum sum assured is Rs 5 Lakhs. One can take this plan in multiples of Rs 50,000 thereof. Maximum sum assured is Rs 25 Lakhs.

Age of entry is a minimum of 18 years and maximum age of entry is 65 years.

This term insurance plan is simple to understand. It provides life risk coverage without any maturity benefits or survival benefits.

This plan covers all any person without restrictions. There is no need  to provide educational checks, occupation proofs, proof of living or gender.

There is the waiting period of 45 days in this policy.

The Unique Identification Number (UIN) for LlC’s Saral Jeevan Bima plan is 512N341V01.

What is the premium payment term in Saral Jeevan Bima of LIC?

Below are the premium payment options available.

LIC Saral Jeevam Bima - Premium Payment Term Options

Benefits in LIC Saral Jeevan Bima Plan

1) Death Benefit

In case of unfortunate death of the life insured, the nominee would get the death benefit as per the following.

A) Death Happens within 45 days of taking the policy

i) In case the death happens other than an accident, a death benefit equal to 100% of all premiums received by LIC would be paid to the nominee.

ii) In case the death happens due to accident, sum assured on death would be paid to the nominee.

Sum Assured on Death for regular premium and limited premium would be higher of the following

  • 10 times of annualised premiums
  • 105% of all premiums paid as on the date of death
  • Absolute amount assured to be paid on death i.e. 100% of the sum assured

Sum assured on death of single premium would be higher of the following:

  • 125% of single premium paid
  • Absolute sum assured to be paid on death i.e. 100% of basic sum assured

B) Death Happens after 45 days from taking the policy

If the death happens after 45 days either due to an accident or due to non accident, sum assured on death would be paid. Refer to sum assured on death computation indicated in the above paragraph.

2) No proofs required

Insurance companies would generally ask living proof or educational checks to provide term insurance plans. There are no proofs required to take this term plan.

3) Rebate for High Sum Assured

LIC provides rebate / discount on premiums for a high sum assured of more than Rs 9.5 Lakhs. It ranges between 0.1% to 0.25% based on the sum assured. If you choose the respective sum assured, you would get this discount on premium.

LIC Saral Jeevam Bima - High Sum Assured Rebates

4) Rebate for Online purchase of policy

LIC also provides rebates on premium for taking this plan online. Such rebate under online purchasing is between 2% to 7%.

LIC Saral Jeevam Bima - Chart - Rebate in premium for online purchase

5) Tax benefits

Premiums paid in this term plan would qualify for income tax benefits u/s 80c up to Rs 1.5 Lakhs per financial year.

What benefits not available in this policy?

1) Maturity Benefit: Since this is a plain and simple term insurance plan, there is no maturity benefit payable.

2) Survival benefit: Simple term plans would not have survival benefits.

3) Surrender benefit: There is no surrender benefit in this standard term plan.

4) Loans: No loan will be available under this policy.

When does LIC Saral Jeevan Bima Policy would get terminated?

This term policy would automatically terminate in case of any of the below events.

1) The date on which lump sum death benefit is paid or

2) The date on which termination policy cancellation value (if applicable), is settled, in case of surrender of the policy; or

3) The date of maturity or

4) On expiry of revival period, if the policy has not been revived or

5) On payment of free look cancellation amount or

6) In the event of forfeiture

LIC Saral Jeevan Bima Premium Calculator

This section would be updated once we get complete info on LIC Saral Jeevan Bima Premium Chart.

Illustration of this Saral Jeevan Bima

Mr. Afzal, 25 year male, businessman,  buys this standard term plan with the following details.

LIC Saral Jeevam Bima - Illustration - Sum Assured, Policy term and premium payment term

In case of Mr. Afzal dies in an accident within 45 days from taking policy, LIC would total sum assured on death i.e. Rs 25 Lakhs to nominee of the policy.

In case the death happens other than accident within 45 days from policy date, the nominee would get death benefit which is equal to 100% of Total Premiums Paid including underwriting extra premiums and loading for modal premiums (if any).

In case Mr. Fazal death happens after 45 days either through accident or other than an accident, the nominee would get sum assured of Rs 25 Lakhs.

LIC Saral Jeevam Bima - Illustration

Negative Factors in LIC Saral Jeevan Bima Policy

1) This is a simple term insurance plan without any riders.

2) If death happens within 45 days of taking policy and it is other than an accident, the nominee would get only total premiums paid excluding any taxes paid earlier.

3) This term policy coverage up to 70 years only. If an individual wants to get risk cover beyond this age, they cannot get it.

4) There is a modal loading (increase in premium) for regular and limited premium payment. If the policy holder chooses monthly or half yearly premiums, then need to pay 3% and 2% higher premium respectively.

Also Read: How good is LIC Bima Jyoti Plan No 860?

Who can take LIC Saral Jeevan Bima Policy?

Such term plans would benefit the following:

1) Individuals who are in low income group and not yet taken term insurance plan citing high premiums.

2) The plan is suitable for those who had challenges in providing documentations like income proof, educational checks etc.

3) Individuals who started earning money now and want to take < 25 Lakhs term insurance plan and later want to add higher sum assured as your income grows in the future.

One can check if they can avail high sum assured (if possible) and purchase the policy online and get rebates on term plan premiums.

Note: LIC Jeevan Amar is an offline policy where one can get similar sum assured < 25 Lakhs, however this is available only offline. Since standard term plan is launched by LIC, they might discontinue Jeevan Amar.

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Suresh KP


  1. is Saral Jeevan Bima Policy available in other insurance companies ? i have raised a quote( 25lac) for this product in policy bazzar it shows pnb metlife has lower premium, can we choose pnb metlife(lic premium are way to high). but they are asking for income proof (itr)? is that mandatotry to show income proof. i dont have one bcoz i am self employed and engaged in seasonal business. do help in this regards thanks

    1. Karthik, PNB Metlife is offering Saral Jeevan Bima. The idea of such policies is they should not ask for any proofs. If they are asking means, you can complain to IRDA online on their website.

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