LIC Bhagya Lakshmi Plan 839 Calculator
LIC Bhagya Lakshmi Plan 839
LIC Bhagya Lakshmi Plan 839 was a micro-insurance policy introduced by the Life Insurance Corporation of India (LIC) to provide affordable life insurance protection along with a guaranteed maturity benefit. The plan was specifically designed for individuals from low-income and economically weaker sections who required basic financial security at a modest premium.
The policy combined life cover with a savings element, helping policyholders secure their families while also receiving a guaranteed benefit on policy maturity.
What Was LIC Bhagya Lakshmi Plan 839?
LIC Bhagya Lakshmi Plan 839 was a non-linked, non-participating micro-insurance plan with a limited premium payment structure. One of its notable features was the payment of 110% of total premiums paid at maturity, provided all policy conditions were met.
The plan aimed to make life insurance accessible to a wider population by offering low Sum Assured options and flexible premium payment modes.
Launch and Withdrawal Dates
- Launch Date: 29 December 2014
- Withdrawal Date: 1 February 2020
Although the plan is no longer available for new purchases, existing policyholders continue to receive benefits according to the policy terms.
Key Features of LIC Bhagya Lakshmi Plan 839
| Feature | Details |
|---|---|
| Plan Type | Micro Insurance, Non-Linked, Non-Participating |
| Premium Payment Term | 5 to 13 Years |
| Policy Term | Premium Payment Term + 2 Years |
| Entry Age | 18 to 55 Years |
| Maximum Maturity Age | 65 Years |
| Sum Assured | ₹20,000 to ₹50,000 |
| Premium Modes | Monthly, Quarterly, Half-Yearly, Yearly, Salary Deduction |
Premium Rate Chart (Approximate)
| Age (Years) | 7-Year Policy / 5-Year PPT | 10-Year Policy / 8-Year PPT | 15-Year Policy / 13-Year PPT |
|---|---|---|---|
| 20 | ₹127.45 | ₹64.35 | ₹37.20 |
| 30 | ₹129.30 | ₹65.80 | ₹38.55 |
| 40 | ₹138.30 | ₹72.80 | ₹44.25 |
| 50 | ₹164.10 | ₹91.40 | ₹57.15 |
Premium rates are indicative and may vary according to age and policy specifications. Actual premiums are determined by LIC’s official premium tables.
Maturity Benefit
If the life assured survived until the end of the policy term and all due premiums were paid, LIC paid:
110% of Total Premiums Paid
Taxes, extra premiums, and rider premiums (if any) were excluded from this calculation.
Death Benefit
In the event of the policyholder’s death during the policy term while the policy remained in force, the nominee received the higher of:
- 7 times the Annualized Premium, or
- 105% of the Total Premiums Paid up to the date of death
The benefit was payable according to the terms and conditions specified under the policy.
This structure ensured that the family of the insured received financial support even with a relatively small premium commitment.
Eligibility Criteria of LIC Bhagya Lakshmi Plan 839
| Eligibility Parameter | Details |
|---|---|
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 55 Years |
| Minimum Policy Term | 7 Years |
| Maximum Policy Term | 15 Years |
| Premium Payment Term | 5 to 13 Years |
| Minimum Sum Assured | ₹20,000 |
| Maximum Sum Assured | ₹50,000 |
| Maximum Maturity Age | 65 Years |
The plan was structured to provide affordable life insurance protection and savings benefits to individuals from lower-income groups while maintaining simple eligibility requirements.
Premium Payment Options
Policyholders could choose from multiple premium payment modes according to their convenience:
- Yearly
- Half-Yearly
- Quarterly
- Monthly
- Salary Deduction Mode
Premium Rebates
The following rebates were available on tabular premiums:
- Yearly Mode: 2% rebate
- Half-Yearly Mode: 1% rebate
Minimum Installment Premium
The minimum premium installment under the plan was ₹500.
Grace Period
A grace period of 60 days was available for all premium payment modes, allowing policyholders additional time to pay due premiums without immediate policy lapse.
LIC Bhagya Lakshmi Plan 839 Calculator
How the Calculator Works
The LIC Bhagya Lakshmi Plan 839 Calculator was designed to help users estimate policy benefits and premium obligations quickly.
The calculator typically required the following information:
- Age at entry
- Policy term
- Sum Assured (₹20,000 to ₹50,000)
- Premium Payment Term
Based on these inputs, it generated estimates for:
- Premium payable
- Total premium outgo
- Maturity benefit
- Death benefit
Using a calculator helped policyholders compare policy options and understand expected returns before purchasing the plan.
Indicative Premium Rates (Per ₹1,000 Sum Assured)
| Age (Years) | 7-Year Policy / 5-Year PPT | 10-Year Policy / 8-Year PPT | 15-Year Policy / 13-Year PPT |
|---|---|---|---|
| 20 | ₹127.45 | ₹64.35 | ₹37.20 |
| 30 | ₹129.30 | ₹65.80 | ₹38.55 |
| 40 | ₹138.30 | ₹72.80 | ₹44.25 |
| 50 | — | ₹91.40 | ₹57.15 |
Premium rates are indicative and may vary depending on policy specifications and LIC’s prevailing premium tables.
Plan Benefits
Maturity Benefit
If the policyholder survived until maturity and all premiums were paid, LIC paid:
110% of Total Premiums Paid
Taxes, rider premiums, and extra premiums were excluded from the calculation.
Death Benefit
In the event of death during the policy term while the policy remained in force, the nominee received the higher of:
- 7 times the Annualized Premium, or
- 105% of Total Premiums Paid
The final claim amount was payable according to the policy conditions applicable at the time of death.
Illustration
Consider the following example:
- Age at Entry: 30 Years
- Sum Assured: ₹30,000
- Policy Term: 10 Years
- Premium Payment Term: 8 Years
Estimated Premium
Annual Premium Rate = ₹65.80 per ₹1,000 Sum Assured
Annual Premium = ₹65.80 × 30 = ₹1,974
Total Premium Paid
₹1,974 × 8 = ₹15,792
Estimated Maturity Benefit
110% × ₹15,792 = ₹17,371
This example demonstrates how the policy offered both insurance protection and a guaranteed maturity payout.
Additional Features
Surrender Benefit
The policy could be surrendered after payment of at least one full year’s premium.
The surrender value payable was generally the higher of:
- Guaranteed Surrender Value, or
- Special Surrender Value
subject to LIC’s applicable rules.
Revival Facility
If the policy lapsed due to non-payment of premiums, it could be revived within five years from the date of the first unpaid premium and before maturity, subject to applicable conditions.
Paid-Up Benefit
After payment of at least one full year’s premium, the policy acquired a paid-up value. If further premiums were discontinued, reduced benefits remained available under the paid-up policy provisions.
Free-Look Period
Policyholders received a 15-day free-look period from the date of receipt of the policy document to review the terms and conditions. If dissatisfied, the policy could be returned within this period subject to applicable deductions.
Tax Benefits
- Premiums paid qualified for tax deductions under Section 80C of the Income Tax Act, subject to prevailing limits.
- Maturity and death benefits were eligible for tax benefits under Section 10(10D), subject to applicable tax laws.
Why Consider LIC Bhagya Lakshmi Plan 839?
Advantages
- Affordable premiums designed for lower-income individuals
- Guaranteed maturity benefit of 110% of total premiums paid
- Low Sum Assured requirement makes the policy accessible
- Multiple premium payment options available
- Provides life insurance protection along with savings benefits
Limitations
- Maximum Sum Assured restricted to ₹50,000
- No loan facility available under the policy
- Withdrawn from new sales on 1 February 2020
Despite its discontinuation, LIC Bhagya Lakshmi Plan 839 remains a notable example of a micro-insurance product that successfully combined affordability, life cover, and guaranteed maturity benefits for financially underserved segments of society.
Frequently Asked Questions (FAQs)
What is LIC Bhagya Lakshmi Plan 839?
LIC Bhagya Lakshmi Plan 839 was a micro-insurance life insurance policy designed to provide affordable financial protection and guaranteed maturity benefits for individuals belonging to lower-income segments.
Who could purchase LIC Bhagya Lakshmi Plan 839?
Individuals aged between 18 and 55 years were eligible to buy the policy, subject to the plan’s terms and conditions. Policy terms ranged from 7 years to 15 years.
What maturity benefit was available under the plan?
If the policyholder survived until maturity and all premiums were paid as required, LIC paid 110% of the total premiums paid, excluding taxes, extra premiums, and rider premiums.
How was the death benefit determined?
In the event of the policyholder’s death during the policy term, the nominee received the higher of:
- 7 times the Annualized Premium, or
- 105% of the Total Premiums Paid up to the date of death
subject to policy conditions.
What were the minimum and maximum Sum Assured limits?
- Minimum Sum Assured: ₹20,000
- Maximum Sum Assured: ₹50,000
Summary
LIC Bhagya Lakshmi Plan 839 was developed to make life insurance accessible to economically weaker sections by offering affordable premiums, guaranteed maturity benefits, and basic life cover. Its straightforward structure, flexible payment options, and low entry requirements made it a practical insurance solution for many families.
Although the plan was discontinued for new sales on 1 February 2020, existing policyholders continue to receive all contractual benefits. The plan remains a noteworthy example of LIC’s efforts to promote financial protection and insurance awareness among underserved segments of society through micro-insurance initiatives.
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