LIC New Jeevan Mangal Plan 840 Calculator
LIC’s New Jeevan Mangal Plan 840
LIC’s New Jeevan Mangal Plan 840 was a micro-insurance term assurance policy introduced by the Life Insurance Corporation of India (LIC) to provide affordable life insurance protection for individuals from lower-income groups. The plan combined life cover with a return-of-premium feature, allowing policyholders to receive back the premiums paid if they survived the policy term.
Its simple structure, low premium requirements, and built-in accidental death protection made it a popular option for individuals seeking basic insurance coverage without a significant financial burden.
What Was LIC New Jeevan Mangal Plan 840?
LIC New Jeevan Mangal Plan 840 was a non-linked, non-participating micro-insurance policy designed to offer life protection along with maturity benefits. Unlike traditional term plans that do not provide any survival benefit, this plan returned the total premiums paid during the policy term upon successful completion of the policy.
The plan also included an in-built Accidental Death Benefit at no additional cost, providing enhanced protection for policyholders.
Launch and Withdrawal Dates
- Launch Date: 9 January 2014
- Withdrawal Date: 1 April 2016
Although withdrawn from new sales, existing policyholders continue to receive benefits according to their policy terms.
Key Features of LIC New Jeevan Mangal Plan 840
| Feature | Details |
|---|---|
| Plan Type | Micro Insurance / Term Assurance |
| Entry Age | 18 to 55 Years |
| Maximum Maturity Age | 65 Years |
| Policy Term (Regular Premium) | 10 to 15 Years |
| Policy Term (Single Premium) | 5 to 10 Years |
| Sum Assured | ₹50,000 to ₹2,00,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly, Weekly, Single Premium |
| Free Look Period | 15 Days |
| Loan Facility | Not Available |
| Accidental Death Benefit | Included Automatically |
Important Notes
- Maturity Benefit equals the total premiums paid during the policy term.
- Death Benefit is the higher of the Basic Sum Assured or Total Premiums Paid.
- Accidental Death Benefit provides an additional Sum Assured in case of accidental death.
- The accidental benefit rider is built into the plan at no extra cost.
- No loan facility is available under the policy.
- Minimum premium installment starts from ₹500.
- Premium rates are based on LIC’s official premium structure.
Maturity Benefit
If the policyholder survives until the end of the policy term and all due premiums have been paid, LIC refunds:
100% of Total Premiums Paid
Taxes, extra premiums, and rider charges, if any, are excluded from the calculation according to policy provisions.
Death Benefit
In case of death during the policy term while the policy remains in force, the nominee receives the higher of:
- Basic Sum Assured, or
- Total Premiums Paid up to the date of death
This ensures that the family receives meaningful financial support even if the policyholder passes away early during the policy tenure.
Accidental Death Benefit
One of the distinctive features of LIC New Jeevan Mangal Plan 840 was its built-in Accidental Death Benefit.
If death occurred due to an accident during the policy term, the nominee received:
Basic Death Benefit + Additional Sum Assured
This effectively doubled the insurance protection available under the plan without requiring payment of any additional premium.
The built-in accidental cover made the plan particularly valuable for individuals working in occupations with higher accident exposure.
Why LIC New Jeevan Mangal Plan 840 Was Popular
- Affordable insurance protection for low-income families
- Return of premiums on survival
- Built-in accidental death cover at no extra cost
- Flexible premium payment options
- Simple eligibility requirements
- Easy access through LIC’s micro-insurance network
The plan served as an effective financial protection tool for individuals seeking basic life insurance coverage along with guaranteed return of premiums, helping expand insurance accessibility among economically weaker sections of society.
Eligibility Criteria
Eligibility Criteria of LIC New Jeevan Mangal Plan 840
| Criteria | Details |
|---|---|
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 55 to 60 Years (depending on the option selected) |
| Minimum Sum Assured | ₹50,000 |
| Maximum Sum Assured | ₹2,00,000 |
| Policy Term | 10–15 Years (Regular Premium) and 5–10 Years (Single Premium) |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly, Weekly, and Single Premium |
How Did LIC New Jeevan Mangal Plan 840 Work?
Under this plan, the policyholder selected the desired Sum Assured and policy duration and paid premiums either through regular installments or a single premium option. If the policyholder survived until the end of the policy term, LIC refunded the total premiums paid during the policy tenure. In the event of death during the policy term, the nominee received the applicable death benefit as per policy conditions.
- Accidental Death: The nominee received the Basic Sum Assured along with an additional amount equal to the Sum Assured, effectively providing double coverage.
- Non-Accidental Death: The nominee received the applicable death benefit based on the policy terms.
Benefits of LIC New Jeevan Mangal Plan 840
Maturity Benefit
If the life assured survived the entire policy term, LIC paid back the total premiums paid during the policy period, excluding taxes, extra premiums, and other applicable charges.
Death Benefit
Death Due to Causes Other Than Accident
In the event of the policyholder’s death during the policy term, the nominee received the higher of:
- Basic Sum Assured, or
- 10 Times the Annualized Premium
subject to the policy remaining in force.
Death Due to Accident
If death occurred as a result of an accident, the nominee received:
- Basic Death Benefit, plus
- Additional Accidental Death Benefit equal to the Sum Assured
resulting in enhanced financial protection for the family.
Built-In Accidental Death Benefit
The plan automatically included an Accidental Death Benefit without charging any additional premium. This feature increased the overall protection available to policyholders and their dependents.
Tax Benefits
The policy offered tax advantages as per prevailing income tax regulations:
- Premiums paid qualified for deduction under Section 80C of the Income Tax Act, 1961.
- Eligible maturity and death benefits qualified for exemption under Section 10(10D), subject to applicable tax provisions.
Surrender and Revival Benefits
Surrender Facility
The policy could acquire surrender value after the payment of at least one full year’s premium, subject to LIC’s surrender value rules.
Revival Facility
If the policy lapsed because of unpaid premiums, it could be revived within two years from the date of the first unpaid premium, subject to LIC’s revival conditions.
Loan Facility
LIC New Jeevan Mangal Plan 840 did not provide any loan facility. Policyholders could not borrow against the policy during its tenure.
LIC New Jeevan Mangal Plan 840 Calculator
How to Calculate Premium Using the LIC New Jeevan Mangal Calculator
The LIC New Jeevan Mangal Plan 840 Calculator helps estimate the premium payable based on factors such as age, Sum Assured, policy term, and premium payment option. By entering these details, policyholders can quickly determine the premium amount required and understand the benefits available under the plan.
Details Required for Calculation
To use the calculator, enter:
- Age of the life assured
- Sum Assured amount
- Policy term selected
- Premium payment option (Regular Premium or Single Premium)
- Preferred premium payment frequency
After submitting the details, the calculator displays the estimated premium payable for the chosen coverage.
Sample Premium Rate Chart
Annual Premium Rate per ₹1,000 Sum Assured
| Age (Years) | 10-Year Policy Term | 15-Year Policy Term |
|---|---|---|
| 20 | ₹58.85 | ₹36.85 |
| 30 | ₹60.15 | ₹38.15 |
| 40 | ₹66.45 | ₹43.60 |
| 50 | ₹83.60 | ₹56.15 |
Single Premium Rate per ₹1,000 Sum Assured
| Age (Years) | 10-Year Policy Term | 15-Year Policy Term |
|---|---|---|
| 20 | ₹175.30 | ₹138.65 |
| 30 | ₹179.25 | ₹144.40 |
| 40 | ₹199.85 | ₹172.00 |
| 50 | ₹269.45 | ₹247.40 |
The above rates are indicative and represent premium amounts per ₹1,000 of Sum Assured.
Example Premium Calculation
Assume the following details:
- Age: 35 Years
- Policy Term: 10 Years
- Sum Assured: ₹1,00,000
- Premium Option: Regular Annual Premium
For a person aged 35 years, the approximate premium rate for a 10-year policy term is around ₹60 per ₹1,000 Sum Assured.
Premium Calculation
Annual Premium = ₹60 × 100
Annual Premium ≈ ₹6,000 (excluding applicable taxes)
Survival Benefit
If the policyholder survives the entire 10-year policy term, LIC returns the total premiums paid during the policy period as the maturity benefit.
Estimated Maturity Benefit = ₹60,000
Accidental Death Benefit Illustration
If the life assured dies due to an accident during the policy term:
- Basic Sum Assured = ₹1,00,000
- Additional Accidental Death Benefit = ₹1,00,000
Total Benefit Payable to Nominee = ₹2,00,000
This example demonstrates how the plan provides both affordable life insurance protection and a return of premiums on successful completion of the policy term.
Advantages and Disadvantages
| Advantages | Limitations |
|---|---|
| Very affordable premiums | No policy loan available |
| Return of full premiums on survival | Limited maximum sum assured |
| Accidental death cover at no extra cost | The plan is now withdrawn and not available |
| Simple documentation, quick issue | No survival benefit apart from refund |
| Multiple premium payment options | Limited flexibility or riders compared to newer plans |
Important Points Before You Buy
- Policy No Longer Available: This plan was withdrawn by LIC on April 1, 2016. Existing policyholders can continue, but new policies are not issued now.
- Review Policy Documents: Always read your policy documents for terms, exclusions, and conditions.
- Right to Cancel: A free-look period of 15 days allows you to cancel after buying if dissatisfied.
Frequently Asked Questions
What is LIC New Jeevan Mangal Plan 840?
It’s a micro-insurance term plan that combines low-cost life cover with a return-of-premium feature, aimed to provide financial protection for low-income groups.
What is the minimum and maximum entry age?
The minimum entry age is 18 years, and the maximum is 55 or 60 years, depending on the source and plan specifics.
What is the minimum and maximum sum assured?
The minimum sum assured is ₹10,000 or ₹50,000, while the maximum is ₹200,000.
What are the premium payment modes available?
Premiums can be paid yearly, half-yearly, quarterly, monthly, fortnightly, weekly, or as a single lump sum in a single premium.
What benefits are provided by the plan?
On the policyholder’s death during the term, the nominee gets the sum assured. In the event of an accidental death, the nominee will receive double the sum assured. On surviving the policy term, the total premiums paid are refunded as a maturity benefit.
Conclusion
LIC New Jeevan Mangal Plan 840 was an innovative micro-insurance product with a return of premium benefit, allowing low-income individuals to provide financial protection to their families at an affordable cost. The in-built accidental death benefit, variety of payment modes, and maturity returns made it unique. Although the plan is now withdrawn, it remains an example of LIC’s focus on inclusion and financial security for all sections of society.
Note: All images and videos used on this website are sourced from Google or YouTube. If you have any issues regarding any image or video, please contact us via email through our official website.
If you find any problem with this post or wish to request its removal, please contact us through:
https://licpolicycalculator.in/contact-us
