| Child’s Age at Entry | |
|---|---|
| Policy Term | |
| Premium Paying Term | |
| Premium Mode | |
| Basic Sum Assured |
| At Age 18 — 20% | |
|---|---|
| At Age 20 — 20% | |
| At Age 22 — 30% | |
| At Age 24 — 30% |
| Rate | ₹75 per ₹1,000 Sum Assured per completed year |
|---|---|
| Total GA | |
| Final Maturity |
| Before risk commencement | Premiums paid refunded, excluding Premium Waiver Benefit premium |
|---|---|
| After risk commencement | Full Sum Assured + Guaranteed Additions + Loyalty Addition, if any |
LIC Komal Jeevan Plan 159 was a children's money-back insurance plan created to help parents and grandparents build financial support for a child's future through systematic savings and scheduled payouts. The plan was available for children between 0 and 10 years of age and offered both regular and single-premium payment options.
Launch and Withdrawal Dates
- Launch Date: LIC introduced Komal Jeevan Plan 159 in November 2003, around Children's Day.
- Withdrawal Date: LIC discontinued the plan on January 1, 2014, after which new policies could no longer be purchased.
Who Should Consider LIC Komal Jeevan?
LIC Komal Jeevan Plan 159 was intended mainly for parents and grandparents who wanted to create a structured financial fund for a child's education and other important future expenses.
The plan was suitable for those looking for:
- Money-back payments at important stages of the child's life.
- Insurance protection for the child.
- Disciplined and tax-efficient savings.
Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Child's Age at Entry | 0 years (around 3 months) | 10 years |
| Child's Age at Maturity | — | 26 years |
| Policy Term | 18 years – child's age at entry | Up to 26 years |
| Premium-Paying Term | 8 years | 18 years |
| Sum Assured | ₹1,00,000 | ₹25,00,000 |
Key Features of LIC Komal Jeevan Plan 159
Money-Back Benefits
The plan provided survival benefits at specific ages of the child. Payments were linked to the Sum Assured and were scheduled at ages 18, 20, 22, and 24.
| Child's Age | Survival Benefit |
|---|---|
| 18 years | 20% of Sum Assured |
| 20 years | 20% of Sum Assured |
| 22 years | 30% of Sum Assured |
| 24 years | 30% of Sum Assured |
Maturity Benefit
When the policy reached maturity at age 26, the applicable Guaranteed Additions and Loyalty Additions, if any, were payable as a lump sum.
Risk Cover
Insurance protection began either two years after the policy commencement or on the policy anniversary following the child's seventh birthday, whichever was later.
If the child died before risk coverage began, the premiums paid were refunded, excluding premiums relating to optional benefits.
Premium Waiver Benefit
The proposer could choose the optional Premium Waiver Benefit. If the parent/proposer died before the child reached 18, future premiums would be waived under this option so that the policy could continue.
Loan Facility
A loan facility was available after completion of one year of the policy, providing an additional source of funds during emergencies.
Surrender Facility
The policy could be surrendered after three years, with the applicable guaranteed surrender value determined according to the premium payment structure.
Premium Payment Modes
Premiums could be paid through several available modes:
- Yearly
- Half-yearly
- Quarterly
- Monthly
- Single premium
Salary deduction was also available for eligible salaried policyholders.
Guaranteed Additions and Loyalty Bonus
The plan provided Guaranteed Additions of ₹75 per ₹1,000 of Sum Assured for every completed policy year.
In addition, a Loyalty Bonus could be payable at maturity or on death, depending on LIC's profit experience. Unlike Guaranteed Additions, the Loyalty Bonus was not guaranteed.
Death and Survival Benefits
Death Before Risk Commencement
If the child died before the risk cover became effective:
- The policy was cancelled.
- Premiums already paid were refunded, excluding the Premium Waiver Benefit premium.
Death After Risk Commencement
After risk coverage began, the nominee would receive:
- Basic Sum Assured
- Accumulated Guaranteed Additions
- Loyalty Bonus, if declared
These benefits remained payable even when survival benefits had already been received.
How Does LIC Komal Jeevan Plan 159 Work?
Consider a policy with a ₹1,00,000 Sum Assured purchased for a newborn child.
The scheduled survival payouts would be:
- Age 18: ₹20,000
- Age 20: ₹20,000
- Age 22: ₹30,000
- Age 24: ₹30,000
- Age 26: Remaining Guaranteed Additions and Loyalty Addition
This structure was intended to provide financial support when major education and other expenses could arise.
LIC Komal Jeevan Plan 159 Calculator
The LIC Komal Jeevan Plan 159 Calculator helps users estimate important policy figures, including:
- Premium based on the Sum Assured, child's age, and selected options.
- Survival benefits payable at scheduled milestones.
- Maturity amount including Guaranteed Additions and Loyalty Additions.
- Surrender value if the policy is discontinued before maturity.
LIC Komal Jeevan Calculator – Examples
Single Premium Example
Consider the following illustration:
- Entry Age: 0 years
- Sum Assured: ₹1,00,000
- Single Premium: ₹73,980
- Policy Term: 26 years
The scheduled survival benefits would be:
| Age | Amount |
|---|---|
| 18 | ₹20,000 |
| 20 | ₹20,000 |
| 22 | ₹30,000 |
| 24 | ₹30,000 |
| 26 | Guaranteed Additions + Loyalty Bonus |
Annual Premium Example
Another illustration is:
- Entry Age: 0 years
- Sum Assured: ₹1,00,000
- Annual Premium: ₹7,281
- Premium-Paying Term: 18 years
The total premiums and projected benefits can then be evaluated according to the applicable policy terms.
Surrender and Paid-Up Values
The plan included specific surrender provisions:
- Surrender was allowed after three years.
- Before risk commencement, the surrender value was 90% of premiums paid, excluding the first year's premium and extra premiums.
- After risk commencement, the value was 90% of pre-risk premiums plus 30% of post-risk premiums, excluding the first year's and extra premiums.
- The Special Surrender Value could be higher than the Guaranteed Surrender Value, depending on the applicable LIC provisions.
Tax Benefits
Premiums paid under the plan could qualify for deductions under Section 80C of the Income Tax Act. Survival, maturity, and death benefits could also qualify for tax exemption under Section 10(10D), subject to the applicable tax rules.
Important Points to Remember
- No medical examination was required up to age 9 for a Sum Assured of up to ₹25 lakh.
- The policy vested in the child after attaining adulthood.
- The Premium Waiver Benefit helped protect the child's policy continuation if the parent died.
How to Use the LIC Komal Jeevan Calculator
To calculate the expected benefits:
- Enter the Sum Assured, child's entry age, and preferred premium payment mode.
- Select optional benefits such as the Premium Waiver Benefit.
- Calculate the expected total premiums, survival benefits, maturity amount, and surrender value.
- Compare projections using different assumed interest rates, such as 6% and 10%, where applicable under IRDA guidelines.
Advantages and Disadvantages
Advantages
- Scheduled payouts at important stages of the child's life.
- Life insurance protection for the child.
- Potential tax benefits for the proposer.
- Loan facility for financial emergencies.
Disadvantages
- The plan has been withdrawn since January 2014 and is available only to existing policyholders.
- Loyalty Bonuses are not guaranteed and depend on LIC's applicable experience.
- Closing the policy early may result in a surrender value lower than the total premiums paid.
Frequently Asked Questions
What is LIC Komal Jeevan Plan 159?
It was a children's money-back insurance plan from LIC that provided scheduled payouts to support the child's future financial requirements.
Who could purchase this plan?
Parents or grandparents could purchase the plan for children between 0 and 10 years of age while the product was available.
Is LIC Komal Jeevan Plan 159 still available?
No. LIC withdrew the plan on January 1, 2014. Existing policyholders can continue receiving benefits according to their policy terms.
What are the main benefits?
The plan provided money-back payments at ages 18, 20, 22, and 24, a maturity benefit at age 26, risk protection, and an optional Premium Waiver Benefit.
When are the survival benefits paid?
The survival benefits were scheduled when the child reached 18, 20, 22, and 24 years, with the percentage determined by the plan's benefit structure.
What happens if the proposer dies before the child turns 18?
If the Premium Waiver Benefit had been selected, the future premiums would be waived, allowing the policy to continue according to its terms.
Conclusion
LIC Komal Jeevan Plan 159 was designed to combine children's insurance protection with structured savings and scheduled money-back payments. Its benefits included milestone-based payouts, Guaranteed Additions, a possible Loyalty Bonus, loan availability, and optional premium waiver protection.
Although LIC withdrew the plan from new sales in 2014, existing policyholders can still use suitable calculators to understand their policy's potential values and benefits at different stages.
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