LIC Jeevan Pragati Plan 838 is one of the endowment plans from LIC of India. This is one of the new LIC plans launched in 2016. This is a typical endowment assurance, non-linked, with-profits and savings cum protection plan. That means one can expect a life insurance as well as return on the maturity value.

In this article, I will try to analyse the details about LIC Jeevan Pragati Plan and also share various information of this policy like LIC Jeevan Pragati Plan review, lic jeevan pragati plan chart pdf, lic jeevan pragati premium calculator, lic jeevan pragati premium chart, lic jeevan pragati maturity calculator, lic jeevan pragati premium table and all related sources as well. But before that let me share about the key features of this endowment insurance plan from lic of India.

Key Features of Jeevan Pragati Plan 838 from LIC

You might have find the features almost similar to other endowment plans of LIC itself, with little differences here & there. Let’s have a look at the policy details and what are the benefits you are going to get here.

  • The key highlight of this policy is after completion of every 5 policy year, the sum assured value will increase by certain percentage.
  • LIC policies are always targeted to provide low sum assured values. Here also the min sum assured value is Rs 1.5 lakh and the there is no limit on higher sum assured values. If you want more sum assured then you have increase the sum assured value in the multiples of Rs 10,000 only.
  • The min policy term is 12 years and max policy term is 20 years. That means if you are 25 years old, you can buy this policy till the age of 45 years only.
  • The min entry age is 12 years and max entry age is 45 years old. But make sure that the max age of life assured is up to 65 years only. So seem like couple of limitation of ages in case you want to consider from life insurance policy point of view.
  • Premium payment modes are available as Yearly, half-yearly, quarterly & monthly. You can in fact pay lic policy premium online o offline using various payment method.
  • This is not an online LIC policy, that means you have but this policy with the help of LIC agent only or you can visit nearest LIC office and buy this policy. But there also I think you have go via some agent only.
  • LIC Jeevan Pragati Plan has two additional riders, accidental death benefit and disability benefit rider with the payment of additional premium payment. I will talk about that in the later part of this article.
  • As an LIC Agent you can make good money as the agent commission structure is as follows – policy term 12 to 14 years is 20% in first year and 7.5% in 2nd & 3rd year. The first year agents’ commission would be 25% on a 15 year policy term.
  • In case of unfortunate death ‘Sum Assured on Death’ + Vested Simple Reversionary Bonuses + Final additional bonus, if any, shall be payable to the nominee as death benefit.
  • In case you survive till the policy period, ‘Sum Assured on Maturity’ + Simple Reversionary Bonuses + Final Additional bonus (FAB) if any, shall be payable to the policy holder as survival benefit.
  • The date of commencement of risk under Jeevan Pragati plan will be immediately from the date of issuance of policy.
  • You will get rebate on higher sum assured value.
  • After completion of 3 years of premium payment term, you are eligible to get a loan against your policy. The Maximum Loan Granted as a Percentage of Surrender Value are
    • For in force /Fully Paid-up policies: upto 90%.
    • For paid-up policies: upto 80%.
  • Want to surrender this policy, then you have to wait for 3 years and after that you will be able to surrender the plan and will get Guaranteed Surrender Value and Special Surrender Value of Maturity Paid-up Sum Assured plus Vested Simple Reversionary Bonuses if any as per LIC policy terms.
  • You will also get a 15 days lock-in period under which if you don’t find this policy worthy, you can cancel the policy.
  • The Policies can be Dated back within the Same Financial year. The Rate of Back-dating Interest will be charged by the Corporation from time to time of completion of policy.
  • There is a special suicide clause for this policy. Make sure you have gone through the same.
  • Like all other insurance plans, one can get income tax exemption for the annual premiums paid under Section 80C, 10 (10D) of the Income Tax Act, 1961.

How Much The Sum Assured Value Will Increase?

As per Jeevan Pragati plan benefits, you will get a hike of sum assured value after completion of every 5 years of policy term. Here is an example to understand the same assuming that the policy term is 20 years.

  1. During the first five policy years : 100% of the Basic Sum Assured.
  2. During 6th to 10th policy years : 125% of the Basic Sum Assured.
  3. During 11th to 15th policy years : 150% of the Basic Sum Assured.
  4. During 16th to 20th policy years : 200% of the Basic Sum Assured.

Accidental Death & Disability Benefit Rider Benefits

These additional riders are available to enhance your policy to provide more benefits from accidental death or permanent disability due to accident.

  • Minimum Accident Benefit Sum Assured is Rs 10,000
  • Maximum Accident Benefit Sum Assured is an amount equal to the Basic Sum Assured subject to the maximum of Rs 1 crore. I think you have to pay a serious premium amount to get this cover.
  • Minimum entry age for the rider is 18 years.

What is the Death Benefit under LIC Jeevan Pragati plan?

The amount for “Sum Assured on Death” is calculated based on a comparison among 3 different amounts which are listed below. The higher amount among these 3 will be considered as the death benefit amount for LIC Jeevan Pragati policy.

a) 10 times of annualized premium or yearly premium amount you are paying

b) Absolute amount assured to be paid on death, which is as under which we have already seen in the previous section about this key highlight of Jeevan Pragati policy.

  • During the first five policy years : 100% of the Basic Sum Assured.
  • During 6th to 10th policy years : 125% of the Basic Sum Assured.
  • During 11th to 15th policy years : 150% of the Basic Sum Assured.
  • During 16th to 20th policy years : 200% of the Basic Sum Assured.

High Basic Sum Assured Rebate

Basic Sum Assured  Rebate per Rs. 1000/- BSA
Rs. 1,50,000/- to Rs. 2,90,000/- NIL.
Rs. 3,00,000/- to Rs. 4,90,000/- 1.50% of BSA
Rs. 5,00,000/- to Rs. 9,90,000/- 2.00% of BSA
Rs. 10,00,000/- and Above 2.25% of BSA

Corporate Employee’s Insurance Scheme (CEIS) Rebate

Policy Term CEIS Rebate
8 to 14 years 5%
15 years & above 10%

How Much Return Can Be Expected from LIC Jeevan Pragati Plan?

The major attraction of any LIC policies are their bonus part. Let’s assume that LIC will pay a bonus amount of Rs 42 per Rs 1000 Sum assured on Yearly basis and Rs 400 as Final Additional Bonus (FAB) which depends on the quantum of sum assured and the policy tenure.

Considering these facts, an investment of 1.5 lakh may reach up to 3.4 lakh (assumption) as maturity benefit which is hardly a return of 6%-7% max. And remember that I have not considered inflation here. But you can say that a kind of return from bank FDs or small deposit schemes with a life insurance cover even though it is nothing.

Should I buy LIC Jeevan Pragati Endowment Plan?

Personally I don’t like endowment plans as they are neither a good insurance option and a good investment tool as well. You can use LIC Jeevan Pragati premium calculator from lic of India official website and find out how much premium you need to pay to get the sum assured value + life cover.

If you realize the importance of insurance, then there is no alternative to pure term plan, in fact you can check out the online term plan from LIC, E Term Plan. And if you are looking for a high return on investment, then I think investment options like PPF, bank FDs, small saving deposit schemes are far better. But if you are not at all in a mood to take risk your money and satisfy with this low life coverage then definitely you can stay with LIC policies as they are the market leader of this segment.

So, would you like to buy LIC Jeevan Pragati plan? I would like to know form you about the positives & negative and also a comparison from your understanding to make this discussion useful. Do share your thoughts here by writing a simple comment below.