LIC New Jeevan Sathi Plan 888 Calculator
Calculate single premium, maturity benefit, and joint life protection cover for LIC's New Jeevan Sathi Single Premium Plan (Plan 888).
The LIC New Jeevan Sathi Plan 888 Calculator calculates estimated single premium, guaranteed additions (₹70/₹1,000 BSA), joint life death benefits, and surrender values for Plan 888. It supports Option I (1.25x death cover) and Option II (10x death cover) for married couples.
Enter Policy Parameters
Calculate Joint Maturity & Cover
Enter ages, Sum Assured, and select Option I or Option II to calculate your guaranteed maturity payout and death benefit schedule.
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How to Use the Calculator
Set Husband & Wife Ages
Adjust the entry age sliders for both proposer and spouse. Minimum entry age is 18 years.
Select Protection Option
Choose Option I for standard cover (1.25x premium) or Option II for high tax-free cover (10x premium).
Adjust Sum Assured & Term
Select policy term (up to 25 yrs) and your target Basic Sum Assured starting from ₹3,00,000.
Toggle Rebate Options
Check options if buying online (2% discount) or if you are an existing LIC policyholder for extra rebates.
Get Detailed Results
Click "Calculate" to view maturity payouts, year-by-year cash value tables, and asset growth charts.
Section A: Plan Overview & Policy Type
The LIC New Jeevan Sathi Single Premium Plan (Plan 888) is a non-participating, non-linked, life, individual, savings, and joint life endowment plan designed specifically for married couples. Being a non-linked product means that the plan's performance is not tied to or dependent on the share market, offering stability against market fluctuations.
As a non-participating plan, it does not rely on the Life Insurance Corporation of India's (LIC) declared discretionary bonuses or share in the corporation's surplus profits. Instead, the benefits payable on death or survival are guaranteed and fixed at the inception of the policy. The defining feature of this plan is its joint life coverage combined with a single premium payment; a married individual and their spouse are both covered under one single policy for the entire term by paying the premium only once.
Section B: Eligibility Conditions & Criteria
| Parameters | Option I | Option II |
|---|---|---|
| Minimum Entry Age (Both Lives) | 18 Years (Nearer Birthday) | 18 Years (Nearer Birthday) |
| Maximum Entry Age (Both Lives) | 60 Years (Nearer Birthday) | 35 Years (Nearer Birthday) |
| Available Policy Terms | 10, 15, 20, or 25 Years | 10 or 15 Years |
| Premium Payment Mode | Single Premium (One-time payment) | Single Premium (One-time payment) |
| Minimum Maturity Age (Both Lives) | 28 Years (Completed) | 28 Years (Completed) |
| Maximum Maturity Age (Both Lives) | 75 Years (Nearer Birthday) | 50 Years (Nearer Birthday) |
| Minimum Basic Sum Assured | ₹3,00,000 (Multiples of ₹25,000) | ₹3,00,000 (Multiples of ₹25,000) |
| Maximum Basic Sum Assured | No Limit (Subject to underwriting) | No Limit (Subject to underwriting) |
Section C: Death Benefit Options
1.25x Single Premium Cover
Under Option I, the Sum Assured on Death is defined as the higher of: • 1.25 × Tabular Single Premium • Basic Sum Assured (BSA) This option is designed for older couples (up to age 60) and offers policy terms of 10, 15, 20, and 25 years.
10x Single Premium Cover
Under Option II, the Sum Assured on Death is defined as: • 10 × Tabular Single Premium This option is restricted to younger couples (up to age 35) and provides policy terms of 10 and 15 years. It offers high tax-free security.
Death Claim Settlement Rules:
- First Death (of either spouse): Pays the Sum Assured on Death immediately in a lump sum. The policy continues to cover the surviving spouse, and all future Guaranteed Additions continue to accrue.
- Second Death (during policy term): Pays the Sum Assured on Death PLUS the accrued Guaranteed Additions accumulated till the year of death. The policy terminates.
- Simultaneous Death: Pays double the Sum Assured on Death (one for each life) PLUS the accrued Guaranteed Additions. The policy terminates.
Section D: Guaranteed Additions
The plan features a contractually guaranteed savings increment. A rate of ₹70 per ₹1,000 of Basic Sum Assured is added to the policy at the end of each policy year.
Guaranteed Addition Rate
Fixed rate of return added to the maturity corpus annually.
Note: If the second death occurs during a policy year, the full year's Guaranteed Addition is accrued for that year, and paid out with the claim benefits.
Section E: Worked Calculation Examples
Option I Worked Example Joint Age 35
- Basic Sum Assured: ₹10,00,000
- Policy Term: 20 Years
- Tabular Single Premium: ₹8,12,750
- Sum Assured on Death: ₹10,52,188 (document figure)
- Guaranteed Addition per Year: ₹70,000
- Maturity Benefit Milestone:
- • Year 20 Maturity Payout: ₹10L (BSA) + ₹14L (Total GA) = ₹24,00,000
- Second Death Scenarios:
- • Death at Year 1: ₹10,52,188 + ₹70,000 = ₹11,22,188
- • Death at Year 10: ₹10,52,188 + ₹7,00,000 = ₹17,52,188
Option II Worked Example Joint Age 35
- Basic Sum Assured: ₹10,00,000
- Policy Term: 15 Years
- Tabular Single Premium: ₹17,62,250
- Sum Assured on Death: ₹1,78,82,500 (document figure)
- Guaranteed Addition per Year: ₹70,000
- Maturity Benefit Milestone:
- • Year 15 Maturity Payout: ₹10L (BSA) + ₹10.5L (Total GA) = ₹20,50,000
- Second Death Scenarios:
- • Death at Year 1: ₹1,78,82,500 + ₹70,000 = ₹1,79,52,500
- • Death at Year 10: ₹1,78,82,500 + ₹7,00,000 = ₹1,85,82,500
Section F: Installment & Settlement Options
LIC offers the flexibility to receive death benefits or maturity benefits in installments rather than a lump sum. This option must be exercised by the proposer at least 3 months prior to the maturity date or during the lifetime of the proposer for death benefits.
Payout Frequencies & Limits:
You can opt for installments over 5, 10, or 15 years. The minimum installment payouts are:
| Frequency | Minimum Installment |
|---|---|
| Monthly | ₹5,000 |
| Quarterly | ₹15,000 |
| Half-Yearly | ₹25,000 |
| Yearly | ₹50,000 |
Settlement Interest Rates:
- Settlement Interest Rate: Defined as 10-year G-Sec yield minus 2%. For the period May 2025 to April 2026, the rate is fixed at 4.62% p.a.
- Commutation: Surviving beneficiary can request to commute the remaining installments at a rate of 10-year G-Sec yield minus 1% (cap of 6.62% p.a. for 2025-26).
Section G: Surrender Value & Liquidity
The policy can be surrendered at any time. The Guaranteed Surrender Value (GSV) is defined as: GSV = (Premium Factor × Tabular Single Premium) + (Accrued GA × GA Factor)
Premium Factors:
- • Surrender in Years 1–3: 75% of the single premium paid
- • Surrender in Years 4+: 90% of the single premium paid
Guaranteed Addition Factors:
A specific factor is applied to accrued GA depending on the policy term and year. For example, at Year 1 the factor is 18.60% (10yr term), 17.58% (15yr term), 15.72% (20yr term), or 14.94% (25yr term). The factor rises linearly to 35.00% in the maturity year.
Caution: Surrendering the policy early (specifically under Option II where premiums are very high) may lead to substantial financial loss as the surrender value is lower than the premium paid.
Section H: Policy Loans
Loans can be availed under the policy after 3 months from completion of the policy or after the expiry of the free-look period, whichever is later.
Maximum Loan Tiers:
| Policy Year | Max Loan (% of Surrender Value) |
|---|---|
| Years 1–2 | 50% |
| Years 3–5 | 60% |
| Years 6–9 | 65% |
| Years 10+ | 70% |
Loan Servicing Conditions:
- • Interest Rate: Fixed at 9.50% p.a., compounded half-yearly for the financial year 2025–26.
- • Foreclosure: If the outstanding loan amount plus interest exceeds the surrender value, the policy will be foreclosed and terminated by LIC.
Section I: Rebates & Discounts
High Sum Assured (Option I)
- • Less than ₹5L: Nil
- • ₹5L to < ₹10L: ₹11 per ₹1,000 BSA discount
- • ₹10L to < ₹15L: ₹21 per ₹1,000 BSA discount
- • ₹15L and above: ₹25 per ₹1,000 BSA discount
Online Purchase
A rebate of 2.0% is allowed on the Tabular Single Premium for policies purchased directly online through the LIC portal.
Existing Policyholder
Existing policyholders receive a discount on the premium rate: • ₹3 per ₹1000 BSA (Terms < 20) • ₹4 per ₹1000 BSA (Terms ≥ 20)
Section J: Optional Riders
Two optional riders are available to enhance coverage under the policy, subject to limits:
1. Accidental Death & Disability Benefit (ADDB) Rider
Pays a lump sum equal to the rider sum assured on accidental death (within 180 days of the accident). On accidental permanent disability, future premiums are waived (already paid) and the rider sum assured is paid in monthly installments over 10 years.
2. LIC New Term Assurance Rider
Provides additional life insurance coverage on the life of the primary life assured. If the primary life assured dies during the term, the term assurance rider sum assured is paid to the nominee.
Rule: The total premium of all riders combined cannot exceed 30% of the single premium of the base policy.
Section K: Strategic Investment Insights & Tax Comparison
| Feature | Option I (1.25x Cover) | Option II (10x Cover) |
|---|---|---|
| Return Multiplier | High maturity return relative to premium (~4x return on 25yr term) | Moderate return since single premium is much higher (~1.6x return) |
| Taxability at Maturity | Taxable (Sum Assured on Death is < 10 times the premium) | Tax-Free (Eligible u/s 10(10D) since cover is 10 times the premium) |
| Death Claim Tax | Fully Tax-Free | Fully Tax-Free |
Section L: Exclusions & Alterations
- 1. Free-Look Period (30 Days): The policyholder can return the policy within 30 days of receiving the document if dissatisfied. LIC will refund the premium after deducting proportional risk charges, stamp duty, and medical examination costs.
- 2. Suicide Clause: If either life assured commits suicide within 12 months from the date of commencement of the risk, LIC will pay 80% of the single premium paid or the surrender value (whichever is higher), and the policy will terminate.
- 3. Age Misstatement: If the age of either life is found to be misstated, the premium will be recalculated. Any arrears with interest must be paid, or the sum assured will be reduced.
- 4. conversion on Divorce: Upon written request after divorce, the joint life policy can be converted to a single life policy on the primary life. A refund is payable for the exclusion of the spouse.
Section M: Statutory Provisions
- Section 38 (Assignment): Assignment of the policy is allowed by endorsement or a separate legal instrument. LIC has the right to decline registration of an assignment within 30 days.
- Section 39 (Nomination): Proposer can nominate a beneficiary. By default, each spouse acts as the natural nominee for the other. Assignment of the policy will cancel any existing nomination automatically.
- Section 45 (Indisputability): A policy cannot be called into question by the insurer after 3 years from commencement on any grounds whatsoever, except for fraud or misstatement of material facts.
Section N: Claims Procedure & Servicing Timelines (TAT)
LIC follows strict servicing timelines (Turn Around Times - TAT) for different requests:
| Request / Service Type | Turn Around Time (TAT) |
|---|---|
| Death Claim Settlement (Non-investigative) | Within 15 Days |
| Early Death Claim Settlement (Investigative) | Within 45 Days |
| Maturity Claim Settlement | Settled exactly on the due date |
| General Policy Servicing (Address change, loan processing, surrender) | Within 7 Days |
Required Claim Documents:
- Prescribed death claim forms (Form 3783 / 3801)
- Original policy document
- NEFT bank details and cancelled cheque
- Proof of death (Death Certificate) and proof of age
- FIR, Panchnama, and Post Mortem report (specifically for accidental deaths)
Section O: Grievance Redressal Mechanism
1. Branch Level: Policyholders can register complaints with the Grievance Redressal Officer (GRO) at the servicing branch. Complaints are acknowledged immediately, and resolution must be provided within 14 days.
2. IRDAI Bima Bharosa Portal: If the issue is not resolved within 15 days, or if the resolution is unsatisfactory, the complaint can be escalated to the IRDAI's Bima Bharosa Shikayat Nivaran Kendra.
3. Insurance Ombudsman: For dispute resolution regarding claims, loans, or premium payments, customers can approach the Insurance Ombudsman. This provides low-cost, speedy arbitration.