LIC’s New Plan 2016-Jeevan Shikhar (Table No.837)-Feature and Review

As usual, LIC is launching a limited period plan called Jeevan Shikhar (Table No.837). This will be available from January, 2016 to the maximum period of 120 days.

You notice the LIC history, they always launch limited period endowment plans in January and closes in March. The reason is to trap the tax saving salaried individuals. The biggest loser in such unplanned blind tax saving investments are INVESTORS only but not agents or LIC. So to utilize this opportunity, every year LIC launches new plans during this tax saving season.

Below are the features of this plan

  • It is a single premium plan.
  • Insurance cover will be 10 times of your premium. If your premium is Rs.1,00,000, then the sum assured will be Rs.10,00,000.
  • It is a typical endowment plan.
  • Minimum maturity sum assured must be Rs.1,00,000. There is no maximum limit.
  • Minimum entry age is 6 years.
  • Maximum entry age is 45 years.
  • Premium paying mode-ONLY SINGLE.
  • Term of policy is 15 years.
  • You have an option to chose the Maturity Sum Assured (MSA). Based on this MSA and age, your premium will be fixed.
  • This plan offers a rebate in terms of a tabular premium on per Rs.1,000 MSA. This rebate is Rs.15 for MSA between Rs.2 lakh to Rs.4.8 lakh. Rs.20 for MSA between Rs.5 lakh to Rs.9.8 lakh. Rs.25 for MSA of Rs.10 lakh and above.
  • Agent’s commission will be 2% of the premium.
  • This plan offers loan facility but depends on how old the policy is and your age.


Survival Benefit-

If you survive till the policy period, then you will receive the MSA (Maturity Sum Assured)+Loyalty Addition.

Death Benefit-

a) If death occurs during first 5 policy years-Refund of single premium without interest.

b) If death occurs after 5th policy year-10 times of your single premium.

I tried to simplify the plan by explaining as below.

LIC's Jeevan Shikhar

This is the plan which yet to be launched. But going by available features, I felt is one more worst plan LIC launching. I feel buying a term insurance and PPF is best. I am referring PPF again and again. Because PPF offers same tax benefit as that of LIC endowment products.

I will review it once I will get more updates of the same.

132 Responses

  1. Hi,
    I want to take insurance plan for my mother.she is 5o years old.
    I can invest 50 k.
    can u please suggest a insurance/Pension plan with a single premium which gives good money on maturity for my mother

  2. I have an infant of 1 year 4 months. I would like to invest one time investment of Rs.1,00,000/- in LIC for future studies of my son. Hence, please advise.

  3. Dear sir

    my two child one 5 years old and 2nd 1 years I invest 10 lac suggest me what I do
    which type policy purchased I need money after 15 years both son in education or marriage my interest in kyc (post office) pls tell me

  4. Dear,
    My cousin died in KSA where he was working, I am also working here, I want to get best plan for my cousin daughter aged 3 yrs which will get best results after 15 yrs, but I want to invest a maximum of Rs.2 Lakhs for 6 months to 1 year maximum.
    Pls. advise me.


      1. Thanks for reply.
        I need only investment plan to get returns after 15 yrs for cousin daughter marriage expenses preferred LIC, if there is any other suitable plan in this situation pls. let me know.


              1. Hi Basavaraj,

                I am also eager to Invest for my Childs Future, You were suggesting someone to Invest 60% in Mutual Fund and 40% in PPF. Can you please provide me some more details on this and links if possible to do some research.

  5. Dear Sir

    I have gone ahead with LIC policy for 30 lacs and I wanted to split my policies between LIC and ICICI. I have applied for the lic policy and they are taking time.. Can I go ahead and apply for icici term insurance with declaring that my proposal with LIC is work in progress or should I wait till lic process is over…I am confused..Pls help

      1. Sir

        The only problem is that LIC is going too slow. I think I have chosen the wrong agent – one who is not interested in the business at all. He is just too casual.. That is why I am a bit impatient to take the ICICI policy

        Since I have gone through the agent – I am unable to track the policy online and I feel helpless.

        1. Bala-I understand that they are very slow. But at the same time hiding information with ICICI may cost you. Hence, I said to wait. But why you went for offline LIC policy where it is sold through an agent?

          1. Sir,

            That was the mistake I did. I sent the agent a cheque on April 7th – nearly 2.5 months back…
            I didn’t have faith in the online mode that time but I am regretting it now.

            I have a thought sir – If I apply for ICICI now, will it be a problem if I take either of their policies…ie whoever is able to issue the policy 1st and then reject the other..

            1. Sir – to explain myself more clearly

              if ICICI is able to finalise 1st, then I will go ahead with ICICI and reject LIC
              if LIC is able to finalise 1st, then I will reject ICIC.

              That way, I would not have problem with disclosure towards LIC or ICICI.. Is my thinking correct, sir

              Sorry for the bother sir…please don’t mind me asking these questions as I don’t know to who to raise

  6. Recently2013 my father expired he use lic policy but in between policy collapsed in 2012 .due to financial that time if policy was running we get maturity amount. Incase of death..and know iwnt a lic policy for my mother.. My mom doesn’t get term plan bec she is a housewife..for safety feature we should do lic or term plan. .for future we don’t know what will be future but pls do a policy so that family can be secure thnk

      1. Yes know she is getting pension inbehalf for my father he was working in bnk.and iam the only one in my family

  7. I am planning to buy an LIC plan. My age is 36 years, I have 2 childrens(Girl of 5 years & Boy of 1 year). Please suggest me some good LIC plan especially for my childrens within a range of 25k annual premium.


  8. Hi Basu,

    I have SBI life Shubh Nivesh policy with sum assured 83000 , premium term and benefit term 9 year with below option
    SBI Life – Accidental Death Benefit Rider : 83000
    SBI Life – Shubh Nivesh Whole Life Plan Base Cover 83000
    with yearly premium 12000 rs. total accrued bonus 7470 and policy start date is : aug 2012.
    when I purchased this policy they say that your money will get double but i dont believe so
    should I continue with this or surrender. I have read many reviews about this policy over internet that I will get paid less than my deposited amount after 9 year (RS 108000).
    What I will get if I surrender this as of now.

    Thanks in advance

  9. Hi Basavaraj,

    My age is 33. I have 3 years old daughter. I want to invest 50000 per year for her higher education and marriage purpose. I can wait long term for better result. Can you please suggest me which one is the best and safe to invest.

  10. sir, after attending all ur suggetions of above i too want to have guidance for lump sum investments @50000/- each on my TWO daughters ages 18&17. I am already in the tax purview of 20%. hence except of good return if possible insurance coverage over a period of 10-15 years no other conditions. please specify in brief. thanking u sir.

  11. Dear sir,

    I want to save / invest monthly 2 to 3000/- or 15 to 20,000 for six months. I dont have any knowledge on LIC /ICICI / others . My age is 28 now. i want to invest/save up to 10-15 years. please suggest me which one is best with highest returns & other benefits.

  12. Do you feel there is only two products (PPF and LIC Endowment) in this world which one can invest for long term view of 10 years? You can opt for a equity-oriented balanced fund, which suffice your equity
    who struggling to garner the business due to their underperforming funds).

  13. Sir

    Every year LIC comes up with Single premium plan to achieve March end target.

    This year, the Government has notified reduction in Small saving schemes w.e.f. 1st April 2016. As a result, many LIC agents are misleading gullible prospective investors to put their money in this pathetic plan citing returns are better than Small saving schemes.

    However, I tried to get some information from LIC website. I couldn’t find Benefit Illustration statement. I think LIC is not transparent in its business. However, I could find premium amount as below.

    SA for Rs. 10 Lacs works out at Rs. 4.15 Lacs. IRR is just 6.04% for a period of 15 years. Moreover, LIC never guarantees its future bonus rates.

    Since this is an endowment plan, LIC needs to invest major part of the proceeds in government securities by law which will hence forth offer lower rates as well. In such case, future returns from this plan will also come down. In such scenario, how can LIC agents say this plan will give better returns compared to Small saving schemes?

    This is beyond my understanding.

  14. Dear Basavaraj,

    Just now read your blog it is very helpful . I am planning to start SIP through scrip box or aditya birla my universe . One of the reason i plan to invest thro any one of them for guidance as i find it difficult to select the right mutual fund for investing so that my money will grow. Please send a reply to my email address.


  15. Jeevan Shikhar policy is ideal if the following parameters are met in your decision making process.

    1. Take this policy if your child’s age is between 6 to 10 years old. If the age is more than 10, the tabular premium as per LIC is higher and return is less than 5% on maturity.

    As per the LIC website illustration, for 10 lakh maturity benefit after 15 years the premium is 398,550 if the insured age is 10 whereas for the same benefits the premium is 425,800 if the insured age is 30. There fore the policy is very ideal if the insured’s age is lowest and destructive if the age is highest.

    2. Keep in mind, no insurance company is offering term insurance for children. Minimum age criteria is 18 years for any term insurance policy. In that scenes Jeevan Shikhar is ok, covering the life insurance of your child at early ages.

    3. Now a days FD interest rates are coming down and over a long term of 15 years, the higher probability is that interest rates for FD shall decline to less than 5%. In that scenes this policy is ideal, offering guaranteed return irrespective of future market rate changes.

    4. In this decision making process please ignore return from PPF,SIP, share market etc.

    My conclusion is that, if your child’s age is 6 to 10 Jeevan Shikar can be a best suited policy covering life and investment. If your child’s age is between 11 to 18 go for a balanced decision of your choice. If age is more than 18 years, never go for this product but prefer to be a combination of term insurance with return of premium plus investment in SIP or PPF.

    1. CA Jojo-1) Do you feel if the age of child is less than it gives you more than 7% return? It is disaster if you believe so.
      2) Life Insurance required for non-earning person? In fact LIC itself will ask for income source before issuing a policy. Life Insurance required when you have any FINANCIAL dependents. So life insurance is waste for kids.
      3) We don’t know the next year’s credit policy. How can you claim the future perfectly about 15 years? Any magic in your hand?
      4) Why to ignore other products you mentioned? Can you elaborate more?

  16. Sir, I purchased Post office 5 yrs RD account, would I be able to ahead next 5 yrs with same interest rate 8.4% (in present) while the news is interest rate are going low .

  17. Hi Raj,

    Can you pls suggest me good insurence policy. I can go for premium of 1.5 lks per annum. looking for good matury and death coverage policy.

      1. Sir,
        As you said, 5% return on 1 lakh, if we survive the full term(15 years). Would you please advise the approx… Amount that we are getting.
        Thanks Vinod.

  18. I need a policy with maximum maturity benefit, can anybody suggest which would be the best plan.
    And I am open to pay 5k per month and wants a policy for 10-15 years extendable.

  19. Thank you Mr. Basavraj. Your analysis helped me choose one of the insurance providers basis cost affordable premium.
    Appreciate your help and support.


  21. Dear Basavaraj,
    I would like to know that if any term plan is available for DOB 07/04/1963 by any insurance company providing term insurance of 25 Lacs. at the lowest cost. However, every compacny declares the best plan & agents always recommends their company’s plan to be best.
    Hope you shall guide.
    Thanking you,
    CA. Pushpendra Varshney.

  22. this is shastri from Bangalore i have 1 sun in 11 year old i am put jeevan shekhar 2 lakes what all benefit come please advice


  23. Hi Basavaraj, The death benefit point A) is wrong in your article.

    Date of commencement of risk : In case the age at entry of the Life assured is less than 8 years, the risk under this plan will commence from one day before the policy anniversary coinciding with or immediately following the age of 8 years.

    For those aged 8 years or more at entry, risk will commence immediately from the Date of issuance of policy.

    you can also see the benefit illustration from lic of india’s website.

      1. No – That might not be a big deal – but its certainly a big deal if you create a visual chart and point that out as a “Dangerous feature” of the policy. Don’t you think you are misguiding without having read the conditions clearly. The point on returns is correct but if an insurance product is supposedly not covering risk right from the start that is a huge red flag. In today’s age where information is freely available its advisable that you check your facts before creating such blogs (of course I am assuming your intent is to genuinely help the public at large). The least you could do is to correct your post after you have learnt what you have said is untrue.

        Disclaimer: I am not an LIC agent or employee. I do hold a few policies from LIC.

        1. Partha-To me for your information, what matters to many is return but not insurance. If they are so concerned about insurance, then they may well buy the term insurance. I will correct. It is not a big deal of correcting it. But I am saying you the reality with my 13 years of LIC agency 🙂

  24. Basu Sir, I m planning to be an Insurance Agent. Please guide me for which agency shud I select for LIFE INSURANCE and also which one for GENERAL INSURANCE. THANKS

  25. omg, I can’t stop laughing at this plan, but am horrified equally; typical LIC crap, but notice the pattern here –
    I am no expert in all plans offered by Indian insurers, but LIC is starting a dangerous trend – instead of providing cover from day one, they are postponing the risk coverage. I say this is borderline illegal even by loose definition of “invest + insure”. If this goes unnoticed (which is likely), here’s what happens next:
    Offering 1: coverage is within windows, flexible for customer to choose which period they want themselves to be covered – 10-15 years, or last 15 years, and so on – like power play in cricket!
    Ofering 2: death payout is very low in the initial years (say 0% to 80% of ROP), and after 10 or 15 years, actual SA will take over.

    See the pattern? Very much likely.

    1. First u please read the Lic jeevan sikhar plan correctly.2 u will cover risk 10 times of ur premium for first five year.3.after 5 year u will cover risks for 10 times premium+ loyalty addition will give u a handsome return guaranteed + life cover.if u compare with FD this product is better.don’t make people fool here.without full information u all r giving advice to people.which type of financial planner u called ur self.

      1. Rahul-I read and did correctly. Can you pinpoint the plan feature error correctly? May I know that HANDSOME RETURN GUARANTEED? I am curious to know how much is that return. Provide me that number to discuss further 🙂

  26. @Basavaraj,
    I want to invest 5 lakhs as single premium for my daughter age 12 years. please let me know how much will be maturity amount & risk cover.

  27. I think people who are strongly backing this yet another pathetic product from LIC are LIC agents!!!

    Such people should be sent to jail for destroying wealth of gullible investors

  28. hello sir.
    I was approached by one of LIC agents, and he is quoting approximately 45 thousand premium for death sum assured of 4.4 lakhs and maturity sum assured of 1 lakh after 15 years for 33 year old adult. in this scenario this policy is giving 8.1% interest on maturity sum insured. is it the truth or am I missing something? because we can’t ignore the insurance they providing along with, tax rebate on maturity and premium. is it really giving 8% return?

      1. Hi Basavaraj, There is no bonus rate in Jeevan Shikhar policy, LIC of India is providing Sum Assured + Loyalty Addition (if any) on maturity and this is close ended policy and available only till 31 March 2016 only. As per my point of view this plan has unique feature then other plan available in market.

  29. sir,
    1. what’s lock in period in ppf
    2. what is maximum amount limit of investment in ppf?

    3. is maturity claim settled easily or it may be affected buy any kind of Govt. order?

      1. No if you are taking ppf for tax saving purpose then you can say its 1.5 lac but actually there is no uper limit.

  30. Mr Basu, Thanks for your valuable thoughts. Really informative. Now can you tell me what could be right investment for an individual.


    Salary -15 Lakh

    Home- Owned, No Home loan liability

    Annual Saving- 10 Lacs

    Investment Planning out of 10 lac – 1.5 Lac in each PPF & SSA

    Term Plan & Mediclaim already adequately taken.

    Pls guide for remaining 7 lacs


      1. I want to create wealth for long term. Guide me where should in put my money to get maximum benefit and minimum risk.

  31. I think this plan only for tax saver customer. policy gives lumsum tax benifits but we can not aspect more maturity benifits. so endoment plan is better than this plan

    1. Santosh-This suites to only TAX SAVER? Also, ENDOWMENT PLAN IS BETTER THAN THIS PLAN? Can you elaborate more? To me both are one and same. Thos who invest in such products without doing homework on their own are at RISK. Whether it is single premium or endowment, result of returns are SAME.

  32. Hi Basu,
    If I get 10 times my investment in 15 years, isn’t it a great plan?
    Not to forget whatever the loyalty bonus, even equity MF will not give that much returns.
    Please correct me if I am wrong.


    1. Pradeep-10 times of your investment? It is MSA+LA at maturity but not the 10 times of your investment. The life risk is only 10 times of your investment. What is great in that of offering 10 times of life risk? Term Plans offer more than that.

      1. Basu- I was saying this product as an investment avenue is quite reasonable where the returns is 10 times the investment you made after 15 years. LA is an additional benefit. Insurance is just a feature here.
        If we consider purely as an investment option, your money multiplies 10 fold in 15 years.
        Do we have any other investment options which give better returns?
        Kindly let us know your opinion.

        1. Pradeep-Check your facts properly. At maturity they give you MSA+LA. Here MSA is not 10 times of your premium. The life risk is 10 times of your premium. Do you know the return % if the money multiply 10 times in 15 years? It is 16.59%. I challenge if this product even provide me around 9% returns. Don’t confuse between the 10 times life risk to maturity value of MSA.

          1. Yes Basu, I got confused between the 2 MSAs. My bad.
            I for once thought LIC put the people first before their agents, government and then themselves through this plan.
            But I understand that is not the case here. Surely there are many unfortunate people who will fall prey to this. Hopefully people change over time and LIC is made to course correct.

    1. Gejinder-Considering the timing of LIC’s launch, you must assume that they just trapping the hurried individual who without planning buying such products for tax saving purpose ONLY. Second thing, how much can we expect from this plan? It is around 6% to 7%. Whether 6% to 7% a great return for an investment of 15 years? It is a REAL NEGATIVE RETURN.
      Let me know you say this plan as BEST.

      1. Then which product gives you more returns than 7% + 10 times risk cover+ loan facility+ tax benefits without lockin period+ doorstep service+ sovereign guarentee by govt on sum invested?

        1. Warun-Use PPF, if you don’t need any headache. This gives you more than what such policies offer. 10 times of risk cover is not a great feature to enter into this product. A typical LIC’s online term plan offers this one. What is great in that? Loan facility-At what cost? Will they giving you loan from their own pocket? No, it is some % from your own invested amount. So what is a great deal in that? Term Insruance+PPF will have same tax benefits as of this product. So don’t say as such products are WONDERS of world. No lock-in period? Check your facts. Doorstep service-I know LIC since childhood and I know how such doorstep service will be offered. Come on…don’t fool people by saving SOVEREIGN GUARANTEE BY GOVT. Will PPF and online term insurance of LIC does not have such guarantee?

          1. Yes you are true its not sovereign guarantee by Govt . Instead it’s should be sovereign guarantee to Govt as Lic shares profit to Govt
            regarding services go and check in for fastest claim settlement ratio and percentage also in Google or anywhere else. So grow up and don’t live childhood.

            1. Ajay-Well said. Government these days using LIC as scapegoat to their disinvestment process. If LIC is such an expert in investment, then why can’t they share such EXPERT knowledge to their counterpart LIC Mutual Fund (who struggling to garner the business due to their underperforming funds).

      2. can u suggest any other plan which can give more than 7% return in a period of 15 years? And also insurance cover also?

          1. What if a person like me already invested 1.5 lakhs in PPF and looking for a decent investment where the returns are also tax free? Thank you.

            1. Rajesh-Do you feel there is only two products (PPF and LIC Endowment) in this world which one can invest for long term view of 15 years? You can opt for a equity-oriented balanced fund, which suffice your equity and debt portfolio and investment can be more than what these two provide. Regarding taxation, it is purely tax free.

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