LIC Jan Suraksha Calculator: Plan 880 Micro-Insurance Guide
Extending financial inclusion, affordable life cover, and guaranteed savings protection to every Indian household is a cornerstone of LIC's social mandate. LIC Jan Suraksha (Plan No. 880 / 480) is a non-linked, non-participating micro-insurance endowment plan introduced by the Life Insurance Corporation of India (LIC). Specifically designed for daily earners, small business owners, agricultural workers, self-employed individuals, and low-to-middle-income families, it provides life insurance cover ranging from **₹10,000 to ₹2,00,000 (2 Lakhs)** alongside contractual Guaranteed Additions at pocket-friendly micro-premiums.
Our free online LIC Jan Suraksha Calculator enables policyholders and social workers to compute exact monthly micro-premiums, project Guaranteed Additions (₹35 per ₹1,000 SA per year), estimate maturity wealth, and track death benefit protection.
What is LIC Jan Suraksha (Plan 880)?
LIC Jan Suraksha is an accessible micro-endowment plan designed with simplified features:
- Low Micro-Premium Outflow: Pay small monthly installments starting from less than ₹500/month to build a guaranteed family corpus.
- Micro Sum Assured Band: Flexible Basic Sum Assured options starting from ₹10,00, up to the maximum micro-insurance regulatory ceiling of ₹2,00,000.
- Fixed Guaranteed Additions (GA): Accrues fixed contractual Guaranteed Additions of ₹35 per ₹1,000 Sum Assured per year for the entire policy term.
- Hassle-Free Underwriting: Simplified documentation and non-medical underwriting for easy policy issuance.
- 100% Tax-Free Returns: Full maturity corpus (Sum Assured + GA) and death benefits are 100% tax-free under Section 10(10D).
Policy Term & Guaranteed Addition Schedule Matrix
| Policy Term | Guaranteed Addition Rate | Total GA per ₹1,00,000 Sum Assured | Maturity Payout Formula |
|---|---|---|---|
| 10 Years | ₹35 per ₹1,000 SA / yr | ₹35,000 (35% of SA) | Basic Sum Assured + 10-Yr Accrued GA |
| 12 Years | ₹35 per ₹1,000 SA / yr | ₹42,000 (42% of SA) | Basic Sum Assured + 12-Yr Accrued GA |
| 15 Years | ₹35 per ₹1,000 SA / yr | ₹52,500 (52.5% of SA) | Basic Sum Assured + 15-Yr Accrued GA |
Key Policy Eligibility Criteria
| Parameter | Official LIC Guidelines (Plan 880) |
|---|---|
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 55 Years (Near Birthday) |
| Maximum Maturity Age | 70 Years |
| Minimum Basic Sum Assured | ₹10,000 |
| Maximum Basic Sum Assured | ₹2,00,000 (2 Lakhs Micro Cap) |
| Policy Term Range | 10 Years to 15 Years |
How the LIC Jan Suraksha Calculator Works
The LIC Jan Suraksha Calculator computes micro-premiums and maturity returns using simple actuarial formulas:
- Base Premium Calculation: Computes base tabular premium according to entry age (18 to 55 yrs) and policy term (10 to 15 yrs).
- Guaranteed Addition Accrual: Multiplies ₹35 per ₹1,000 Sum Assured by policy term duration.
- Frequency Factor Adjustment: Applies payment frequency factors (Monthly: 0.087, Quarterly: 0.26, Half-Yearly: 0.51, Yearly: 1.00).
Worked Financial Example & Micro-Savings Case Study
Consider a 25-year-old worker purchasing **₹1,00,000 (1 Lakh) Basic Sum Assured** under a **15-Year Policy Term**:
| Policy Milestone / Component | Financial Details & Payouts |
|---|---|
| Basic Sum Assured | ₹1,00,000 (1 Lakh Life Cover) |
| Policy Term | 15 Years |
| Monthly Micro-Premium (incl. GST) | ~₹505 / month |
| Annual Premium | ~₹5,800 / year |
| Total Premiums Paid over 15 Years | ₹87,000 (Approx ₹87k Total Outflow) |
| Accrued Guaranteed Additions (₹35/1k SA × 15 Yrs) | ₹52,500 |
| Total Guaranteed Maturity Corpus (Age 40) | ₹1,52,500 (1.52 Lakhs — 100% Tax-Free!) |
Strategic Comparison: LIC Jan Suraksha (880) vs LIC Micro Bachat (851)
| Comparison Parameter | LIC Jan Suraksha (Plan 880) | LIC Micro Bachat (Plan 851) |
|---|---|---|
| Return Mechanism | Fixed Guaranteed Additions (₹35/1k SA) | Loyalty Additions (LA) |
| Maximum Sum Assured | ₹2,00,000 | ₹2,00,000 |
| Minimum Sum Assured | ₹10,000 | ₹50,000 |
| Underwriting | Simplified Non-Medical Micro | Micro-Insurance Standard |
Tax Exemptions under Section 80C & Section 10(10D)
- Section 80C Tax Deduction: Premiums paid qualify for income tax deduction under Section 80C.
- Section 10(10D) Tax-Free Returns: Full maturity lump sum (SA + GA) and death claim proceeds are 100% tax-free.
How to Use the LIC Jan Suraksha Calculator
- Select Policy Term: Choose 10, 12, or 15 years.
- Set Proposer Entry Age: Input age (18 to 55 years).
- Enter Basic Sum Assured: Specify sum assured (₹10,000 to ₹2,00,000).
- Select Payment Frequency: Choose Monthly, Quarterly, Half-Yearly, or Yearly.
Frequently Asked Questions (FAQs)
What is LIC Jan Suraksha Plan 880?
LIC Jan Suraksha (Plan 880) is an affordable micro-insurance endowment plan regulated by IRDAI. Designed for low and middle-income families, daily earners, and rural households, it provides life cover and guaranteed savings with Sum Assured ranging from ₹10,000 to ₹2,00,000.
What is the Minimum and Maximum Sum Assured allowed?
The Minimum Basic Sum Assured is ₹10,000, and the Maximum Basic Sum Assured is ₹2,00,000 (2 Lakhs) under micro-insurance regulatory limits.
How do Guaranteed Additions work under Plan 880?
Contractual Guaranteed Additions (ranging from ₹35 per ₹1,000 Sum Assured per year) accrue automatically to the policy throughout the term and are paid alongside the Sum Assured at maturity or upon death.
What policy terms and entry ages are available?
Entry age ranges from 18 to 55 years. Policy terms range from 10 to 15 years.
What happens if the policyholder dies during the term?
In the unfortunate event of the policyholder's death, the nominee receives the full Basic Sum Assured plus all accrued Guaranteed Additions accumulated up to the date of death.
Are micro-insurance maturity benefits tax-free?
Yes, all maturity proceeds and death benefits under Plan 880 are 100% tax-free under Section 10(10D), and annual micro-premiums qualify for tax deductions under Section 80C.