LIC Jeevan Kiran Calculator: Plan 870 ROP Term Plan Guide
Securing robust term insurance cover without the psychological drawback of "losing money if I survive" is the reason Return of Premium (ROP) insurance plans have surged in popularity across India. LIC Jeevan Kiran (Plan No. 870) is a non-linked, non-participating, individual life insurance term assurance plan introduced by the Life Insurance Corporation of India (LIC). It provides massive financial protection to your family in the event of an unfortunate death while guaranteeing a **100% refund of total base premiums paid** if you survive the policy term.
Our free online LIC Jeevan Kiran Calculator allows policyholders, young professionals, and families to compute exact annual premium installments, evaluate non-smoker discounts, project 100% maturity ROP refunds, and analyze life cover Sum Assured protection.
What is LIC Jeevan Kiran (Plan 870)?
LIC Jeevan Kiran combines high-value financial protection with a guaranteed savings return:
- 100% Return of Premium (ROP): If the policyholder survives to maturity, 100% of total base premiums paid (excluding taxes and rider charges) are refunded in full.
- High Sum Assured Protection: Minimum Sum Assured starts at ₹15,00,000 (15 Lakhs) with no upper limit.
- Non-Smoker & Female Rebates: Healthy non-smokers and female policyholders enjoy lower premium rates.
- Flexible Payment Options: Choose between **Regular Premium Pay** (paid annually over 10 to 40 years) or **Single Premium Pay** (one-time lump sum).
Key Policy Eligibility Matrix
| Policy Parameter | Official LIC Guidelines (Plan 870) |
|---|---|
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 65 Years (Near Birthday) |
| Maximum Maturity Age | 75 Years |
| Policy Term Range | 10 to 40 Years |
| Minimum Basic Sum Assured | ₹15,00,000 (15 Lakhs) |
| Maximum Basic Sum Assured | No Limit (Subject to underwriting) |
| Maturity Benefit | 100% Refund of Total Base Premiums Paid (ROP) |
Pure Term Insurance vs ROP Term Insurance (Plan 870)
| Feature Comparison | Pure Term Plan (New Jeevan Amar / Tech Term) | ROP Term Plan (LIC Jeevan Kiran Plan 870) |
|---|---|---|
| Survival Benefit at Maturity | ₹0 (Zero Return on Survival) | 100% Refund of Total Base Premiums Paid |
| Death Benefit Cover | Full Sum Assured Payout | Full Sum Assured Payout |
| Premium Cost Level | Ultra-Low Premium | Slightly Higher Premium (Includes ROP Savings) |
| Net Cost of Risk Cover | 100% of Premium Spent | ₹0 Net Cost (Everything Refunded!) |
How the LIC Jeevan Kiran Calculator Works
The LIC Jeevan Kiran Calculator computes premium installments and maturity refunds using exact actuarial parameters:
- Base Rate Calculation: Determines base premium rate according to age, policy term, gender, and smoking habits.
- High Sum Assured Rebates: Applies high SA rebates (up to ₹3.0 per ₹1,000 SA for SA >= ₹50 Lakhs).
- GST Addition: Adds standard 18.0% GST on term insurance premiums.
- 100% ROP Maturity Calculation: Multiplies base annual premium (without GST) by policy term to project exact maturity refund.
Worked Financial Example & 100% Premium Refund
Consider a 30-year-old non-smoker male purchasing **₹50,00,000 (50 Lakhs) Basic Sum Assured** under a **30-Year Policy Term (Regular Pay)**:
| Policy Component / Milestone | Financial Details & ROP Projections |
|---|---|
| Life Insurance Death Cover (SA) | ₹50,00,000 (50 Lakhs Protection) |
| Policy Term & PPT | 30 Years (Paid annually from Age 30 to Age 59) |
| Annual Base Premium (excl. GST) | ~₹24,500 / year |
| Annual Premium with 18% GST | ~₹28,910 / year |
| Total Premiums Paid (30 Yrs Outflow) | ₹8,67,300 (Total Outflow incl. GST) |
| Guaranteed 100% ROP Maturity Refund (Age 60) | ₹7,35,000 (100% Refund of Base Premiums!) |
| Effective Net Cost of 30 Years ₹50 Lakh Cover | Only GST portion (~₹1.32 Lakhs total over 30 yrs = ₹360/month!) |
Tax Advantages under Section 80C & Section 10(10D)
- Section 80C Tax Deduction: Annual premiums paid qualify for income tax deduction up to ₹1,50,000 per financial year.
- Section 10(10D) Tax-Free ROP Refund: 100% return of premium at maturity and death claim proceeds are 100% tax-free.
How to Use the LIC Jeevan Kiran Calculator
- Select Payment Mode: Choose Regular Premium Pay or Single Premium Pay.
- Select Policy Term: Pick a term from 10 to 40 years.
- Set Entry Age: Input age (18 to 65 years).
- Enter Basic Sum Assured: Specify sum assured (min ₹15,00,000).
- Select Gender & Smoking Category: Toggle female discount and non-smoker rate.
Frequently Asked Questions (FAQs)
What is LIC Jeevan Kiran Plan 870?
LIC Jeevan Kiran (Plan 870) is a non-linked, non-participating, individual life insurance term assurance plan with Return of Premium (ROP). If the life assured survives the policy term, 100% of total base premiums paid are returned back at maturity.
What is the difference between Pure Term Insurance and ROP Term Insurance?
In a pure term insurance policy, premiums paid are forfeited if you survive the policy term. In an ROP term insurance policy like LIC Jeevan Kiran, 100% of your total base premiums are refunded back to you at maturity if you survive.
What entry ages and policy terms are allowed in Plan 870?
Entry age ranges from 18 to 65 years. Policy terms range from 10 to 40 years, subject to a maximum maturity age limit of 75 years.
Are there special rates for Non-Smokers and Females?
Yes, LIC Jeevan Kiran offers lower premium rates for healthy non-smokers and provides concessional gender discounts for female policyholders.
What is the Minimum Sum Assured under Jeevan Kiran?
The Minimum Basic Sum Assured is ₹15,00,000 (15 Lakhs). There is no upper limit on the Sum Assured, subject to medical and financial underwriting.
Are maturity ROP payouts and death benefits tax-free?
Yes, 100% return of premium at maturity and death claim proceeds are 100% tax-free under Section 10(10D). Premiums paid qualify for annual tax deductions under Section 80C.