LIC New Jeevan Amar Calculator: Plan 855 Term Insurance Guide
Protecting your family's future standard of living against unexpected life eventualities is the primary pillar of sound financial planning. LIC New Jeevan Amar (Plan No. 855) is a non-linked, non-participating offline pure risk life insurance term assurance policy offered by the Life Insurance Corporation of India (LIC). It provides pure risk protection, guaranteeing that your family receives a massive tax-free financial cushion if the income provider passes away during the policy term.
Our free online LIC New Jeevan Amar Calculator empowers prospective buyers, financial advisors, and families to estimate exact premium installments across Level vs Increasing Sum Assured options, smoker vs non-smoker discount rates, female category rebates, and flexible regular or limited payment terms.
What is LIC New Jeevan Amar (Plan 855)?
LIC New Jeevan Amar is an offline pure term assurance plan designed to offer maximum financial protection at highly affordable rates. Unlike endowment plans that blend investment with life insurance, pure term plans contain no savings or maturity component:
- Pure Risk Life Cover: If the life assured passes away during the policy term, LIC pays the full Sum Assured on Death to the nominee.
- Dual Sum Assured Options: Choose between Option I (Level Sum Assured) where cover stays constant, or Option II (Increasing Sum Assured) where cover increases by 10% annually after Year 5 up to 200% of Basic SA.
- Substantial High Cover Slabs: Minimum Basic Sum Assured starts at ₹25,00,000 (25 Lakhs) with no maximum limit (subject to underwriting).
- Special Non-Smoker & Female Discounts: Lower premium rates for non-smokers (verified via urine cotinine test) and female proposers.
Key Features & Parameter Limits
| Policy Parameter | Official LIC Guidelines (Plan 855) |
|---|---|
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 65 Years (Near Birthday) |
| Maximum Cover Age at Maturity | 80 Years |
| Policy Term (PT) Range | 10 to 40 Years |
| Minimum Sum Assured | ₹25,00,000 (25 Lakhs) |
| Maximum Sum Assured | No Upper Limit (Subject to income underwriting) |
| Premium Paying Options | Regular Pay, Limited Pay (PT-5, PT-10), Single Pay |
| Statutory GST Rate | 18% GST (Applicable on pure term insurance) |
Sum Assured Options: Level SA vs Increasing SA
Policyholders must select their preferred death benefit payout structure at inception:
Option I: Level Sum Assured
Under Option I, the Sum Assured on Death remains fixed and constant equal to the Basic Sum Assured throughout the policy term. For example, if you buy a ₹1 Crore Level SA policy for 30 years, your beneficiary receives exactly ₹1 Crore upon demise at any point during those 30 years.
Option II: Increasing Sum Assured
Under Option II, your life cover expands automatically to combat inflation:
- Years 1 to 5: Cover remains equal to 100% of Basic Sum Assured.
- Years 6 to 15: Cover increases by 10% of Basic SA each year.
- Years 16 to Term End: Cover remains capped at 200% of Basic Sum Assured (Double Cover) for the remainder of the policy term.
| Policy Year | Option I: Level Cover (₹1 Crore SA) | Option II: Increasing Cover (₹1 Crore Base SA) |
|---|---|---|
| Years 1 to 5 | ₹1,00,00,000 (1 Crore) | ₹1,00,00,000 (1 Crore) |
| Year 6 | ₹1,00,00,000 (1 Crore) | ₹1,10,00,000 (1.1 Crore) |
| Year 10 | ₹1,00,00,000 (1 Crore) | ₹1,50,00,000 (1.5 Crore) |
| Year 15 onwards | ₹1,00,00,000 (1 Crore) | ₹2,00,00,000 (2 Crores - Max 200%) |
Smoker vs Non-Smoker Rates & Category Discounts
LIC divides applicants into two distinct risk categories based on medical evaluation:
- Non-Smoker Category: Proposers who have not used tobacco or nicotine products in any form for at least 3 years prior to application. Non-smokers receive a discount of up to 30%–40% compared to smoker rates.
- Smoker Category: Proposers who consume cigarettes, bidi, gutkha, or nicotine patches.
- Female Special Rebate: Female applicants receive a special lower premium rate across all age brackets.
How the LIC New Jeevan Amar Calculator Works
The LIC New Jeevan Amar Calculator computes your premium using official tabular actuarial rates:
- Base Tabular Rate: Evaluates base mortality rate per ₹1,000 SA based on entry age, gender, smoker category, option (Level vs Increasing), and policy term.
-
High Sum Assured Rebate Slabs: Applies discounts for larger cover amounts:
- ₹25 Lakhs to ₹40 Lakhs SA: Standard Rate
- ₹50 Lakhs to ₹95 Lakhs SA: High SA Rebate
- ₹1 Crore to ₹1.95 Crore SA: Superior High SA Rebate
- ₹2 Crores & above SA: Maximum High SA Discount
- Payment Option Multiplication: Adjusts rate for Regular Pay, Limited Pay (PT-5 or PT-10), or Single Premium.
- Statutory Goods & Services Tax (GST): Adds 18% GST applicable on pure term insurance premiums in India.
Worked Financial Example & Milestone Table
Consider a 30-year-old non-smoker male purchasing LIC New Jeevan Amar with a Basic Sum Assured of ₹1,00,00,000 (1 Crore) for a 30-Year Policy Term under Regular Payment mode:
| Cover Option | Annual Premium (excl. GST) | 18% GST | Total Annual Outflow | Life Cover Benefit Payout |
|---|---|---|---|---|
| Option I: Level SA (₹1 Crore) | ₹8,500 | ₹1,530 | ₹10,030 / year | ₹1,00,00,000 (Constant ₹1 Cr) |
| Option II: Increasing SA (₹1 Cr Base) | ₹11,900 | ₹2,142 | ₹14,042 / year | Increases to ₹2,00,00,000 (2 Cr Max) |
Strategic Comparison: LIC New Jeevan Amar (855) vs LIC Tech Term (854)
| Comparison Parameter | LIC New Jeevan Amar (Plan 855) | LIC Tech Term (Plan 854) |
|---|---|---|
| Purchase Channel | Offline Channel (Via LIC Agents/Branches) | Online Channel (Direct via LIC Website) |
| Minimum Sum Assured | ₹25,00,000 (25 Lakhs) | ₹50,00,000 (50 Lakhs) |
| Smoker Category Discounts | Available (Medical Underwriting) | Available (Medical Underwriting) |
| Cover Options | Level SA & Increasing SA | Level SA & Increasing SA |
Tax Benefits under Section 80C & Section 10(10D)
- Section 80C Tax Deduction: Annual premiums paid qualify for income tax deduction up to ₹1,50,000 per year.
- Section 10(10D) Tax-Free Death Claim: Death benefit payout received by the nominee is 100% tax-free without any cap limit.
How to Use the LIC New Jeevan Amar Calculator
- Select Gender & Category: Choose Male/Female and Non-Smoker/Smoker status.
- Pick Sum Assured Option: Select Option I (Level SA) or Option II (Increasing SA).
- Select Premium Payment Option: Choose Regular Pay, Limited Pay (PT-5 / PT-10), or Single Pay.
- Set Age & Term: Input entry age (18 to 65 Yrs) and Policy Term (10 to 40 Yrs).
- Choose Sum Assured: Pick your required life cover (₹25 Lakhs to ₹5 Crore+).
Frequently Asked Questions (FAQs)
What is LIC New Jeevan Amar Plan 855?
LIC New Jeevan Amar (Plan 855) is a non-linked, non-participating pure risk life insurance term assurance plan offered offline by LIC of India. It provides high financial protection to beneficiaries upon the policyholder's demise during the policy term.
What is the difference between Level Sum Assured and Increasing Sum Assured?
Under Level Sum Assured (Option I), the death benefit cover remains constant throughout the policy term. Under Increasing Sum Assured (Option II), the cover remains equal to Basic SA for the first 5 years, then increases by 10% of Basic SA annually from Year 6 to 15 until it reaches 200% of Basic SA.
What entry ages and policy terms are allowed in New Jeevan Amar?
Entry age ranges from 18 to 65 years. Policy terms range from 10 to 40 years, with a maximum cover age of 80 years at maturity.
Are Non-Smokers eligible for lower premium rates?
Yes. LIC offers special discounted non-smoker premium rates based on medical underwriting and urine cotinine tests. Non-smokers enjoy substantially lower premiums than smokers.
What premium payment frequency options are available?
Policyholders can choose Regular Pay (PPT = Policy Term), Limited Pay (PPT = PT - 5 or PT - 10), or Single Premium pay. Payment frequencies for regular/limited pay are Yearly and Half-Yearly.
Are premiums paid under New Jeevan Amar tax-deductible?
Yes. Life insurance premiums paid qualify for tax deductions up to ₹1,50,000 per financial year under Section 80C, while death claim proceeds paid to beneficiaries are 100% tax-free under Section 10(10D) of the Income Tax Act.