LIC Jeevan Sangam Plan 831 Review

LIC Jeevan Sangam plan 831 is the latest single premium plan launched by LIC of India. This is the first insurance plan of this year, launched by life insurance corporation of India along with another one new Children’s Money Back Premium Payment Plan 832.

The last date of buying LIC Jeevan Sangam plan is 1st June 2015. So you may get a call from your insurance agent to get this policy. But, don’t forget to read a complete review of Jeevan Sangam policy before taking decision in hurry.

So, one more policy is going to add in LIC policy list from 2014. So the question is why LIC Jeevan Sangam plan launched now? The answer is this is the best period of the year when people are in a hurry to do last minute income tax saving.

And insurance companies know, how to exploit this situation. I hope with the same strategy LIC has planned to launch Jeevan Sangam plan. Let’s check out few of the key features of this policy.

LIC Jeevan Sangam Plan key features

  • As the name suggest, this is a single premium insurance plan with limited period option, similar to LIC Jeevan Shagun plan launched last year end.
  • One can buy LIC Jeevan Sangam Plan from 4th March 2015 onward till next 90 days. So hopefully the last day for this policy would be June 2015 first week.
  • The min entry age is 6 years and max is 50 years. So again LIC make sure that this could be compared with a child plan. Anyway lot of options are there already to plan for your child’d future.
  • The policy term is 12 years. The min sum assured value will be 75,000. There is no limit for maximum sum assured value.
  • This risk commencement age is from 8 years onward.
  • In case of death before 5 years of policy term, 10 times of premium paid if death occur after commencement of risk. Otherwise the paid premium will be returned back. If death occur after 5 years of policy term, then with 10 times of premium paid loyalty addition may also add.
  • After completion of 12 years, you will get sum assured value with loyalty addition accumulated.
  • One can surrender this plan within first year itself. We have seen many lic policies with min surrender period of 3 years. But for LIC Jeevan Sangam plan one can surrender in first year itself and get 70% premium paid back after deducting service tax. And after 1 year one can get max 90% after deducting service tax.

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You can check out the Premium calculation chart for this plan in slide-share. I have taken the data from LIC website and noticed that it will return around 5-6% max on maturity. If we don’t consider the life cover fact.

Should I buy LIC Jeevan Sangam Plan

Come-on man ! you are still looking for tax savings options? There are so many options under section 80C, why you are blindly waiting for your agent to suggest you the best tax saving scheme?

In that case he/she will definitely suggest you LIC Jeevan Sangam plan in coming days. Check out the premium chart and long term return calculation to find out how this policy will perform. But, as per LIC track record, this policy may not be a out of the box product from LIC.

I will not be surprised, if after few months people are looking for articles how to surrender Jeevan Sangam plan or how much surrender value one will get if surrender before 1 year. What do you think on it?

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