LIC Saral Jeevan Bima Plan No. 859

Complete Guide to LIC's Saral Jeevan Bima Plan No. 859

If you have been searching for a straightforward, easy-to-understand life insurance policy without complex investment jargon, exploring a standardized, pure protection policy designed for every common man is the best step. One such highly reliable option is the LIC Saral Jeevan Bima Plan No. 859.

Welcome to Ashuram Insurance Expert. Serving our community as a Chief Life Insurance Advisor since 1990, we believe in honest, transparent, and practical financial planning. Read on to understand exactly what this plan is, how its unique waiting period works, the precise death benefit calculations, and why securing this foundational coverage is an act of true love for your dependents.

What is LIC Saral Jeevan Bima 859?

LIC's Saral Jeevan Bima Plan is a Non-Linked, Non-Participating, Individual Pure Risk Premium Life Insurance Plan.

To understand what this means for your hard-earned money, let us break down those terms. "Non-Linked" means your premium money is not tied to the stock market; your coverage remains completely insulated from market crashes and volatility. "Non-Participating" means this specific plan does not share in the corporation's annual profits, and therefore, it does not accrue yearly bonuses. "Pure Risk Premium" means you are paying solely for life coverage.

The core objective of this plan is simple: it provides guaranteed financial protection to the insured's family in case of their unfortunate death during the policy term. This plan can be purchased offline through licensed agents, which allows you to sit face-to-face with an expert to understand your exact needs before you sign any paperwork.

Key Features of LIC Saral Jeevan Bima

This plan was introduced to offer a highly standardized term insurance product that anyone can understand. Its key features include:

• Pure Financial Protection: A guaranteed lump sum is paid to your nominee in your absence, securing their financial independence.
• Flexible Premium Payments: You can choose to pay your premium as a Single Premium (one-time), Regular Premium (throughout the term), or Limited Premium (finish paying early).
• Customizable Term: You have the freedom to select a policy term that best matches your working years and financial responsibilities.
• Rebates for High Coverage: The plan offers the benefit of an attractive High Sum Assured Rebate, making it slightly more cost-effective if you opt for larger coverage amounts.
• Accessibility: It is specifically designed to be accessible to a wide demographic, including first-time insurance buyers and individuals with lower income brackets who need simple protection.

Understanding the Death Benefit and the 45-Day Waiting Period

The most critical aspect of the LIC Saral Jeevan Bima Plan 859 is the Death Benefit payout. It is highly important to understand that this plan comes with a specific "Waiting Period" of 45 days from the date of commencement of risk.

Here is exactly how the death benefit is processed during and after this waiting period:

1. During the 45-Day Waiting Period

For the first 45 days after your policy begins, the risk cover is restricted.

• Accidental Death: If the life assured passes away due to an accident during these first 45 days, the policy will pay the full Death Benefit amount as a lump sum to the family.
• Non-Accidental Death: If the life assured passes away due to any other reason (like an illness or natural causes) during this 45-day waiting period, the Basic Sum Assured shall not be paid. Instead, an amount equal to 100% of all premiums received (excluding any taxes) shall be refunded to the nominee.

2. After the Expiry of the 45-Day Waiting Period

Once the 45 days have passed, the policy provides full comprehensive coverage. On the death of the Life Assured after the expiry of the waiting period but before the stipulated Date of Maturity, the "Sum Assured on Death" is payable as a lump sum.

For Regular Premium or Limited Premium Payment Policies:

The "Sum Assured on Death" is defined as the highest of the following three amounts:

1. 10 times the Annualized Premium.
2. 105% of all the premiums paid as on the date of death.
3. The Absolute amount assured to be paid on death (which is equal to your Basic Sum Assured).

For Single Premium Policies:

The "Sum Assured on Death" is defined as the higher of:

1. 125% of your Single Premium.
2. The Absolute amount assured to be paid on death.

(Note: Annualized Premium and premiums paid do not include any extra amount chargeable under the policy due to underwriting decisions or taxes).

Eligibility Conditions for the Policy

To ensure this standardized term plan is accessible to the masses, the eligibility rules are straightforward:

• Minimum Age at entry: 18 years (Last Birthday)
• Maximum Age at entry: 65 years (Last Birthday)
• Maximum Maturity Age: 70 years (Last Birthday)
• Minimum Basic Sum Assured: ₹5,00,000 (Five Lakhs)
• Maximum Basic Sum Assured: ₹25,00,000 (Twenty-Five Lakhs) per life basis

The Basic Sum Assured must be selected in multiples of ₹50,000. For example, you can take a cover of ₹5,50,000 or ₹10,50,000, up to the maximum limit of ₹25 Lakhs. The policy term can range from 5 to 40 years, allowing you to cover yourself up to the maximum maturity age of 70.

Premium Options and Grace Periods

You can structure your premium payments to align with your income flow:

1. Regular Premium: You pay the premium throughout the entire policy term.
2. Limited Premium: You finish paying premiums early. The available Premium Paying Terms are 5 years or 10 years.
3. Single Premium: You pay the entire premium in one single lump sum at the beginning.

For Regular and Limited premium options, you can pay Yearly, Half-yearly, or Monthly. Please note that the monthly premium payment mode is only allowed through ECS/NACH (auto-debit from your bank account).

Grace Period: If you happen to miss a premium due date, LIC provides a grace period. A grace period of 30 days shall be allowed for the payment of yearly or half-yearly premiums, and 15 days for monthly premiums from the date of the First Unpaid Premium. During this grace period, the policy remains fully in-force with the risk cover intact. If the premium is not paid before the expiry of these days of grace, the policy lapses.

Policy Cancellation Value (Unique to Term Plans)

Pure term plans generally do not offer traditional surrender values. However, the LIC Saral Jeevan Bima provides a "Policy Cancellation Value" under specific circumstances:

1. Regular Premium Policies: No Policy Cancellation Value shall be payable. If you stop paying, the policy simply lapses.
2. Single Premium Policies: The Policy Cancellation Value is acquired immediately after the receipt of the Single Premium. It is calculated as: 70% × Single Premium paid × (Unexpired Policy Term / Original Policy Term).
3. Limited Premium Payment Policies (5 or 10 years): The Policy Cancellation Value is acquired only if at least two consecutive full years' premiums are paid. It is calculated as: 70% × Total Premiums Paid × (Unexpired Policy Term / Original Policy Term).

Important Rules: Revival, Loans, and Suicide Clause

• Revival of Lapsed Policies: If your Regular or Limited premium policy lapses, it is not the end. A lapsed policy can be revived within a period of 5 consecutive complete years from the date of the first unpaid premium, subject to medical underwriting and payment of arrears with interest.
• Policy Loan: Because this is a pure protection risk plan without a cash accumulation fund, absolutely no loan will be available under this policy.
• Suicide Exclusion: If the Life Assured commits suicide within 12 months from the date of commencement of risk or within 12 months from the date of revival, the policy shall be void. The Corporation will not entertain any claim except for 80% of the total premiums paid (or 90% in the case of a Single Premium policy).

Who Should Buy This Plan?

The LIC Saral Jeevan Bima Plan 859 is the perfect foundational policy for:

1. Young earners in Bhadra looking for an affordable, straightforward life cover to protect their dependent parents or newly formed families.
2. Self-employed individuals, small shop owners, and farmers who need a reliable ₹5 Lakh to ₹25 Lakh safety net without committing to high premium endowment plans.
3. First-time life insurance buyers who want a standardized, government-backed pure term plan that is easy to understand and maintain.

Local Service Section: Supporting Our Rural Communities

While our primary operations and office are located near the Main Bus Stand Road in Bhadra (335501), Ashuram Insurance Expert is deeply committed to serving the hardworking families across our wider region. We understand that agricultural and rural incomes require careful, honest financial planning. If you are reviewing your LIC policy in areas such as Kunji or Bojhla, we ensure you get the right guidance. Policyholders in nearby areas like Dungarana and Kanau often need clarity about policy conditions, and we are here to help.

We know that traveling into the city for paperwork can be time-consuming for farmers and local business owners. That is why we provide dedicated, localized support to ensure that families in these vital agricultural belts can easily secure their financial futures with the right life insurance policies. Whether you are from Malsisar or Raslana, our trusted services reach you where you are. To explore more about our robust network, visit our LIC services in Bhadra.

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