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LIC New Jeevan Amar Premium Calculator (Plan 855)
The LIC New Jeevan Amar Premium Calculator is a specialized tool designed to help you instantly estimate the cost of protecting your family’s future. It calculates the precise premium for LIC’s Plan 855—a non-linked, non-participating, pure term assurance plan—based on your age, smoking status, and desired coverage (Sum Assured).
Unlike standard calculators, this tool allows you to compare complex options like Level Sum Assured vs. Increasing Sum Assured and Regular Pay vs. Limited Pay, ensuring you find the plan that fits your budget perfectly.
How to Use This Calculator
We have designed this tool to give you a comprehensive quote in seconds. Here is how to navigate the options:
- Enter Basic Details: Input your Age (Entry age 18-65), Gender, and Smoking Status. Note: Smokers usually pay a higher premium, so be accurate here for a realistic quote.
- Set Coverage: Choose your Policy Term (how long you want cover) and Sum Assured (the death benefit amount).
- Choose Death Benefit Option:
- Level Sum Assured: The payout remains the same throughout the policy.
- Increasing Sum Assured: The cover amount increases annually to beat inflation.
- Select Payment Mode: Choose between Regular Pay (pay every year) or Limited Pay (pay for just 10 years but get covered for the full term).
- Calculate: Click the button to see your Annual Premium, Total Cost, and a year-wise breakdown of your coverage.
What is LIC New Jeevan Amar (Plan 855)?
LIC New Jeevan Amar is a Pure Term Insurance Plan. This means it offers high life cover at a very low cost, but it has no maturity benefit. If the policyholder survives the term, no money is returned (unless you opt for a specific rider, which is separate).
Why choose this plan?
- High Coverage, Low Cost: You can get a ₹1 Crore cover for a fraction of the cost of an endowment plan.
- Flexibility: It offers special rates for women and non-smokers.
- Death Benefit Choices: You can choose to have your nominee receive the death benefit as a lump sum or in installments over 5, 10, or 15 years.
Understanding the “Death Benefit Options”
One of the unique features of our calculator (and Plan 855) is the ability to choose how your coverage behaves over time.
1. Level Sum Assured
This is the standard option. If you buy a ₹1 Crore policy for 30 years, your family gets ₹1 Crore whether the claim happens in Year 2 or Year 29. The premium remains constant and is generally the cheapest option.
2. Increasing Sum Assured
This is designed to fight inflation. Your coverage starts at the Basic Sum Assured (e.g., ₹1 Crore). From the 6th year onwards, the Sum Assured increases by 10% every year until it doubles (reaches ₹2 Crores).
- Best For: Young investors (25-35 years) who expect their financial responsibilities to grow.
- Cost: The premium is slightly higher than the Level option, but the value provided is immense.
Real-Life Example: Smoker vs. Non-Smoker
Smoking status significantly impacts your premium in term insurance. Let’s look at an example using our calculator for a ₹1 Crore Cover for a 30-year term (Age 30 Male):
- Non-Smoker: Might pay approximately ₹10,000 – ₹12,000 per year.
- Smoker: Might pay approximately ₹15,000 – ₹18,000 per year.
Why the difference? Insurers view smokers as high-risk individuals. Using our tool, you can toggle the “Smoker” dropdown to see exactly how much money quitting smoking could save you over the policy term.
Why Use Planmyreturns LIC Calculator?
- Detailed Year-wise Table: Most calculators just give you one number. We generate a full table showing your “Death Cover” vs. “Cumulative Premium” for every single year.
- Comparison of Options: Quickly switch between “Regular Pay” and “Limited Pay” to see if paying off your premiums early saves you money in the long run.
- Premium per Lakh Metric: We calculate the “Cost per ₹1 Lakh” coverage, helping you understand the efficiency of your premium.
- Export Your Quote: Need to discuss this with your spouse or agent? Use the “Download CSV” button to save the entire illustration instantly.
The Math: How Term Insurance Premiums Work
While the exact actuarial formula is complex, the premium calculation follows this basic logic:
Annual Premium = (Base Rate × Sum Assured Factor) × Age Factor × Health Load
- Base Rate: The standard cost per ₹1,000 Sum Assured.
- Sum Assured Factor: Higher coverage often gets a rebate (discount) per unit.
- Health Load: Multiplier for smokers or existing health conditions.
The calculator applies LIC’s specific rate tables for Plan 855 to give you the most accurate estimate possible without visiting a branch.
Frequently Asked Questions (FAQs)
No. Since this is a pure term plan, there is no maturity benefit or refund of premiums if you survive the policy term. However, this structure allows the premiums to be incredibly low compared to endowment plans.
Limited Pay allows you to pay premiums for a shorter duration (e.g., Pay for 10 years) but enjoy coverage for the full policy term (e.g., 30 years). This is great if you want to finish your premium liabilities before you retire.
Yes, the base plan covers death due to any reason (natural or accidental). You can also add an Accident Benefit Rider for an extra payout in case of accidental death, which would increase the premium slightly above what is shown here.
It is difficult. Once you buy the policy as a smoker, reducing the premium later usually requires strict medical tests and a waiting period of non-smoking. It is best to be honest from day one to avoid claim rejection.
The minimum Sum Assured for Plan 855 is ₹25 Lakhs. Our calculator starts from this minimum limit.