LIC New Jeevan Sathi Limited Premium Plan (889) Calculator

LIC New Jeevan Sathi Limited Premium Plan (889) Calculator

What this calculator does

LIC's New Jeevan Sathi Limited Premium Plan (889) is a joint life, limited premium, with-profit endowment assurance plan designed for couples. Both spouses (Life 1 and Life 2) are covered under one policy, but unlike the Single Premium variant of this plan, premiums are paid in regular installments over a Premium Payment Term that is shorter than the full Policy Term - once premiums stop, cover and Guaranteed Additions continue accruing until the end of the Policy Term.

The plan pays out in three possible ways over the policy term:

• First Death Benefit - if either life dies during the policy term, the Basic Sum Assured plus Guaranteed Additions accrued up to that point is paid immediately to the survivor/nominee. Cover then continues on the surviving life for the rest of the term.
• Second Death Benefit - if the surviving life also dies before the term ends, the Basic Sum Assured plus Guaranteed Additions accrued up to that later date is paid again, independently of the first payout.
• Maturity Benefit - if both lives survive to the end of the policy term, the Basic Sum Assured plus Guaranteed Additions accrued over the full term is paid out once.

This calculator gives you an indicative estimate of:

• the annual premium (base premium plus, if opted, the Accident Benefit Rider premium) and the per-installment amount for your chosen payment mode
• the total premium payable over the Premium Payment Term
• the Guaranteed Additions accrued over the policy term
• the death benefit payable on either the first or second death, at various points in the policy term
• the maturity benefit payable if both lives survive the full term
• the age each life completes at maturity

based on both lives' entry ages, the Basic Sum Assured, the chosen Policy Term / Premium Payment Term combination, the premium payment mode, and whether you add the Accident Benefit Rider.

Formula Used

Available Plan Options. The plan is sold with four fixed Policy Term / Premium Payment Term combinations - premiums stop 5 years before the policy term ends in every case:

$$(PolicyTerm,\ PremiumPaymentTerm) \in \{(10,5),\ (15,10),\ (20,15),\ (25,20)\}$$

Annual Premium. The illustrative tabular rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the Premium Payment Term lengthens with a mortality component priced off the older of the two entry ages (since a first-death claim can be triggered by either life, joint cover carries a higher mortality loading than a single-life plan of the same term), minus a small High Sum Assured Rebate for larger policies:

$$OlderAge = \max(Age_{Life1}, Age_{Life2})$$ $$TabularRate = \frac{1000}{PPT} \times 0.9 + \big(3.0 + OlderAge \times 0.055\big) - Rebate$$ $$AnnualPremium = \frac{SumAssured}{1000} \times TabularRate$$

If you opt for the Accident Benefit Rider on Life 1, an additional ₹1.50 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added each year:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 1.5$$

The annual premium plus rider is converted to your chosen payment mode (Yearly, Half-Yearly, Quarterly, or Monthly) using LIC's standard mode factors, and the total premium payable is the installment amount multiplied by the number of installments over the Premium Payment Term (not the full Policy Term):

$$TotalPremiumPayable = InstallmentPremium \times InstallmentsPerYear \times PPT$$

Guaranteed Additions. These accrue every policy year - for the full Policy Term, not just the Premium Payment Term - at an illustrative rate of ₹50 per ₹1,000 of Sum Assured:

$$GuaranteedAdditions(year) = \frac{SumAssured}{1000} \times 50 \times year$$

Death Benefit (First or Second Death). If a death occurs in a given policy year, the Sum Assured plus Guaranteed Additions accrued up to that year is paid:

$$DeathBenefit(year) = SumAssured + GuaranteedAdditions(year)$$

The same formula applies whether it is the first death or the second death - each triggers an independent payout based on how many policy years had elapsed at that time.

Maturity Benefit. If both lives survive the full policy term:

$$MaturityBenefit = SumAssured + GuaranteedAdditions(PolicyTerm)$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate card, which is IRDAI-approved and can change over time. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter the Age at Entry for Life 1 and Life 2 (18 to 60 years each).
2. Enter your desired Basic Sum Assured (between ₹1,00,000 and ₹50,00,000).
3. Choose a Policy Term / Premium Payment Term combination - 10/5, 15/10, 20/15, or 25/20 years. The older life's age plus the Policy Term must not exceed 75 years.
4. Choose your Premium Payment Mode - Yearly, Half-Yearly, Quarterly, or Monthly.
5. Choose whether to add the Accident Benefit Rider on Life 1.
6. Click Calculate Benefits to see your premium breakdown, Guaranteed Additions, death benefit schedule, and maturity benefit.

Worked Example

Suppose Life 1 is 32 years old, Life 2 is 30 years old, you choose a Basic Sum Assured of ₹10,00,000, the 20 Years Term / 15 Years Premiums plan option, Yearly premium mode, and no rider.

$$OlderAge = \max(32, 30) = 32$$ $$TabularRate = \frac{1000}{15} \times 0.9 + (3.0 + 32 \times 0.055) - 2 \approx 60 + 4.76 - 2 = 62.76$$ $$AnnualPremium = \frac{10{,}00{,}000}{1000} \times 62.76 \approx ₹62{,}760 \text{ per year, for 15 years}$$

If either life were to die in policy year 10, the death benefit would be:

$$GuaranteedAdditions(10) = \frac{10{,}00{,}000}{1000} \times 50 \times 10 = ₹5{,}00{,}000$$ $$DeathBenefit(10) = 10{,}00{,}000 + 5{,}00{,}000 = ₹15{,}00{,}000$$

If both lives survive the full 20-year term, the Maturity Benefit would be:

$$GuaranteedAdditions(20) = \frac{10{,}00{,}000}{1000} \times 50 \times 20 = ₹10{,}00{,}000$$ $$MaturityBenefit = 10{,}00{,}000 + 10{,}00{,}000 = ₹20{,}00{,}000$$

Life 1 completes age 52 and Life 2 completes age 50 at maturity, even though premiums stopped 5 years earlier at the end of the 15-year Premium Payment Term.