LIC Jeevan Sangam – New Plan – Features, Review & Returns Calculation

LIC Jeevan Sangam is a new Endowment plan from Life Insurance Corporation of India (LIC). LIC is launching this policy on 4th March, 2015. LIC’s Jeevan Sangam is a participating, non-linked, savings cum protection and single premium plan. The risk cover in Jeevan Sangam is a multiple of single premium. This new plan is available for sale for a limited period of time i.e., 90 days from the date of launch (This plan is open for purchase till 1st June 2015).

In this plan, the proposer can choose the Maturity Sum Assured (MSA). The single premium amount is based on the chosen MSA and the age of the life insured.

Features of LIC Jeevan Sangam :

  • Jeevan Sangam is a Single Premium Endowment plan. It is a conventional / traditional plan (Savings cum protection policy).
  • Minimum Entry Age – 6 years
  • Maximum EntryAge – 50 years
  • Minimum Maturity Sum Assured (MSA) – Rs 75,000
  • Maximum MSA – No limit
  • Basic Sum Assured (BSA)– 10 times the tabular single premium
  • Policy / Plan Term – 12 years
  • Premium Mode – Single Premium
  • Maturity Benefit in Jeevan Sangam : On policy maturity, the Maturity Sum Assured along with Loyalty Addition (if any) shall be payable.

 Maturity Benefit = Maturity Sum Assured + Loyalty Addition

  • Loyalty Addition : The Loyalty Addition shall be  payable on death of the policy holder or on surrender of the policy, provided the policy has run for atleast  five policy years, or on policyholder surviving till policy maturity.
  • Death Benefit in Jeevan Sangam :
    • On death during first five policy years:
      Before the date of commencement of risk: Single premium amount paid will be refunded. After the date of commencement of risk: Basic Sum assured i.e. 10 times the tabular single premium shall be payable. (What is ‘Date of commencement of risk’ : In case the age at entry of the Life assured is more than 8 years or more, risk will commence immediately. If age is less than 8 years, the risk under this plan will commence from one day before the policy anniversary coinciding with or immediately following the age of 8 years.)
    •  On death after completion of five policy years but before the stipulated Date of Maturity: Death Benefit is Basic Sum assured i.e. 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.
  • Surrender option & Surrender value : The policy can be surrendered at any time during the policy year.  The Guaranteed Surrender Value allowable shall be as under:
    • First year: 70% of the Single premium (excluding extra premiums paid and taxes).
    • Thereafter: 90% of the Single premium paid (excluding extra premiums paid and taxes).  (If policy is surrendered after completion of 5 years, Loyalty addition (if any) will also be paid)LIC Jeevan Sangam New Plan Main Features

Illustration of LIC’s Jeevan Sangam Plan

How does Jeevan Sangam plan work? As mentioned above, it is an endowment plan. The premium is dependent on  your age and on the Maturity Sum Assured (MSA) you choose. You have to pay premium only once and risk cover is available through out the policy tenure. On maturity, you get MSA, along with Loyalty Addition (LA).LIC Jeevan Sangam New Plan illustration

Calculation of Returns on LIC Jeevan Sangam

So, is this plan a good one or bad one? Is it worth your money? Let us calculate the returns with an example. I have used the IRR (Internal Rate of Return) function of Microsoft Excel (MS Excel) to calculate the returns on policy maturity.

Returns calculation on LIC Jeevan Sangam

As calculated above, the returns from LIC Jeevan Sangam can be around 6% to 7%. I have assumed 10 % of Sum assured as Loyalty Addition (which is on a higher side), still the returns are just 6.83% only. You may expect Loyalty Addition (LA) of around 8% of Sum Assured as one time payment. So, the returns are highly dependent on Loyalty Addition payout.

My opinion :

We are at the fag end of the Financial Year 2014/2015. People generally rush to buy tax-saving plans at the fag end of a financial year. So, its a perfect time to launch a traditional policy, that too a single premium plan. Let’s say, your Section 80C is still not complete and you can invest Rs 50,000 more. In this scenario, a single premium plan looks like a perfect investment to fill your Section 80C. Is this the right way of planning your taxes?…..NO….

Do not buy a Life Insurance plan, just to save some taxes. You will curse yourself if you buy a traditional plan in a hurry to save tax.

  • Do not mix insurance with investment.
  • You can expect returns of around 6% from these kind of policies.
  • It is better to buy a simple Online Term Insurance plan (Read my article on “Top 9 Best Online Term Insurance Plans“)

What is your opinion on LIC Jeevan Sangam? Do share your views and comments.

Continue reading :

  • kokila says:

    Dear sir, i need to invest 5000 annually for the benefit of my children whose age are girl 11 yrs and boy 3 yrs,which is the best option

  • Ranjan Banik says:

    Hi Sreekanth,

    To Cover 80C for my wife,

    1. she is planning to invest in some one time investment plan by today/tomorrow only (as there is no time left).
    2. She already has various LIC term insurance with 33k premium.
    3. She needs to invest 90k to cover for 80C
    4. She may leave the job next year, so she does not want to go for another term policy (moreover when amount is so high i.e. 90k)

    Please suggest.


  • Ravi says:

    Hi ,
    I am Ravi and my age is 34. Till now i have never invested or taken any insurance. Now i would like to invest one lakh for 10 years. Please advise me. What do you think ,which plan should i go for for high assured income at-least when i reach 45 age.
    i have no knowledge in insurance or mutual funds

    My email id : ravikiran**

  • Rahul says:

    Hi Sreekanth , i want to invest 150000 for investment purpose only( insurance not required) to gain maximum profit in next 10-15 years.

    what is the best option ?

  • Mohammad Alam says:


    I’m planning to pay single premium 2 lakhs . What are the final benefits amount after 12 years Under LIC Jeevan Sangam .

    Please let me know the details

  • Bhagyaraj Nair says:

    Hi Sreekanth,

    As of now I have 5 LIC policies listed below …planning to close all the below expect Jeevan Anand – maturity is in 2019.

    Money back 4 lak (25k premium annually)
    Money back 1 lack (7K premium annually)
    Child plan 1 lakh (5k premium annually)
    Lic term plan of 14 lakhs (5k premium annually)
    Jeevan Anand 1 lakh (12K premium annually)

    And planning to buy a term insurance from HDFC or ICICI or ???

    I do have medical policy from Max bupa of 18 lakhs

    Pls advice..thanks in advance

    Best wishes,
    Bhagyaraj Nair

  • sujatha says:


  • Robin says:

    Dear Sir,

    I’m recently joined LIC. I’read your blogs which is really helpful for me.Can you please let me know if someone ask which LIC policy is suitable for me and which is not so could you please suggest me.
    And my another query is that Is there any Calculator available where I can define end-user regarding his maturity and other benefits.
    Could you please revert me @

    Thanks in Advance!

    • Dear Robin,
      If you ask for my opinion then I would suggest you to educate your prospects on Term insurance plans. Try to sell term insurance plans only (e-Term, Anmol Jeevan..). As of now, I have not developed any calculator as such.

  • Nitin says:

    Hi ,

    My father came across Jeevan Sangam and really wants me to take this as their is no money loss in this apart from other Term insurance which charge some amount but do offer good amount in case of death for any unseen reasons.

    I am 29 years old and have annual salary of around 10 Lacs per annum. I am single but might get married by end of this year and planning to buy a flat next year.

    I have kept most of the amount as FDs and have also started a monthly SIP of 10k recently.

    Is it fine if I take Jeevan Sangam for 10 years without buying any other term insurance? If yes, what should be the minimum amount that I should invest in it?

    Appreciate an early response as I got to know the last day to buy this policy is 4th June. Thanks in anticipation.

    – Nitin

  • pankaj says:

    Lic policy

  • amit kumar maji says:

    my date of birth 06/01/1974. i want to invest one lak.what will the total amount retun from this police?

  • rajiv isaac says:

    Please provide your valuable feedback on LIC Jeevan Akshay 6!

  • Pulkit Arora says:

    hello sir,

    Please advise for this Jeevan Sangam policy, supposedly if I invest 2Lakh as a single premium, and MSA is 1Lakh and there is no death happened in next 12 years from now, What will be the maturity benefit i’ll get on Completion date?
    I’ll get this single premium + MSA + LA on maturity or not (in Case if there is no death happened)

    Also, would this amount be taxable at that time?

  • Naveem says:

    How is this different from a fixed deposit for 12 years in a bank?

  • N. Sharma says:

    Well explained, better than many, but, how do they (LIC) decides Loyalty Bonus, on Market or on own performance.

  • Joydeep Choudhury says:

    Oh no …not again…….. My Jeez when will we see an end to all these ….? My gosh….. How is LIC hurting the interests of these CFPs…? Who pays them to write against LIC..? My God…. Give LIC a break…….

  • Sridharan says:

    Mr. Jamal Akhtar you want premium for LIC child plan? , I will share kindly tell your daughter age and your age.

  • Shivakumar A says:

    More Insurance companies are going to come. Let us see what returns they give.

  • U.R.V.RAMANA RAO says:

    Dear Reddygaru,
    I will be retired on 31.12.2021, but till now I am not having any life risk policies. By 28.03.2014, I will get the maturity amount from LIC. How I have to invest that amount for my future life.Pl.advice.
    (U.R.V.Ramana Rao)

    • Dear Mr Rao,
      What is your age? Do you have any family member who is dependent on you?
      Are you saving / investing enough for your retirement life? What are you existing investments (allocated to retirement goal)?

  • pawan jain says:

    sir in sukanya samriddhi yojna, my daughter age is 10 year .i want to invest only for twelve year from the date of account opening.can i close this account when there is marriage in the age of 22 it mandatory to operate account 14 years.

  • Premium amount of jeevan sagun n children moneyback policy

  • Plz share the premium amount in various age.

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