LIC Jeevan Shikhar Plan (Table No.837) – Features, Review & Returns Calculation

LIC (Life Insurance Corporation of India) is soon going to launch a new Single Premium Endowment plan called LIC Jeevan Shikhar. This new endowment plan is a participating, non-linked, with profit, savings cum protection plan.

LIC new plan Jeevan Shikar  is expected to be available for sale for a limited period of time i.e., 120 days from the date of launch; from 11th January, 2016 to 31st March, 2016.

Around the same time last year (in Mar, 2015), LIC had launched a similar plan called LIC Jeevan Sangam (table no 831). LIC generally launches a lot of new plans during this time of the year when most of the individuals (considering the salaried individuals have to submit their income tax investment proofs) look for investing in Tax Saving instruments.

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.

Key Features of LIC Jeevan Shikhar (Plan no 837)

The main features of this new endowment plan are as below;

  • Sum Assured on Death : 10 times of tabular single premium
  • Minimum Maturity Sum Assured : Rs. 100,000/-
  • Maximum Maturity Sum Assured : No Limit (Maturity Sum Assured shall be in multiple of Rs. 20,000/- only)
  • Policy Term : 15 years
  • Minimum Entry Age : 6 years (completed)
  • Maximum Entry Age : 45 years (nearer birthday)
  • Premium payment mode : Single premium only

Benefits under LIC’s Jeevan Shikhar policy

  • Death Benefit – 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.
  • Maturity Benefit in Jeevan Shikhar : On policy maturity, the Maturity Sum Assured along with Loyalty Addition (if any) shall be payable.
  • 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.
  • 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 Shikhar LIC new endowment plan 837 2016 features pic

Illustration of LIC’s Jeevan Shikhar Plan

How does Jeevan Shikar 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).

Below is the info-graphic on how LIC Jeevan Shikhar plan works;LIC Jeevan Shikhar Plan example benefits illustration pic

Calculation of Returns on LIC Jeevan Shikhar

Is this new plan a good one or a 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.

LIC Jeevan Shikhar plan Returns calculation maturity amount calculation with loyalty addition pic

As calculated above, the returns from LIC Jeevan Shikhar 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 6.28% only. So, the returns are highly dependent on Loyalty Addition payout.

Last year LIC had offered a similar single premium plan called ‘Jeevan Sangam’ with 12 year policy term only. So, if we compare the returns of both the plans, Jeevan Shikhar will offer you slightly lower returns than last year’s Jeevan Sangam plan.

It is very clear that LIC would like to cash in on the tax saving season by offering Jeevan Shikhar for a limited period (till 31st March, 2016). Most of the tax assessees who do last minute tax planning, may end up buying these low-yielding plans to claim tax benefits and deductions under section 80c.

This plan neither provides adequate life cover nor gives you decent returns. You may ignore buying this plan unless you are content with 6% returns over a period of 15 years.

If your requirement is to get an adequate life cover, buy a Term Insurance Plan. In case if your investment objective is tax saving cum long-term wealth accumulation, it is prudent to invest in Equity Linked Tax Saving Schemes of Mutual funds.

(Kindly note that this post is based on limited information that is available on net. The above details can be changed as and when more information is available after the launch of LIC Jeevan Shikhar plan)

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  • SUNIL KUMAR says:

    Hii Sreekanth
    I have taken Jeevan Shikhar last year. Now i am filling my Income Tax Return so, i want to know upto what amount i can take benefit of this policy. I have paid Rs 96000/- for this policy last year (single premium)

  • Vishal arora says:

    Sir,need your suggestion,FD of my father’s name got mature today almost 1 lacs rs,I need a suggestion shall i renew it or i will take any single premium policy at my name,(LIC,Kotak etc)which is more benefited,my dob 07.05.74,

  • Sudarshan says:

    Hi Srikanth,
    This is Sudarshan from Hyderabad.
    I have one son aged 27 years (born in 1989). He is DEAF & DUMB by birth. He is married.
    My daughter-in-law is also DEAF & DUMB. They have one daughter aged 3YEARS.
    Pl suggest me suitable policy for them with covering BABY’s future needs i.e. higher education, marriage etc.,…
    Thank you,


  • ARUN says:

    Sir i am planning to buy Jeevan Shikar 837 Plan….as i am interested in Single Premium Plan….My Daughter DOB is 12/09/2007….My DOB is 13/071972…

    Pls suggest which Policy is ideal for both Tax Saving and long term investment (Assured Maturity Return Plan) plan for my Daughter Education / Marriage…etc

    1.837 Plan should be taken in how’s Name( Daughter or Parent).

    2.Pls Calculate and let me Know Approximately what will be Total Maturity Rs Value after Completion of 15 Years.

    I would not recommend to buy this plan in his name because it provides risk cover equal to 10 times of single premium paid. so it should in parents name.

  • Rubul says:

    i want to invest in PPF account…….. please suggest which one best ?


    also i want to invest in monthly income scheme…… please suggest……….

  • jagannath says:

    Hi Sreekant,

    My wife is 43 yrs old and she has diabetics , she was worked for about past 15 years and has received a PF of about 2 lakhs and we have a daughter who is one year old. She plans to take up LIC Jeevan shikar with a single premium of 1 Lakh since she cannot take Term Life policy since she is not earning for the past 2 years . I request you to please reply to my mail address

  • jagannath says:

    hi sreekant,

    I plan to do invest in mutual fund , is it better to chose any company like Scrip box , IIFFL , ventura securities etc for starting SIP so that they can help in selecting the best mutual fund. Please advice and reply to my mail address

  • Thanks for this post.. Its really helpful.. That you showed its only giving 6% interest. I think its better to invest in FD

  • Chandrashaker says:

    Hi Srikanth,

    I am planning to take LIC ‘s policy 1 lak, but i am confused to choose which one is correct, my age is 32 unmarried statying with family.recently i met LIC agent he explain me some policy like LIC JEEVAN SHIKHAR, AND LIC BHIMA BACHAT.( Money Back Policy) both are single permium. both are 15 yr’s term.

    as per agent said in Bhima bachat every 3 yr’s we receive some amount. in Jeevan shikhar we did not get any thing.

    Kindly suggest me which policy should i take.

    Appreciate your help.

  • Nidhi says:

    I appreciate Sir that you have given calculation to understand the single premium likely to deposit and the maturity value of the plan
    It would be highly appreciated if you kindly aware us with surrender vale this Jeewan Shikher if surrender is made after three years

  • says:

    Please let me know can i change my Lic Agent ?

    • Dear Zakir..I believe that LIC has been thinking to launch ‘Agent Portability’ facility, but this facility has not yet been launched i guess.
      Meanwhile, you can useLIC-e-service portal for all your policy servicing needs.

    • Arvind Kumar Dubey says:

      Dear Zakir

      please call me at 9999247451 for any kind of help regarding LIC , sorry to say about agent change facility its more positive & negative points to activate this facility,

      you can call me for any help

      • Dear Arvind..Can a policy holder change his Agent? Has this facility/provision being made available now?

        • Arvind Kumar Dubey says:

          No sir, any policy holder can’t change his agent, before few months it was under process by LIC but not activated this facility due to all agets competition,LIC market,may be legpulling by agents etc .
          There are more +ve & -ve points to activate this facility.

          If you have any problem by agent you can call any other agent & I m sure he will give you a good service for LIC.

  • sanjay says:

    Main 1lac ki policy karwata huin to 5 saal meri death ho jati hai to kitne milege or nahi marta to after maturity par kitne milege

  • Gunda Sreenivas says:

    The needed questions are answered and the the needed analysis for a common man are answered for for further analysis suiting his financial goals

  • Rakesh says:

    HI Sreekanth, I want a risk cover plan which covers natural and Accidental death if possible returns. Kindly let me know if there any plans. Appreciate your help


    I want to know about a single premium plan for my daughter aged 12 years. the single premium amount could be around rs.3 L. I want that I should get back the amount on maturity after 10 to 12 years if nothing mis-happening takes place. Please advise me a plan and how much insurance will be covered and the amount which I will get after 10-12 years. My age at present is 59 years

  • Rupali R. Mithbaokar says:

    Its shame how LIC agents mislead gullible investors enticing them to “invest” in such pathetic products under the so called tag line “Jindagi ke saath bhi, Jindagi ke baad bhi” and “Safe and guaranteed returns from Govt. of India”

    I had invested in Jeevan Mitra plan in 2001 after i got first job after degree. The Sum Assured was small at Rs. 50,000/- considering it was my first job. The plan period was 20 years and I used to pay premium of Rs. 2684/- p.a. Six months ago, I thought it would be better to surrender the policy in order to simplify my finances. When I inquired at LIC branch about surrender value, I got a reply that I will get Rs. 44,000/-

    I was shocked since I paid around Rs. 38,000/- on premium in 14 years and even then I was expected to receive only Rs. 44,000/- resulting in pathetic return of 2.1%!!!! I could have got 3.5% to 4% return even if I had kept the funds in Saving Bank account without compromising on liquidity.

    What is the use of such product which neither gives one protection nor return? Hence, I think selling traditional LIC plans to financial illiterate people should to treated as crime and such agents should be sent to jail along with top LIC officials. (Since LIC never promoted Term plan in 60 years of its presence and only relied on traditional plans to grow)

    • Dear Rupali,
      Considering you have paid around 15 policy years premiums, suggest you to make your Jeevan Mitra policy a PAID-UP one.
      It is the case with almost all LI companies. As an investor, it is prudent not to invest in any traditional plans (moneyback/endowment plans) offered by any of the insurance companies.

  • jeeva g says:

    if i am invest rs.2 lacs in this plan. after 15 years, i will get rs.20 lacs or not?

  • Abhijit Thorat Patil says:

    Thanks Shreekanth, for nice advice & help.

  • Rajendra Raawa says:

    this article. is very meaningful for me
    . thanks for sharing.with us..

  • Pradeep says:

    Hi Sreekanth,
    This plan as an investment product looks quite attractive. 10 times return on investment plus LA in 15 years translates to 16% CAGR which is comparable to Mutual Funds.
    I know the insurance part of it is not so great especially in first 5 years and also premium high since it is one time at the start of the policy. And of course we need to read the product in detail to understand other hidden factors.

    What are your thoughts?

    • Dear Pradeep,
      10 times of premium is the death benefit and its not maturity benefit.
      This plan may mostly give returns of around 6 to 7%. Let’s wait till premium rates are available. I will surely update the article with ‘returns calculation’.

  • hoshang says:

    Sreekanth Reddy-FIRSTLY i visit this website on daily basis are the first one to give all the important updated to all of us.there are other site as well which i visit but all the first hand information i get from
    Keep up the good work and I wish you all the best for everything you do in life.

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