LIC's Saral Jeevan Bima 859

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LIC’s Saral Jeevan Bima Plan 859: Complete Guide, Benefits, Eligibility, Premium & Comparison

Introduction

Life insurance is one of the most important financial tools for protecting your family’s future. In India, many people delay buying life insurance due to complex terms, medical requirements, or high premiums. To solve these issues, the Insurance Regulatory and Development Authority of India (IRDAI) introduced Saral Jeevan Bima, a standardized term insurance plan.

LIC’s Saral Jeevan Bima Plan 859 is Life Insurance Corporation of India’s version of this simple and affordable term insurance policy. It is designed especially for first-time insurance buyers, low-income groups, and individuals who want straightforward life cover without complicated features.

In this detailed guide, we will explain everything about LIC Saral Jeevan Bima 859, including features, benefits, eligibility, premium structure, exclusions, claim process, and who should buy this policy.

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What Is LIC’s Saral Jeevan Bima Plan 859?

LIC’s Saral Jeevan Bima (Plan No. 859) is a pure term insurance plan that provides financial protection to the policyholder’s family in case of death during the policy term.

This plan is:

• Non-linked
• Non-participating
• Individual
• Pure protection (no maturity benefit)

The structure and features of this plan are standardized by IRDAI, which means almost all insurers offer Saral Jeevan Bima with similar terms. However, LIC’s trust, claim settlement ratio, and wide presence make Plan 859 popular among buyers.

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Key Features of LIC Saral Jeevan Bima 859

1. Pure Term Insurance Coverage

This plan provides death benefit only. If the policyholder survives the policy term, no amount is paid.

2. Standardized Policy

All Saral Jeevan Bima plans follow the same rules set by IRDAI, ensuring transparency and simplicity.

3. No Medical Tests (in many cases)

For lower sum assured amounts and younger ages, medical tests may not be required, making it easier to buy.

4. Affordable Premiums

Premiums are relatively low compared to traditional life insurance plans.

5. Flexible Policy Term

Policy term ranges from 5 years to 40 years.

6. Wide Age Eligibility

Both young and older individuals can apply under defined age limits.

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Eligibility Criteria for LIC Saral Jeevan Bima Plan 859

Entry Age

• Minimum age: 18 years
• Maximum age: 65 years

Maturity Age

• Maximum maturity age: 70 years

Policy Term

• Minimum: 5 years
• Maximum: 40 years

Sum Assured

• Minimum: ₹5,00,000
• Maximum: ₹25,00,000

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Premium Payment Options

LIC offers flexibility in premium payment under Saral Jeevan Bima Plan 859.

Premium Payment Frequency

• Yearly
• Half-yearly

(Monthly mode may not be available in all cases)

Premium Payment Term

Premiums must be paid throughout the policy term.

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Death Benefit Under LIC Saral Jeevan Bima 859

If the policyholder dies during the policy term and the policy is in force, the nominee receives the Sum Assured on Death.

Sum Assured on Death is:

The highest of:

• 10 times the annualized premium
• Absolute Sum Assured
• 105% of total premiums paid

This ensures meaningful financial support for the family.

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Maturity Benefit

Since LIC Saral Jeevan Bima is a pure term plan, no maturity benefit is payable if the policyholder survives the policy term.

This helps keep premiums low and coverage focused on protection.

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Riders Available with LIC Saral Jeevan Bima 859

Currently, no optional riders are attached to this plan. The policy is kept simple as per IRDAI guidelines.

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Grace Period

LIC provides a grace period to pay premiums after the due date:

• 30 days for yearly and half-yearly premium modes

If the policyholder dies during the grace period, the claim is payable after deducting the unpaid premium.

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Policy Revival

If the policy lapses due to non-payment of premiums, it can be revived within 5 years from the first unpaid premium date.

Revival conditions include:

• Payment of pending premiums
• Interest and possible medical requirements

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Surrender Value

LIC Saral Jeevan Bima Plan 859 does not acquire any surrender value.

This is because it is a pure term insurance plan.

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Free Look Period

If you are not satisfied with the policy terms, you can return the policy within:

• 15 days (offline purchase)
• 30 days (online purchase)

After deduction of applicable charges, the premium is refunded.

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Exclusions in LIC Saral Jeevan Bima 859

Suicide Exclusion

If the policyholder commits suicide within 12 months from:

• Policy commencement date, or
• Policy revival date

Then LIC will refund 80% of premiums paid, excluding taxes.

No death benefit is payable in such cases.

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Tax Benefits Under LIC Saral Jeevan Bima

Income Tax Act, 1961

• Premiums paid are eligible for deduction under Section 80C
• Death benefit received by nominee is tax-free under Section 10(10D)

(Tax benefits are subject to prevailing tax laws)

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Claim Settlement Process

LIC is known for its strong claim settlement record.

Steps to File a Claim:

1. Inform LIC branch or online portal
2. Submit claim intimation form
3. Provide required documents:
• Death certificate
• Policy document
• ID proof
4. Claim verification by LIC
5. Claim settlement to nominee

Claims are generally settled within a reasonable time if documents are complete.

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Advantages of LIC Saral Jeevan Bima Plan 859

• Simple and easy to understand
• Low premium term insurance
• Trusted LIC brand
• IRDAI standardized product
• Suitable for first-time buyers
• No complex investment component

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Limitations of the Plan

• Maximum sum assured limited to ₹25 lakh
• No maturity benefit
• No riders available
• Not suitable for high coverage seekers

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Who Should Buy LIC Saral Jeevan Bima 859?

This plan is ideal for:

• First-time insurance buyers
• Individuals with limited income
• Self-employed or informal sector workers
• People looking for basic life cover
• Those who want LIC trust with simple terms

It may not be suitable for individuals looking for:

• High life cover (₹1 crore or more)
• Investment + insurance combo
• Advanced riders like critical illness

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Comparison: LIC Saral Jeevan Bima vs Regular Term Plans

Feature	Saral Jeevan Bima	Regular Term Plan
Complexity	Very Low	Medium to High
Sum Assured	Up to ₹25 lakh	Up to ₹5 crore+
Medical Tests	Often Not Required	Usually Required
Riders	Not Available	Available
Premium	Affordable	Depends on coverage

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Frequently Asked Questions (FAQs)

Is LIC Saral Jeevan Bima Plan 859 good?

Yes, it is good for basic life insurance needs and simplicity.

Can I buy this plan online?

Yes, LIC allows online purchase subject to availability.

Is medical test mandatory?

Not always. It depends on age and sum assured.

Can NRIs buy this plan?

Availability may vary; confirmation from LIC is required.

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Final Verdict

LIC’s Saral Jeevan Bima Plan 859 is a well-designed, no-nonsense term insurance plan that focuses purely on protection. It is best suited for individuals who want affordable coverage, easy understanding, and the reliability of LIC.

While it may not replace a high-value term insurance policy, it plays a crucial role in increasing insurance penetration in India and providing financial security to families who need it the most.

If you are looking for a simple, transparent, and trusted life insurance policy, LIC Saral Jeevan Bima 859 is definitely worth considering.

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