LIC Jeevan Saral Plan 165 is one of the most popular traditional savings-cum-insurance plans in India. It offers guaranteed returns, life insurance coverage, and tax benefits under Section 80C and 10(10D).
But many policyholders are confused about:
✔ How much money they will get at maturity?
✔ What are the hidden rules they should know?
✔ Is it still a good investment in 2025?
Jeevan Saral Maturity
You can enter the numbers so you get the details as per your premium
1. What is LIC Jeevan Saral Plan 165?
Jeevan Saral is a traditional endowment plan from LIC (Life Insurance Corporation of India). It combines savings + life insurance in one policy.
Key Features:
✅ Guaranteed Returns – Unlike stocks or mutual funds, your money is safe.
✅ Life Cover – If the policyholder dies, the family gets a lump sum.
✅ Flexible Premiums – Pay monthly, quarterly, or yearly.
✅ Loan Facility – After 3 years, you can take a loan against the policy.
✅ Tax Benefits – Premiums under ₹1.5 lakh/year are tax-free (Section 80C).
Who Should Buy It?
✔ People who want safe & fixed returns.
✔ Parents saving for their child’s education/marriage.
✔ Salaried employees looking for tax-saving investments.
Who Should Avoid It?
✖ Investors looking for high returns (better options: PPF, Mutual Funds).
✖ Those who need liquidity (money is locked for 10+ years).
2. How Does Jeevan Saral umang Work?
When you buy this umang policy:
- You choose a premium amount (e.g., ₹5,000/month).
- You select a policy term (10 to 35 years).
- You pay premiums regularly (monthly/quarterly/yearly).
- At maturity, you get Sum Assured + Bonus (Loyalty Addition).
Example Calculation:
- Monthly Premium: ₹3,000
- Policy Term: 20 years
- Sum Assured (SA): 250 × ₹3,000 = ₹7,50,000
- Bonus (LA): If LIC declares ₹100 per ₹1,000 SA → ₹75,000
- Total Maturity Value = ₹7,50,000 + ₹75,000 = ₹8,25,000
(Note: Bonus rates change every year. Check with LIC for the latest rates.)
3. Maturity Value Calculation (Step-by-Step)
Many agents hide the real maturity value. Here’s how to calculate it yourself:
Formula:
Maturity Amount = Sum Assured (SA) + Loyalty Addition (Bonus)
Step 1: Find Sum Assured (SA)
SA = 250 × Monthly Premium labh
*(Example: ₹4,000/month → SA = ₹10,00,000)*
Step 2: Check Latest Bonus Rate
LIC declares Loyalty Addition (LA) every year.
Historically, it ranges between ₹50-₹150 per ₹1,000 SA.
Call LIC (☎️ 022-6827-6827) or ask your agent for latest rates.
Step 3: Calculate Bonus
Bonus = SA × (Bonus Rate ÷ 1000) × Policy Term
*(Example: SA = ₹10 lakhs, Bonus Rate = ₹100, Term = 25 years → Bonus = ₹2,50,000)*
Final Maturity Amount
SA (₹10,00,000) + Bonus (₹2,50,000) = ₹12,50,000
4. Death Benefit (What Family Gets If You Die Early)
If the policyholder dies, the nominee receives:
✔ Higher of:
- 10 × Annual Premium
- ₹1,250 × Monthly Premium
✔ + Loyalty Addition (if any)
Example:
- Monthly Premium: ₹5,000
- Annual Premium: ₹60,000
- Death Benefit = ₹1,250 × ₹5,000 = ₹6,25,000 (Higher than 10×₹60,000=₹6,00,000)
(This ensures family gets good financial support.)
5. Surrender Value (What If You Stop Paying Premiums?)
If you stop paying premiums, you get Surrender Value (but only after 3 years).
How is Surrender Value Calculated?
Guaranteed Surrender Value (GSV): 30% of premiums paid (after 3 years).
Special Surrender Value (SSV): Higher than GSV (depends on LIC’s rules).
Example:
Premiums Paid: ₹1,00,000 (over 4 years)
Surrender Value: Around ₹30,000 (30% of ₹1,00,000)
⚠️ Warning: Surrendering early means big losses. Only do it in emergencies.
6. Loan Against Jeevan Saral Policy
After 3 years, you can take a loan against your policy.
✔ Loan Amount: Up to 90% of Surrender Value.
✔ Interest Rate: Around 9-10% per year (changes yearly).
Good for: Emergency funds without surrendering the policy.
7. Tax Benefits (How to Save Tax?)
✅ Premium Payment: Deductible under Section 80C (up to ₹1.5 lakh/year).
✅ Maturity Amount: Tax-free under Section 10(10D) (if premium is below ₹5 lakh/year).
*(Note: If premium exceeds ₹5 lakh/year, maturity is taxable.)*
8. Pros & Cons of Jeevan Saral Plan 165
👍 Pros:
✔ Guaranteed returns (no market risk).
✔ Life insurance coverage (family protection).
✔ Tax-free maturity (if premiums < ₹5 lakh/year).
✔ Loan facility (after 3 years).
👎 Cons:
✖ Low returns (only 5-6% per year).
✖ Long lock-in period (10+ years).
✖ Surrender value is low in early years.
9. Better Alternatives to Jeevan Saral
If you want higher returns, consider:
| Investment | Returns | Safety | Liquidity |
|---|---|---|---|
| PPF | 7.1% | Very Safe | Partial (after 5 years) |
| FD (Bank) | 6-7% | Safe | Yes (with penalty) |
| Mutual Funds (Equity) | 10-12% | Some Risk | Yes (after 3 years) |
| NPS | 9-12% | Medium Risk | Very Low |
- Safe + Insurance: Jeevan Saral
- Higher Returns: PPF + Term Insurance
FAQs (Frequently Asked Questions)
Q1. What is the minimum premium for Jeevan Saral?
₹250/month (for ages below 50).
Q2. Can I withdraw money before maturity?
Yes, but only after 3 years (surrender value will be low).
Q3. Is Jeevan Saral labh better than FD?
FD gives better returns (6-7%) but no life cover.
Jeevan Saral gives insurance + tax benefits.
Q4. How to check my policy details online?
Visit LIC’s e-Services Portal → Register with policy number.
Conclusion
LIC Jeevan Saral Plan 165 is a safe but low-return investment. It is best for risk-averse investors who want insurance + savings.
Consider PPF, Mutual Funds, or NPS if you want higher profits.
Disclaimer: I request to you before taking any policy please onsulting with the nearest LIC agent for better understanding because lic agent give best poliyc and please check LIC’s official website for current updates.
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