LIC Jeevan Aadhar Plan 114 Calculator

What is LIC Jeevan Aadhar Plan 114?

LIC Jeevan Aadhar Plan 114 is a whole life, with-profits insurance plan specially designed by Life Insurance Corporation of India to provide lasting financial security to handicapped dependants. Unlike conventional endowment plans, Plan 114 does not offer any maturity benefit; instead, the entire insurance corpus is activated on the death of the life assured and is used to support the dependant for life.

The plan is rooted in a compassionate purpose: ensuring that a person with special needs is never left without a stable income, even after the primary breadwinner is no longer around. It qualifies for deduction under Section 80DDA of the Income Tax Act, providing an additional financial incentive.

How Guaranteed Additions Work in Plan 114

One of the most powerful features of LIC Jeevan Aadhar Plan 114 is its system of Guaranteed Additions (GA). Unlike bonuses declared annually by LIC which depend on profitability, these additions are absolutely guaranteed — no matter what happens to LIC's performance.

The Guaranteed Addition Rate

For every completed policy year, ₹100 is added per ₹1,000 of Sum Assured. This means a policy with a Sum Assured of ₹1,00,000 accumulates ₹10,000 in Guaranteed Additions every year. These additions accrue until the life assured reaches age 65, or until earlier death — whichever is sooner.

Example Calculation

If you enter the plan at age 35 with a Sum Assured of ₹1,00,000: by age 65 (i.e., 30 years), total Guaranteed Additions will be ₹3,00,000 — bringing the guaranteed death benefit (excluding terminal additions) to ₹4,00,000.

Death Benefit Explained

The death benefit under Plan 114 is a composite figure comprising three elements:

• Sum Assured — the base insured amount chosen at inception
• Guaranteed Additions — ₹100 per ₹1,000 SA per completed year
• Terminal Additions — profit bonuses, applicable if at least 10 premiums are paid (not guaranteed)

The resulting total is then distributed in two parts: 20% as an immediate lump sum to the nominee/dependant, and 80% converted into an annuity for the handicapped dependant payable for 15 years certain and for life thereafter.

Annuity Structure in Plan 114

The annuity structure is the cornerstone of Jeevan Aadhar's design. By channelling 80% of the death benefit into a structured annuity, LIC ensures that the handicapped dependant receives a regular monthly or annual income for life — not a one-time payout that may be mismanaged.

The annuity is "15-year certain and life", meaning: even if the dependant passes away within the first 15 years, the annuity continues to be paid to their heir for the remainder of the 15-year period. After 15 years, the annuity continues as long as the dependant is alive.

Tax Benefits Under Section 80DDA

Premiums paid for LIC Jeevan Aadhar Plan 114 are eligible for income tax deduction under Section 80DDA of the Income Tax Act, 1961. This section specifically caters to individuals who maintain a handicapped dependant, offering significant relief.

The deduction is available to individuals and Hindu Undivided Families (HUFs) who have a dependant with disability. The allowable deduction under Section 80DDA is up to ₹75,000 (or ₹1,25,000 for severe disability). Always consult your tax advisor for precise entitlements based on your situation.

Who Should Consider LIC Jeevan Aadhar Plan 114?

• Parents or guardians of children with physical or mental disabilities
• Individuals who want guaranteed income security for a handicapped sibling or dependant
• Earners in higher tax brackets who can benefit from Section 80DDA deductions
• Families who want a structured, disciplined payout rather than a lump sum
• Those who prefer guaranteed returns (GAs) alongside potential upside (Terminal Additions)

No Surrender Value — Why It Matters

Plan 114 intentionally does not permit surrender. This design choice ensures that families cannot prematurely liquidate the policy — protecting the handicapped dependant's future income from impulsive financial decisions. The policy is a long-term commitment, similar to a trust fund, and its strength lies in its non-surrenderability.

Frequently Asked Questions