LIC Jeevan Pragati
Plan 838 Calculator
Accurate premium, maturity, death benefit & surrender value estimates based on real LIC policy brochure logic.
Fill in the policy details and click Calculate Now to see your estimates.
What is LIC Jeevan Pragati Plan 838?
LIC Jeevan Pragati Plan 838 is a non-linked, with-profits endowment insurance plan offered by the Life Insurance Corporation of India. It is unique because it combines the twin benefits of life protection with a savings component, and features an automatically increasing risk cover over time — without any additional premium charge.
This makes it one of the few LIC plans where your death benefit grows progressively every 5 years, starting at 100% of the Basic Sum Assured and reaching up to 200% for policies held beyond 16 years. This feature is particularly valuable in combating the effects of inflation on life cover over the policy term.
Key Features at a Glance
- Plan Type: Non-linked, with-profits, endowment plan
- Minimum Entry Age: 12 years | Maximum: 45 years
- Policy Term: 12 to 20 years
- Maximum Maturity Age: 65 years
- Minimum Basic Sum Assured: ₹1,50,000 (in multiples of ₹10,000)
- Premium Modes: Monthly, Quarterly, Half-Yearly, Yearly
- Bonus: Simple Reversionary Bonus + Final Additional Bonus
Benefits of the Increasing Risk Cover
The standout feature of Jeevan Pragati Plan 838 is its automatic step-up in death benefit. Most insurance plans keep the sum assured constant throughout the term. However, Plan 838 recognises that your family’s financial needs grow over time — and inflation erodes the real value of a fixed sum assured.
How the Death Cover Increases
- Years 1–5: 100% of Basic Sum Assured
- Years 6–10: 125% of Basic Sum Assured
- Years 11–15: 150% of Basic Sum Assured
- Years 16 and beyond: 200% of Basic Sum Assured
Additionally, the death benefit includes all vested Simple Reversionary Bonuses and any Final Additional Bonus that may have been declared. The total death benefit is also subject to a minimum guarantee of 105% of all premiums paid to date.
How Maturity Value is Calculated
On surviving the full policy term, the policyholder receives the Maturity Benefit, which comprises:
- Basic Sum Assured — the face value you chose at inception
- Vested Simple Reversionary Bonuses (SRB) — accumulated annually over the policy term, declared by LIC as a rate per ₹1,000 Sum Assured
- Final Additional Bonus (FAB) — a one-time bonus declared by LIC at maturity or death, available to longer-duration policies
Because LIC’s bonus rates depend on actual investment returns and experience, this calculator uses two scenarios: a Conservative (4%) scenario and a High (8%) scenario to give you a realistic range of possible outcomes.
Surrender Value Explained
A surrender value is the amount LIC pays you if you choose to terminate your policy before the full term. For Plan 838:
- Surrender is only possible if you have paid at least 3 full years of premiums
- The Guaranteed Surrender Value (GSV) is a fixed percentage of total premiums paid, increasing with each policy year
- The Special Surrender Value (SSV) may be higher and is based on the paid-up value plus accrued bonuses, multiplied by a surrender factor
LIC pays the higher of GSV or SSV at the time of surrender. Surrendering early typically results in a significant loss relative to the premiums paid, so it is advisable only as a last resort.
Paid-Up Policy Explained
If you are unable to continue premium payments but have already paid at least 3 years’ worth of premiums, your policy automatically converts into a paid-up policy rather than lapsing entirely. In this case:
- The Death Paid-Up Sum Assured = (Sum Assured on Death × Number of Premiums Paid) ÷ Total Premiums Payable
- The Maturity Paid-Up Sum Assured = (Basic Sum Assured × Number of Premiums Paid) ÷ Total Premiums Payable
Future bonuses are not added to a paid-up policy. The paid-up value is lower than the original benefit but ensures you retain some coverage and savings value.
Tax Benefits Under LIC Jeevan Pragati Plan 838
Section 80C — Premium Deduction
Premiums paid under this plan are eligible for a tax deduction of up to ₹1,50,000 per financial year under Section 80C of the Income Tax Act, 1961. This reduces your taxable income and lowers your overall tax liability.
Section 10(10D) — Maturity and Death Benefit Exemption
The maturity amount and death benefit received are generally exempt from income tax under Section 10(10D), subject to the condition that the annual premium does not exceed 10% of the Sum Assured (for policies issued after April 1, 2012). Consult your tax advisor for your specific situation.