LIC Jeevan Saral (Plan 165) is a withdrawn endowment plan where you pick the monthly premium and the premium decides the cover. Death cover is 250 times the monthly premium; at maturity you get a maturity sum assured plus a loyalty addition. For ₹1,000 a month from age 30 over 20 years, our estimate is about ₹3.78 lakh at maturity against ₹2.4 lakh paid.
Jeevan Saral 165 Maturity & Death Benefit Calculator
Your estimate
250 × monthly premium, plus premiums paid after year 1
- Yearly premium
- ₹12,000
- Total premium paid
- ₹2,40,000
- Maturity sum assured
- ₹2,10,000
- Loyalty addition (estimated)
- ₹1,68,000
- Death benefit in final yearplus loyalty addition, if any
- ₹4,78,000
- Approx. return (IRR)
- 4.15%
- Age at maturity
- 50 years
- Total premium paid₹2,40,00063%
- Net gain₹1,38,00037%
Death benefit by policy year (before loyalty addition)
| Policy year | Premium paid | Death benefit |
|---|---|---|
| 1 | ₹12,000 | ₹2,50,000 |
| 5 | ₹60,000 | ₹2,98,000 |
| 10 | ₹1,20,000 | ₹3,58,000 |
| 15 | ₹1,80,000 | ₹4,18,000 |
| 20 | ₹2,40,000 | ₹4,78,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Jeevan Saral Plan 165?
LIC Jeevan Saral (Plan 165) was one of LIC’s most widely sold endowment policies of the 2000s. It turned the usual logic around: instead of choosing a sum assured and being quoted a premium, you chose a comfortable monthly premium, and the cover followed from it.
- Death cover = 250 × monthly premium, plus premiums paid after the first year.
- Maturity = a maturity sum assured (MSA) that depends on your entry age and term, plus a loyalty addition.
The plan is now withdrawn for new buyers, but many policies bought with 20- to 35-year terms are still running. This page is for those policyholders: it estimates what your policy should pay and explains why the maturity figure often surprises people.
Jeevan Saral 165 at a glance
| Feature | Details |
|---|---|
| Plan number | 165 |
| Plan type | Endowment with premium-linked cover |
| Entry age | 12 to 60 years |
| Policy term | 10 to 35 years |
| Maximum maturity age | 70 years |
| Minimum premium | ₹250 a month (₹400 from age 50) |
| Death sum assured | 250 × monthly premium |
| Extra benefit | Loyalty addition (not guaranteed) |
| Status | Withdrawn for new sales |
How the calculator works
The calculator starts with your monthly premium and multiplies it by a maturity sum assured factor for your age and term. That factor is lower for older entrants because more of each premium pays for the life cover.
The original rate chart we started from gave maturity values of only about 45% of premiums for a 10-year policy. That is not realistic for this plan, so we corrected the table. Treat all results as estimates, not LIC quotes.
Example 1: a 30-year-old paying ₹1,000 a month for 20 years pays ₹2,40,000 in total. The estimated maturity sum assured is ₹2,10,000. With a loyalty addition of ₹40 per ₹1,000 a year, that adds ₹1,68,000, so the total is about ₹3,78,000, a return of roughly 4.15% a year.
Example 2: a 35-year-old paying ₹2,000 a month for 15 years pays ₹3,60,000. The maturity sum assured is ₹2,84,000, which is less than the premiums paid. With the same loyalty assumption the payout rises to about ₹4,54,400 (about 2.86% a year).
Tip: when your maturity letter arrives, compare the maturity sum assured and the loyalty addition separately. If the loyalty addition is lower than you expected, reduce the rate in the calculator to see how your other years compare.
Death benefit
Jeevan Saral pays a large death benefit relative to the premium:
- 250 × the monthly premium, plus
- all premiums paid except those of the first year (and riders), plus
- the loyalty addition, if the policy has completed the required years.
For ₹1,000 a month, the death cover is ₹2,50,000 in year one and grows to about ₹4,78,000 by year 20. The table under the calculator shows this growth year by year.
Loyalty addition explained
The loyalty addition is Jeevan Saral’s version of a bonus. It is not guaranteed, is declared per ₹1,000 of maturity sum assured, and is paid only on policies that have run for at least 10 years. Rates have varied with the term and the year of claim. That is why we let you set your own figure instead of fixing one.
Surrender and loans
You can surrender after three full years of premium. The early surrender value is modest because much of the premium has paid for life cover. A loan is available against the surrender value. For a year-by-year surrender estimate, use the Jeevan Saral calculator, which also shows the guaranteed and special surrender value.
Tax treatment
Premiums qualified for Section 123 of the Income-tax Act, 2025 (earlier Section 80C) deduction under the old tax regime. As the death cover is far above ten times the yearly premium, the maturity amount is normally exempt under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)). Individual life insurance premiums are GST-exempt from 22 September 2025. Before that, older receipts showed 4.5% GST in year one and 2.25% after.
Should you continue your Jeevan Saral policy?
For most policyholders who are more than halfway through the term, continuing makes sense. The loyalty addition is paid only at the end, and the surrender value ignores most of it. If you are early in a long term and want better returns, compare a pure term plan plus a separate investment before deciding. New buyers who want a simple LIC cover can look at Saral Jeevan Bima 859, which is a term plan despite the similar name.
How to use this calculator
- Enter the monthly premium from your policy bond.
- Enter your age at entry and choose the policy term.
- Leave the loyalty addition at ₹40 or change it.
- Read the maturity estimate, the death cover and the year-wise death benefit. The chart below the calculator compares maturity values for a ₹1,000 premium across ages and terms.
Frequently asked questions
How is the sum assured decided in LIC Jeevan Saral?
In Jeevan Saral you do not choose the sum assured. You choose the monthly premium, and the death sum assured is fixed at 250 times that premium. A ₹2,000 monthly premium therefore gives ₹5 lakh of death cover, whatever your age.
Why is the Jeevan Saral maturity sum assured lower than the premiums I paid?
The maturity sum assured is what remains after LIC deducts the cost of the large death cover from your premiums. For older entrants and shorter terms it can be below the total premium paid. The loyalty addition declared at maturity is what usually lifts the payout above your contributions.
What is the loyalty addition in Jeevan Saral?
It is a non-guaranteed extra amount LIC declares for policies that run at least 10 years, paid on maturity, death or surrender. It is declared per ₹1,000 of maturity sum assured. Our calculator lets you set the rate because the actual figure depends on the year of claim.
What does the nominee get if the policyholder dies?
The nominee gets 250 times the monthly premium, plus all premiums paid except the first year's (and rider premiums), plus any loyalty addition. For ₹1,000 a month, death in the 20th year pays about ₹4.78 lakh before loyalty addition.
Can I still buy LIC Jeevan Saral?
No. Jeevan Saral was withdrawn from new sales around 2014, when LIC retired its older plans under the new IRDA product rules. Existing policies continue with their original benefits until maturity or claim.
Can I surrender Jeevan Saral early?
Yes, once at least three full years of premium are paid. The surrender value is low in the early years. Use the Jeevan Saral calculator on this site, which also estimates the surrender value year by year.
Is Jeevan Saral maturity taxable?
Premiums qualified for Section 123 (earlier 80C) deduction under the old tax regime. The maturity amount is generally exempt under Schedule II (earlier Section 10(10D)) because the death cover is well above ten times the yearly premium.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.