LIC New Jeevan Mangal Plan 940 Calculator: Premium, Return of Premium & Benefits

What is LIC New Jeevan Mangal Plan 940?

LIC New Jeevan Mangal Plan 940 is a micro-insurance policy built for families on small or irregular incomes. It works like a term plan with one important twist: if the policyholder is alive at the end of the term, LIC refunds every premium paid. If the policyholder dies during the term, the nominee receives the life cover, and the payout doubles when the death is caused by an accident.

Plan 940 is the latest version of the New Jeevan Mangal series. It came after New Jeevan Mangal 840 and followed the same basic design, with the death benefit rules updated to newer product regulations. According to published plan details it was launched on 1 March 2022. LIC no longer sells it to new customers, but existing policies continue unchanged.

New Jeevan Mangal 940 at a glance

Feature	Details
Plan number	940
Plan type	Micro-insurance term plan with return of premium
Premium options	Regular premium or single premium
Policy term	10–15 years (regular), 5–10 years (single)
Entry age	18 to 55 years
Maximum maturity age	65 years
Sum assured	₹50,000 to ₹2,00,000
Maturity benefit	All premiums paid, returned
Accident benefit	In-built, extra amount equal to sum assured
Loan	Not available
Status	No longer sold to new customers

Eligibility

Condition	Regular premium	Single premium
Minimum entry age	18 years	18 years
Maximum entry age	55 years	55 years
Policy term	10 to 15 years	5 to 10 years
Maturity age limit	65 years	65 years

Because of the age-65 cap, a 55-year-old can only choose a 10-year term, and a 50-year-old can go up to 15 years.

How the premium is calculated

LIC uses a rate for every ₹1,000 of sum assured, based on your age and term. Longer terms spread the cost over more years, so the yearly premium falls as the term rises. The calculator follows these steps:

1. Rate for your age and term × (sum assured ÷ 1,000) = yearly premium.
2. Half-yearly, quarterly and monthly instalments carry a small loading.
3. At maturity the total you actually paid is refunded.

Worked example: a 40-year-old takes ₹2,00,000 cover for 12 years. The yearly premium is about ₹11,005, so total premiums come to ₹1,32,060, and that entire amount comes back at age 52. If death happens during the term, the family gets ₹2,00,000, or about ₹4,00,000 for an accidental death.

For ₹1 lakh cover at age 30, the premium is about ₹6,015 a year for 10 years, ₹4,915 for 12 years and ₹3,815 for 15 years. Paying monthly on the 10-year term costs about ₹523 per month.

Tip: the 15-year term has the lowest yearly premium, but your money stays locked for longer with no interest. If cash flow allows, the shorter term returns your money sooner.

Maturity benefit

On survival to the end of the term, LIC pays back the total premiums paid, excluding taxes, extra premiums and rider premiums. No bonus is added. In effect you get cover for 10–15 years without losing your savings, but inflation erodes the refund’s real value.

Death benefit

• Regular premium: the highest of the basic sum assured, 7 times the yearly premium, or 105% of premiums paid till death.
• Single premium: the higher of the basic sum assured or 125% of the single premium.
• Accidental death: an extra amount equal to the basic sum assured is added.

The 105% floor matters at older ages. At entry age 55 with ₹1 lakh cover and a 10-year term, total premiums of ₹1,03,850 exceed the cover, so the calculator shows a death benefit of about ₹1,09,043.

Other features

• Single premium option: a 45-year-old pays about ₹19,805 once for ₹1 lakh cover over 5 years and receives the same amount back at maturity.
• No loan: the plan does not offer policy loans.
• Revival: a lapsed policy can be revived by paying arrears with interest within the allowed period.

Tax benefits

For most ages and terms the yearly premium in this plan stays below 10% of the sum assured, so it usually qualifies under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old tax regime), and maturity and death proceeds are exempt under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)). Single premiums exceed 10% of the sum assured, so the refund on a single premium policy may not qualify for the exemption.

Who was it meant for?

Plan 940 suited daily-wage earners, small shopkeepers and rural families who wanted some life cover and were uneasy about “losing” premiums in a pure term plan. For anyone who can afford it, a regular term plan gives far higher cover for the same money. Compare costs with our term plan calculator.

New Jeevan Mangal 940 vs 840

Both versions share the same structure and premium chart. The main change is the regular premium death cover: Plan 840 used a floor of 10 times the yearly premium, while Plan 940 uses 7 times, together with the 105%-of-premiums rule. For low-cost savings with cover, LIC’s Micro Bachat 751 is the micro-insurance plan to look at today.

How to use this calculator

1. Choose regular or single premium.
2. Enter your age and pick the term.
3. Set the sum assured between ₹50,000 and ₹2 lakh.
4. Pick the premium mode for regular premium.
5. Read the premium, maturity refund, death benefit and accidental death payout. All figures are estimates; your policy bond has the exact numbers.