Last Updated: 15 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Looking for a reliable life insurance plan that offers comprehensive protection with guaranteed returns? LIC Jeevan Shree might be the perfect choice for you. In this detailed review, I'll break down everything you need to know about this popular LIC policy - from features and benefits to eligibility criteria and premium calculations.
As an IRDA certified insurance adviser with 5+ years of experience and an authorized LIC agent, I've helped hundreds of families choose the right insurance plan. This guide will help you understand if LIC Jeevan Shree aligns with your financial goals.
What is LIC Jeevan Shree Policy?
LIC Jeevan Shree (Plan No. 857) is a non-linked, non-participating, individual life insurance savings plan with limited premium payment term. Launched by Life Insurance Corporation of India, this plan provides financial protection to your family along with guaranteed lump sum payment at maturity.
Quick Overview
| Parameter | Details |
|---|---|
| Plan Type | Non-linked, Non-participating Savings Plan |
| Plan Number | 857 |
| Entry Age | Minimum: 8 years, Maximum: 58 years |
| Maturity Age | Maximum: 70 years |
| Policy Term | 12 to 20 years |
| Premium Paying Term | 10 years |
| Sum Assured | Minimum: ₹2,00,000, No maximum limit |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly |
| Death Benefit | Guaranteed |
| Maturity Benefit | Guaranteed |
Key Features of LIC Jeevan Shree
1. Limited Premium Payment Period
One of the most attractive features of LIC Jeevan Shree is that you only pay premiums for 10 years, but the coverage continues for the entire policy term (12-20 years). This means:
- Pay for 10 years, stay protected for 12-20 years
- Financial flexibility after premium payment term ends
- Reduced long-term financial burden
- Ideal for those who want limited payment commitment
Example: If you choose 20-year policy term, you pay premiums only for first 10 years, but coverage and benefits continue for full 20 years.
2. Guaranteed Death Benefit
In the unfortunate event of the policyholder's death during the policy term, the nominee receives:
Death Benefit = Higher of:
- Sum Assured on death, OR
- 125% of all premiums paid (excluding taxes, rider premiums, and extra premiums)
This ensures your family receives substantial financial support when they need it most.
3. Guaranteed Maturity Benefit
If you survive the entire policy term, you receive:
Maturity Benefit = Sum Assured on Maturity
This is a guaranteed, lump sum amount that you can use for:
- Retirement planning
- Children's higher education
- Marriage expenses
- Starting a business
- Buying property
- Any other financial goal
4. Loan Facility
LIC Jeevan Shree offers policy loan facility after the policy acquires surrender value (typically after 2-3 years of premium payment). Key points:
- Borrow up to 80-90% of surrender value
- Low interest rates (typically 9-10% per annum)
- No questions asked about loan purpose
- Flexible repayment terms
- Outstanding loan deducted from benefit payable
This provides financial liquidity during emergencies without breaking your insurance coverage.
5. Tax Benefits
LIC Jeevan Shree qualifies for significant tax advantages:
Under Section 80C:
- Premium paid is eligible for tax deduction
- Maximum deduction: ₹1.5 lakh per financial year
- Reduces your taxable income
Under Section 10(10D):
- Maturity benefit is tax-free
- Death benefit is tax-free
- Conditions: Premium should not exceed 10% of sum assured (for policies issued after 01.04.2012)
Example Tax Saving: If you're in 30% tax bracket and pay ₹50,000 annual premium:
- Tax saved: ₹50,000 × 30% = ₹15,000 per year
- Over 10 years: ₹1,50,000 in tax savings!
6. Flexible Policy Terms
You can choose policy term ranging from 12 to 20 years based on:
- Your age
- Financial goals
- Risk coverage needs
- Affordability
This flexibility allows customization according to your life stage and financial planning requirements.
7. Multiple Premium Payment Options
Choose premium payment frequency that suits your cash flow:
- Yearly: Best value, typically 2-4% cheaper
- Half-yearly: Pay every 6 months
- Quarterly: Pay every 3 months
- Monthly: Smallest installments (may have slightly higher total cost)
Detailed Benefits Breakdown
Death Benefit Calculation
Let's understand with examples:
Example 1:
- Sum Assured: ₹10,00,000
- Annual Premium: ₹60,000
- Policy Term: 20 years
- Death occurs in 5th year
- Total premiums paid: ₹60,000 × 5 = ₹3,00,000
Death Benefit = Higher of:
- Sum Assured: ₹10,00,000, OR
- 125% of premiums paid: ₹3,00,000 × 125% = ₹3,75,000
Family receives: ₹10,00,000 (higher amount)
Example 2:
- Sum Assured: ₹5,00,000
- Annual Premium: ₹50,000
- Death occurs in 8th year
- Total premiums paid: ₹50,000 × 8 = ₹4,00,000
Death Benefit = Higher of:
- Sum Assured: ₹5,00,000, OR
- 125% of premiums paid: ₹4,00,000 × 125% = ₹5,00,000
Family receives: ₹5,00,000 (both amounts equal)
This dual benefit structure ensures your family always receives meaningful financial support.
Maturity Benefit Calculation
Example 3:
- Sum Assured on Maturity: ₹10,00,000
- Policy Term: 20 years
- Premium Paying Term: 10 years
- Annual Premium: ₹45,000 (approximately)
At maturity (after 20 years):
- You receive: ₹10,00,000 as lump sum
- Total premiums paid: ₹45,000 × 10 = ₹4,50,000
- Gain: ₹10,00,000 - ₹4,50,000 = ₹5,50,000
- Returns: ~122% over 20 years
- Tax-free proceeds under Section 10(10D)
Eligibility Criteria
Age Limits
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age (age at which you buy) | 8 years | 58 years |
| Maturity Age (age when policy ends) | 20 years | 70 years |
Sum Assured
- Minimum Sum Assured: ₹2,00,000
- Maximum Sum Assured: No upper limit
- Sum assured should be chosen based on:
- Your annual income (typically 10-15 times)
- Family's financial needs
- Outstanding liabilities
- Future financial goals
Policy Term Options
Available policy terms: 12, 13, 14, 15, 16, 17, 18, 19, 20 years
Selection Criteria:
- Shorter term (12-15 years): Higher annual premium, quicker maturity
- Longer term (16-20 years): Lower annual premium, extended coverage
- Choose based on financial goal timeline
Premium Payment Term
Fixed at 10 years for all policy terms. This is a unique feature - you pay for only 10 years regardless of whether you choose 12-year or 20-year policy term.
Premium Calculation Examples
Let's look at approximate premium rates for different age groups and sum assured:
Example 1: Young Professional (Age 25)
- Sum Assured: ₹10,00,000
- Policy Term: 20 years
- Premium Paying Term: 10 years
- Approximate Annual Premium: ₹42,000 - ₹45,000
- Total Premium Paid: ₹4,50,000 (over 10 years)
- Maturity Benefit: ₹10,00,000 (after 20 years)
Example 2: Mid-Career Professional (Age 35)
- Sum Assured: ₹15,00,000
- Policy Term: 18 years
- Premium Paying Term: 10 years
- Approximate Annual Premium: ₹75,000 - ₹80,000
- Total Premium Paid: ₹8,00,000 (over 10 years)
- Maturity Benefit: ₹15,00,000 (after 18 years)
Example 3: Senior Professional (Age 45)
- Sum Assured: ₹20,00,000
- Policy Term: 15 years
- Premium Paying Term: 10 years
- Approximate Annual Premium: ₹1,20,000 - ₹1,30,000
- Total Premium Paid: ₹13,00,000 (over 10 years)
- Maturity Benefit: ₹20,00,000 (after 15 years)
Note: These are approximate premium rates. Actual premiums depend on age, sum assured, policy term, and payment mode. Contact me for precise premium calculation: +91 9784309640
Surrender Value and Paid-Up Value
Surrender Value
If you discontinue paying premiums and want to exit the policy:
Conditions:
- Available after at least 2 full years of premiums paid
- Policy acquires guaranteed surrender value
Surrender Value Calculation:
- Guaranteed Surrender Value (GSV) = 30% of premiums paid (excluding first year premium, extra premiums, and rider premiums) + guaranteed additions, if any
Important: Surrendering policy before maturity results in loss of benefits and lower returns. Always try to continue till maturity.
Paid-Up Value
If you stop paying premiums but don't surrender:
Conditions:
- At least 2 full years of premiums paid
- Policy continues with reduced sum assured
Paid-Up Sum Assured:
- (Original Sum Assured × Number of premiums paid) ÷ Number of premiums payable
Example:
- Original Sum Assured: ₹10,00,000
- Premiums paid: 5 years
- Total premiums payable: 10 years
- Paid-up Sum Assured: (₹10,00,000 × 5) ÷ 10 = ₹5,00,000
The policy continues with ₹5,00,000 sum assured without further premium payments.
Who Should Buy LIC Jeevan Shree?
Ideal Candidates
1. Young Professionals (25-35 years)
- Building wealth for long-term goals
- Want guaranteed returns without market risk
- Need life coverage during earning years
- Benefit from lower premiums at younger age
2. Parents Planning for Children's Future
- Secure corpus for higher education (15-20 years)
- Marriage expenses planning
- Guaranteed maturity benefit for specific life goals
- Premium payment completes before child's college
3. Individuals with Limited Premium Payment Capacity
- Can afford premium only for 10 years
- Want coverage to continue beyond payment period
- Balancing current expenses with future security
4. Conservative Investors
- Prefer guaranteed returns over market-linked products
- Want stability and certainty
- Risk-averse personality
- Trust in LIC's proven track record
5. Tax Planning Seekers
- Looking for Section 80C tax deduction options
- Want tax-free maturity proceeds
- Combining insurance with tax benefits
Who Should Consider Alternatives?
LIC Jeevan Shree may NOT be suitable if:
❌ You need only pure protection (consider term insurance - much cheaper) ❌ You want high investment returns (consider ULIP or mutual funds) ❌ You need coverage beyond age 70 ❌ You want participating policy with bonus declarations ❌ You need very short-term coverage (less than 12 years)
Advantages of LIC Jeevan Shree
✅ Strengths
1. Guaranteed Returns
- No market risk
- Predetermined maturity benefit
- Financial certainty for planning
2. Limited Premium Payment
- Pay only for 10 years
- Coverage continues for full term
- Financial flexibility after 10 years
3. LIC's Trust and Reliability
- Government-backed company
- 98%+ claim settlement ratio
- 75+ years of proven track record
- No risk of company default
4. Dual Benefit
- Life insurance protection
- Savings accumulation
- Single premium for both benefits
5. Tax Efficiency
- Section 80C deduction on premiums
- Tax-free maturity benefit
- Optimized tax planning
6. Loan Facility
- Emergency liquidity
- No need to break policy
- Low interest rates
- Flexible repayment
7. Simple and Transparent
- Easy to understand
- No hidden charges
- Clear benefit structure
- No ambiguity
Disadvantages of LIC Jeevan Shree
❌ Limitations
1. Lower Returns Compared to Market-Linked Products
- Returns typically 5-6% CAGR
- ULIP or mutual funds may offer higher returns (with higher risk)
- Inflation may erode real returns
2. Non-Participating Plan
- No bonus declarations
- Returns are fixed, don't benefit from company profits
- Unlike traditional plans with bonuses
3. Long-Term Commitment
- Minimum 12-year policy term
- Early exit results in losses
- Not suitable for short-term needs
4. Limited Flexibility
- Cannot increase/decrease sum assured
- Cannot change policy term once purchased
- Fixed premium paying term (10 years)
5. Better Alternatives for Pure Protection
- Term insurance offers 10-15 times higher coverage at same premium
- If you need only protection, term insurance is better choice
LIC Jeevan Shree vs Other LIC Plans
Comparison Table
| Feature | LIC Jeevan Shree | LIC Jeevan Anand | LIC New Endowment |
|---|---|---|---|
| Plan Type | Non-participating Savings | Participating Whole Life | Participating Endowment |
| Premium Payment Term | 10 years (limited) | Throughout policy term | Throughout policy term |
| Policy Term | 12-20 years | Till age 100 | 12-35 years |
| Maturity Benefit | Guaranteed | Sum Assured + Bonuses | Sum Assured + Bonuses |
| Bonus | No | Yes | Yes |
| Coverage Period | Till maturity (max 70 years) | Whole life (till 100) | Till maturity |
| Premium Cost | Moderate | Higher | Moderate |
| Best For | Limited payment, guaranteed returns | Lifelong coverage | Traditional endowment seekers |
Key Differences
Choose Jeevan Shree if:
- You want to pay premium for limited period (10 years)
- You want guaranteed, predetermined returns
- You need coverage for specific duration (12-20 years)
Choose Jeevan Anand if:
- You want lifelong coverage (till age 100)
- You prefer participating plans with bonuses
- You can afford premium throughout policy term
Choose New Endowment if:
- You want traditional endowment with bonuses
- You prefer participating in company's profits
- You're comfortable with regular premium payment
How to Buy LIC Jeevan Shree?
Step-by-Step Purchase Process
Step 1: Consultation
- Contact me for free consultation: +91 9784309640
- Discuss your financial goals and coverage needs
- Understand if Jeevan Shree is right for you
Step 2: Premium Calculation
- Get exact premium quote based on your age and sum assured
- Compare with other LIC plans
- Finalize sum assured and policy term
Step 3: Documentation
- Fill proposal form accurately
- Submit required documents:
- Age proof (Birth certificate, PAN, Aadhaar)
- Identity proof (Aadhaar, PAN, Passport)
- Address proof (Aadhaar, Utility bill)
- Income proof (for high sum assured)
- Passport-size photographs
Step 4: Medical Examination (if required)
- Medical test requirements depend on age and sum assured
- LIC empanelled hospitals conduct free medical examination
- Tests typically include blood, urine, ECG
Step 5: Underwriting
- LIC reviews your application and medical reports
- Approval typically takes 7-15 days
- May request additional documents if needed
Step 6: Policy Issuance
- Pay first premium (after approval)
- Policy document issued within 7-10 days
- Review policy document carefully
- Free-look period: 15-30 days to review and return if not satisfied
I provide complete hand-holding throughout the process!
Important Terms and Conditions
Grace Period
- 30 days for yearly, half-yearly, quarterly modes
- 15 days for monthly mode
- Policy remains in force during grace period
- Late payment may attract interest
Free-Look Period
- 15 days for offline purchase
- 30 days for online purchase
- Return policy if not satisfied
- Full premium refunded (minus medical and stamp duty charges)
Revival
- Lapsed policy can be revived within 5 years
- Pay all outstanding premiums with interest
- May require fresh medical examination
- Revival subject to LIC's approval
Exclusions
- Suicide exclusion: If death by suicide within 12 months of policy commencement or revival, only 80% of premiums paid (excluding extra premiums) will be payable
Assignments and Nominations
- Policy can be assigned as security for loans
- Nomination facility available
- Nominee can be changed anytime during policy term
Tax Implications - Detailed Analysis
Tax Benefits You Get
1. Under Section 80C (Premium Deduction)
- Annual premium paid qualifies for deduction
- Maximum deduction: ₹1.5 lakh per year
- Reduces your taxable income
Example:
- Annual Income: ₹10,00,000
- Section 80C deductions (Jeevan Shree premium): ₹50,000
- Taxable Income: ₹10,00,000 - ₹50,000 = ₹9,50,000
- Tax Saved (30% bracket): ₹50,000 × 30% = ₹15,000 per year
2. Under Section 10(10D) (Tax-Free Proceeds)
- Maturity benefit is completely tax-free
- Death benefit is completely tax-free
- Condition: Premium should not exceed 10% of sum assured (for policies issued after 01.04.2012)
Example:
- Sum Assured: ₹10,00,000
- Maximum premium for tax exemption: ₹1,00,000 per year
- If actual premium is ₹45,000, maturity benefit is fully tax-free
Important: If premium exceeds 10% of sum assured, maturity proceeds will be taxable as per income tax slab.
GST on Premiums
- 18% GST applicable on premiums
- Included in total premium payable
- GST is also eligible for Section 80C deduction
Frequently Asked Questions (FAQs)
1. Is medical examination mandatory for LIC Jeevan Shree?
Medical examination requirements depend on your age and sum assured. Generally:
- Below age 40 and sum assured up to ₹50 lakhs: May not require medical
- Above age 40 or higher sum assured: Medical examination typically required
- Final decision by LIC based on proposal evaluation
2. Can I increase sum assured after buying the policy?
No, sum assured cannot be increased in existing policy. However, you can purchase an additional policy for higher coverage.
3. What happens if I stop paying premium after 5 years?
If you've paid at least 2 years of premiums:
- Policy acquires paid-up value
- Coverage continues with reduced sum assured
- You can revive within 5 years by paying outstanding premiums with interest
4. Can I take a loan against LIC Jeevan Shree policy?
Yes, policy loan is available after policy acquires surrender value (typically after 2-3 years). You can borrow up to 80-90% of surrender value at competitive interest rates.
5. Is LIC Jeevan Shree better than term insurance?
They serve different purposes:
- Term Insurance: Maximum protection at lowest cost (pure protection, no maturity benefit)
- LIC Jeevan Shree: Protection + savings (maturity benefit guaranteed)
Recommendation: Buy term insurance for protection, and Jeevan Shree for specific financial goals with guaranteed returns.
6. How are returns calculated in LIC Jeevan Shree?
Returns are straightforward:
- Total premiums paid over 10 years
- Maturity benefit received after policy term
- Returns = (Maturity Benefit - Total Premium Paid) ÷ Total Premium Paid
- Typically 5-6% CAGR depending on policy term and age at entry
7. Can NRIs buy LIC Jeevan Shree?
Yes, NRIs can purchase LIC Jeevan Shree with certain conditions:
- Should be Indian citizen
- Premium payment through NRE/NRO account
- Benefits payable as per RBI and FEMA regulations
Expert Opinion: Should You Buy LIC Jeevan Shree?
My Recommendation as LIC Agent (Code: 04699-102)
LIC Jeevan Shree is an excellent choice if you:
✅ Want guaranteed returns without market risk
✅ Need life coverage for specific duration (12-20 years)
✅ Prefer paying premium for limited period (10 years)
✅ Are risk-averse and trust LIC's stability
✅ Want to combine protection with forced savings
✅ Need tax-saving investment under Section 80C
Consider Carefully if:
⚠️ You need only pure protection (term insurance is better)
⚠️ You expect high returns (market-linked products may be better, with higher risk)
⚠️ You cannot commit to 10-year premium payment
⚠️ You need very flexible policy terms
My Personal Take
In my 5+ years of experience, I've helped many families purchase LIC Jeevan Shree, and it's particularly suitable for:
- Middle-income families who want guaranteed returns for children's education
- Conservative investors who prioritize safety over high returns
- Individuals planning specific goals 15-20 years away
- Those who want limited premium commitment but extended coverage
However, I always recommend:
- Combine with term insurance for adequate protection (Jeevan Shree alone may not provide sufficient cover)
- Understand that returns are moderate (5-6% CAGR) compared to equity investments
- Commit only if you can pay for full 10 years - early exit results in losses
How to Contact Me for LIC Jeevan Shree
Ready to secure your family's future with LIC Jeevan Shree? I'm here to help!
Get Personalized Quote & Consultation
Keyur Tirgar
IRDA Certified Insurance Adviser
LIC Agent Code: 04699-102
📞 Call/WhatsApp: +91 9784309640
📧 Email: tirgarkuriya@gmail.com
📍 Office: [Your Address], Rajasthan
🕒 Available: Monday-Saturday, 10 AM - 7 PM
What You Get When You Contact Me:
✓ Free consultation and needs analysis
✓ Exact premium calculation based on your age and requirements
✓ Comparison with other suitable LIC plans
✓ Complete application assistance
✓ Lifetime policy servicing support
✓ Claims assistance when needed
Serving all over Rajasthan with home visits available in [Your City] and nearby areas.
Conclusion
LIC Jeevan Shree is a solid life insurance cum savings plan offering guaranteed returns, limited premium payment term, and the trust of LIC. While returns may not be as high as market-linked products, the certainty and safety make it attractive for conservative investors and specific financial goals.
Key Takeaways:
- ✅ Pay premium for only 10 years, coverage continues for 12-20 years
- ✅ Guaranteed death and maturity benefits
- ✅ Tax benefits under Sections 80C and 10(10D)
- ✅ LIC's highest claim settlement ratio and government backing
- ✅ Suitable for risk-averse individuals with long-term goals
Remember: Insurance is personal. What works for someone else may not work for you. Always consult with a certified insurance adviser (like me!) to understand if LIC Jeevan Shree aligns with your financial situation and goals.
Ready to get started? Contact me today for a free consultation and personalized premium quote!
Disclaimer: This article provides general information about LIC Jeevan Shree policy based on available information as of [date]. Policy terms, conditions, and premium rates are subject to change. Always refer to official LIC policy documents for accurate details. For personalized advice, consult with a certified insurance adviser.
Last Updated: 15 Oct 2025
Word Count: 4,200+ words
Reading Time: 18-20 minutes
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