LIC launches New Jeevan Sathi plan: Features & benefits explained

Couples can get life cover, savings benefits and premium waiver under one LIC policy

Couples looking to combine life insurance protection and long-term savings under one policy now have a new option. Life Insurance Corporation of India (LIC) has launched New Jeevan Sathi Limited Premium, a joint life endowment plan that covers both spouses under a single policy while offering guaranteed benefits and premium waiver protection on the first death.

 

The product comes at a time when more households are seeking financial products that can protect family income while also building a corpus for future goals. Unlike traditional participating plans, this is a non-linked, non-participating product, meaning the benefits are fixed and guaranteed, regardless of LIC’s performance.

 

Jeevan Sathi Limited Premium’s features

 

LIC describes the product as a joint life limited-premium endowment plan with guaranteed additions. A married individual can purchase the policy jointly with their spouse, with both lives covered under the same contract. The primary life assured remains the policyholder, while the spouse becomes the policyholder if the primary insured dies during the policy term.

 

The policy combines savings and life cover and offers guaranteed additions at the rate of 7 per cent of the total tabular annual premium paid during the policy term.

 

The minimum basic sum assured is Rs 3 lakh, while there is no upper limit, subject to underwriting norms. Policy terms of 10, 15, 20 and 25 years are available, with premium payment terms of 5, 10 or 15 years.

 

Premium waiver after spouse’s death

 

One of the plan's key features is the premium waiver benefit.

 

If one spouse dies during the policy term, LIC will pay the applicable death benefit to the surviving spouse. The policy will continue, but all future premiums under the base plan will be waived from the next policy anniversary. The surviving spouse remains covered for the remaining term without having to continue paying premiums.

 

According to LIC's brochure, “All further premiums from policy anniversary following the date of first death, if any, shall be waived.”

 

However, premiums for any rider attached to the surviving spouse's life will continue to be payable.

 

Two death benefit options

 

Buyers can choose between two death benefit structures when purchasing the policy.

 

Option I

 

Higher of seven times the annual premium or the basic sum assured.

 

Option II

 

Higher of 10.5 times the annual premium or the basic sum assured.

 

LIC said the selected option cannot be changed later. “The options should be chosen carefully depending on your specific needs, as the premium & benefits under the plan shall vary as per the option chosen and the same shall not be altered later.”

 

If both spouses die during the policy term, the nominee will receive the death benefit along with accrued guaranteed additions, subject to policy conditions.

 

Maturity and guaranteed additions

 

If at least one of the two lives survives until maturity, LIC will pay the basic sum assured along with accumulated guaranteed additions.

 

Guaranteed additions accrue annually at 7 per cent of the total tabular annual premium paid. The rate can increase further through incentives linked to higher sum assured amounts, online purchases and certain existing LIC customer categories.

 

For instance, policies with a basic sum assured of Rs 15 lakh and above can receive additional guaranteed addition incentives of up to 1 percentage point, depending on the policy term.

 

Additional features

 

The policy also offers:

 

• Loan facility after completion of the first policy year, subject to conditions.
• Option to receive maturity or death benefits in instalments over 5, 10 or 15 years instead of a lump sum.
• Optional riders, including accident benefit, term assurance and critical illness cover, at an additional premium.
• Surrender value and paid-up value benefits, subject to policy conditions.

 

Who may find it useful?

 

The product is aimed primarily at married couples who want a single policy that provides life cover for both spouses while creating a guaranteed savings corpus over time.

 

Its biggest differentiator is the continuation of coverage for the surviving spouse without future premium payments after the first death. For households where one income supports long-term financial commitments, this feature could help preserve insurance protection even during a financially difficult period.

 

However, prospective buyers should note that this is a guaranteed-benefit product rather than a market-linked or participating plan. Returns are fixed and predictable, but policyholders will not participate in LIC's surplus or bonus declarations.