LIC New Janaraksha Plan 91 was a popular endowment insurance policy that offered both protection and savings. Even though it’s withdrawn, many people still hold active policies and need tools to calculate benefits.

What is LIC New Janaraksha Plan 91?

This plan, officially called LIC New Janaraksha Plan 91, UIN 512N083V01), is a simple endowment assurance policy. It provides financial security against death during the policy term and pays a maturity amount if you survive till the end. Premiums are paid regularly throughout the term, and it includes bonuses for extra returns.

Launched before 2014, the plan was withdrawn on January 1, 2014, so no new policies can be bought. But existing ones continue with full benefits. It’s a with-profits plan, meaning you get a share of LIC’s profits through bonuses declared each year.​

The plan suits people wanting steady savings with life cover. For example, a family man in his 30s could use it to build a corpus for his child’s education while protecting his family.

Key Features and Eligibility

Eligibility is straightforward. Minimum entry age is 18 years, maximum 50 years, with maturity up to 70 years. Policy terms range from 12 to 30 years, and the premium-paying term matches the policy term.

The minimum sum assured is Rs 50,000, with a maximum of up to Rs 10 lakhs or so in practice. Premiums can be paid yearly, half-yearly, quarterly, monthly, or via salary deduction. A grace period allows late payments, and after two full years’ premiums, coverage continues for up to three years even if premiums lapse.

Accident benefit is built-in: extra sum assured (up to Rs 10 lakhs overall limit) on accidental death, or installments for permanent disability. No extra premium for this in the basic plan.

Benefits Explained Simply

Death benefit pays sum assured plus vested bonuses in a lump sum if the policyholder dies during the term. This ensures the family gets money when needed most.

On maturity, you get sum assured plus all bonuses declared till then. A final additional bonus may apply if the policy runs a minimum period.

Surrender is possible after 3 years: the guaranteed value is 30% of premiums paid (excluding the first year). LIC often pays a higher special surrender value based on policy duration.

Tax benefits under Section 80C for premiums (up to Rs 1.5 lakh now, but rules change) and maturity/death claims tax-free under 10(10D).

How the Calculator Works

The LIC New Janaraksha Plan 91 calculator estimates maturity, death benefits, and premiums. You input age at entry, sum assured, policy term, and bonus rates. It factors in simple reversionary bonuses (per Rs 1000 sum assured annually) and a final bonus.

Online tools on sites like Policybazaar or LIC calculator sites use LIC’s rates. For old policies, check your policy document or LIC portal for exact bonuses vested.

To use: Enter details like 35 years old, Rs 1 lakh sum assured, and 25-year term. Annual premium around Rs 4,246 (old rates). Maturity could be Rs 1.7 lakh in guaranteed additions plus bonuses.

Bonus rates vary yearly; recent LIC rates for endowment plans are Rs 40-50 per Rs 1000 SA. Use conservative 6-10% return scenarios as per IRDA illustrations.

Sample Benefit Illustration Table

Here’s a table from the official brochure for a 35-year-old, Rs 1 lakh SA, 25-year term, yearly premium of Rs 4,246. It shows benefits at different years under 6% (Scenario 1) and 10% (Scenario 2) assumed returns.

Note: Guaranteed additions shown; actual higher with real bonuses. Accident benefit: Rs 1 lakh extra.

Why Use a Calculator for This Plan?

Calculators help plan finances. For withdrawn plans like this, they’re vital for surrender or maturity estimates. Input your policy number on LIC’s site for precise vested bonuses.

They show if continuing the policy beats surrendering. Example: Midway surrender might give less than premiums paid, so better to hold till maturity.

Free tools abound: LIC’s official maturity calculator and third-party sites like liccalculators.net. Always verify with the LIC branch for accuracy.

Step-by-Step Guide to Calculate Manually

1. Find your sum assured (SA) from policy.
2. Note the policy term and years completed.
3. Get vested bonuses from annual statements or LIC portal.
4. Maturity = SA vested simple reversionary bonuses + final bonus (if applicable).

For premiums: Use old rate tables or online estimators. Death benefit = SA + bonuses till date of death.

Comparison with Similar Plans

Unlike active Jeevan Anand (715/915), Janaraksha had accident cover built-in but a shorter max term. Jeevan Anand offers lifelong cover post-maturity; this ends at term.

Newer plans like Jeevan Labh have higher SA minimums but similar structure. For calculators, most handle old plans like 91.

Tax and Loan Benefits

Loans available after 3 years, up to 90% of surrender value. Helps in emergencies without surrendering.

Tax: Premiums qualify for deduction, and claims are tax-free. Consult advisor for current rules post-2026 budget.

Common Mistakes to Avoid

Don’t assume fixed returns; bonuses depend on LIC’s performance. Use multiple calculators for averages. For old policies, update KYC for smooth claims.

FAQs

Conclusion

LIC New Janaraksha Plan 91 remains useful for holders seeking savings with protection. Use calculators wisely to plan maturity or surrender. Check official LIC sources for the latest on your policy.