LIC Jeevan Shikhar Plan 837 Calculator

LIC Jeevan Shikhar Plan 837 is a one-time premium policy with a fixed term of 15 years. It provided life cover, a maturity payment and the possibility of a Loyalty Addition. The policy also allowed surrender and a loan when money was needed during the term.

Now this plan has been withdrawn and cannot be purchased. The LIC Jeevan Shikhar Plan 837 Calculator is therefore mainly useful for existing policyholders. It can estimate the original single premium, death cover, base maturity amount, guaranteed surrender value and possible loan amount.

The calculator separates guaranteed amounts from non-guaranteed amounts. The Maturity Sum Assured is fixed, but the Loyalty Addition depends on LIC’s declaration and should not be treated as promised.

Also Check:

• LIC Endowment Plan Calculator
• LIC New Jeevan Anand
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What Does Jeevan Shikhar Calculator Show?

The calculator uses the entry age, Maturity Sum Assured, and official premium rate to find the Tabular Single Premium. It then reduces the high Maturity Sum Assured rebate to estimate the premium paid before taxes and any extra amount charged by LIC.

It can also show the Sum Assured on Death, base maturity amount, guaranteed surrender value, and maximum loan based on the applicable policy year. A Loyalty Addition can be included only when an applicable declared rate is available.

LIC Jeevan Shikhar Plan 837 Highlight

What is LIC Jeevan Shikhar Plan 837?

LIC Jeevan Shikhar Plan 837 was made for people who wanted to pay the premium once instead of making regular payments. The full policy term was 15 years.

At the start, the policyholder selected a Maturity Sum Assured. LIC calculated the single premium according to this amount and the age of the insured person. A rebate was given when the selected Maturity Sum Assured was ₹2 lakh or more.

If the insured person survived the full term, LIC paid the Maturity Sum Assured and a Loyalty Addition, if declared. If death happened during the term after life cover had started, the death benefit was based on ten times the Tabular Single Premium.

The plan was not linked to the stock market. However, the Loyalty Addition was not fixed because it depended on LIC’s experience.

Key Highlights of LIC Jeevan Shikhar Plan 837

• Only one premium payment was required.
• The policy term was fixed at 15 years.
• The Maturity Sum Assured was selected when the policy started.
• Life cover was ten times the Tabular Single Premium.
• A Loyalty Addition could be paid at maturity or on an eligible death or surrender.
• The policy could be surrendered during the term.
• A loan was available after the required waiting period.
• Higher Maturity Sum Assured amounts received a premium rebate.

How the Premium Calculator Works

Three details are needed to estimate the premium: age at entry, Maturity Sum Assured and the official premium rate for that age.

Premium Formula

Tabular Single Premium = Maturity Sum Assured ÷ 1,000 × Premium rate

The applicable rebate is then reduced:

Rebate = Maturity Sum Assured ÷ 1,000 × Rebate rate

Single Premium = Tabular Single Premium − Rebate

The Tabular Single Premium and Single Premium are different amounts. The Tabular Single Premium is calculated before the rebate and is used to find the death cover. The Single Premium is the amount after the rebate, before taxes and any extra amount charged by LIC.

Official Sample Premium Rates

LIC’s brochure showed these sample rates for every ₹1,000 of Maturity Sum Assured:

These rates apply only to the ages shown. A rate for another age should not be guessed. The premium rate written in the policy schedule or an official LIC rate table should be used.

High Maturity Sum Assured Rebate

For example, a Maturity Sum Assured of ₹5,00,000 contains 500 units of ₹1,000. The rebate is ₹20 for each unit, so the total rebate is ₹10,000.

How to Use the Calculator

Enter the age at which the policy started and the Maturity Sum Assured shown in the policy schedule. Then enter the official premium rate for that age.

Select the policy year when checking surrender value or loan eligibility. If an applicable Loyalty Addition rate has been declared, it can be entered separately. Do not enter a guessed Loyalty Addition as a confirmed benefit.

After pressing Calculate, check the following results:

1. Tabular Single Premium before rebate;
2. High Maturity Sum Assured rebate;
3. Single Premium after rebate;
4. Sum Assured on Death;
5. Base maturity amount;
6. Guaranteed surrender value; and
7. Estimated maximum loan.

Taxes and any extra amount charged by LIC should remain separate because they do not increase the maturity or death benefit.

Maturity Benefit

The maturity benefit becomes payable when the insured person survives until the end of 15 years.

Maturity benefit = Maturity Sum Assured + Loyalty Addition, if declared

The Maturity Sum Assured is the fixed base amount written in the policy schedule. Loyalty Addition is an extra amount that LIC may declare according to its experience.

If LIC declares the Loyalty Addition as an amount for every ₹1,000 of Maturity Sum Assured, the calculator can use this formula:

Loyalty Addition = Maturity Sum Assured ÷ 1,000 × Declared rate

A LIC Jeevan Shikhar Plan 837 maturity calculator should show the fixed Maturity Sum Assured and the possible Loyalty Addition separately. It should not present the total as guaranteed before the Loyalty Addition is confirmed.

Death Benefit

The amount payable on death depends on whether life cover had started and whether five policy years were completed.

The death benefit uses the Tabular Single Premium before rebate. It does not use the lower premium paid after the high Maturity Sum Assured rebate.

When Does Life Cover Start for a Child?

For an insured child aged eight years or more at entry, life cover started immediately from the policy issue date.

For a child below eight years, life cover started one day before the policy anniversary that coincided with or came immediately after the child completed eight years of age.

If death happened before life cover started, LIC refunded the eligible Single Premium without interest. Taxes and any extra amount charged because of LIC’s assessment were not included in this refund.

Surrender Value

The policy could be surrendered during the 15-year term. LIC provided a Guaranteed Surrender Value and could pay a Special Surrender Value when it was higher.

The Single Premium used here is the amount after rebate, excluding taxes and any extra amount charged by LIC.

The Special Surrender Value was calculated by multiplying the Maturity Sum Assured by the applicable LIC factor. Because this factor can change, it should be entered only when the correct servicing factor is available.

If the policy was surrendered after completing five policy years, a Loyalty Addition could also be paid if LIC declared it and the policy was eligible.

Policy Loan Calculation

A loan could be requested after three months from the policy issue date or after the free-look period, whichever was later. The maximum loan depended on the entry age and policy year.

Maximum loan = Surrender value × Applicable loan percentage

Interest is charged on a policy loan. The policy document mentioned 10.5% a year, payable every six months, when the plan was issued. This should not be treated as the present loan rate. The rate confirmed by LIC when the loan is taken will apply.

Any unpaid loan and interest can be reduced from the maturity, surrender or death payment.

Complete Calculation Example

Consider a policy started at age 30 with a Maturity Sum Assured of ₹5,00,000.

The sample premium rate for age 30 was ₹425.80 per ₹1,000. The applicable rebate was ₹20 per ₹1,000.

The first-year Guaranteed Surrender Value is:

₹2,02,900 × 70% = ₹1,42,030

After the first policy year, the Guaranteed Surrender Value is:

₹2,02,900 × 90% = ₹1,82,610

Suppose the policy is in its eighth year and the entry age was 30. The maximum loan percentage is 75% of the surrender value:

₹1,82,610 × 75% = ₹1,36,957.50

This loan figure uses the Guaranteed Surrender Value. If LIC provides a higher Special Surrender Value, the eligible loan may be different.

At maturity, the base amount is ₹5,00,000. Any declared Loyalty Addition would be added separately.

Tax Benefits and Tax Rules

The Single Premium may have qualified for a deduction under Section 80C in the year it was paid, subject to the tax rules and overall limit that applied at that time.

Tax treatment of maturity, surrender and death payments depends on the policy details and applicable law. The full payment should not be described as automatically tax-free without checking the policy and tax rules. Professional tax advice may be useful when the amount is large or the position is unclear.

Important Points to Remember

• Plan 837 is withdrawn and cannot be purchased as a new policy.
• The policy required only one premium payment.
• The policy term was fixed at 15 years.
• Death cover is based on the Tabular Single Premium before rebate.
• Maturity Sum Assured and Sum Assured on Death are different amounts.
• Loyalty Addition is not guaranteed.
• Surrender percentages apply to the Single Premium after rebate, excluding taxes and extra charges.
• An unpaid loan and interest can reduce the final policy payment.

Frequently Asked Questions

Is LIC Jeevan Shikhar Plan 837 still available?

No. LIC has withdrawn the plan from new sale. The calculator is mainly useful for existing policies.

How is the single premium calculated?

The Maturity Sum Assured is divided by ₹1,000 and multiplied by the premium rate for the entry age. The applicable high Maturity Sum Assured rebate is then reduced.

What amount is paid at maturity?

LIC pays the selected Maturity Sum Assured plus a Loyalty Addition, if declared. The Maturity Sum Assured is fixed, but the Loyalty Addition is not guaranteed.

How is the death benefit calculated?

After life cover starts, the death benefit is ten times the Tabular Single Premium. After five completed policy years, an applicable Loyalty Addition may also be paid.

Can the policy be surrendered or used for a loan?

Yes. The policy could be surrendered during the term. A loan was available after the required waiting period, and the maximum amount depended on the surrender value, entry age and policy year.

Conclusion

The LIC Jeevan Shikhar Plan 837 Calculator makes an old single-premium policy easier to understand. It explains how the premium rebate worked, why the death cover is higher than the maturity base and how surrender and loan amounts are estimated.

For the most reliable result, the age, Maturity Sum Assured and premium figures should be copied from the policy schedule. Loyalty Addition, Special Surrender Value and loan interest should be shown as variable amounts until LIC confirms them.

Amit Kushwaha

Amit Kushwaha is a financial content creator and SaaS tool developer based in Lucknow, Uttar Pradesh. He has more than seven years of experience creating insurance-related content, online calculators, and practical digital tools for LIC policyholders, insurance buyers, and LIC agents.

Through LICPolicyCalculator.com, he focuses on simplifying complex LIC policy information into easy-to-understand guides and calculators. His work covers LIC premium estimates, maturity calculations, surrender value tools, policy return calculations, term insurance planning, and plan-specific calculator pages.