Limited Premium | Plan No. 889
A Non-Participating, Non-Linked, Joint Life Limited-Premium Endowment Insurance Plan
Launched: 26th May 2026 • Available from: 1st June 2026
Plan Overview
LIC’s New Jeevan Sathi – Limited Premium (Plan No. 889) is a cutting-edge joint life endowment insurance plan from the Life Insurance Corporation of India, crafted exclusively for married couples who prefer the flexibility of spreading premium payments over a limited period rather than paying a lump sum. Introduced alongside Plan 888 on 26th May 2026 and available for purchase from 1st June 2026, this plan enables both spouses to be covered under one unified policy while enjoying full life protection and guaranteed savings throughout the chosen policy term.
As a Non-Participating (non-par) and Non-Linked plan, all benefits — maturity and death — are guaranteed, predetermined, and entirely insulated from market movements. What makes Plan 889 uniquely powerful is its premium waiver benefit: if one partner passes away during the premium-paying term, all future premiums are automatically waived, and the surviving spouse continues to enjoy full policy coverage without any financial burden.
This plan is the ideal choice for working couples who wish to protect their joint financial future with a structured, limited payment commitment and maximum guaranteed returns.
Key Highlights at a Glance
| Feature | Details |
| Plan Type | Joint Life Limited-Premium Endowment (Non-Par, Non-Linked) |
| Plan Number | 889 |
| Premium Payment Term | 5, 10, or 15 years (limited period) |
| Policy Term Options | 10, 15, 20 or 25 years |
| Minimum Sum Assured | ₹3,00,000 (No maximum limit) |
| Guaranteed Additions | 7% of Total Tabular Annual Premium paid, per year throughout policy term |
| Premium Waiver Benefit | All future premiums waived on first death during PPT |
| Maturity Age | Min. 28 years; Max. 60–75 years (based on option) |
| Market Linkage | None — fully guaranteed returns |
| Availability | Offline (agents/branches/IMFs) & Online (licindia.in) |
Unique Features of the Plan
1. Limited Premium Payment — Pay for a Few Years, Stay Covered Longer
The defining hallmark of Plan 889 is that the premium is not payable for the full duration of the policy. Policyholders choose a Premium Paying Term (PPT) of 5, 10, or 15 years, while the policy remains in force for the full chosen policy term of 10, 15, 20, or 25 years. This creates a powerful financial structure: pay for a limited period, enjoy protection and guaranteed savings for the entire term.
| Premium Paying Term (PPT) | Permissible Policy Terms |
| 5 Years | 10, 15, 20, or 25 years |
| 10 Years | 15, 20, or 25 years |
| 15 Years | 20 or 25 years |
2. Joint Life Coverage — Both Partners, One Policy
Both the policyholder (Life Assured 1) and spouse (Life Assured 2) are covered under a single policy document. The primary life assured is the policyholder; if the primary insured passes away during the policy term, the surviving spouse automatically becomes the policyholder. This seamless transition ensures uninterrupted coverage and savings continuity.
3. Premium Waiver Benefit — Protection After Loss
This is the most distinctive and powerful feature of Plan 889. If one spouse dies during the Premium Paying Term, LIC automatically waives all future premiums under the base plan from the next policy anniversary onwards. The policy remains fully in force, the surviving spouse continues to be covered, and the guaranteed additions continue to accrue — all without any further premium payment by the surviving spouse.
Note: Premiums for any optional rider attached to the surviving spouse’s life will continue to be payable as per the terms of the rider.
4. Guaranteed Additions — Compounding Protection for Savings
Plan 889 offers Guaranteed Additions at the rate of 7% of the Total Tabular Annual Premium paid, accruing at the end of each policy year throughout the full policy term. These additions are fixed and do not depend on LIC’s profits or any market factor.
Additional incentives further enhance the Guaranteed Addition rate for higher Sum Assured policies:
- Policies with Basic Sum Assured of ₹15,00,000 and above may receive additional Guaranteed Addition incentives of up to 1 percentage point, depending on the policy term.
- Enhanced incentives are also available for online purchases and for existing LIC policyholders and nominees or beneficiaries of deceased policyholders.
5. Two Death Benefit Options
Couples choose one of two death benefit structures at policy inception. The selected option cannot be changed later, so it must be chosen carefully:
| Option | Death Benefit Sum Assured | Best Suited For |
| Option I | Higher of: 7× Annualised Premium OR Basic Sum Assured | Balanced protection with moderate coverage multiplier |
| Option II | Higher of: 10.5× Annualised Premium OR Basic Sum Assured | Maximum life cover relative to premiums paid |
6. Flexible Policy Term and PPT Combination
Couples can customise their plan by choosing a policy term (10, 15, 20, or 25 years) and a compatible premium paying term (5, 10, or 15 years) that best suits their financial goals, income cycle, and stage in life — be it saving for retirement, children’s education, or building a guaranteed corpus.
7. Instalment Payout Facility
Instead of receiving the Maturity or Death Benefit as a lump sum, the policyholder can opt for instalments over 5, 10, or 15 years. Minimum instalment amounts are:
- Monthly: ₹5,000 per month
- Quarterly: ₹15,000 per quarter
- Half-Yearly: ₹25,000 per half-year
- Yearly: ₹50,000 per year
8. Loan Facility
After completion of the first policy year, the policyholder can avail a loan against the policy, providing liquidity without surrendering the coverage or disrupting the guaranteed savings trajectory.
9. Surrender Value and Paid-Up Value
If the policyholder is unable to continue premiums after paying for a minimum number of years, the policy acquires a Paid-Up Value and can also be surrendered for a Surrender Value, providing exit flexibility while protecting a portion of the savings built up.
10. Special Rebates and Incentives
- High Sum Assured Rebate: Reduced effective premium for policies with higher Basic Sum Assured.
- Online Purchase Incentive: Additional Guaranteed Addition benefit for policies purchased online at licindia.in.
- Existing Policyholder Rebate: Special premium rebate for existing LIC policyholders and nominees or beneficiaries of deceased policyholders.
Plan Benefits in Detail
A. Maturity Benefit
If at least one of the two lives assured survives till the end of the chosen policy term, the following is paid:
| Component | Amount Payable |
| Basic Sum Assured | 100% of Basic Sum Assured |
| Accrued Guaranteed Additions | 7% × Total Tabular Annual Premium × Policy Term (years) |
| Total Maturity Benefit | BSA + All Accrued Guaranteed Additions |
The maturity benefit can also be received under a settlement option (instalments over 5, 10, or 15 years) rather than a lump sum.
B. Death Benefit
The plan’s death benefit structure is uniquely designed for joint life coverage in two stages:
- On First Death during the Policy Term: The Death Benefit Sum Assured (as per the chosen option — 7× AP or BSA for Option I; 10.5× AP or BSA for Option II) is paid to the surviving spouse. If the first death occurs during the Premium Paying Term, all future premiums under the base plan are waived from the next policy anniversary. The policy remains in force and the surviving spouse continues to be covered.
- On Second Death during the Policy Term: The Death Benefit Sum Assured along with all accrued Guaranteed Additions (including a full year’s Guaranteed Addition for the year of death) is payable to the nominee.
All benefits on death or survival are guaranteed and fixed, irrespective of LIC’s actual experience, bonus declarations, or market performance.
Eligibility Conditions & Policy Parameters
| Eligibility Criterion | Details |
| Who Can Purchase | Married couples (husband and wife) — both as lives assured |
| Minimum Entry Age | 18 years (completed) |
| Maximum Entry Age | Subject to maximum maturity age limits based on option chosen |
| Minimum Maturity Age | 28 years |
| Maximum Maturity Age | 60 to 75 years (depending on the death benefit option selected) |
| Minimum Basic Sum Assured | ₹3,00,000 |
| Maximum Basic Sum Assured | No limit (subject to underwriting approval) |
| Policy Term Options | 10, 15, 20, or 25 years |
| Premium Paying Term (PPT) | 5, 10, or 15 years |
| Premium Payment Mode | Regular (annual/half-yearly/quarterly/monthly during PPT) |
Optional Riders — Enhance Your Coverage
Both lives assured can opt for the following riders at an additional premium at the inception of the policy:
Rider 1: LIC’s Accidental Death and Disability Benefit Rider
Provides an additional sum assured in the event of accidental death or permanent total disability caused by an accident. If the life assured dies due to an accident during the rider term, the rider sum assured is paid over and above the base death benefit. In case of permanent total disability, the rider sum assured is paid in instalments over 10 years and future rider premiums are waived.
Rider 2: Term Assurance Rider
Provides additional pure life cover over and above the base plan’s death benefit for added protection during the policy term.
Rider 3: Critical Illness Cover Rider
Provides a lump sum benefit upon diagnosis of specified critical illnesses, offering financial support during medical emergencies — supplementing the base life protection with health-linked cover.
Note: Rider premiums for the surviving spouse continue to be payable even after the premium waiver benefit is triggered under the base plan following the first death.
Illustrative Example
The following is a conceptual illustration. Actual benefits depend on both partners’ ages, option chosen, PPT, policy term, applicable rebates, and underwriting norms. Please refer to the official LIC benefit illustration or consult a LIC agent.
| Particulars | Example Values |
| Basic Sum Assured | ₹10,00,000 |
| Annual Premium (illustrative) | ₹50,000 per year |
| Premium Paying Term | 10 years |
| Policy Term | 20 years |
| Annual Guaranteed Addition | 7% × ₹50,000 = ₹3,500 per year |
| Total GAs over 20 years | ₹3,500 × 20 = ₹70,000 |
| Total Maturity Benefit | ₹10,00,000 + ₹70,000 = ₹10,70,000 |
| Total Premiums Paid | ₹50,000 × 10 = ₹5,00,000 (then nil) |
This illustration is conceptual and simplified. For a personalised benefit illustration with exact premium amounts and returns, please use the LIC premium calculator at licindia.in or consult your LIC agent.
Tax Benefits
| Tax Section | Benefit |
| Section 80C | Premiums paid may qualify for deduction up to ₹1,50,000 per annum, subject to conditions and the Sum Assured being at least 10× the annual premium |
| Section 10(10D) | Death benefit received by the nominee may be fully exempt from income tax under prevailing provisions |
| Note | Tax laws are subject to change. Please consult a qualified tax advisor for personalised guidance on your specific situation. |
Plan 889 vs Plan 888 — How They Compare
| Feature | Plan 888 – Single Premium | Plan 889 – Limited Premium |
| Premium Payment | One time only | Over 5, 10, or 15 years |
| Guaranteed Additions | ₹70 / ₹1,000 BSA / year | 7% of annual premium / year |
| Death Benefit Option I | Higher of 1.25× SP or BSA | Higher of 7× AP or BSA |
| Death Benefit Option II | 10× Single Premium | Higher of 10.5× AP or BSA |
| Premium Waiver on First Death | Not applicable (single premium) | Yes — all future premiums waived |
| Best For | Lump sum investors / NRI couples | Working couples with regular income |
Why Choose LIC’s New Jeevan Sathi – Limited Premium?
- Complete Joint Protection: Both partners insured under one policy — protection continues even after the first partner’s death, without any additional premium.
- Premium Waiver Safety Net: If one spouse passes away during the premium-paying period, the surviving spouse is relieved of all future premium obligations — a genuine financial lifeline.
- Structured Financial Discipline: Pay for a limited period, build a guaranteed corpus that matures at the end of the longer policy term — ideal for salaried couples.
- Zero Market Risk: Returns are guaranteed and non-linked — not subject to stock market volatility or LIC bonus declarations.
- Flexible PPT and Policy Term Combinations: Mix and match to align with your income years and retirement goals.
- Instalment Payout: Option to convert maturity/death benefit into a regular income stream over 5, 10, or 15 years.
- Liquidity via Loan: Access funds against the policy after the first year without surrendering coverage.
- Paid-Up Value Protection: If premiums are discontinued after a minimum period, the policy acquires a reduced paid-up value, protecting a portion of the invested savings.
- Rider Flexibility: Enhance coverage with accident, term, and critical illness riders at an additional premium.
- Tax Efficiency: Potential tax benefits under Sections 80C and 10(10D) of the Income Tax Act.
- Government-Backed Trust: Underwritten by LIC of India, backed by the Government of India — the most trusted name in Indian life insurance.
How to Purchase
| Channel | Details |
| LIC Branches | Visit your nearest LIC branch with identity and age proof of both spouses |
| LIC Agents / Advisors | Contact a licensed LIC agent or Development Officer for personalised illustration and documentation assistance |
| Corporate Agents / Brokers | Available through authorised corporate agents and insurance brokers |
| Insurance Marketing Firms (IMFs) | Authorised IMFs can facilitate purchase and documentation |
| Online at licindia.in | Purchase directly and avail additional Guaranteed Addition incentive for online buyers |
Important Notes & Disclaimer
- This document is prepared for informational and marketing purposes based on LIC’s official press release dated 26th May 2026 and publicly available information.
- Exact premiums, eligibility, and benefits depend on the ages of both lives assured, the death benefit option chosen, the PPT, the policy term, and applicable rebates and underwriting norms.
- The option chosen at inception (Option I or Option II) cannot be changed during the policy term.
- Tax benefits are indicative and subject to changes in the Income Tax Act. Please consult a qualified tax advisor.
- For complete terms, conditions, exclusions, and a personalised benefit illustration, refer to the official LIC Sales Brochure (Plan 889) or visit www.licindia.in.
- LIC of India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
Life Insurance Corporation of India • Central Office, Mumbai • www.licindia.in
“Yogakshemam Vahamyaham” — Your welfare is our responsibility
