Unlocking Financial Security: A Deep Dive into LIC Jan Suraksha Plan No. 880

Discover how LIC’s new LIC Jan Suraksha Plan No. 880 brings affordable life cover, guaranteed additions, and maturity benefit. Understand features, eligibility, benefits and whether it’s right for you.

In a world where financial uncertainties lurk around every corner, the need for a reliable life-insurance plan that blends protection and savings has never been more important. With that purpose in mind, the Life Insurance Corporation of India (LIC) has recently launched Plan No. 880 – “LIC Jan Suraksha Plan” (also referred to as “Jan Suraksha”) to cater especially to the lower-income and mass market segment.

Table of Contents

In this blog post, we’ll break down what this plan is all about — its key features, benefits, eligibility criteria, pros & cons, and how you might evaluate whether it fits your financial goals. We’ll also pepper in some tips to help you make the most of it.

What is LIC Jan Suraksha Plan No. 880?

The plan, officially named “LIC’s Jan Suraksha Plan – Plan No. 880 (UIN: 512N388V01)”, is a non-participating, non-linked individual savings insurance plan introduced by LIC on 15 October 2025.
It is designed to provide both life cover (in case of death during the term) and a maturity benefit (if you survive the term).
Because it’s “non-par” (non-participating) it means you will not receive bonuses tied to LIC’s profits — instead, the benefits like “Guaranteed Additions” are fixed and predictable.
It is targeted at the mass market / micro insurance segment, especially those who want affordable savings plus life cover.

So in simple terms: you pay premiums for a chosen term (12-20 years), get life cover during that term, and if you survive the term you get your basic sum assured + guaranteed additions. And there are some additional bells & whistles (loan facility, auto-cover, etc.) built in.

Key Features & Benefits of Plan 880

Here are the major features distilled in a user-friendly way (and yes, we’ll use keywords like LIC Jan Suraksha Plan 880, benefits, sum assured, eligible age, etc., because after all we are aiming for SEO-friendliness).

Eligibility & Basic Parameters

Entry age: Minimum 18 years (completed). Maximum 55 years (nearer birthday) for most modes.
Maturity age: Up to 70 years (nearer birthday) for online/paperless modes; offline mode may have max maturity age of 65 years.
Basic Sum Assured (BSA): Minimum ₹1,00,000, Maximum ₹2,00,000 per life. The multiples of BSA are in ₹5,000 increments.
Policy Term: Can be chosen from 12 to 20 years. Premium-paying term = Policy Term minus 5 years.
Mode of premium payment: Yearly / half-yearly / quarterly / monthly.

Death Benefit

If the life assured dies during the policy term (and all premiums have been paid up to that date), the nominee receives:

Sum Assured on Death (which is the higher of: the Basic Sum Assured or 7 × Annualised Premium) PLUS
Accrued Guaranteed Additions up to date of death.
Also, the minimum death benefit is no less than 105% of the total premiums paid (excluding taxes, rider premiums, loadings) till the date of death.

Maturity Benefit

If the policyholder survives the policy term and has paid all premiums, then at maturity you receive:

Basic Sum Assured +
Accrued Guaranteed Additions (for every policy year)

Guaranteed Additions

A standout feature: Each policy year when the policy is in force and premiums are paid, you accumulate “Guaranteed Additions” at a fixed rate (currently 4% of total annualised premium) from inception to maturity.
There are extra incentives: for example, if you choose Basic Sum Assured of ₹2,00,000, you get an additional 0.25% addition; if you purchase online (no agent) you may get extra 1% addition.

Loan Facility & Auto cover

After one full year and premium paid for that year, you can avail policy loan: upto 80% of surrender value (in-force), 70% (paid-up) with interest (loan rate for 2025-26 is 9.50% pa compounding half-yearly)
Auto cover: If 3 full years’ premiums are paid, the cover continues even if subsequent premiums are not paid (paid-up policy).

Surrender, Paid-up and Revival

Grace period: 30 days for yearly/half/quarterly premium; 15 days for monthly.
Free‐look: 30 days from receipt of policy to cancel if dissatisfied (premium refunded after deductions).
Paid-up: After at least one full year premium and then non-payment, policy becomes paid-up; benefits reduced proportionately.
Surrender: Possible after premium paid for at least 1 full year; Guaranteed surrender value after 2 years.
Revival: Within 5 years of first unpaid premium, by paying outstanding plus interest and fulfilment of insurability.

Exclusions

Suicide within 12 months from risk commencement (or revival) leads to limited payout: return of 80% of premiums paid (excluding taxes etc.) or surrender value whichever higher.

Why LIC Jan Suraksha Plan 880 Makes Sense

Let’s talk about why this plan could be a smart choice (for certain people). Here, I’ll highlight the advantages, especially in the context of the Indian insurance market, where many middle-income earners look for simplicity, affordability and assurance.

1. Affordable Life Cover + Savings

This plan bridges two needs: a life cover (protection) + a savings component (maturity benefit). For many people, especially in the lower-to-middle income segment, this dual nature is attractive: you’re not just buying term cover (which may expire worthless) and you’re not just investing in savings (leaving your dependents exposed). With Plan 880 you get both.

2. Predictable Benefits

Since this is non-participating and non-linked, you know what to expect: the Basic Sum Assured + guaranteed additions. There’s no dependency on market fluctuations or bonus declarations (which can be uncertain). That gives a comfort factor, especially for risk-averse individuals.

3. Micro-Insurance Appeal

Given the modest Basic Sum Assured range (₹1 lakh to ₹2 lakh) and term flexibility (12-20 years), this plan is aimed at the mass market and segments who may not want very large sums assured but want meaningful cover. It makes the plan accessible.

4. Additional Features (Loan, Auto Cover etc.)

The loan facility provides liquidity if required; auto-cover feature gives continuity even if premiums are missed; online purchase incentives encourage convenience — all of which enhance the usability of the plan.

5. LIC Branding & Guarantee

LIC is backed by the sovereign guarantee (under Section 37 of LIC Act) which adds to the trustworthiness. For many Indian policy-holders, that guarantee is a strong assurance.

Points to Be Aware Of (And Ask Questions)

No plan is perfect for everyone — here are some caveats or things you should carefully evaluate before committing to Plan 880.

1. Basic Sum Assured is Moderately Low

In today’s times, for many households, a cover of ₹1-2 lakh may not be sufficient to fully replace income or secure dependents for long periods. If you have significant liabilities (home loan, children’s higher education) you may need additional term cover on top of this plan.

2. Fixed Return Nature

While the “guaranteed additions” are fixed (4% of annualised premium currently), the overall return may be modest compared to investment-heavy products or market-linked plans. If you are seeking high corpus growth, this may not suffice.

3. Premium Paying Term vs Policy Term

Because Premium Paying Term = Policy Term minus 5 years, you’ll pay longer than many typical endowment plans. Make sure you’re comfortable sustaining premiums for the full term.

4. Surrender and Paid-Up Value Complexity

If you stop paying premiums mid-way, your policy becomes paid-up — benefits get proportionately reduced. Surrender before the term might mean you get much less value. Always check surrender value and paid-up illustrations before buying.

5. Comparison and Alternatives

It’s always wise to compare Plan 880 with other available life insurance products (pure term plans, endowment plans, ULIPs, etc.) to ensure this fits your overall financial plan. For example, pure term plans may give much higher sum assured at lower premiums — couple that with a separate savings/investment plan.

Who Should Consider This Plan?

Let’s outline the target audience for LIC Jan Suraksha Plan No. 880:

Individuals aged 18-55 years who want an affordable savings + protection plan.
People in lower-income or mass market segments looking for a simple product.
Policy-buyers who prefer predictability and low risk (rather than high growth).
Those who need life cover plus disciplined savings but may not want or afford large premiums.
People who may want a secondary plan (after getting basic term cover) to build some savings while being insured.

And who may not be best suited:

Those wanting very high life cover (say ₹50-100 lakh) or maximum investment growth.
People better served by separate term cover + separate investment portfolio for flexibility.
Those uncomfortable with longer premium-paying periods or who may need to stop premium payments midway.

Example Illustration

To get a feel of how Plan 880 might work, let’s consider a simplified illustration (based on available sample numbers). According to the data: for BSA ₹1,00,000 with policy-term = 15 years (premium term = 10 years) the annual premium for age 25 is about ₹9,015.

In that scenario:

You pay ~₹9,015 each year for 10 years (total ~₹90,150).
During each active policy-year you get Guaranteed Additions at 4% of annualised premium (~₹360) accumulating year by year.
If you survive 15 years: You receive Basic Sum Assured ₹1,00,000 + accumulated additions.
If you die during the term: The higher of Basic Sum Assured or (7 × annualised premium) + additions is payable to nominee.
Of course actual cash flows depend on age, term, premium paying term and exact addition rates. You should ask for detailed benefit illustration from LIC.

How to Proceed If You’re Interested

If you’re considering LIC Jan Suraksha Plan 880, here are steps/tips to follow:

Obtain the official sales brochure: Download from LIC’s site (UIN 512N388V01) for full details.
Ask for a benefit illustration: Based on your age, term (12-20 years), Basic Sum Assured (₹1 lakh-₹2 lakh), premium paying term etc.
Check premium affordability: Ensure you are comfortable paying the premium for the full paying term; missing payments can reduce benefits (paid-up).
Evaluate your life cover requirement: If your dependents need higher cover, consider adding a separate term insurance policy in addition to this plan.
Understand surrender and paid-up implications: Ask what happens if you stop paying premiums in say year 5 or year 8 — how much benefit is left, what paid-up value you get, etc.
Compare with alternatives: Compare with pure term plans (for higher cover), or ULIPs/endowment plans (for savings) to find the best fit.
Purchase online vs offline: If you purchase online (without agent) you may benefit from the extra Guaranteed Addition (1%) as per the plan terms.
Keep documents safe, review annually: Make sure premiums are paid on time, keep nominee updated, review once a year whether the cover meets your changing needs.

FAQs Around the Plan

Q1. Can I buy this policy online?
Yes. LIC supports online purchase for Plan 880 and if you purchase online you may be eligible for extra Guaranteed Addition (1%) as the plan offers online purchase incentive.

Q2. What if I stop paying premiums after some years?
If you pay premiums for at least one full year, and later stop, the policy becomes paid-up: benefits reduce proportionately. Also, after 3 full years of premium payment, auto-cover applies (risk cover continues).

Q3. Is there any waiting period for death benefit?
Yes. If death occurs within first 90 days of commencement of risk under POSP/ CPSC mode (business via Point-of-Sale Persons) and death is not due to accident, only premium refund is payable. However, in case of accidental death even in this waiting period full death benefit is paid.

Q4. Are tax benefits available?
Yes: Premiums paid may be eligible for deduction under Section 80C of the Income-Tax Act (subject to overall limit etc.). On maturity or death, the payout should be tax-free under Section 10(10D) subject to conditions. (As with most LIC plans)

Q5. Can I add riders?
Yes, riders such as Accidental Death & Disability Benefit Rider may be available (especially for online/agent modes) where you can enhance cover for accidents.

Final Take & Call to Action

If you’re looking for a straightforward, low-risk savings plus life cover solution, especially in the 18-55 age group, the LIC Jan Suraksha Plan No. 880 presents a strong case: affordable premiums, guaranteed additions, and the backing of LIC.

However, it is not a one-size-fits-all: if you need very high life cover, or are looking for aggressive growth/investment beyond savings, this plan may need to be supplemented by other products.

Recommendation:

For many middle-income individuals or first-time insurance buyers, this plan could serve as their primary “insurance + savings” pillar.
But pair it with a separate term insurance policy (higher sum assured for low premium) to ensure your dependents are covered beyond the modest ₹1-2 lakh BSA.
Revisit your cover needs every 2-3 years (especially after major life events like marriage, child birth, home-loan) to ensure this plan (and other policies) still align with your goals.