LIC Jeevan Saathi Plan

LIC Jeevan Saathi Plan is a joint life endowment policy. This plan pays for the Death Benefit during the policy term for both husband and wife but the Maturity Benefit is paid even if both or anyone are alive till the end of the policy term. Hence it is a double death benefit plan.

In this plan, if any one of the husband or the wife dies within the policy tenure, the Sum Assured is paid in a lumpsum but the policy continues but the future premiums are waived and paid by the insurance company. If the last survivor also dies within the policy tenure, then the Sum Assured is paid along with the accrued Bonus and the policy is terminated. However, if one or both of the husband and wife outlives the policy tenure, then the Sum Assured along with the accrued Bonus is paid in a lumpsum and then policy is terminated.

§  This plan an endowment plan with guaranteed returns

§  This is a double cover joint life death benefit plan as Sum Assured is paid on the death of BOTH the husband and the wife.

§  If only 1 of the 2 dies and the other one is living then Sum Assured is paid but the policy continues by waiving off the future premiums

§  If the last survivor of the husband and wife dies within the policy tenure, then the Sum assured + accrued Bonus paid as Death Benefit and the policy is terminated.

§  The Sum Assured + accrued Bonus is paid if anyone or both the husband and the wife survives till the end of the policy tenure.

Death Benefit – In case of death of one of the Life Insured, i.e. the husband or the wife, the other survivor receives

·         Sum Assured and the policy continues

·         The future premiums are waived.

If the last of the 2 survivors also die within the policy tenure, then the Sum Assured + accrued Bonus is paid as Death Benefit and the policy is terminated.

Maturity Benefit – At the maturity of the policy, if both or anyone of the 2 life insured are alive, then Sum Assured + accrued Bonus is paid as Maturity Benefit.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy Male (non-tobacco user) and his wife a healthy Female opting for a Sum Assured = Rs 1,00,000 and Policy Term = 25 years with a Premium Paying Term= 25 years respectively. The premium depends on both their ages.

Riders – There are 1 Additional Riders available:

·         Accidental Death Benefit rider at Rs 2 per Rs 1000 of Sum Assured

And 1 in built rider:

·         Premium Waiver Rider

You stop paying the premium – If you stop paying the premiums after paying first years’ premium in full, the policy acquires a Paid Up Value for a Reduced Sum Assured.

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

There is also a Special Surrender Value, which is the discounted value of Paid-up Sum Assured

You want a loan against your policy – Loan facility is available under this policy. The rate of interest at present is 9% p.a.

1.     Kotak Surakshit Jeevan

2.     HDFC Life Sampoorn Samridhi Insurance Plan

3.     IDBI Federal Bondsurance

1.     LIC Jeevan Anand

2.     LIC Jeevan Amrit

3.     New Janaraksha Plan

4.     LIC Endowment Assurance

5.     LIC Endowment Assurance (Limited payment)

6.     LIC Jeevan Mitra