LIC Jeevan Saral

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LIC Jeevan Saral Plan

 

LIC Jeevan Saral is actually an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans. Hence it is categorized under Special Plans. This is a non unit-linked insurance plan with Double Death Benefit of Sum Assured + Return of Premium.

 

In this plan, the premium amount is decided by the policyholder and he gets 250 times the monthly premium as Sum Assured. If the Life Insured survives the entire term, then he would receive Maturity Sum Assured + Loyalty Additions. The Maturity Sum Assured depends on different entry ages and policy term and is specified at the beginning of the policy.

Now, if the Life Insured dies within the policy tenure then his nominee would receive the Sum Assured + Return of premiums excluding extra/rider premium and first year premium + Loyalty Addition, if any.

Thus, the Death Benefit would be the same irrespective of age of entry and policy term since it depends only on chosen premium amount but the Maturity Benefit would differ according to varied age of entry and policy term. 

  • This plan provides certain flexibilities unlike other endowment plans and hence is a Special Plan
  • The policyholder can choose his own premium amount and Sum Assured gets determined thereafter
  • The plan will allow partial surrender from 4th year onwards subject to certain terms and conditions
  • The policyholder is allowed to choose a flexible term for premium payment

 

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Key Features of LIC Jeevan Saral Plan

  • Premium is chosen by the policyholder and Sum Assured is 250 times the Monthly Premium amount.
  • Death Benefit is Sum Assured + Return of premiums excluding extra/rider premium and first year premium + Loyalty Addition.
  • Maturity Benefit is Maturity Sum Assured + Loyalty Additions, if any.
  • Partial surrender of the policy is allowed after the 3rd policy year.
  • Extended risk cover for one year after 3 years premium payment.
  • Optional higher cover through Term Rider and Accidental Death and Disability Benefit.
  • You can choose a maximum term but can surrender at any time without any surrender penalty or loss after 5 years.
  • Loyalty Additions are provided from 10th policy year onwards.

 

Benefits you get from LIC Jeevan Saral Plan

 

Death Benefit – In case of death of the Life Insured, the nominee receives

  • Sum Assured (i.e. 250 times the Monthly Premium) +
  • Return of premiums excluding extra/rider premium and first year premium +
  • Loyalty Addition, if any

 

 

Maturity Benefit – At the maturity of the policy, the insured will get

  • Maturity Sum Assured (Depends on age of entry and policy term) +
  • Loyalty Additions, if any.

 

 

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)

 

 

Eligibility conditions and other restrictions in LIC Jeevan Saral Plan

 

Minimum

Maximum

Sum Assured (in Rs.)

250 times Monthly Premium

Policy Term (in years)

10

35

Premium Payment Term (in years)

10

35

Entry Age of Policyholder

12

60

Age at Maturity

-

70

Monthly Premium (in Rs.)

For Age 12 to 49 years: Rs.250/-

For Age 50 to 60 years: Rs.400/-

Rs. 10,000/-

Payment modes

Yearly, Half-yearly, Quarterly, Monthly and SSS

       

 

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Sample illustration of LIC Jeevan Saral Plan

 

The below illustration is for a healthy Male of 35 years (non-tobacco user) opting for a Annual Premium = Rs. 4704 and Policy Term = 25 years respectively.

LIC Jeevan Saral Sample Returns

 

 

Additional Features and Benefits of LIC Jeevan Saral Plan

 

Riders- There are 2 additional riders available:

  • Term Rider- The minimum and maximum age at entry will be 18 and 50 years respectively and the minimum Sum Assured will be Rs.1 lakh upto a maximum of Rs 25 lakhs.
  • Accidental Death and Disability Benefit 

 

 

What happens if?

 

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

 

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

Special Surrender Value = 80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid

 

You want a loan against your policy – Loan facility is available under this policy

 

 

Alternate endowment plans from different insurance companies

 Aviva Dhan Vriddhi Plan

ICICI Prudenetial GSIP

Met Saral Plan

 

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Videos on LIC Jeevan Saral

 

 

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