LIC Jeevan Anand (Table No. 149)

Product summary:
This plan is a combination of Endowment Assurance and Whole Life plans. It provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival.

Premium:

Premiums can be pay yearly, half-yearly, quarterly, monthly.

Bonuses:
This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period.

Benefits in case of death during the selected term:
The Sum Assured along with the vested bonuses is payable on death in a lump sum.

Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the end of the term. An additional Sum Assured is payable on death thereafter.

Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in instalments.

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option.  An additional premium is required to be paid for these benefits.

Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more.  The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.

Illustration 1
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 25 years 
Mode of premium payment: Yearly 
Annual Premium: Rs. 4,535 /-

End of year	Total premiums paid till end of year	Benefit payable on death / maturity at the end of year
		Guaranteed *	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	4,535	100000	1500	5100	101500	105100
2	9,070	100000	3000	10200	103000	110200
3	13,605	100000	4500	15300	104500	115300
4	18,140	100000	6000	20400	106000	120400
5	22,675	100000	7500	25500	107500	125500
6	27,210	100000	9000	30600	109000	130600
7	31,745	100000	10500	35700	110500	135700
8	36,280	100000	12000	40800	112000	140800
9	40,815	100000	13500	45900	113500	145900
10	45,350	100000	15000	51000	115000	151000
15	68,025	100000	22500	76500	122500	176500
20	90,700	100000	33000	113000	133000	213000
25	1,13,375	100000	41500	141000	141500	241000

End of year	Total premiums paid till end of year	Benefit payable on death / maturity at the end of year
		Guaranteed *	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
26	1,13,375	100000	41500	141000	141500	241000
27	1,13,375	100000**	-	-	100000**	100000**

 * In addition to the benefits given in the column, an Accident Benefit of Rs. 1,00,000 /- will also be available without payment of extra premium in case of death/disability due to accident

 ** Benefit payable on death after the selected term. If the death occurs due to accident up to age 70 an additional Rs. 1,00,000/- will also be paid.

(i) The above illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.

(ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.

(iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

(iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

LIC Jeevan Saral (Table No. 165)

(Golden Peacock Award winning Insurance Plan)

Policy Summary:

This is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment. The plan provides financial protection against death throughout the term of the plan. The death benefit is directly related to the premiums paid. The Maturity Sum Assured depends on the age at entry of the life to be assured and is payable on survival to the end of the policy term. It also offers the flexibility of term and a lot of liquidity.

Premiums:
Premiums can be pay yearly, half-yearly, quarterly, or monthly.

Policy Eligibility:

Entry Age          : 12 to 60 years

Maturity Age     : 70 years Maximum

Policy Term      : 10 to 35 years

Min. Premium   :  Rs. 250 /month for age up to 49 and Rs. 400 /month for age 50 & above.

Max. Premium  : No Limit

LIC Jeevan Saral Chart:

Benefits of Jeevan Saral

Loyalty Additions:
This is a with-profits plan and participates in the profits of the Corporation’s life insurance business.  It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit.  Loyalty Additions may be payable from the 10th year onwards depending upon the experience of the Corporation.

Death Benefit:
250 times the monthly premium together with loyalty additions, if any, and  return of premiums excluding first year premiums and extra/rider premium, if any, is payable in lump sum on death of the life assured during the term of the policy.

Maturity Benefit:
The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.

Guaranteed Surrender Value:
The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

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. The Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.

Example:
Mr. Rohit is 25 years old and is working in IT industry. 
He opts for jeevan saral plan for 25 years term and chooses monthly premium of Rs.1000/- after adding DAB (Double Accidental Benefit) Net premium of Rs.1021. On maturity he will receive Rs.13,65,101/- (as maturity sum assured (MSA) + Loyalty Addition which will be decided by the corporation).

 If he dies after 5 years, his nominee will get Rs.2,50,000 (250 x 1000) + premium paid for 5 years – first year premium = 2,50,000 + 61260- 12252 = 2,99,008 + Loyalty Addition.