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.