LIC Jeevan Saathi Policy Review
Jeevan Saathi plan No – 89 is a Double Cover Joint Life Endowment Assurance plan.This is a With Profit plan Introduced on – 01/07/1985 and Withdrawn On-
LIC Jeevan Saathi Plan is a joint life endowment policy. This plan pays 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.The premiums under this plan are payable during the lifetime of the two lives and ceases on the death of any one of the life assured during term of policy.
LIC Jeevan Saathi Policy Conditions
AGE AT ENTRY : MINIMUM (MEAN AGE) 20 YEARS NBD
MAXIMUM 50 YRS NBD
MATURITY AGE : MAXIMUM 70 YRS. The age of the elder life at maturity shall not be more than 70 yrs
POLICY TERM : Minimum 15 yrs
Maximum 30 yrs
Mode of payment: Yearly, Half-yearly, Quarterly, monthly, and SSS.
- EMR class allowed I,II,III. For EMR class IV,V,VI- plan was allowed with minimum sum assured of Rs. 2 lakh and with reinsurance. As per co/act/2000 dt. 11/3/2005, this plan can be allowed to all classes of EMR without any restriction on sum assured. Earlier restriction of Rs. 2 lakh is withdrawn.
- Non-medical (general ) not allowed. NMS is allowed.
- Standard age proof , NSAP-I for both lives is must.
- Female cat I,II,III are allowed. However, maximum insurance can be granted to
- female cat II is 50 lakh. And for female cat III –self employed and housewife- rs. 1.00 lakh(upto 10 lakh can be granted with certain conditions as per co/act/1769/4 dt 10/12/2001).Housewives falling under female cat III , maximum sum assured is increased to Rs. 10 lakh sub to certain conditions as per co/act/1837/4 dt. 20/11/2002.
- Plan not allowed to pregnant ladies. Plan is allowed to Group A deformity with loss of one limb in either one or both lives- at standard lives with AB cover and EPDB.
- Persons engaged in hazardous occupations are allowed with standard occupational extra . co/act/1921/4 dt 17/12/2003.
SUM ASSURED : MINIMUM – 20,000 UPTO 30/3/2003
30,000 FROM 1/4/2003 TO 31/5/2004
50,000 W.E.F 1/6/2004 .
MAXIMUM – NO LIMIT
Lic Jeevan Saathi Plan Rebates
Jeevan Saathi Plan consists of Two Rebates
Mode Rebate: YEARLY- 3% OF TABULAR PREMIUM
Half-yearly- 1.5% of tabular premium
Sum Assured Rebate:
|From 1/7/1985 to 30/10/2003||25,000 to 49999 ->Rs 1.00 per 1000 SA50,000 and above -> Rs.2.00|
|From 1/11/2003 to …||Upto 50,000 nil 50,001 to 1 lakh -> Rs 1.00 per thousand 1,00,001 and above -> Rs 2.00 per thousand|
LIC Jeevan Saathi Policy Benefits
Death Claim: In case of death of one of the life assured, only basic sum assured ( no bonus) subject to deduction of premiums to complete policy anniversary is payable to the surviving
life assured. Policy will be treated as fully paid up policy for sum assured equal to basic sum
assured. On death of surviving life assured during remaining term of the policy, full
sum assured + vested bonus upto date of death of life assured is payable.If after death of one of the lives assured, all further premiums from policy anniversary following the date of death will be waived.
If policy is in full force or premiums have been paid fully for the term of policy and both
lives survive at the end of policy term,
basic sum assured + vested(period between insurance taken date and policy maturity date)
bonus + FAB is payable as maturity claim.
If policy is in paid up condition and both lives survive at the end of policy term,
then paid up value + vested bonus will be paid as maturity claim.
PAID UP VALUE:
After paying at least 3 full years premiums, if further premiums are discontinued, then
policy will acquire paid up value which will be calculated as below:-
= sum assured x No of years premiums paid / No of years premiums payable.
GUARANTEED SURRENDER VALUE:
If after at least 3 full years premiums have been paid , GSV will be 30% of the premiums paid excluding premium for the first year and all extra premium and /or additional premium for accident benefit.Cash value of vested bonus is also payable.
SPECIAL SURRENDER VALUE:
SSV = ( paid up value + bonus ) x SSV factor.
Special surrender value as per above procedure is calculated when both lives are alive and policy is being surrendered by both lives.
DOUBLE ACCIDENT BENEFIT: Jeevan Saathi has DAB rider, Accident benefit cover is available under the policy. sum assured under this policy will be counted for deciding maximum overall limit of accident benefit sum assured, individually for each life separately.
Accident benefit premium is charged Rs. 1/- separately for each life i.e Rs. 2/- will be charged under the plan , if both lives are eligible for accident benefit. Accident benefit ( EPDB and Double Accident benefit) claim is also payable equivalent to basic sum assured under this plan on the death of any one of the lives assured along with basic claim provided death/ disability occurred due to accidental reasons.
If both lives surviving during the term of policy, loan can be granted as per our
regular terms and condition.
Bonus at special rate for plan 89 is payable either
1) On maturity of policy
2) Where death claim has been settled for one of the life assured and surviving life assured
survives the entire term and policy gets matured.
3) When death of surviving life assured takes place within term of policy.
But in no case, bonus will be paid along with death death claim for full sum assured/ paid up policy, upon death of one of the life assured.
Finally Jeevan Saathi is a with profit plan provides financial protection against death of both the lives.It pays the maturity amount on survival of one or both the lives to the end of the policy term.
Mr. Rajeev taken the Jeevan Saathi policy on age 35/- and the policy term is 25 years Mode of premium payment is Yearly,Sum Assured is Rs. 1,00,000/-
Annual Premium : Rs. 5361/-
|End of year||Total premiums paid till end of year||Benefit payable on first death of lives covered||Benefit payable on second death of lives covered during the policy term or on survival of one or both the lives till the date of maturity|
|Scenario 1||Scenario 2||Scenario 1||Scenario 2|