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No – 89 is a Double Cover Joint Life Endowment Assurance plan.This is a With Profit plan Introduced on – 01/07/1985 and Withdrawn On-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 Earlier restriction of Rs. 2 lakh is withdrawn.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.

MATURITY CLAIM:

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.

Riders

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.

Additional Information

LOAN:

If both lives surviving during the term of policy, loan can be granted as per our

regular terms and condition.

BONUS:

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.

Benefit Illustration

For example:

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
Guaranteed	Guaranteed	Variable		Total
		Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	5,361	100000	100000	2,100	5,700	102,100	105,700
2	10,722	100000	100000	4,200	11,400	104,200	111,400
3	16,083	100000	100000	6,300	17,100	106,300	117,100
4	21,444	100000	100000	8,400	22,800	108,400	122,800
5	26,805	100000	100000	10,500	28,500	110,500	128,500
6	32,166	100000	100000	12,600	34,200	112,600	134,200
7	37,527	100000	100000	14,700	39,900	114,700	139,900
8	42,888	100000	100000	16,800	57,000	116,800	145,600
9	48,249	100000	100000	18,900	57,000	118,900	151,300
10	53,610	100000	100000	21,000	57,000	121,000	151,300
15	80,415	100000	100000	31,500	85,500	131,500	185,500
20	107,220	100000	100000	56,000	152,000	156,000	252,000
25	134,025	100000	100000	69,500	189,500	169,500	289,500