Introduction about Lic Jeevan saral Policy plan no – 165 Review
Lic Jeevan saral policy was INTRODUCED ON – 16/2/2004 and WITHDRAWN ON –
Lic Jeevan saral plan is an endowment assurance plan where customer decides the amount of premium he wants to pay per year.
The sum assured payable on death is related to the premiums paid, irrespective of the age and policy term, but at maturity the sum payable is different for each age at entry and policy term.
Lic Jeevan saral policy offers higher death cover, liquidity and lot of flexibility. Also the concept of partial surrender is also introduced under this plan.
Lic Jeevan saral policy Conditions
AGE AT ENTRY: Minimum: 12 years completed
Maximum: 60 years
POLICY TERM: Minimum: 10 years
Maximum: 35 years
PREMIUM :
| Age at entry | Minimum premium |
| Up to 49 years | Rs. 250/- per month |
| 50 to 60 years | Rs. 400/- per month |
Maximum: No limit
MODE OF PAYMENTS: Yearly, Half yearly, Quarterly,SSS and
ECS – monthly mode is available.
MAXIMUM AGE AT MATURITY: 70 years
SUM ASSURED (death): 250 times the monthly premium.
| Age at entry | Minimum sum assured |
| Up to 49 years | 62500 |
| 50 years and above | 1,00,000 |
Maximum: No limit
Lic Jeevan saral Policy Rebates
The Rebates are of 3 types,
- Sum assured rebate
- Mode rebate
- CEIS rebate
Sum assured rebate:
Sum assured rebates are not available under Lic Jeevan saral plan.
Mode rebate:
| Mode | Percentage |
| Yearly mode | 2% of tabular premium |
| Half-yearly mode | 1% of tabular premium |
| Quarterly and SSS | Nil |
CEIS rebate:
Under Lic Jeevan saral plan CEIS rebate is available. It is of 10% of basic premium.
Lic Jeevan saral Policy Maturity claims
If life assured is surviving on date of maturity and also if all premiums have been paid during policy term, then
Maturity claim = Maturity sum assured (not death sum assured) + loyalty addition
Maturity claim for term assurance rider is not payable.
If after paying at least 3 full year premiums and further premiums are not duly paid, then
Maturity claim = paid up value
Lic Jeevan saral Policy Death claims
Death claim under auto cover (without term assurance rider) :
If death of life assured occurs within auto cover period, then
Death claim = Basic death sum assured + (return of premiums – 1st year premium and extra/rider premiums/EPDB premiums if any) + loyalty additions – outstanding loan with interest if any.
Accidental benefit and Disability benefit riders are not available during Auto cover period.
Death claim under auto cover (with term assurance rider) :
If death of life insured occurs before date of FUP or within days of grace, then
Death claim = Basic death sum assured + Term rider sum assured + (return of premiums – first year premium and extra/rider premiums/EPDB premiums if any) + loyalty additions – o/s loan with interest if any.
If death of life insured occurs within auto cover period, then term rider sum assured
is not payable.
Lic Jeevan saral Policy Additional Benefits
Loyalty addition:
- Jeevan saral policy will be eligible for loyalty addition only after paying premiums for 10 years and after completion of 10 years from commencement date.
- Loyalty addition is based on policy term and is payable when policy is surrendered or on death or maturity.
- Loyalty addition is not payable for policies which are surrendered within 10 years and death claim occurs within 9 years.
- Loyalty addition is not available for term rider sum assured.
Riders Available in Lic Jeevan saral Policy
Under Lic Jeevan saral policy 2 riders are available, they are
- Term assurance rider
- Accidental death and Disability benefit rider
Term assurance rider (optional) :
Lic Jeevan saral plan offers optional term assurance rider by payment of additional premium.
Age at entry : Minimum : 18 years complete
Maximum : 50 years
Maximum age at maturity: 60 years
Sum assured: Minimum : 1 lakh with multiple of 10,000.
Maximum : 25 lakh
Accidental death and Disability benefit rider:
Under Lic Jeevan saral policy, accidental death and disability benefit rider is available up to maximum sum assured of 50 lakh. PDB (Permanent Disability Benefit) is not available under this plan.
Sum assured for this rider is death sum assured (not maturity sum assured). For auto cover period Accident death and disability benefit rider is not available.
GUARANTEED SURRENDER VALUE:
After paying 3 full years premiums and completion of 3 policy years, then
GSV = 30% ( total amount of premiums paid – the premiums for the 1st year and all extra premiums and premium for accident benefit/term rider).
PAID UP VALUE:
After paying premiums for at least 3 full years, policy will acquire paid up value.
Paid up value payable on death or maturity depends on no. of premiums paid and will be greater of
No. of years premium paid x original Maturity sum assured
No. of years premiums payable
OR
Surrender value as per SSV
SPECIAL SURRENDER VALUE:
If the policy is in force for at least 3 full years, then the policy can be surrendered
Under Lic Jeevan saral policy SSV is calculated as,
SSV = Discounted or Accumulated value of maturity sum assured + loyalty addition (if any).
PARTIAL SURRENDER VALUE:
After completion of 3 years or more from Date Of Commencement (DOC) and if premiums have been paid for at least 3 full years, partial surrender will be allowed.
All benefits will get reduced, if a partial surrender is made.
| Age at entry | Reduced basic monthly premium after the partial surrender |
| Up to 49 years | > Rs. 250/- per month |
| 50 years and above | Rs. 400/- per month |
| Mode of payment | minimum basic monthly premium that can be surrendered at a time |
| Monthly | Rs. 100/- |
| Half-yearly | Rs. 600/- |
| Yearly | Rs. 1200/- |
Minimum basic monthly premium that can be surrendered at a time should be in multiple of Rs.50/- per month.
Additional Information about Lic Jeevan saral Policy
Auto cover:
After paying at least 3 full years premiums, if further premiums are not paid within days of grace, then risk cover will be extended for 12 months from the date of First Unpaid Premium (FUP).
Auto cover is not extended for term assurance benefit rider and Accidental death benefit rider.
If death of life assured occurs during auto cover period, all outstanding premiums will be recovered from claim account.
Loan:
- Loan facility is available under Jeevan saral policy, when policy acquires paid up value.
- At present, Rate of interest is 9% per annum, payable half-yearly.
- Rate of interest will be determined by the corporation from time to time.
Revival:
SUC(Sum Under Consideration) for the purpose of revival = death benefit sum assured + term assurance sum assured.
Policy can be revived within a period of 5 years from date of FUP with proper health evidence.
If policy is accepted with term rider, then policy can not be revived without any health evidence, but on medical report and special report or under non-medical special.
Lic Jeevan saral Policy Benefit illustration
Example:
Mr. Akash is 25 years old and is working in auto industry. He opts for jeevan saral plan for 15 years term and chooses monthly basic premium of Rs.500/-
After adding DAB (Double Accident Benefit) premium of Rs.510 (500 x 250 = 1,25,000 x 1/1000 x 1/12 = 10 + 510).
On maturity he will receive Rs.97,655/- as maturity sum assured (MSA) + Loyalty Addition which will be decided by the corporation.
If he dies after 4 years,
his nominee will get Rs.1,25,000 (250 x 500) + premium paid for 4 years – first year premium = 1,25,000 + 24,480 – 6120 = 1,43,360/- + Loyalty Addition, if any.