LIC Jeevan Surbhi  Policy Review

Plan no:106,107,108

Introduction on LIC Jeevan Surbhi  Policy

LIC Jeevan Surbhi policy is an enhanced version of money back plans with following characteristics:

• Different policy terms with different premium paying terms are available.
• Early and higher rate of survival benefit is available (Period for payment of survival benefit has been reduced by 1 year )
• Limited premium paying term.
• Risk coverage increases for every five years from date of commencement of policy.

• Accident benefit cover will be available during premium paying term only.

LIC Jeevan Surbhi policy – plan no 106,107 and plan no 108 were introduced in 19/10/1992 and withdrawn on

 LIC Jeevan Surbhi policy Conditions

Sum Assured : Minimum – 50,000 /- W.e.f: 01/06/2004

                        Maximum – No Limit

Entry age : Minimum  –  14 years

                  Maximum – 55 years  for plan 106

    – 50 years  for plan 107

    – 45 years  for plan 108

Maturity age : Maximum – 70 years

Policy Term: Plan 106 – 15 Years

Plan 107 – 20 Years

Plan 108 – 25 years 

Premium paying term     : Plan 106 – 12 Years

Plan 107 – 15 Years

Plan 108 – 18 Years

premium payment mode : Yearly, Half Yearly, Quarterly,Monthly,SSS

1.Female cat I and II are allowed. W.e.f. 23/7/2003

2.Female cat III is allowed upto basic sum assured of Rs. 5 lakh

3.Standard age proof and medical is must.

4.Jeevan Surbhi  plan is also allowed to female minors where insurance is financed with parents income upto sum assured of Rs. 10 lakh.

LIC Jeevan Surbhi Policy Rebates

Rebates are divided into 2 types

1. sum assured rebate and
2. mode rebate (premium payment mode)

Premium payment mode Rebate: Yearly 3% of tabular premium

                        Half-yearly 1.5% of tabular premium

Sum Assured rebate :

SUM ASSURED	REBATE PER 1000 SUM ASSURED
Upto 50,000	Nil
50,001 to 1,00,000	RS.1.00
Above 1,00,001	RS.2.00

SURVIVAL BENEFIT

If on a particular date as given in policy schedule , the life assured survives and all premiums up to that date have been paid , then certain percentage of basic sum assured will be refunded to life assured as survival benefit.

The following table gives A = % of the sum assured payable as survival benefit amount at the end of ‘B’ years from date of commencement.

LIC Jeevan Surbhi Policy Maturity Benefits

1. Maturity Benefit: If the policy matures on your survival at the end of the policy term. All bonuses declared up to maturity date will be paid as maturity claim.

       1. If premiums are discontinued within premium paying term, then maturity claim

                               = paid up value + vested bonus.

LIC Jeevan Surbhi Policy Death claim

1. If policy is in full force by paying all the premiums in the premium term then death claim

                        = full sum assured + additional death cover as shown below + vested bonus

2.   If policy is in reduced paid up conditions then death claim

                        = Paid up value + Vested bonus

LIC Jeevan Surbhi policy guaranteed Surrender Value

Policy can be surrendered after paying premiums for at least of 3 full years.

In above condition Guaranteed surrender value = 30% of  all the premiums paid – 1st year premium

PAID UP VALUE :

After paying at least 3 full years premiums, policy will acquire paid up value as follows:-

                 =  Sum Assured  x  No of years Premiums paid /  No of  years Premiums payable

Riders Available in LIC  Jeevan Surbhi policy

DAB/EPDB cover is available under the policy during premium paying term only.

DAB/EPDB is available equal to basic sum assured.

Bonus on LIC Jeevan Surbhi plan

As LIC Jeevan Surbhi policy is with profit the bonus will participate in profits till the end of policy

Simple Reversionary Bonuses are declared per thousand of Sum Assured annually at the end of each financial year. A Final (Additional) Bonus may also be payable ( but policy has to run for certain minimum period ).

Additional Information

In Jeevan Surabhi policy loan can be granted under certain conditions.

Lic Jeevan Surabhi Policy Benefit illustration :

Example1

           Age at entry : 35 years

           Policy Term : 15 Years  

           Premium Paying Term : 12 Years

           Mode of premium payment : Yearly

           Sum Assured : Rs. 1,00,000 /-

           Annual Premium : Rs. 10963 /-

Year	Total premiums paid till end of year	Benefit on death during the year
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	10963	100000	2400	4800	102400	104800
2	21926	100000	4800	9600	104800	109600
3	32889	100000	7200	14400	107200	114400
4	43852	100000	9600	19200	109600	119200
5	54815	100000	12000	24000	112000	124000
6	65778	150000	14400	28800	164400	178800
7	76741	150000	16800	33600	166800	183600
8	87704	150000	19200	38400	169200	188400
9	98667	150000	21600	43200	171600	193200
10	109630	150000	24000	48000	174000	198000
12	131556	200000	28800	57600	228800	257600
15	131556	200000	36000	72000	236000	272000

Year	Total premiums paid till the end of year	Benefit on survival / maturity
		Guaranteed	Variable		Total
			Scenario 1	Scenario 2	Scenario 1	Scenario 2
1	10963	0	0	0	0	0
2	21926	0	0	0	0	0
3	32889	0	0	0	0	0
4	43852	30000	0	0	30000	30000
5	54815	0	0	0	0	0
6	65778	0	0	0	0	0
7	76741	0	0	0	0	0
8	87704	30000	0	0	30000	30000
9	98667	0	0	0	0	0
10	109630	0	0	0	0	0
12	131556	40000	0	0	40000	40000
15	131556	0	36000	72000	36000	72000