LIC Jeevan Saral Plan

Life Insurance Corporation (LIC) of India is trusted name of the Indian insurance industry. The insurance plans of LIC are affordable and take care of the need of different insurance seekers. Certainly, several Indians depend upon the plans of LIC for providing financial security to their selves and their families. Keeping the trust of the Indian public, LIC time to time launches different policies and LIC – Jeevan Saral is one of them.

LIC Jeevan Saral is an endowment policy wherein the insured has to select the premium cost and mode of the payment of the premium. The plan offers monitory protection against the death of the policyholder and throughout plan’s term and provides up to 250 times of monthly premium. The maturity’s sum assured directly depends on the entry age of the insured in the plan and is paid on the survival of the insured at the policy term’s end. This plan is most recommended to the employees who require life insurance and tax savings with good insurance returns through Salary Saving Schemes (ECS).

This plan as well offers the 15 days free-look period and provides a lot of liquidity as it has the option of partial surrenders and flexible terms.

LIC Jeevan Saral Policy – Eligibility Criteria

The eligibility criteria to purchase Jeevan Saral plan are:

  • The entry age of the insured must be between 12 years to 60 years
  • The maximum maturity age is 70 years
  • The policy term can be between 10 years and 35 years
  • The minimum premium paid for this plan is as low as Rs.250/ month or Rs.3000 per year.
  • There is no limit on the maximum amount of premium that a policyholder can pay.
  • The mode of policy premium can be – yearly, half-yearly, quarterly, SSS, and ECS.
  • The loan on the policy is available after 3 years @ the rate of 9% per annum.
  • The riders of the term are also available.
  • The feature to surrender the policy is also available.

LIC Jeevan Saral Plan Features

LIC Jeevan Saral policy offers one of the best financial covers to the family of the insured when he/she expires. Another biggest advantage that one gets in case he/she survives the entire tenure of the policy is loyalty additions and maturity sum assured if the policy was in force for at least 10 years.

  • Loyalty Benefits: LIC Jeevan Saral is one of the with-profits plans wherein the insured participates in the profits of the LIC’s business. Consecutively, the insured gets the share of profits as loyalty additions and are considered as terminal bonuses. These loyalty benefits are payable along with the maturity and death benefits. The loyalty additions are most of the times payable from the 10th year onwards.
  • Premium: This life insurance policy provides multiple options of premium payment such as monthly payment, quarterly payment, semi-annually payment, an annual payment to the policyholders. The premiums automatically get deducted from the savings till the term of the policy.

Other Features of LIC Jeevan Saral Plan

The other feature that stands out Jeevan Saral policy from a lot of life insurance plans is the availability of ‘Riders’. There are two types of riders provided by this plan:

  • Accidental Death and Disability Rider: A rider that provides the sum assured to the family of the assured or his/her nominee after the accidental death of the insured or permanent disability or dismemberment.
  • Term Assurance Rider: The family of the insured or the nominee gets additional life insurance cover in the form of sum assured from this rider on the death of the policyholder.

Benefits of LIC Jeevan Saral Plan

The benefits provided by LIC Jeevan Saral policy are:

  • Death Benefits: The death benefit of 250 times of the monthly premium paid by the insured plus return of the paid premium (excluding the premium of the 1st year and premium of the rider/extra) plus loyalty additions (if any) is given to the family of the policyholder.
  • Maturity Benefits: The maturity benefit equivalent to the loyalty additions and sum assured is given, only if the policy was in force for at least 10 policy years.
  • Additional Benefit: Some features or benefits can be added to Jeevan Saral to enhance the protection and life cover of the insurance plan. However, additional benefits are available by paying some extra premium by the insured.
  • Guaranteed Surrender: An insured can surrender the insurance policy only after completion of three years. Here, the guaranteed surrender value is 30% of premium’s amount that is paid in total. This excludes the premium that is given for the first year and the extra payments are given for the rider benefits.
  • Special Surrender: In this case, 80% of the sum assured is given after the completion of three years, but not four years wherein all the premiums are paid. 90% of the sum assured is given after the completion of four years, however not five years with all the premiums paid. 100% of the sum assured is given, if the premium is paid for five years.
  • In the Situation of Surrender: In this case, the value of Special Surrender is given and is definitely greater than the Guaranteed Surrender Value, which is valid for the particular period during which the amount of the premiums are paid without fail.
  • The LIC Jeevan Saral provides the benefit of add-on rider as term insurance rider wherein the Rs. 1 Lakh to Rs.25 Lakh sum assured is given. Apart from this, the plan as well offers disability and accidental death benefits wherein the additional sum assured is provided to the nominee of the policyholder in the situation of the accidental death of the policyholder.
  • If the policyholder stops paying the premiums after 3 years of the policy, Jeevan Saral plan acquires the paid-up value for the sum assured that is reduced and the insurance policy is continued.
  • The facility of loan is also offered to the policyholders.

Premium Details  of LIC Jeevan Saral Plan – Table Number 165:

Entry Age (As per last birthday) 35
Maturity Age (As per last birthday) 60
Policy Term (In Years) 25
Premium Amount (In Rs.) 4740/-
The frequency of Premium Paying Annual
Mode of Premium Payment Monthly, quarterly, half-yearly, yearly, and SSS

Details of Sum Assured on Death After the End of the Year – Table 165 of LIC Jeevan Saral Plan:

Year End of the Policy Premium Paid Annually (in Rs.) Guaranteed Sum Assured (in Rs.)
Death During the Policy On Maturity or Surrender
1 4704 100000 0
2 9408 1048000 0
3 14112 109600 8099
4 18816 114400 12942
5 23520 119200 18660
10 47040 143200 43360
15 70560 167200 75200
20 94080 191200 106124
25 117600 215200 135296

As per the policy, some insurance returns are guaranteed whereas some are variable as per the policy.

Disclaimer: The total Sum specified under the guaranteed column of the table above can differ from the actual sum assured at the end of the year as it is dependent on the performance of the policy in future.

Illustration of LIC Jeevan Saral Plan:

For example: Let us understand it with an example of a healthy male of 35 years, who is a non-tobacco user and chooses an annual premium of Rs. 4704 and the term of the policy is 25 years.

@ 6% Loyalty @ 10% Loyalty
Death Benefit 280,200 426,200
Maturity Benefit 200,296 346,296

Points to Remember:

  • The above-mentioned example is made for a non-smoker male or female, however, they are dependent on medical certificate, lifestyle, and occupation of that individual.
  • Maturity benefit is the amount that is equal to the assured amount at the end of the year.
  • The loyalty benefits are dependent on prospective benefits and do not have any guarantee.
  • The example is aimed to provide the feature of this plan and the flow of given benefits at various levels.

Sum Assured Details:

The details of sum assured with the below mentioned conditions are mentioned below:

Entry Age: 35 years

Premium payment mode: Yearly

Policy Term: 25 years

Annual premium amount: Rs.4740/-

Policy Year’s End Premium Paid at the End of the Year Guaranteed Amount Paid at the Year End on the Death (Rs.) Situation 1: Amount Payable at Year End on Death (Rs.) Situation 2: Amount Payable at Year End on Death (Rs.) Situation 1: Amount Payable at Year End on Death (Rs.) Situation 2: Amount Payable at the Year End on Death (Rs.)
1 4740 100000 0 0 100000 100000
2 9480 104800 0 0 104800 104800
3 14112 109600 0 0 109600 109600
5 23520 119200 0 0 119200 119200
6 28224 124000 0 0 124000 124000
7 39928 128800 0 0 128800 128800
8 37632 133600 0 0 133600 133600
9 42336 138400 0 0 138400 138400
10 47040 143200 7000 18000 150200 161200
15 70560 167200 13000 41000 180200 208200
20 94080 191200 30000 100000 221200 291200
25 117600 215200 65000 211000 280200 426200

 

Policy Year’s End Total Paid Premium till the End of the Year Guaranteed Payable Amount at Year End on Death (Rs.) Situation 1: Payable Amount at Year End on Death (Rs.) Situation 2: Payable Amount at the Year End on Death (Rs.) Situation 1: Payable Amount at the Year End on Death (Rs.) Situation 2: Payable Amount at the Year End on Death (Rs.)
1 4704 0 0 0 0 0
2 9408 0 0 0 0 0
3 14112 8099 0 0 8099 8099
4 18816 12942 0 0 12942 12942
5 23520 18660 0 0 18660 18660
6 28224 23180 0 0 23180 23180
7 32928 27856 0 0 27856 27856
8 37632 32744 0 0 32744 32744
9 42336 37892 0 0 37892 37892
10 47040 43360 7000 18000 50360 61360
15 70560 75200 13000 41000 88200 116200
20 94080 106124 30000 100000 136124 206124
25 117600 135296 65000 211000 200296 346296

Disclaimer: This example is given for a male/female, who is non –smoker who has standard working and life style conditions and does not have any medical issues.

Documents Required Buying LIC Jeevan Saral Plan

The insurance seeker needs to fill an application form with specific medical details with a document of address proof and other required KYC documents. For some specific cases, medical tests may be required which are dependent on the Sum Assured and the age of the person.

LIC Jeevan Saral Plan – Exclusions

If the insured commit suicide within one year of the policy issuance date, then the policy will be void and the LIC will not pay anything to his/her family members.

LIC Jeevan Saral – Maturity Calculator

The maturity sum is equivalent to Loyalty Addition + Maturity Sum Assured declared in the maturity year. Therefore, the Jeevan Saral plan evaluates the maturity’s sum assured as per the Age (at the time of policy purchase) one enters, Term and Premium, and adds the Loyalty Addition to provide the approximate value.

LIC Jeevan Saral FAQ’s

What happens when you stop making the payments of the premium?

Answer: If you stop making the payments of the premiums after three years of the policy term, then a paid-up amount is acquired in reduced sum assured, however, the policy is eligible to qualify for any additions in future even on regular basis.

Is the facility of loan against LIC Jeevan Saral Plan?

Answer: Yes, the facility of loan is provided in Jeevan Saral.

What will happen if I wish to surrender LIC Jeevan Saral Plan?

Answer: Well, in such a case, you will get the Guaranteed Surrender Value only after completion of three policy years. The Guaranteed Surrender Value is 30% of all the premiums that you have paid except the premium of the first year. For more information refer to the table provided above on this page.

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