Lic Jeevan Saral is an endowment assurance plan such that the proposer may choose the amount and the premium payment mode. The plan gives financial protection against death for the complete plan term. The death benefit in this plan is directly related to the paid premiums. The Sum Assured during the maturity is based on the age at entry to be assured and is paid on survival to the policy term end. It offers liquidity in lots and provides the flexibility of term.
Lic Jeevan Saral Premiums
Premiums are payable as salary deductions or monthly, quarterly, half-yearly or yearly, completely as per the choice of the policyholder.
Lic Jeevan Saral Loyalty Additions
There is a share of profit enjoyed as loyalty additions and they are terminal bonuses payable in association with maturity or death benefit. The loyalty additions are paid from the onwards of the 10 years based on the life insurance corporation experience.
Lic Jeevan Saral Plan features
- Jeevan Saral is an endowment policy actually and has enough flexibility that is available usually strictly with unit-linked insurance plans. Thus it is considered to be under Special Plans. This insurance plan is a on unit-linked plan featuring Double Death Benefit of Sum Assured and the Return of Premium.
- In this plan, the amount of premium is planned by the policyholder and he receives 250 times as sum assured of the monthly premium. In case the policy holder survives for the complete term, he receives Maturity Sum Assured and also the Loyalty Additions. However, the Maturity Sum Assured is based on policy term and different entry ages and this is specified at the policy beginning.
- In case, the policy holder dies before the tenure of the policy, his nominee receives the Sum Assured in addition to the Return of premiums, apart from the extra/rider premium and also the first year premium with the Loyalty Addition, if there is any.Thus, the Death Benefit remains the same regardless of the policy term and the age of entry since it is based only on the premium amount chosen, but the Maturity Benefit may vary as per the age of entry as well as the policy term.
- This plan offers few flexibilities away from other endowment plans and thus is regarded to be a Special Plan.
- The policyholder may prefer his premium amount and the Sum Assured is thereafter determined.
- The plan allows from 4th year onwards partial surrender with respect to certain terms and conditions.
- The policyholder is also given the liberty to choose a flexible term as premium payment.
Lic Jeevan Saral Key features in one glance
- Jeevan Saral allows choosing of premium by the policy holder and it is 250 times of the monthly premium amount as the sum assured.
- Maturity benefit offers the sum assured during maturity and loyalty additions
- Death benefit is with sum assured in addition with extra rider premium and loyalty additions, besides first-year premium
- Partial policy surrender is permitted after 3rd year of policy
- Risk cover is extended for one year after the premium payment of 3 yrs
- Choose a maximum term, but you have the option to surrender anytime you wish after 5 yrs and you have nothing to pay as surrender penalty.
- The high cover is optional through accidental death and term rider and disability benefit.
- Loyal additions are available in Jeevan Saral from the onwards of the 10th year of the policy.
Lic Jeevan Saral Death Benefit:
This is 250 times of the monthly premium in association with loyalty additions, if there is any, and the return of premiums exclude the premiums of the first year and extra/rider premium, if there is any, is payable as the lump sum in case the policyholder dies during the term of the policy.
Lic Jeevan Saral Maturity Benefit:
The Maturity Sum Assured in addition with Loyalty additions is payable as a lump sum.
Lic Jeevan Saral Extra Benefits:
Optional benefits may be added to the basic plan as extra protection. The additional premium must be paid to avail such benefits.
Lic Jeevan Saral Eligibility conditions
The policy term is for 10 yrs in Jeevan Saral and the policy holder entry age is 12-60 yrs. Maturity age is 70. The monthly premium for 12 to 49 yrs is Rs.250, 50-60 yrs is Rs.400 to Rs. 10,000. The payment modes are SSS, quarterly, monthly, half-yearly and yearly.
Lic Jeevan Saral Income Tax Benefit – Under Section 80 C premiums paid under LIC are free from tax and under Section 10 (10D) maturity proceeds are free from tax.
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