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This is an
Endowment Assurance plan where the proposer has simply to
choose the amount and mode of premium payment. The plan
provides financial protection against death throughout the
term of the plan. The death benefit is directly related to
the premiums paid. The Maturity Sum Assured depends on the
age at entry of the life to be assured and is payable on
survival to the end of the policy term. It also offers the
flexibility of term and a lot of liquidity.
Product Summary:
JEEVAN SARAL is awarded by GOLDEN PEACOCK best innovative
product from all the products among all the Insurance
Companies in the World.
Features of Plan:
This plan contains good features of the conventional plans &
provides Higher cover, Smooth return, Liquidity and
Considerable flexibility. In this plan one has to choose the
premium he wants to pay whereas in normal plans one chooses
the Sum Assured. Under this plan death cover will be same
irrespective of age at entry and term. The sum payable at
maturity however differs for different entry ages & terms.
This plan is very appropriate for employees seeking life
cover, tax saving with good returns through Salary Saving
Schemes (ECS).
Due to existence of the flexible term and partial surrenders
the Policyholders will enjoy a lot of liquidity under this
plan. The plan also provides for 15 days free look period.
. This plan is suitable for: (a) Salaried Persons. (b) Due
to its flexibility in term & anytime partial withdrawal
facility, it is suitable for high Net worth Individuals. (c)
Person with uncertain income as LIC provides auto cover in
case premium due remains unpaid for 1 year. (d) Person who
need money for future contingencies like marriage/education
of children.
This plan with features of conventional plans & flexibility
of unit link plans provides: (a) Flexibility & liquidity.
Under the normal plans, one choose the SA. Whereas in this
plan One has to choose the premium he wants to pay. Once the
premium is chosen, SA payable on death gets determined. The
SA is payable on maturity can then be obtained on the basis
of age & policy term.(b) Smooth return. (c) Irrespective of
age at entry & term death cover will be the same. However,
Maturity SA will differ.
Why more Returns in Jeevan Saral ?
In Jeevan Saral plan, LIC distributes all surplus (profit)
of this plan between the policyholders & government. It
means the Policyholder will get 95% of surplus and remaining
5% will be taken by government as its share but this 5%
distributable surplus to Central Government will be decided
after 9th year of the policy. That means LIC is not pay the
5% surplus to government up to 9 years. Hence LIC can earn
more money with this 5% share of government & give more
returns to its policyholders.
Plan Parameters:
Age at Entry: Minimum 12 Yrs, Maximum 60 Yrs
Maximum Maturity Age: 70 Years
Policy Term: Min 10 yrs & Max 35 Yrs
Minimum Premium: Rs. 250 per month [Rs.3000 per year]
Maximum Premium: No limit
Mode of Payment: Yearly/Half Yarely/Quarterly/ECS/SSS
Policy Loan: Yes
Housing Loan: Yes
Surrender of Policy: Yes
Term Riders: Yes
Benefits of this Scheme:
• Jeevan Saral is one and only Policy which gives you all
the benefits and any time maturity.
• Maturity received in LIC scheme is Tax free under section
10-10d of Income Tax act.
• Partial surrenders will allow from 4th year onwards
subject to certain conditions.
• You can withdraw full amount if necessary after 10 years.
• The amount deposited in LIC is exempted under section 80C
of income Tax Act.
• You can continue LIC scheme after 10 years.
• In case of death, 250 times of monthly premium + Total
premium paid + LA if any payable to nominee.
Benefits:
1. Maturity Benefits: Loyalty additions + Maturity Sum
Assured, if any.
2. Loyalty addition: After the policy has been in full force
for at least 10 years, it will be declared.
3. Partial Surrenders: After completion of 3 years or more
from the DOC provided full premiums have been paid subject
to conditions can be made any time.
4. Auto cover: If subsequent premiums are not paid, the risk
cover under the main plan will continue for 12 months from
the date of first unpaid premium (If a policy is in force
for full benefits for 3 or more years).
5. Optional Riders: For an additional premium ()Accidental
Death & disability benefit rider. ()Term Assurance Rider
will be available & their SA will not exceed the death Death
Benefit SA.
6. Death Benefits: Loyalty Additions + 250 times the monthly
basic premium (called Death Benefits SA) + Return of
premiums paid (excluding 1st year premium & extra/rider
premium) if any
7. Surrender Value: After it has been in forced for at least
3 years, the policy can be surrendered.
a. Gtd. Surrender Value: 30% of total premiums paid
excluding: 1st year premium, all extra premiums & accident
benefit/Term Rider premiums.
b. Special Surrender Value: It will be sum of both these two
points. (1) If less than 4 years premium has been paid then
80% of MSA will be paid. If between 4 to less than 5 years
premium paid, 90% MSA. If premiums are paid for 5 years and
above, 100% of MSA. (2) The loyalty Additions, if any, for
the term for which the policy has been in force, as
announced as at 31st March immediately preceding the date of
surrender.
8. Other Details: (a) Under all LIC Plans, Accident
Benefit/Term Assurance will be Rs. 25 lakhs as a max cover.
(b) Maturity SA for ages 12 to 17 will be the same as that
for 18 years. (c) Based on basic premium before allowing any
mode rebate, Maturity SA is to be calculated. Excluding any
extra premium under this plan for sub-standard life, the
rebates will apply to the basic premium thereafter. (d) For
Endowment plan, all underwriting rules will apply. The death
benefit SA should be considered for the purpose of
Underwriting and SUC. As per Endowment plan, Standard extra
premium (eg. Occupational extra or in case of physically
handicapped lives) would be.
Example:
Mr. Mehndi aged 18 years takes a policy for a 20 year term &
opts for an yearly basic premium of Rs 6000. After deducting
2% yearly mode rebate which comes to Rs 5880 & adding Double
Accident premium of Rs 125 (6000 Yearly premium divided by
12 months = 500 monthly premium multiplied by 250 times =
125000 which is Death Benefit SA. For this DAB @ Re. 1 per
1000 SA = 125) he will pay a premium of Rs 6005. On
maturity, he will receive Rs 140530 as maturity SA (Plus
Loyalty Addition as declared by LIC at that time). In case
of his natural death, after 5 years from the date of
commencement of policy, his nominee will receive 250 times
the monthly basic premium i.e. Rs 125000 (6000 basic yearly
premium divided by 12 months = 500. Rs 500 X 250 times) +
premiums paid for 5 years (less 1st year premium) Rs 23520.
Hence nominee will totally receive 148520.
The following chart shows, Returns on completed Term Vs
Monthly Investment Amount (10% IRR):
[Interest will given only after 10 year onwards. That means
if you completed 10th policy years then you will get all
interest of 10 years and so on & if you surrender this
policy before 10th policy year, then you will get only Total
premium paid - 1st year premium.] |
