Lic Jeevan Saral Policy plan no 165 Review

Lic Jeevan Saral Policy Review

Lic Jeevan Saral policy was Introduced on: 16-02-2004. Jeevan Saral Lic plan contains a smooth return, higher death cover, liquidity and lot of flexibility. This is an endowment assurance plan where policyholder decides the amount of premium he wants to pay per year. Once the premium is chosen, the SA (sum assured) payable on death will be determined, irrespective of the age and policy term. Under Lic Jeevan Saral 165, death benefit will be same regardless of age at entry and policy term, but the amount payable at maturity will be different for each age at entry and policy term.

Important information about Jeevan saral lic policy details, lic jeevan saral maturity amount chart, jeevan saral benefits, Lic of India jeevan saral returns, etc.

Lic Jeevan Saral Policy Conditions

Age at Entry:	Minimum:   12 years completed Maximum:   60 years
Policy Term:	Minimum:   10 years Maximum:  35 years
Mode of Payments:	Yearly, Half yearly, Quarterly,SSS and ECS – monthly mode is available.
Maximum Maturity Age:	70 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

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

Jeevan Saral Lic Policy Rebates

There are 3 types of rebates,

1. Sum Assured Rebate
2. Mode Rebate
3. CEIS Rebate

Sum Assured Rebate:

Under Lic Jeevan Saral Plan, Sum assured rebates are not available.

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 10% of basic premium.

Lic Policy Jeevan Saral Maturity Claims

• Maturity claim = Maturity sum assured (not death sum assured) + loyalty addition.
• Maturity claim for term assurance rider is not payable.

Jeevan Saral Lic Policy Death Claims

Death claim under auto cover (without term assurance rider) :

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) :

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 of India Jeevan Saral Policy Additional Benefits

Loyalty Addition

• Loyalty addition is based on the term of the policy and is payable when policy is surrendered or on maturity or death.
• Lic 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.

Riders available in Lic Jeevan Saral Policy

1. Term Assurance Riders
2. Accidental death and Disability benefit Rider

Term assurance rider (optional) :

Lic Jeevan saral plan offers this optional 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:

• Accidental death and disability benefit rider is available up to maximum SA of 50 lakh. PDB (Permanent Disability Benefit) is not available under this plan.
• Sum assured for this rider is death sum assured. For auto cover period Accident death and disability benefit rider is not available.

Additional Information about Lic Plan Jeevan Saral

Guaranteed Surrender Value:

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:

Paid up value payable on death or maturity depends on no. of premiums paid and will be greater of

• No. of years premium paid/No. of years premiums payable X Original Maturity sum assured (OR) Surrender value as per SSV

Special Surrender Value:

SSV = Discounted or Accumulated value of maturity sum assured + loyalty addition (if any).

Partial Surrender Value:

After completion of 3 years or more from DOC and if premiums have been paid for at least 3 full years, partial surrender will be allowed.

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/-

Auto Cover:

• After paying at least 3 full years premiums, if further premiums are not paid, then risk cover will be extended for 12 months from the date of FUP.
• Auto cover is not extended for term assurance benefit rider and Accidental death benefit rider.

Loan:

• Loan facility is available under Jeevan saral policy.

Revival:

• Policy can be revived within a period of 5 years from date of FUP with proper health evidence.

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.