Jeevan Saral LIC Policy is the best-sold policy by LIC. This policy is designed to fulfil the ever-changing demands of customers due to its flexible feature. This is a kind of endowment policy that can be taken for a maximum of 35 years. The insured can choose this policy on a yearly, half-yearly, quarterly, or monthly basis and can start the policy with minimum Rs. 250 per month as per your financial condition. There is no upper limit.
Jeevan Saral Policy in simple term
- 3000 X 250 = Rs. 7,50,000 (Death Risk payable to the nominee).
- 3000 X 500 = Rs. 15,00,000 (Death Risk payable to the nominee).
- Approximately Rs. 1,10,13,305 maturity will be payable to the survivor.
(35 years term projected @ 10% bonus)
Note: This is not a guaranteed plan, hence the return can be flexible depending on the bonus declared by LIC.
Jeevan Saral Policy gives higher coverage, smooth return with good liquidity and flexibility. In short, this policy has good features of conventional plans and flexibility of the endowment plan. This is an insurance plan in which the insured will choose premium amount that he/she feels easy to pay, unlike a normal insurance plan where the insured chooses the S.A. amount. The sum assured amount will be different in different entry ages and terms. Jeevan Saral Policy is a good option for employees who hunt for life cover through salary saving schemes.
Surrender Value of Jeevan Saral LIC Policy
The insured can surrender the policy only after he/she has paid premiums in force at least for 3 full years. The surrender value will be greater than guaranteed surrender value or special surrender value.
Guaranteed Surrender Value of Jeevan Saral Policy
The GSV is an amount equals to 30% of the total amount of paid premiums excluding first years premiums, premiums for accident or term riders, and all other extra premiums.
Special Surrender Value of Jeevan Saral Policy
- Discounted or accumulated value will be paid depending on the policy as follows – if 4 years premiums have been paid then 80% of maturity sum assured will be paid and 90% if premiums have been paid more than 4 years but less than 5 years. On the other hand, 100% sum assured will be paid to the insured if premiums for 5 or more than that have been paid.
- The bonus will also be paid to the insured as per the policy taken by him/her.
Auto Coverage of Jeevan Saral Policy
This policy offers auto coverage of 12 months only if the policy has been in force for a period of 3 years or more than that.
Flexible Term of Jeevan Saral Policy
The insured has all the right to choose policy terms as per his/her choice but the policy can be surrendered at any time without any kind of penalty or loss.
Partial Surrenders of Jeevan Saral Policy
This policy allows policyholders for partial surrender from the 4th year onwards depending on certain conditions. The insured enjoy liquidity in this policy due to the flexible policy terms and surrender value. The policy also provides the insured with a 15 days free look period.
Optional Rider Benefit of Jeevan Saral Policy
This policy consists of disability benefits, term assurance rider benefits, and accidental death benefits by paying additional premiums.
Maturity Sum Assured Amount
MSA needs to be calculated only on the basic premium before mode rebate and death accidental benefit.
Check Alos: Jeevan Bharti Insurance Policy: Table No. 160
Death Benefit of Jeevan Saral LIC Policy
Sum assured will be 250 times the monthly basic premium as death benefit payable to the nominee.
For Example – if the annual premium of an insured is Rs. 6,000 under Jeevan Saral Policy then the death benefit sum assured will be 6,000/12 x 250 = 1,25,000.
Parameters of Jeevan Saral LIC Policy
| Entry Age | Minimum 12 years and maximum of 60 years |
| Maturity Age | Minimum of 70 years |
| Policy Term | Minimum 10 years and maximum of 35 years |
| Minimum Premium (Age 12 to 49) | Rs. 250 per month |
| Minimum Premium (Age 15 to 60) | Rs. 400 per month |
| Maximum Premium | No Limit |
| Premium in Multiples | Rs. 50 per month |
| Payment Mode | YLY/HLY/QLY/SSS |
| Accidental Benefit | Re. 1 extra (max. 50 Lacs inclusive all plans) |
| Housing Loan | Yes |
| Revival | Yes |
| Policy Loan | Yes @ 10.5% |
| Assignment | Yes |
| Surrender of Policy | Yes |
| Policy Term | Yes |
Underwriter Condition
| Form No. | 300/340 |
| Age Proof | Standard/NSAP-1 |
| Female lives category | I/II/III |
| Non-Medical (Gen) | Allowed |
| Non.Medical (Prof) | Allowed |
| Non-Medical (special) | Allowed |
| Actual sum assured | Basic sum assured |
| Risk Civer | Death benefit S.A. + returns of premium paid + LA (if any) |
| Dating Back @ 8% | Allowed |
Benefits
Maturity Benefit of Jeevan Saral LIC Policy
On maturity, the insured will get the total sum assured along with a bonus (if applicable).
Death Benefit of Jeevan Saral LIC Policy
The nominee will get 250 times of monthly premium along with returns (excluding rider/extra/first year’s premium) and bonus (if applicable) as death benefit of the policy.
For Example – Mr. Ashish aged 25 years is working in MNC Company. He applied for Jeevan Saral Policy for 15 years term plan and decided to pay Rs. 555 as a basic monthly premium. He will get Rs. 97,655 on maturity as sum assured and bonus (if applicable).
If he dies after 4 years when he started the policy then his nominee will get Rs. 1,25,000 and premium paid for 4 years – first year’s premium = 1,43,360 (1,25,000 + 24,480 – 6,120). His nominee will also get bonus but only if applicable to the policy.