LIC Jeevan Saathi

LIC Jeevan Saathi

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LIC Jeevan Saathi Plan

LIC Jeevan Saathi is basically an endowment assurance policy which is there to insure the lives of husband and wife. It offers the required financial protection to the insured lives. Under the same, the insured lives will be able to get the maturity amount and the end of the policy term.

It is a unit linked insurance plan under which a couple can get the required insurance cover within a single policy. In this policy, the proposer will be called as Principal Life Assured (P.L.A.) and the other life (husband/wife) will be called Spouse Life Assured (S.L.A.). Recently, this plan has gained so much of popularity just because of its unique features. The plan allows the P.L.A to choose the sum assured amount, under which both lives will be insured. It may also vary if you opt for a single premium or Regular premium contract, age and the amount of premium agreed to pay.

When it comes to regular premium policies, in case of demise of the P.L.A. during the policy's tenure, the plan will help his/her spouse for waiver of all future premiums including outstanding premiums as well.

The plan allows the P.L.A to go for additional investment options by paying top-up premiums. Four types of investment Funds are there.

Eligibility Conditions

a) Minimum Entry Age 18 years (completed)
b) Maximum Entry age 55 years (age nearer birthday)
c) Maximum Maturity Age 70 years (age nearer birthday)
d) Policy Term Regular premium: [10, 15 to 20] years
Single premium: [10 to 20] years
e) Minimum Premium Regular premium :
Rs. [10,000] p.a. for policy term 15 to 20 years Rs. [15,000] p.a. for policy term 10 years Regular premium (for monthly (ECS) mode): Rs. [1,000] p.m. for policy term 15 to 20 years Rs. [1,500] p.m. for policy term 10 years Single premium: Rs. [40,000]

Charges Under Jeevan Saathi Policy

Allocation Charge for Single Premium are as follows -

Premium Band Allocation Charge
Up to Rs. 15, 00, 000 4.25 percent
Rs. 15, 00, 001 and above 4 percent

Payment Options - LIC Jeevan Saathi Plus

The PLA can pay the premiums regularly with the following options

  • Yearly
  • Half – Yearly
  • Quarterly
  • Monthly intervals throughout the term of the policy (only through the ECS mode)
  • The PLA can also choose to pay a Single Premium

Benefits of Choosing Jeevan Saathi

LIC Jeevan Saathi comes out with so many different benefits that you can avail. Such benefits make it the desired insurance product.

Partial Withdrawals: P.L.A. can encash the units partially after completing three years of the plan. This partial amount can be a fixed amount or in the form of a fixed number.

A person who has paid a premium for less than 3 years would not be liable to take advantage of partial withdrawals.

Under regular premium policies where premiums have been paid for less than 3 years' and further premiums are not paid, the partial withdrawal shall not be allowed.

In the case of Single Premium policies, the insured will be able to ask for partial withdrawal subject to a minimum balance of Rs. 5000/- in the Policyholder's Fund or 10% of the single premium, whichever is higher.

Partial withdrawal:Partial withdrawal from Policyholder's Fund pertaining to top-up premiums shall be allowed only after completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term.

In case of death, the sum assured will be transferred to the Policyholder's Fund, the other insured member of the same policy will be liable to withdraw from the fund without any restriction of three years waiting period.

Switching: The insured (i.e. P.L.A. or if P.L.A. is not alive, then S.L.A.) is allowed during the tenure. Within the selected policy year, 4 switches are allowed and that are also free of cost. Subsequent switches will be a subject to a switching charge of Rs.100 per switch.

Increase / Decrease of risk covers: No increase of covers will be allowed under the plan. The P.L.A. can, however, decrease the risk covers for the self, spouse or for both once a year during the Policy term, provided all the premiums due under the Policy have been paid. Further, once the risk cover has been reduced, the same cannot be subsequently increased/ restored.

Option to transfer the Death Benefit sum assured to the Policyholder's Fund: On the death of either the P.L.A. or S.L.A., the surviving life shall have an option of not taking the death benefit (Sum Assured) immediately but can transfer the same to the Policyholder's Fund. This option has to be exercised along with death intimation. This amount may be withdrawn in full or partially from the Policyholder's fund by way of Partial withdrawals at any time in future without any restriction of three years waiting period.

The choice to continue the cover after the revival period: After completion of three successful years of the policy, the P.L.A can opt for cover beyond the revival period reviving the policy and paying any premiums further.

Discontinuance of premiums: In the case where premiums are payable on yearly, half-yearly, quarterly or monthly (ECS) basis and the same have not been paid on time or within the grace period, the Policy will lapse. However, you can revive your policy during the period of two years from the date of first unpaid premium.

In the case where at least 3 years' premiums have already been paid, and the policy lapses, the Life Cover and Premium Waiver Benefit cover will continue during the revival period.

The benefits payable under the policy in different situations during the policy's tenure are as

  • In case of demise of P.L.A. while S.L.A. is alive: The sum assured amount will be payable to the S.L.A and all the future premium will be waived.
  • In case of demise of P.L.A. after the death of S.L.A.: The amount of sum assured applicable to P.L.A. along with insured's fund value plus an amount equal to premiums of future plus outstanding premiums if any will be payable and the policy shall terminate.
  • In case of demise of S.L.A. while P.L.A. is alive: Sum Assured as applicable to S.L.A. will be payable to P.L.A.
  • In case of demise of S.L.A. after the death of P.L.A.: Sum Assured as applicable to S.L.A. plus insured's fund value will be payable and the policy shall terminate.
  • On Simultaneous death of P.L.A. and S.L.A.: Sum Assured as equal to both P.L.A. and S.L.A. plus policyholder's fund value will be value together with an equal amount to all future premiums that includes outstanding premiums if any, shall be payable and the policy will terminate.
  • On maturity: The Policyholder's Fund Value.
  • In case of Surrender (including Compulsory Surrender): The insured's Fund Value. The Surrender value, however, will be paid only after the completion of 3 policy years.
  • In case of Partial Withdrawals: Partial withdrawals are allowed to subject to a minimum balance of two annualized premiums in the Policyholder's Fund Value.
  • In case of demise of P.L.A. while S.L.A. is alive: Policyholder's Fund Value is payable and the policy will terminate.
  • In case of death of S.L.A. while P.L.A. is alive: Nil.
  • On Simultaneous death of P.L.A. and S.L.A.: Policyholder's Fund Value is payable and the policy will terminate.
  • In case of Surrender (including Compulsory Surrender): Policyholder's Fund Value / monetary value of units, as the case may be, shall be payable.
  • In case of Partial withdrawal: Partial Withdrawals are not allowed under such a policy even after completion of 3 years period.

What do you need to know about LIC Jeevan Saathi?

The PLA will select the Sum Assured amount for both, the PLA and the SLA. It will vary on the below - mentioned situations

  • Whether a Single Premium or a Regular Premium is chosen
  • The age and the amount of premium

In the case where the P.L.A dies during the tenure of a Regular Premium policy, the plan will provide a waiver on all future premiums that comprise any outstanding premiums if life cover is in force.

Riders

Riders – There is 1 Additional Rider available -Accidental Death Benefit Rider at Rs 2 per Rs 1000 of Sum Assured

And 1 in-built rider -Premium Waiver Rider

Exclusions

During the tenure of the policy, if any person commits suicide at any time within a year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder's Fund Value on death and in case S.L.A.

FAQs

1. What is the Policy Term?

If a person opts for Regular premium then it is 10, 15 to 20 years and in case of Single premium, the option if from 10 to 20 years.

2. Any additional rider that we can opt?

Yes, you can go for Accidental Death Benefit Rider at Rs 2 per Rs 1000 of Sum Assured. It is an effective rider that you must add with your plan.

3. What are the different payment options that a person can explore?

A person can make the payment with the following options

  • Yearly
  • Half - Yearly
  • Quarterly
  • Monthly

4. What is the minimum premium that a person has to pay?

The minimum premium is Rs 1500 but it varies according to different options like the single premium plan and regular premium plan.

5. What is the minimum entry age under this plan

The minimum entry age is 18 years and the maximum is 55 years. So you can insure yourself easily.