LIC Jeevan Saral

LIC Jeevan Saral

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LIC Jeevan Saral Plan

It is basically an Endowment Assurance plan under which the proposer has simply to choose the amount and mode of premium payment. The plan comes out with the needful financial protection support 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.

Under this plan, the premium amount will be decided by the insured person and he/she will get almost 250 times the monthly premium as Sum Assured. If the insured person survives the entire tenure then he/she would be liable to receive Maturity Sum Assured + Loyalty Additions. The Maturity Sum Assured depends on different entry ages and policy term and is specified at the beginning of the policy.

Now, if the case where the insured dies within the policy tenure then his nominee would receive the Sum Assured + Return of premiums excluding extra/rider premium and first year premium + Loyalty Addition if any.

Thus, the Death Benefit would be the same irrespective of the age of entry and policy term since it depends only on the chosen premium amount but the Maturity Benefit would differ according to the varied age of entry and policy term.

LIC Jeevan Saral - Key Features

It offers certain flexibilities unlike other endowment plans and hence is a Special Plan

  • The policyholder is allowed to select the premium amount and Sum Assured gets determined thereafter

  • The policy will allow partial surrender from 4th year onwards subject to certain terms and conditions

  • Under the same, the policyholder would be liable to choose a flexible term for premium payment

  • Premium is chosen by the policyholder and Sum Assured is 250 times the Monthly Premium amount.

  • You will get death benefit+ Return of premiums excluding extra/rider premium and first year premium + Loyalty Addition.  

  • Maturity Benefit is Maturity Sum Assured + Loyalty Additions if any.

  • Partial surrender of the policy is allowed after the 3rd policy year.

  • You will get the extended risk cover for one year after 3 years premium payment.

  • Optional higher cover through Term Rider and Accidental Death and Disability Benefit.

  • You can select a maximum term but can surrender at any time without any surrender penalty or loss after 5 years.

  • Loyalty Additions are there from 10th policy year onwards

LIC Jeevan Saral - Benefits

1. Death Benefit

You will get around 250 times the monthly premium together with loyalty additions, if any, and return of premiums excluding first-year premiums and extra/rider premium, if any, is payable in lump sum on death of the life assured during the term of the policy.

2. Maturity Benefit

The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.

3. Income Tax Benefit

Premiums paid are exempted from income tax-free for Jeevan Saral policy under Sec 80 C. The maturity proceeds of Jeevan Saral are also exempted from tax under Section 10 (10D).

Benefits LIC Jeevan Saral

4. Supplementary/Extra Benefits

They are basically the optional benefits which can be added to the basic plan for extra protection/option.  An additional premium is required to be paid for these benefits.

5. Premiums

Premiums are payable yearly, half-yearly, quarterly, or monthly through salary deductions as opted by you throughout the term of the policy or till earlier death.

6. Loyalty Additions

This is a with-profit plan and participates in the profits of the Corporation’s life insurance business.  It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit.  Loyalty Additions may be payable from the 10th year onwards depending upon the experience of the Corporation.

7. Guaranteed surrender

If the policyholder surrenders this policy, then the guaranteed surrender value is calculated to be 30% of the premium paid in total, which excludes the premium paid for the first year and additional payments for rider benefits. This policy can only be surrendered after the completion of 3 years.

Special surrender value: 80% of Maturity Sum Assured if 3 or more years but less than 4 years premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years' but less than 5 years premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years premiums have been paid.

8. Surrender value

Buying a life insurance contract is a long-term commitment. Surrender values are available on earlier termination of the contract. The surrender value will be the greater of the guaranteed surrender value and special surrender.

Loan benefit: Loan facility is available under this policy.

House loan surety: House loan facility is also available under this plan.

Extended risk cover is available from 1 year after 3 years of premium payment.

Optional high cover through term rider and accidental disability and death benefit is also available.

LIC Jeevan Saral - Eligibility Criteria

  • Sum assured is minimum 250 times of the monthly premium.

  • Minimum policy term is 10 years and the maximum is 35 years.

    (The Basic Sum Assured shall be in multiples of Rs. 5000/-)

  • Minimum premium payment term is 10 years whereas the maximum term for premium payment is 35 years.

  • Minimum entry age for a policyholder is 12 years and the maximum age is 60 years.

  • There is no minimum age at maturity but the maximum age is 70 years.

  • The monthly premium for the age group of 12 years to 49 years is Rs. 250/-, for the age group of 50 years to 60 years is Rs. 400/-.

  • Maximum monthly premium is Rs. 10,000 /-.

  • Payment modes available are annual, half-yearly, quarterly and monthly.

Minimum Maximum
Sum Assured (in Rs.) 250 times Monthly Premium
Policy Term(in years) 10 35
Premium Payment Term (in years) 10 35
Entry Age of Policyholder (last birthday) 12 60
Age at Maturity (last birthday) - 70 years
Monthly Premium (in Rs.) For Age 12 to 49 years: Rs.250/- Rs. 10,000/-
For Age 50 to 60 years: Rs.400/-
Payment modes Yearly, Half-yearly, Quarterly, Monthly and SSS

What happens if?

In case you stop the premium payment- If you stop the premium payment after 3 policy years then the policy would be able to acquired a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.  

Surrender the policy – There is a Guaranteed Surrender Value after 3 policy years

Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

Special Surrender Value = 80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured. 

Illustration of LIC Jeevan Saral Plan

@6%loyalty @10%loyalty
Maturity Benefit 200296 346296
Death Benefit 280200 426200

The above mentioned table is according to a Male of 35 years (non-tobacco user) opting for a Annual Premium = Rs. 4704 and Policy Term = 25 years respectively.

Premium Details

Entry age as on last birthday 35
Maturity age 60
Premium paying frequency Annually
Premium amount 4704
Mode of premium payment Yearly, half yearly, quarterly, SSS

Details Sum Assured

Age at entry: 35 years

Policy term: 25 years

Mode of premium payment: Yearly

Amount of annual premium: Rs.4704/-

End Of Policy Year Total Premium paid till end of year Guaranteed Amount payable at the end of year on death during the year (Rs.) Scenario 1Amount payable at the end of year on death during the year (Rs.) Scenario 2Amount payable at the end of year on death during the year (Rs.) Scenario 1Amount payable at the end of year on death during the year (Rs.) Scenario 2Amount payable at the end of year on death during the year (Rs.)
1 4704 100000 0 0 100000 100000
2 9408 104800 0 0 104800 104800
3 14112 109600 0 0 109600 109600
5 23520 119200 0 0 119200 119200
6 28224 124000 0 0 124000 124000
7 32928 128800 0 0 128800 128800
8 37632 133600 0 0 133600 133600
9 42336 138400 0 0 138400 138400
10 47040 143200 7000 18000 150200 161200
15 70560 167200 13000 41000 180200 208200
20 94080 191200 30000 100000 221200 291200
25 117600 215200 65000 211000 280200 426200
End Of Policy Year Total Premium paid till end of year Guaranteed Amount payable at the end of year on death during the year (Rs.) Scenario 1Amount payable at the end of year on death during the year (Rs.) Scenario 2Amount payable at the end of year on death during the year (Rs.) Scenario 1Amount payable at the end of year on death during the year (Rs.) Scenario 2Amount payable at the end of year on death during the year (Rs.)
1 4704 0 0 0 0 0
2 9408 0 0 0 0 0
3 14112 8099 0 0 8099 8099
4 18816 12942 0 0 12942 12942
5 23520 18660 0 0 18660 18660
6 28224 23180 0 0 23180 23180
7 32928 27856 0 0 27856 27856
8 37632 32744 0 0 32744 32744
9 42336 37892 0 0 37892 37892
10 47040 43360 7000 18000 50360 61360
15 70560 75200 13000 41000 88200 116200
20 94080 106124 30000 100000 136124 206124
25 117600 135296 65000 211000 200296 346296

This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view

Exclusions in Jeevan Saral Plan

If the Life Insured under the Policy, whether medically sane or insane, commits suicide, within one year of the date of issuance of the Policy,the Policy shall be void and the Company will only be liable to pay the premiums paid till date.

Documents required for Jeevan Saral Plan

In order to avail this policy the assured needs to provide with a umber of documents. The policyholder also needs to provide with medical details along with address proof and KYC documents. In some specific cases medical tests may also be required depending upon sum assured and the age of the assured.

*Information provided on this webpage/website is only for the purpose of general information & understanding of the topic. PolicyX or any of its subsidiaries does not endorse any of the information provided herewith and are committed in providing correct and unbiased information to its customers helping them make an informed decision.