Last updated on February 11th, 2020 at 11:10 am
LIC Jeevan Saral is quite similar to an Endowment Assurance plan where the policy holder has to choose the amount and mode of payment. The maturity of the assured sum depends on the age at entry of the insured and is payable on survival at the end of the policy term. This plan also offers the flexibility of the term and offers a lot of liquidity.
LIC Jeevan Saral Plan
LIC Life Insurance Corporation of India has introduced LIC Jeevan Saral endowment plan. The policy offers the benefits of both death as well as maturity benefit to the insured. Life insurance policy provides an assurance and financial support to the dependents in case of uncertain demise of the breadwinner of the family.
Under the Jeevan Saral plan, the premium is fixed by the insured person and he is entitled to receive the sum assured at almost 250 times the monthly premium. If the insured person survives the policy term, then they are entitled to get the maturity sum assured plus any loyalty additions. The maturity sum assured is specified at the beginning of the policy and depends on different ages of entry and the term of the policy.
When the policy holder dies within the policy tenure, the nominee will get the sum assured plus the return of premium (excluding rider premium and first-year premium and loyalty additions).
To fulfill the requirements of the customer the LIC Jeevan Saral policy is designed in a customized and is a comprehensive policy. Having a life insurance policy has numerous other benefits too apart from providing a financial stability to the family of the insured in case of his demise it. These benefits add-on to the profit of the insurance business of the corporation. As an endowment plan, this policy combines the benefit of both the concept of saving with the concept of life insurance. Moreover, unlike term insurance both death and maturity benefit is provided in this policy.
To validate the point that why should one invest in LIC Jeevan Saral plan here we have briefly discussed the features and benefit offered by the policy.
Features of LIC Jeevan Saral Plan
Unlike other Endowment policy, LIC Jeevan Saral has the following features:
- The insured has the option of selecting the premium amount. The sum assured is then calculated based on the premium amount.
- The sum assured is 250 time the monthly premium which is defined by the insured. Maturity benefit is the maturity sum assured and any loyal additions.
- Partial surrender of the policy is allowed after completion of three years subject to subject to certain terms and conditions.
- The policy holder will get an additional one-year risk cover after payment of premium for three years.
- The plan allows the policyholder to choose a flexible term for premium payment.
- Policy holder will be loyalty additions after paying premiums for ten
- Even if you opt for the maximum term, you can surrender the policy without any penalty after a period of at least five
- The insurer can take a loan (including a house loan) against the policy.
- Accidental death benefit and disability is also available as riders.
- The plan offers multiple premium paying options to the buyers i.e. annually, half- yearly, quarterly and monthly.
- The premium paying option of the policy is very easy, hassle free and saves a lot of time as it can get automatically deducted from the salary throughout the entire policy tenure.
- One of the other major features of the policy is that the plan also offers the loyalty benefit that acts as an add-on profit of the insurance business of the corporation.
- After completion of 10 years of the policy tenure, the additional benefit is provided to the insured in life-long period in terms of loyalty points.
After paying premiums for first 3 years, if you stop paying them anymore then also the policy will gain a Paid-Up Value status with a Reduced Sum Assured. There is Guaranteed Surrender Value after 3 years which is the 30% of all paid premiums excluding first year premium. The insured will get 80% of the Maturity Sum Assured back if policy is surrendered between 3 -4 years and if the policy is surrendered between 4 – 5 years then it will be 90%. After completing 5 years, you will get 100% of Maturity Sum Assured as Surrender Value. Loan facility at 9% interest rate per annum is available under LIC Jeevan Saral.
Benefits of LIC Jeevan Saral Plan
At present every insurance provider including LIC has started online portal for online purchase of policies. LIC Jeevan Saral plan can also be bought online. If you are reluctant to buy life insurance online, we are going to give you good enough reasons to do that from now. Let’s discuss the benefits of online purchase of LIC Jeevan Saral policy.
A death benefit as the lump-sum amount is provided to the beneficiary of the policy in case of unconditional death of the insured during the tenure of the policy. The death benefit includes the loyalty additions along with the premium paid on the monthly basis. Whereas the sum assured amount paid beneficiary excludes the first year payment and rider premium.
One of the other major benefit offered by the policy is the maturity benefit. If the policy holder duly pays off all the premium of the policy and survives till the completion of the policy tenure, then a maturity benefit is provided to the insured at the end of the policy term. Under this benefit the sum assured and loyalty addition is payable to the insured as a lump-sum amount.
Additional benefit or add-on coverages as riders are provided to the insured. These riders provide additional coverage to the insured above the basic coverage provided in the policy. These add-on benefits can be added to an insurance policy in order to enhance the life cover by paying an additional premium while buying the policy. The riders are provided as accidental death benefit rider and disability rider.
The policy can be surrendered only after the completion of three years. A guaranteed surrender value of 30 % is calculated on total premium paid off the policy if a policyholder surrenders the policy. The policy also offers a special surrender plan under which 80 % of the sum assured is paid after the completion of three years, 90 % of the sum assured is paid after the completion of 4 years and 100% of the sum assured amount is paid after the completion of 4 years. The special surrender value is more as compared to the guaranteed surrender if all the premiums are paid fully.
As a very comprehensive plan, LIC Jeevan Saral Plan offered by the Life Insurance Corporation of India does not have any particular rules and regulations, if the mentioned criteria are provided and fulfilled properly. However, apart from the benefit like any other plan this plan also have some exclusions.
- The insurer does not provide any coverage to the insured in case of suicide of the insured.
- The 80% of the single premium paid and the extra premium paid is returned in case if the policy holder commits suicide within 12 months from the date of commencement.
LIC Jeevan Saral is a very beneficial endowment plan, that not only provides life protection to the individuals but also help them to gain good returns on investment. So that they can get financially secured and stable in case of any emergency situation.
Life insurance is designed to cover the risk and uncertainties of life. As life can give you a blow any moment, you have to be ready for combat all the time. In traditional method, you need to go to an insurance agent to discuss over the plans then you hand over him your documents and your policy cover will start after your document reaches the insurer’s office. From this it is evident that you need to wait for some days to complete the whole process.
But you can save this time with help of the online purchase. You have to browse internet for the website of LIC. Then have to find out the Jeevan Saral Plan. Now read all the information furnished there to understand the policy terms and conditions completely. The documents required to be submitted can be scanned and sent to the insurer by e-mail. The day you purchased the policy online, your cover gets activated without any delay.
There are no intermediaries between you and the LIC when you are buying LIC Jeevan Saral online. As the company can cut its cost of the agent in case of online plans, it gives customers rebate on the overall cost of the plan. So you have to pay little to enjoy the very same cover of LIC Jeevan Saral.
Online purchasing of LIC Jeevan Saral is simple and fast. You can download the forms directly from LIC’s website and send them to the company after filling them correctly. Even you can send soft copies of every document to the insurer through e-mail. Just be careful while filling the forms because any wrong information can delay the process of activation unnecessarily.
Official website of LIC comes with an interactive tool called Premium Calculator. This tool gives you the scope to check your monthly premium rate for a particular Sum Assured value under LIC Jeevan Saral plan. You can increase or decrease the premium amount or premium payment term to customize the plan as per your affordability. Premium Calculator comes for free. This is like your personal investment planner without any price tag.
Before buying any insurance plan, you must check the reviews on that plan available on web. This will help you to understand policy’s pros and cons. As these reviews are coming from real customers, it also shows you the reputation of the insurance company at a glance.
Eligibility for LIC Jeevan Saral Plan
The plan has a certain eligibility criterion which include the following:
- The minimum sum assured is 250 times of the monthly premium
- Minimum and maximum term the policy is 10 years and 35 years respectively.
- The basic sum assured is in multiples of Rs 5000
- Minimum age at entry is 12 years, and the maximum age is 60 years
- Minimum terms for premium payment is 10 years and the maximum period for premium payment is 35 years
- The maximum age at maturity is 70 years – there is no minimum age
- The maximum monthly premium is Rs 10000
- Premium payments can be paid on a monthly, quarterly, half-yearly and annually.
LIC Jeevan Saral Plan Exclusions
If the covered commit suicide within one year of the policy issuance date, then the policy will be annulled and the LIC will not pay whatever to his/her family members.
Required Documents to Buy LIC Jeevan Saral Plan
The insurance seeker needs to fill an application form with exact medical details with address proof and other required KYC documents. Medical tests may be required in some specific cases, that are all depends on the Sum Assured and the age of the person.
Things to Know Before Buying LIC Jeevan Saral Plan
Every person has unique financial goals, and there is no one-size-fits-all solution. Lifestyle and financial conditions differ from person to person. A particular insurance plan may be ideal for one but it may not be good for you and may not meet your needs. One must be very careful while zeroing on any plan that the agent is pressurizing you to buy. Before you buy, do some research and find out which one is ideal for you which cover every situation in your life. In addition to your research.
Given below are five things you have to consider before you decide which policy to buy.
How Much Finance Will You Require in the Future
You will have short term as well as long term money in the future. For instance, a newly married couple will have short term will include car, furniture, home appliances, appliances and other needs for their new home. Long term needs may include education, marriage, pension etc. The best way to go about it is to note down all your financial requirements and add them up to get a ballpark figure of the amount you will need. This will help you calculate the sum assured that you will get when the policy matures. Moreover, you can also consult a financial advisor who will be able to work out the best plan for you.
What is Your Budget for Buying a Policy?
Your budget or how much can you afford to pay for your insurance policy. More importantly, can you continue to pay the premiums until the end of the term? You will lose money if you cannot pay at a future date which will result in your policy lapsing. If you feel that you can afford it, you can always start with low premiums and increase it later when things look brighter.
Does the Insurance Company Allow “Free Look” Period?
This is an important feature that should be included in the insurance policy. This gives you a final look so you can peruse the document and see if what you asked for is what you got. If not you can always give it back within the stipulated time. Also, you are not stuck with something that you are not satisfied with.
Check the Lock-In Period
Lock in period is the time frame that the policy cannot be surrendered or cannot be used as collateral for a loan. Insurers offering life cover with investment options generally have lock-in periods. Make sure that you will not require any money during the lock-in period. If you do withdraw, you will lose a lot of money.
What are the other Benefits Offered in the Policy?
Check the policy to see what other benefits are offered other than life cover. What are the riders available and is there a top-up option to raise the sum assured. Inquire about the bonuses payable and if there are any tax savings under the income tax act.
The most important factor is to find the Claim resolution ratio. The higher the ratio, the better.