LIC Jeevan Saral

What is the LIC Jeevan Saral Plan?

LIC Jeevan Saral, offered by the LIC of India, is a comprehensive insurance policy that offers death benefits to the nominee in case something unfortunate happens to the policyholder. The plan also offers maturity benefits, where if the policyholder survives until the end of the policy term, he/she will receive maturity benefits. Also, the policyholder has the option to customize their plan as per their needs and requirements.
The plan is no longer for sale as the company has withdrawn it. However, individuals who have bought this plan will be able to enjoy its benefits.

Features of LIC Jeevan Saral 

LIC Jeevan Saral, provides financial stability to the family of the policyholder in case of his/her untimely death. Apart from this, it offers various other benefits such as flexibility in premium payment options and loyalty additions. Here’s a quick laydown: 

• Premium: The LIC Jeevan Saral endowment plan provides options with multiple premium payments (viz., Monthly, quarterly, semi-annually, and annually) to the customer. The premium amount is automatically deducted from the salary throughout the policy term or until earlier death. 
• Loyalty Benefits: LIC Jeevan Saral is a profit plan contributing to the insurance company’s business profits. It brings the policyholder's share of profits in terms of loyalty additions, which are terminal bonuses payable along with the maturity and death benefits. These Loyalty additions are payable from the 10^th year, depending on the corporation’s experience.
• Additional Riders: Jeevan Saral Plan has two additional riders to offer enhanced protection to the policyholder. The riders available are:

• Term Rider
• Accidental Death and Disability Benefit Rider 

LIC Jeevan Saral Benefits

• Death Benefit: In case of an unfortunate life-assured death, a lump sum is paid to the policyholder's family as long as the term continues. This includes 250 times the monthly premium, loyalty additions (if any) and premium returns. The premium return excludes the first-year premium payments and rider premium.
• Maturity Benefit: The maturity sum assured amount along with the loyalty addition (if any) is payable as a lump sum at the time of maturity. 
• Additional Benefits: Certain benefits or features can be added to an insurance policy to enhance life cover or protection. An additional/ extra premium requires to be paid by the policyholder.
• LIC Jeevan Saral Surrender Value: Purchasing life insurance is a long-term assurance and commitment. However, the plan offers the option of surrendering value on early policy termination. The surrender value will be higher than the value of guaranteed and special surrender. Partial surrenders are also available under this plan. The policyholder can also calculate the surrender value using the LIC Jeevan Saral Surrender value calculator. 
• Guaranteed Surrender: The policy can be surrendered only after it has crossed at least 3 years. If a policyholder surrenders this policy, the guaranteed surrender value is calculated to be 30% of the premium paid in total, which excludes the premiums paid for the first year as well as the additional payments for rider benefits.
• Special Surrender: 80 percent of Sum Assured after the completion of 3 years but not 4 years with all premiums paid. 90 percent of Sum Assured after the completion of 4 or more years but less than 5 years with all premiums paid, and 100 percent of the Sum Assured if the premium is paid for 5 years or more.
• Additional Benefits: The LIC Jeevan Saral offers an add-on rider benefit as a term rider, with a minimum sum assured of Rs1 lakh and a maximum of Rs 25 lakh. Moreover, the plan also provides accidental death and disability benefits, under which an extra sum assured amount is paid to the policy beneficiary in case of the insured person's accidental demise.

Eligibility Criteria for LIC Jeevan Saral Policy

The eligibility criteria and restrictions of the Jeevan Saral Plan by LIC are as under:

Details about Sum Assured on Death after the Year-End

Under this plan, some returns are guaranteed while others are variable, based on the performance of the policy. The below table lists the assured benefits under the column Guaranteed at the year-end. 

Illustration of the LIC Jeevan Saral Plan:

The below sample illustration is for a healthy 35-year-old male (a non-tobacco user) who chose an Annual Premium of Rs. 4704 and a Policy Term of 25 years.

**Note

• The illustrations above are valid for a non-smoker individual (male or female), whereas the checkpoints are one’s medical certificate, occupation, and lifestyle.
• The illustration aims to help an individual understand the product's features and appreciate the flow of corresponding benefits at different levels.
• The loyalty benefits are subject to the prospective benefits and are not guaranteed.
• Maturity Benefit equals the Amount assured at the end of the year.

LIC’s Saral Jeevan Bima Policy Details

• Policy Cancellation Value
  If the policyholder decides to cancel the policy before the maturity date, they are entitled to a policy cancellation value.

• Grace Period
  The grace period starts from the date of the first unpaid premium, following which due premium payments can be made to keep the policy active. LIC offers 30 days as grace to resume payments for yearly and half-yearly premiums. In the case of monthly premium payments, the grace period is 15 days.

• Free-look Period
  The policyholder has 15 days from the date of receipt of the policy bond to evaluate the conditions of the life insurance policy and return it if they have any concerns. The free-look period is 30 days for online purchases of LIC's Saral Jeevan Bima.

LIC Jeevan Saral – Policy Exclusions

• The policy shall be void, in case the policyholder commits suicide after the risk under the policy has started but within one year of risk acceptance during the policy term. 
• The insurer is not liable to pay any claim if the insured commits suicide during the policy term.

Documents Required LIC Jeevan Saral

The policyholder needs to complete an application form with accurate medical details, along with the address proof and other KYC documents. Medical tests may also be required in specific cases, depending upon the Sum Assured and the person’s age.

LIC Jeevan Saral Maturity Calculator

The maturity sum in the LIC Jeevan Saral Plan is the Loyalty Addition (LA) + the Maturity Sum Assured (MSA) declared in the maturity year. The Jeevan Saral Maturity Calculator can be used to calculate the maturity amount. The calculator evaluates the maturity sum assured based on the entry Age (at the time of buying the LIC policy), Premium, and Term and adds the Loyalty Addition to give you the approximate maturity value.

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