LIC New Jeevan Sathi Single Premium Plan 888

LIC New Jeevan Sathi Single Premium Plan 888- An Overview

LIC New Jeevan Sathi Single Premium Plan 888 is a non-participating, non-linked joint life endowment insurance plan by LIC of India. As a couple-oriented plan, the new LIC Jeevan Sathi plan aims to secure the couple's financial future by providing a combination of life insurance coverage and guaranteed savings through a single premium payment.

The policy buyer (husband or wife) is designated as the Primary Life Assured and will be the owner of the policy for his/her lifetime. If the primary insured passes away, the spouse will become the policyholder, thereby keeping the policy benefits continued and protecting the family's finances.

Jeevansathi is one of those LIC endowment plans that offers guaranteed benefits and guaranteed additions, meaning that maturity and death benefits are assured and will not change even if the market fluctuates or LIC has a high or low surplus. Let's understand the Jeevan Sathi LIC Policy better with its features, benefits and other details.

What are the Key Features of LIC New Jeevan Sathi Plan?

• LIC New Jeevan Sathi Single Premium Plan 888 requires only a one-time premium payment, making it convenient for individuals who do not want recurring premium obligations.

• The New Jeevan Sathi plan provides joint life coverage, allowing a married individual and their spouse to receive financial protection under a single policy.

• Policyholders receive Guaranteed Additions at the rate of ₹70 per ₹1,000 of Basic Sum Assured throughout the chosen policy term.

• The Jeevan Sathi LIC Policy offers flexibility to choose between two different death benefit options based on individual protection requirements.

• Customers can select the policy term according to their long-term financial goals and insurance needs.

• The policyholder also gets the option to receive maturity or death benefits in instalments instead of a lump sum amount.

• LIC Jeevan Sathi Plan offers an attractive High Sum Assured Rebate for policyholders opting for higher coverage amounts under the plan.

• Existing LIC policyholders and nominees or beneficiaries of deceased policyholders can avail special rebate benefits under this policy.

• The New Jeevan Sathi plan includes a loan facility, helping policyholders manage liquidity requirements during the policy tenure.

• Policyholders can enhance their insurance protection by opting for additional rider benefits through payment of extra rider premiums.

Eligibility Criteria of LIC New Jeevan Sathi Plan 888

Benefits of LIC New Jeevan Sathi Single Premium Plan 888

Death Benefit:

Two options for “Sum Assured on Death” are available under the product. The Primary Life Assured has to choose one of the following options:

Option to take Death Benefit in instalments

This is an option to receive Death Benefit in instalments on death of Life Assured(s) over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised by the Policyholder during his/her lifetime; for full or part of Death benefits payable under the policy.

Maturity Benefit

On survival of at least one of the lives assured to the stipulated Date of Maturity, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable; where “Sum Assured on Maturity” is equal to the Basic Sum Assured. Maturity benefit can be received under the settlement option, similar to the instalment option of the death benefit.

Guaranteed Additions

The Guaranteed Additions shall accrue annually at the rate of Rs. 70 per thousand Basic Sum Assured at the end of each policy year during the Policy Term. On second death during the Policy Term, the Guaranteed Additions in the year of death shall be payable for full policy year.

Tax Benefits

The premium paid under the New Jeevan Sathi plan may qualify for tax deductions under Section 80C of the Income Tax Act, subject to prescribed limits and conditions. The death benefit received by the nominee may also be tax-free under Section 10(10D), as per prevailing tax laws. Tax benefits are subject to changes in taxation rules from time to time.

Additional Riders with LIC New Jeevan Sathi Single Premium Plan

The following two optional riders are available under the LIC New Jeevan Sathi plan for both lives by payment of additional premium at the inception of the policy:

LIC's Accidental Death and Disability Benefit Rider

The LIC's Accidental Death and Disability Benefit Rider is a rider that you can choose if you want that gives you more financial protection in case of accidental death or disability. If the accident results in death within 180 days of the accident, the rider sum assured is paid in a lump sum. When accidental disability happens within 180 days, the benefit amount is given in equal monthly instalments for 10 years. The rider cover is extensible till 70 years of age or till the end of the policy term, whichever comes first.

LIC's New Term Assurance Rider

The LIC's New Term Assurance Rider provides life cover during the policy term by making you pay an extra amount of premium at the beginning of the policy. If the person whose life is assured dies during the policy term, a further sum equal to the Term Rider Sum Assured on Death is given to the nominee with the benefits of the base policy.

LIC New Jeevan Sathi Single Premium Plan Sample Illustration

The following illustration shows the sample single premium amount (in ₹) for a Basic Sum Assured of ₹3 lakhs for standard lives, assuming both lives assured are of the same age, under the New Jeevan Sathi plan purchased through the offline sales channel.

Option I:

Option II:

Policyholders can also use the LIC New Jeevan Sathi Single Premium Plan 888 calculator to estimate premium amounts, maturity benefits, and overall policy returns based on their preferred sum assured and policy term.

LIC New Jeevan Sathi Single Premium Plan Details

Free-look Period

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she can return the policy within 30 days from the date of receipt of the electronic or physical mode of the Policy Document, whichever is earlier. Once received, LIC shall cancel the policy and return the amount of the single premium deposited after deducting the proportionate risk premium [for Base Plan and Rider(s), if any] for the period of cover, expenses incurred on medical examination (including special reports, if any) and stamp duty charges.

Surrender Value

The policy can be surrendered at any time during the Policy Term. On surrender of a policy, LIC shall pay the Surrender Value higher of:

• Guaranteed Surrender Value (GSV) and surrender value of any accrued Guaranteed Additions or

• Special Surrender Value (SSV).

Note: The Guaranteed Surrender Value payable under the policy shall be 75% of the Single Premium paid during the first three policy years and 90% of the Single Premium paid after 3 years.

Policy Loan

Loan availability shall be within the surrender value of the policy. The loan against LIC policy can be taken out only during the Policy Term and only three months after the policy has been completed (i.e. 3 months from the Date of issuance of policy) or after the expiry of the free-look period, whichever is later. The maximum loan permitted under the policy as a percentage of Surrender Value for both Option I & Option II shall be as under:

Rebates

Rebate for High Basic Sum Assured:

If you purchase the LIC New Jeevan Sathi policy completely online without assistance from an agent or intermediary, you can get a 2% discount on the single premium amount.

Rebate under Online Sale:

If you purchase the policy completely online without assistance from an agent or intermediary, you can get a 2% discount on the single premium amount.

Exclusions

Suicide. In case one or both the lives insured die due to suicide within 12 months from the start date of the cover under the new LIC Jeevan Sathi plan, the nominee/beneficiary shall be given 80% of the single premium paid or the surrender value available on the date of death, whichever is higher. No further benefits under the policy will be paid to the surviving life assured/beneficiaries and the policy will be closed right after the claim has been paid.

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