LIC Saral Jeevan Bima

Introduction to LIC Saral Jeevan Bima

LIC’s Saral Jeevan Bima, a term insurance plan, is an individual, non-participating, non-linked pure risk life insurance policy that offers comprehensive protection against the death of the life assured. The plan comes with an assured death benefit, however, no maturity benefit is payable at the end of the policy term if the policyholder survives the entire duration. Notably, LIC’s Saral Jeevan Bima is available for purchase both online and offline.

Key Features of LIC’s Saral Jeevan Bima

• Death Benefit - Sum assured on death is payable to the beneficiaries of the policy on the death of the life assured.

• Premium Paying Terms - Policyholders can choose from three different premium paying terms, viz. regular, limited and single.

• Maximum Sum Assured - LIC offers a maximum sum of up to Rs.25 Lakhs with this policy.

• Premium Paying Mode - Premium payments can be made yearly, half-yearly or monthly.

• Rebates -

  • Rebates are offered on opting for half-yearly or monthly premium payments.

  • On assuring a sum of Rs.10 Lakhs and above, rebates on premiums are applicable.

  • Life Insurance policies bought through the online mode are also eligible for rebates.

Eligibility Criteria of LIC Saral Jeevan Bima

What are the Benefits of LIC Jeevan Bima Plan?

The term insurance policy offers an assured death benefit to the family of the policyholders. The details of the death benefit payable are discussed below. Please note that the policy does not come with any maturity benefits as it is a pure risk insurance cover.

Death Benefit

• The death benefit is the amount paid by the insurer to the assigned beneficiaries on the death of the life assured. This amount is payable only if death occurs while the policy is still in force. LIC’s Saral Jeevan Bima comes with a waiting period of 45 days from the commencement of risk.

• If the death of the life assured occurs due to any reason other than an accident, LIC is liable to pay off 100% of the premium amount back to the family of the life assured.

• If the life assured dies as a result of an accident during the waiting period, the death benefit (as defined below) is payable as a lump sum amount.

Death During the Waiting period

Death after the waiting period
If the life assured dies through any means after the waiting period of 45 days, however, before the date of maturity of the policy, the following amount is payable as the death benefit.

Tax Benefits

The premium amount and the death benefit amount are applicable for tax exemptions under Sections 10(10D) and 80C of the Income Tax Act, 1961. For further information on income tax savings, it is advisable to reach out to a financial advisor or a tax specialist.

LIC Premium Payment

Policyholders get to choose the frequency of premium payments of their life insurance policy. They get the following three options

• Single Premium Payment where they can pay the entire premium amount in a one-time lump sum amount.

• Limited Premium Payment where they can pay the premium during a fixed period which is shorter than the policy term. For LIC’s Saral Jeevan Bima policy the limited premium payment can be done for either 5 years or 10 years. They can choose to pay either monthly or yearly within this limited period.

• Regular Premium Payment is where they pay the premiums regularly throughout the policy term. Here also they can choose to pay either monthly or yearly.

LIC Saral Jeevan Bima Policy Details

Surrender Benefit
LIC’s Saral Jeevan Bima policy does not acquire any surrender value.

Policy Cancellation Value
The life assured is entitled to a policy cancellation value should they choose to cancel the policy before the maturity date. Please note that the policy cancellation value is only payable on opting for limited or single premium payments. It is calculated as follows:

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. On failure to pay premiums during this period, the policy shall lapse.

Free-look Period
From the date of receipt of the policy bond, the policyholder has 15 days to review the terms of the life insurance policy and return it should they find any objections. The free look period is 30 days in the case of online purchases of LIC’s Saral Jeevan Bima.

Suicide Exclusion
The beneficiary can claim up to 80% of the total premiums paid or 90% of the single premium amount if the life assured succumbs to death as a result of suicide within 12 months from the date of commencement of risk.

Sample Illustrative Premium for LIC Jeevan Bima Saral

Given below is a sample illustration of premiums payable for the Basic Sum Assured of Rs. 10 lakhs for a policy term of 25 years for standard lives.

Please note that the above premium is exclusive of taxes.

LIC Saral Jeevan Bima Calculator

There are several LIC premium payment modes for LIC’s Saral Jeevan Bima policy and even three different frequencies to choose from. The value of the premium changes with the mode and the frequency. If you are planning to purchase the LIC Saral Jeevan Bima policy but do not understand which payment mode or frequency will be beneficial for you, then it is wise to calculate the premium for all situations and combinations and then select the most suitable one.

The LIC Saral Jeevan Bima Premium Calculator is the tool for this job. It is a digital available online at zero charges. You can use it as many times as you wish and calculate the premium of your LIC Jeevan Bima Saral policy for all combinations of premium payment terms and modes.

This calculator is like any other LIC Calculator used to calculate premiums wherein you enter the policy details like the Basic Sum Assured, the total policy term and lastly your preferred payment mode and term. Based on these details you provide, the tool makes the calculation.

How to Buy LIC Plans From Policybazaar?

Buying LIC plans from Policybazaar is a convenient and beneficial option as they provide reliable claim support. You can buy an LIC plan from the Policybazaar app directly or you can use their official website. Here are the steps to buy an LIC plan from Policybazaar website.

• The first step is to go to the Policybazaar website.

• Click on the Insurance Products section.

• Under the Investment Plans category you will find LIC.

• When you reach the LIC page, fill the form with your name and mobile number and click on View Plans

• Now you will have to answer a few questions that appear on screen like age, current city and annual income.

• A list of all available LIC plans will be displayed with all their details. You can customize the amount and policy tenure and compare plans accordingly.

• Select the plan you decide and then pay premiums to purchase it.

LIC Resources

FAQs