Introduction to LIC’s Saral Jeevan Bima
Categorized under term insurance, LIC’s Saral Jeevan Bima 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.
LIC’s Saral Jeevan Bima Plan Benefits
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.
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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.
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Death During the Waiting period
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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.
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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.
Sum Assured on Death |
Regular / Limited Premium Payment |
Single-Premium Payment |
Higher of
- 105% of all premiums paid
- 10 times the annual premium
- Absolute amount assured on death
|
Higher of
- Absolute amount assured on death
- 125% of the single premium amount
|
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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.
Sum Assured on Death |
Regular / Limited Premium Payment |
Single-Premium Payment |
Higher of
- 105% of all premiums paid
- 10 times the annual premium
- Basic sum assured on death
|
Higher of
- Basic sum assured on death
- 125% of the single premium amount
|
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Tax Benefits
The premium amount and the 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.