LIC Jeevan Saral

What is the LIC Jeevan Saral Plan?

LIC Jeevan Saral (Plan-165), offered by the LIC of India, is a comprehensive insurance policy that offers death benefits to the nominee in case of the unfortunate demise of 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 payouts. Also, the policyholder has the option to customize their plan as per their needs and requirements.
The plan is no longer for sale as LIC has withdrawn it. However, existing policyholders of this plan will be able to enjoy its benefits.

Features of LIC Jeevan Saral 

LIC Jeevan Saral Plan 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 Payments: 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. 

• Auto Cover: This plan offers auto coverage for 12 months (1 year) after it has been active for 3 years or more. 

• Flexible Term: The policyholder can choose a maximum term and surrender at any time without any surrender loss or penalty. 

LIC Jeevan Saral (Plan-165) Benefits 

• Death Benefit: In case of the unfortunate death of the life-assured, 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 return of premium amount 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.Features like a 12-month auto cover after 3 years, a flexible term allowing surrender without penalty, and partial surrenders from the 4th year. 

• 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. 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.

• Loyalty Additions: The minimum tenure after which a plan can get loyalty additions will be 10 years. These will also be paid in case death occurs in policy's 10th year, provided the plan is active at the time of death. 

LIC Resources

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. 

Disclaimer: The Sum mentioned below the guaranteed column of the table may differ from the actual sum assured at the year-end, as dependent on the policy performance in the future.

Riders Available With LIC Jeevan Saral 

LIC Jeevan Saral offers 2 optional riders by paying a nominal premium: 

• Term Assurance Rider: 

• Accidental Death and Disability Benefit Rider 

Let's discuss them in detail: 

1. LIC Term Assurance Rider

   An amount equivalent to Term Assurance life cover (sum assured) will be paid in case of the life assured's death during the policy term. 

2. LIC Accidental Death and Disability Benefit Rider 

   In case of death due to an accident, an additional amount equal to the Accident Benefit Sum Assured is paid. If total and permanent disability occurs due to an accident (within 180 days of the event):

   • The sum assured is paid in monthly installments over 10 years.

   • Disability must prevent the life assured from earning a livelihood.

   • Covered disabilities include:

     • Total and irrevocable loss of sight in both eyes.

     • Amputation of both hands (at or above the wrists).

     • Amputation of both feet (at or above the ankles).

     • Amputation of one hand and one foot at or above the wrist and ankle.

   Exclusions: No benefits are paid if the accident is due to:

   • Self-inflicted injuries, attempted suicide, or insanity.

   • Influence of alcohol, drugs, or narcotics.

   • Participation in aviation (other than as a passenger), war, rebellion, or hazardous activities (e.g., hunting, mountaineering, racing).

   • Criminal acts or breach of law.

   • Employment in the armed forces, military, or police services.

LIC’s Jeevan Saral 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.

• Loan
  Loan facility is available under the LIC Jeevan Saral plan once it acquires a paid-up value. LIC determines the applicable terms, conditions, and interest rate and may change from time to time. The interest rate is 10.5% per annum, compounded half-yearly.

• Rebate
  Policyholders get a 2% rebate for paying premiums yearly and 1% rebate for the half-yearly mode. No rebate is available for quarterly or SSS (salary savings scheme) modes or for high sum assured amounts.

• Paid Up Value 
  The policy will not lapse entirely if premiums have been paid for at least three full years and any further premiums are not paid. Instead, it will continue as a paid-up policy with a reduced coverage amount.

• Revival
  A lapsed plan can be revived by paying the premium arrears together with interest, within a time of 5 years from the due date of 1st unpaid premium amount. 

LIC Jeevan Saral – Policy Exclusions

The policy shall be void in case the policyholder commits suicide (irrespective of the mental condition) 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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