LIC Jeevan Saral Endowment Plan Review
LIC Jeevan Saral Plan is an Endowment Assurance plan where the insured can choose the amount and mode of premium payment. LIC Plan No. 165 provides the financial protection against death throughout the term of the plan. LIC’s Jeevan Saral Policy was introduced on 16th February 2004 by the Life Insurance Corporation. Under this plan, once the premium is chosen, the Sum Assured payable on death will be determined, irrespective of the age and policy term. The Death Benefits are also related to the premiums paid.
LIC Jeevan Saral Endowment Plan provides both life security and money savings. It is the most sold plans of LIC and also a non-unit linked insurance policy with Double Death Benefit of Return of Premium and Sum Assured. Moreover this LIC Plan 165 provides flexibility of liquibility and term. Hence because of its flexibility, this plan is also called as ATM Plan (Any Time Maturity Plan). The Key features, Eligibility Conditions, Benefits, Rebates, etc. of LIC’s Jeevan Saral Plan are mentioned in detail below. Refer our site www.policybook.in for more information regarding LIC Endowment Plans.
What are the Features of LIC Plan No. 165?
- Higher risks were covered at the minimal premium.
- The mode of Premium payment can be chosen by the insured, i.e., you can pay the premium in yearly, half-yearly, quarterly, or monthly modes.
- After three years of premium payment, life insurance cover can be extended for one year.
- Loyalty Additions are provided from 10th policy year onwards.
- Optional higher cover through Term Rider, Accidental Death, and Disability Benefits.
- Sum Assured is 250 times the monthly premium amount.
- Loyalty Additions are available which may be payable from the 10th year onwards depending upon the experience of the Corporation.
- It contains a smooth return, higher death cover, liquidity and lot of flexibilities.
LIC Jeevan Saral Plan Eligibility Conditions
| S.No |
Eligibility Conditions & Restrictions |
Details |
| 1. |
Minimum Age of Entry for Life Assured |
12 years (Completed) |
| 2. |
Maximum Age of Entry for Life Assured |
60 years (Nearer Birthday) |
| 3. |
Minimum Policy Term |
10 years |
| 4. |
Maximum Policy Term |
35 years |
| 5. |
Maximum Maturity Age |
70 years |
| 5. | Minimum value of Sum Assured (Death) |
|
| 6. | Maximum value of Sum Assured | No Limit |
| 7. | Mode of Premium Payment | Yearly, Half Yearly, Quarterly, Monthly |
| 8. | Minimum Monthly Premium |
|
| 9. | Maximum Monthly Premium | Rs. 10,000/- |
Benefits of LIC’s Jeevan Saral Policy (Table 165)
The Benefits of LIC Jeevan Saral Endowment Plan are mentioned below.
Death Benefit:
In case of the demise of the insured during the term of the policy, the beneficiary or assignee will receive
- Sum Assured, i.e., 250 times that of monthly premium together along with the loyalty additions plus
- Return of premiums excluding first-year premiums and extra/ rider premium(if any) shall be payable in Lump sum.
Maturity Benefit:
Maturity benefits under this LIC Endowment Plan 165 are the Maturity Sum Assured + Loyalty Additions if any is payable in a lump sum.
Supplementary or Extra Benefits:
These are the optional benefits for extra protection which can be added to the basic plan. However, you have to pay an additional premium for these benefits.
Auto Cover:
The LIC Jeevan Saral plan offers an auto cover of 12 months after the policy has been in force for 3 years or more.
Loyalty Addition:
LIC Jeevan Saral Policy as a with-profits plan gets a share of profits in the form of Loyalty Additions. These are the terminal bonuses payable along with death benefit or maturity benefit. From the 10th policy year onwards loyalty additions are provided which depends on the experience of the corporation.
Cooling-off Period/ Free Look Period:
If the Policyholder was not satisfied with the Terms and Conditions, he/ she might return the policy to the corporation within 15 days. The count should be from the date of receipt of the plan.
Surrender Value:
Surrender Values are available on earlier termination of the contract and also allows for partial surrenders.
- Guaranteed Surrender Value:
The insured can surrender the policy after it has been in force for at least 3 full years. The guaranteed surrender value can be defined as
Guaranteed Surrender Value (GSV) = 30% of the total amount of premiums paid (excluding the premiums for the first year) + all the extra premiums and premiums for accident benefit / term rider.
- Special Surrender Value:
- If the premiums have been paid 3 or more years but less than 4 years, Maturity Sum Assured will be 80%.
- If the premiums have been paid 4 or more years but less than 5 years, Maturity Sum Assured will be 90%.
- If the premiums have been paid 5 or more years, Maturity Sum Assured will be 100%.
SSV = Discounted or Accumulated value of maturity sum assured + loyalty addition.
- Partial Surrender Value:
After completion of 3 years or more from DOC and if premiums have been paid for at least 3 full years, partial surrender will be allowed.
| Age at entry | Reduced basic monthly premium after the partial surrender |
| Up to 49 years | > Rs. 250/- per month |
| 50 years and above | Rs. 400/- per month |
| Mode of payment | Minimum basic monthly premium (surrendered at a time) |
| Monthly | Rs. 100/- |
| Half-yearly | Rs. 600/- |
| Yearly | Rs. 1200/- |
Rebates of Jeevan Saral LIC Policy
Mode Rebate:
| Premium Paying Mode | Rebate |
| Yearly mode | 2% of tabular premium |
| Half-yearly mode | 1% of tabular premium |
| Quarterly and SSS | Nil |
CEIS Rebate:
CEIS Rebate is available for this LIC’s Jeevan Saral Endowment Plan which is 10% of the basic premium.
Riders for LIC of India Jeevan Saral Plan
LIC provides Term Assurance Riders for life cover in case of inappropriate demise of the insured during the cover period. Riders are the optional benefits offered which can be added to savings plans, and the policyholder can enjoy the benefits of both protection and savings. There are two optional riders available under this LIC Jeevan Saral Plan. They are
- LIC’s Accidental Death & Disability Benefit Rider.
- LIC’s New Term Assurance Rider.
LIC’s Accidental Death & Disability Benefit Rider
LIC’s Accidental Death and Disability Benefit Rider (AD & DB) is an optional rider that can opt for at any time within the premium paying term. This rider is available up to the maximum Sum Assured of 50 Lakh. The Permanent Disability Benefit (PDB) is not available under this LIC plan no 165. The Sum Assured for this rider is the death sum assured. However, Accidental Death and Disability Benefit Rider is not available for the auto cover period.
LIC’s New Term Assurance Rider
LIC New Term Assurance Rider plan can be attached to a basic policy to provide add-on benefit at a nominal cost. LIC offers this optional rider for this Jeevan Saral policy by payment of additional premium.
Eligibility Conditions of New Term Assurance Rider
| S.No |
Eligibility Conditions & Restrictions |
Details |
| 1. |
Minimum Age of Entry for Life Assured |
18 years (Last Birthday) |
| 2. |
Maximum Age of Entry for Life Assured |
50 years (Nearest Birthday) |
| 3. |
Maximum Maturity Age |
60 years |
| 4. | Minimum Term Assurance Rider Sum Assured | Rs. 1,00,000 (with multiples of Rs. 10,000) |
| 5. | Maximum Term Assurance Rider Sum Assured | Rs. 25,00,000 |
LIC Jeevan Saral Premium Calculator
LIC Jeevan Saral Premium Calculator is used to calculate the premium amount in Yearly, Half Yearly, Quarterly, and Monthly modes. Through LIC Jeevan Saral Maturity Calculator, you can calculate the Jeevan Saral Premium amount that has to be paid to get all the benefits available under this policy. The data required for calculating premium rates using Jeevan Saral Calculator are Name, Email-Id, Age, Term, Sum Assured, etc.
LIC Jeevan Saral Policy Plan no 165 Buying Procedure
The Buying process of LIC Jeevan Lakshya policy is very simple if you have all the information regarding documents with you. Life Assured can buy the LIC Plan 165 either by visiting the direct website or by approaching LIC Agents. You have to choose the premium payment mode and pay the premium by cheque or DD or using net banking.
The Documents required for buying process of LIC Jeevan Saral Policy are
- Proposal Form.
- ID proof number.
- Address for communication.
- Bank account number and IFSC code.
- Annual Income details, etc.
Requirements for Claiming Jeevan Saral Plan
Maturity Claim
Once the policyholder completed the premium successfully, he/ she can claim for the maturity benefit available under this plan. The Maturity claim for term assurance rider is not payable.
Maturity Claim = Maturity sum assured (not death sum assured) + loyalty addition.
Death Claim
The Sum Assured will be payable to the nominees/ assignees if the insured dies unfortunately within the policy term. The Death claim with and without assurance rider is mentioned below.
Death claim under auto cover (without term assurance rider):
Death claim = Basic death sum assured + (return of premiums – 1st year premium and extra/rider premiums/EPDB premiums if any) + loyalty additions – outstanding loan with interest if any.
Death claim under auto cover (with term assurance rider):
Death claim = Basic death sum assured + Term rider sum assured + (return of premiums – first-year premium and extra/rider premiums/EPDB premiums if any) + loyalty additions – o/s loan with interest if any.
The Claimant should submit the following documents while lodging the claim in case of death of the Life Assured.
- Duly filled claim form.
- Original Policy Document.
- Identification Proof.
- Death Proof.
- Medical treatment documents before death, etc.
Additional Information Regarding LIC Jeevan Saral Policy
Loan Facility: The Loan facility is available for the policyholders under this policy.
Paid-Up Value: Depending on the number of premiums paid, paid-up value shall be payable on death or maturity.
Policy Revival: If the policy lapsed, it might be revived within a period of five successive years.
FAQ’s of Jeevan Saral Life Insurance Policy
1. How do I revive a Lapsed Policy?
A. You can restore the lapsed policy during the lifetime of the assured, but within a period of 5 years from the due date of the first unpaid premium and before the date of maturity.
2. Are there any riders available under this plan?
A. There are two riders available under this LIC Jeevan Saral plan. They are Accidental Death & Disability Benefit Rider and New Term Assurance Rider.
3. What is meant by Loyalty Addition?
A. Loyalty Addition means the share in profits and the terminal bonuses payable along with death benefit or maturity benefit.