# Table no 165

# Jeevan Saral : With Profit Plan

Winner of Golden Peacock Award

- A Unique plan-probably first of its kind.
- A conventional plan but has good features of unit linked products but it is
**not**ULIP.

It is easier to understand and provides many benefits to lic policyholder.

- A lot of guarantee
- A lot of liquidity
- Flexibility of term- policyholder can choose term from 10yrs to 35yrs
- Mode: yearly, half yearly, Quarterly, SSS and ECS
- A higher cover, particularly for lower terms and higher entry ages.
**Maturity Benefit**- to be taken from the Maturity Sum Assured Chart
- Loyalty addition Payable in Addition
**Surrenders:**- No surrender penalty after 5 years
- Higher Surrender values
- Retrospectively worded out
- Loyalty additions payable, if surrendered after 10 years

**Death benefit :**- Depends on the premium only
- Equal to 250 times monthly premium plus return of premiums ( excluding first) plus loyalty additions
- Full cover remains till the end of the term.
- Premium holiday : up to 12 months after policy has been inforce for 3 years
- Loan available after 3 years
- Partial Surrender : Conditions for partial surrender
- At least 3 years premium are paid
- Minimum basic annual premium after withdrawal – Rs 3000 where age at entry was 49 yrs of below
- Minimum basic annual premium after withdrawal – Rs 4800 where age at entry was 50 yrs of above
- Minimum basic annual premium for withdrawal is Rs 1200/-
- Withdrawal in multiples of Rs 600 thereafter
- Minimum waiting period between successive withdrawals 1 yr
- At the time of withdrawal no loan should be outstanding on the policy
- All future benefits and premiums under the policy will get reduced proportionately.

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**Introduction:**

In the history of life insurance, First time LIC OF INDIA has launched a revolutionary life insurance product **Jeevan Saral** in the year 2004 which won **Golden Peacock award for innovation** in life insurance.

In Jeevan Saral plan Sum Assured is decided by choosing the premium and minimum premium is Rs 250 per month or Rs 3000 per annum and there is no upper limit for choosing premium. Now **If Monthly premium is Rs 1000 then sum assured will be Rs 250 times 1000 that is Rs 2,50,000.** Note: It is not necessary that you have to pay the premium only monthly you can pay by any mode yearly, half yearly or quarterly as well.

A unique Feature

There is also a Unique Feature under LIC JEEVAN Saral Plan.In case of death claim, in addition to the sum assured payable on death, all premiums paid, (excluding the first year premium, extra premium paid and premiums for rider benefits), will be refunded. This is the first time that such a feature has been introduced. The results is a continuously increasing risk cover from the second year onwards.

**Is Jeevan saral a with profit plan?**

Yes, But Bonus will not be declared each year as under other plans. Only “Loyalty Addition” will be given. The Loyalty Addition is payable only if premium have been paid under the policy for at least 10 years and ten years have completed since the date of commencement. This Loyalty Addition is payable even when a policy is surrendered and also under the Death Claim.

**Paid Up and Surrenders**

**A policy will acquire paid up value provided premiums have been paid for at least for three full years.** Once a policy acquire a paid up value, it can be surrendered. But there is a unique feature when it comes Surrenders. **Provided premiums have been paid for 5 full years Surrender will be treated as maturity for a reduced policy term.** What does this mean. ?

For example a policy for term 20 yrs, being surrendered after premiums have been paid for 12years. This will be treated as if the policy was originally taken for a term of 12 yrs and the maturity value corresponding to term 12 yrs will be paid. Since premiums have been paid for 12 full years, the Loyalty Addition corresponding to term 12 will be also be paid. **Note: A policy holder need not decide the policy term at the time of completing the proposal. He/She can first opt for the maximum permissible term corresponding to his age and postpone the decision on a suitable term to a convenient date in future.** So in this Sense Jeevan Saral is a **flexible term plan**.

**Can a person have multiple terms for the same policy?
**

The answer is yes, Let me show you how it is possible.

For example, a person paying a premium of Rs 700 per month( i.e. Rs 8400 per year) under his Jeevan Saral Policy and initially takes the maximum permissible term ( say 30yrs). The initial Risk cover will be for Rs 1,75,000, increasing by Rs 8400 each year from the 2nd year onwards.

Later, he decided to have a term of 12years under One Seventh of the policy. It will be presumed that there were two policies originally. One with the annual premium of Rs 1200 for a term of 12 years and another with an annual premium of Rs 7200 for a term of 30years. At the end of 12yrs, the Maturity Value, along with Loyalty Addition, will be settled under the portion for the terms 12yrs. Under the balance policy, the annual premium will now be Rs 7200. Risk cover Rs 1,50,000 and term 30yrs. If death claim occurs at any time later, say during 17th year, the claim amount payable will be Rs 1,50,000 + (17-1)X 7200 + Loyalty Addition for term 17years.

After another 3 years, he decided that under another two seventh of the original policy, the term should be 15 years . It will be presumed that there was three policies originally. One with the annual premium of Rs 1200( which has already matured), another for annual premium of Rs 2400 and term 15years, and another for an annual maturity value corresponding for a term 30 years. At the end 15th years, the maturity value corresponding to annual premium of Rs 2400 and term 15 yrs will be paid along with the Loyalty Addition. Under the balance policy, the annual premium will be Rs 4800 and risk cover will be Rs 1,00,000.If death claim occurs at any time later, say during 21st year, the claim amount payable will be Rs 1,00,000 + (21-1)X 4800 + Loyalty Addition for term 21years. Thus it is clear that **LIC JEEVAN SARAL is so flexible that one policy can have multiple terms. or you can say that there is lot of flexibility of choosing the term of the policy.**

For the above shown illustration, JEEVAN SARAL is almost like Flexible Money Back Plan.

**Are there any restrictions on such on Such partial Surrenders?**

Yes but only a few.

- The reduced annual premium after partial surrender, excluding rider and extra premiums, should not be less than Rs 3000, where the admitted age under Jeevan Saral is less than 50 and Rs 4800 when the admitted age is 50 or above and should be in multiple of Rs 600 (i.e. the monthly reduced premium has to be a multiple of 50)
- The amount by which the annual premium can be reduced for the purpose of a partial surrender has to be a multiple of Rs 600 and should not less than Rs 1200.
- A minimum waiting period of one year is required between successive surrenders.
- When a partial surrender is made and the sum assured payable on death get reduced, the sum assured under accident and term rider benefits, if any, will get correspondingly reduced.
- Before making a partial surrender, any outstanding loan under the policy has to be repaid in full.

**When will the Loyalty Additions be declared?**

The Loyalty Additions will be declared after each actuarial valuation. It will be based on policy term. In the case of death claim and surrenders, and in the case of policies under paid-up condition, the period for which premium have been paid will be taken as the policy term. **A policy will be eligible for Loyalty addition only after payment of premium for full 10yrs and after completion of 10yrs from the date of commencement**. A Loyalty Addition is payable on death of maturity or when a policy is surrendered. If death claim occurs in 10yrs of a policy provided the policy is inforce at that time, it will be eligible for Loyalty Addition even if the premium for the 10th year has not been paid in full.

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I have taken Jeevan Saral for 35 yrs with premium payment of Rs 36030 to be paid annualy in Dec 2011. what should be the Maturity Sum Assured excluding the loyalty addition Bonus. My documents mentions two amounts – Rs 1572150 and 750000. Please respond as I have to pay my 2 premium if the policy is profitable with this returns.

Maturity sum assured is Rs 1572150 but the maturity will be maturity sum assured + loyalty addition.

i jeevan saral policy started from sept 2009 and paying 5000 quaterly. what would be return value if surrender after 5 years. Please advise.

it would be almost 90% of your premium paid.

I have Jeevan Saral policy but not sure of for which term I am taken. In general, i used to pay the premiums in online and lost the hard copy which was given by my agent. How will I know what term I have chosen?

Please let me know ASAP. Thanks in advance….

Please register your policy at http://www.licindia.in and there you can see its details

Started this policy in jan 2011. Till now made 3 premium payments. Paying almost 34k per year. 16 year policy.

Not able to pay this high premium anymore.

What will be best option (I’m not ready to loose more then 10% of my 3 premiums paid)?

1. Surrender it..(Plz give after how many years..so that i will get back all my premiums amount).

2. Is there any provision of reducing the premium (say 34k to 4k..yearly).

I can’t get a clear picture from above article. plz answer

If you paid for 3 yearly installments, then your insurance will remain as it is for next 2 more years. So even if you don’t pay the premium for the next 2 years you will be covered.

To get the maximum surrender value I suggest you to continue your policy 2 more years.

Jeevan Saral is maximum selling product in LIC but When you compare long term don’t forget Jeevan Anand its give you double sum assured and good maturity amount also.

I have taken jeevan saral policy in April-2008 ( date of commencement is 28.04.2008 ) and paying Rs. 2297 quarterly. Now i want to surrender the policy. What amount i get back as i have paid 5 years full premium.Pl reply asap.

If you surrender Jeevan saral, now it will be little less than what you paid but still in case of jeevan saral the surrender value is highest if you compare it with other endowment plans.

i want to invest in jeevan saral with profit for 15yrs with Rs.10000 monthly premium. what will be my policy amount??? is there any other policy more beneficial than jeevan saral for the same duration n premium amount?? plz rply…

Jeevan Saral is an endowment plan of LIC like table no. 14, you must buy Jeevan saral for the flexibilities that it has rather than focusing on higher maturity. As per actuarial calculation its maturity will be higher than the maturity of table no. 14 but to be on the safer side, you can calculate its maturity equal to maturity of table no. 14.

approx calculations for maturity : For age 30, with premium Rs 10,000 per month, the sum assured for 15 years should be Rs 18,00,000 so its maturity should be aprox close to Rs 36,00,000/- Rs 42,00,000/-

HI

I have taken Jeevan Saral for 16 years with a premium payment of Rs 2000 per month. What shoul be my maturity amount. As per my agent the Maturity amount should be around 10L. Is it true? Kindly confirm.

Jeevan Saral is also an endowment plan with lot of flexibilities, so you will get maturity some where equal to table no. 14 (Normal Endowment) with premium Rs 24000 for 16years on your age.

Jeeven saral plans 15 years .yerly 30000.what a some maturity.

Its maturity will be more than what table no. 14 for 15years term, with premium equal to Rs 30,000.

Dear sir

my name is vishal kumar thakar my policy name jiveen saral policy no 815822433 and 815822432 to abhi tak meri policy me me kitana rupee jama kar diya hu ye janna tha please

for policies specific queries, please visit any of LIC branch or call 1251 (4 digit toll free number from any landline)

I have Jeevan Saral LIC Policy . I have completed 3 years of premium paying . Can I eligible for taking loan . I am paying 3062 premium PM under plan and till date 110232 premium paid in three years. How much loan can i take against policy as details provided.

Yes, Loan can be taken on this policy, and the loan amount is the 90% of the surrender value of the policy. So nearly 60,000 should be the loan amount in your case but for accurate figure, contact LIC Branch.

I pay 24020.00 as a yearly premium. The terms are 15 Years, But while enrolling Agent said that you will have to pay premium for 10 years, Please clear my confusion and also what will be the maturity and when I will get that.

This policy has lot of flexibility, you can close this policy after 10years and you will be the surrender value equal to the maturity amount of a policy which has a term of 10 years and in case you want to continue for 15years then you can as the term is mentioned 15yrs.

I have taken Jeevan Saral policy (plan no 165) for 20 yrs with premium payment of Rs 24000 to be paid querterly in Jan 2010. what should be the Maturity Sum Assured including the loyalty addition Bonus.

Total maturity( Maturity Sum Assured including the loyalty addition Bonus) can not be predicted in advance but it is expected that it will be higher than the policies which are with bonus.

If I am not happy with the services of my agent, can I change my agent.

No, You can not change the agent but yes, you can find new agent for future policies and services.

Hi,

I would like to take policy of Rs.2500 per month for 30 years. how much amount i will get after 30 years? Please advice i got confused with the policy chart.

Maturity sum assured + Loyalty addition. Maturity Sum assured is mentioned on the policy bond of policy.

I have Jeevan Saral LIC Policy . I have completed 3 1/2 years of premium paying. I am paying quarterly Rs15,312 premium and term 15 years. I am planning to apply for education loan for my daughter studies. How much loan can i get against my policy.

You can get approx Rs 1,20,000/- but for accurate figures visit LIC office.