Product Summary:
LIC Jeevan Saral is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment of LIC Jeevan Saral policy. LIC Jeevan Saral plan provides financial protection against death throughout the term of the plan. The death benefit is directly related to the premiums paid. The Maturity Sum Assured depends on the age at entry of the life to be assured and is payable on survival to the end of the policy term. LIC Jeevan Saral also offers the flexibility of term and a lot of liquidity.
Premiums:
Premiums of LIC Jeevan Saral are payable yearly, half-yearly, quarterly, or monthly through salary deductions as opted by you throughout the term of the policy or till earlier death.
LIC Jeevan Saral Loyality Additions:
LIC Jeevan Saral is a with-profits plan and participates in the profits of the Corporation’s life insurance business. LIC Jeevan Saral gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit. Loyalty Additions may be payable from the 10th year onwards depending upon the experience of the Corporation.
Any Time Maturity:
LIC Jeevan Saral plan allows life insured to take out the maturity after 10 years at any time, partially or fully. This flexibility lets you reinvest your money or fulfill your financial requirements. LIC Jeevan Saral also rewards you with bonus even if you have stopped paying premium after 10 years and maturity is kept inactive in insurance account.
LIC Jeevan Saral Plan Features:
• Higher risks cover at minimal premium.
• Extended life insurance cover for one year after three years premium payment.
• Optionally available increased risk covers by way of Term Riders.
• The insurance policy holder can select a highest possible term but can surrender whenever they want with no surrender penalty or loss right after 5 years.
• Any number of withdrawals by way of partially surrendering the policy.
• Smooth earnings on his investment & lots of flexibility.
LIC Jeevan Saral Benefits:
• As mentioned above, being monthly ECS premium payment option, which is LIC monthly recurring kind scheme.
• The amount policyholder going to receive at the end of the term after payment of all premiums is tax Free under section 10-10d of income Tax act.
• You can partly surrender the policy and make unlimited withdrawals through partial surrendering after 5 years.
• The premium amount paid to LIC is exempted under section 80c of income Tax act.
Illustration of Jeevan Saral:
Age at entry: 35 years
Policy term: 25 years
Mode of premium payment: Yearly
Amount of annual premium: Rs.4704/-
Guaranteed amount at the end of policy year 25 Rs. 215200=00 plus loyalty additions between Rs. 65000=00 to Rs. 211000=00.
What the policy holder will get after 25 years will be between Rs. 280200=00 to Rs. 426200=00.
i) This example is suitable to a non-smoker male/female normal (from health, style of living and work point of view) life.
ii) The most important purpose of the example is that the customer is in the position to understand the top features of the plan and the flow of benefits in a variety of situations with some level of quantification.
iii) Loyalty bonus extras will depend upon upcoming profits and therefore is not assured.
iv) The Maturity Benefit is the total displayed by the end of the policy period.
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