JEEVAN SARAL LIFE INSURANCE POLICY BY LIC (Table No. 165)
Jeevan saral policy by Lic of India which is also called ATM plan.
FROM ALL PRODUCTS OF ALL INSURANCE COMPANIES THIS PLAN HAS GOT A 'GODEN PEACOCK AWARD FOR BEST INNOVATIVE PRODUCT OF INSURANCE INDUSTRIES.' Jeevan saral is a Monthly Recurring Life Insurance Plan by Lic of India where you get 250 times monthly premium + total premium paid + LA if any in case of death and on maturity you get a lumpsum amount which is 100% tax free.
Features: 1. This plan is suitable for: (a) Salaried Persons. {b) Due to its flexibility in term & anytime partial withdrawal facility, it is suitable for high Networth Individuals. (c) Person with uncertain income as LIC provides auto cover in case premium due remains unpaid for 1 year. (d) Person who need money for future contingencies like marriage/education of children. This plan with features of conventional plans & flexibility of unit link plans provides: (a) Flexibility & liquidity. Under the normal plans, one choose the SA. Whereas in this plan One has to choose the premium he wants to pay. Once the premium is chosen, SA payable on death gets determined. The SA is payable on maturity can then be obtained on the basis of age & policy term.(b) Smooth return. (c) Irrespective of age at entry & term death cover will be the same. However, Maturity SA will differ.
Benefits:
1. Maturity Benefits: Loyalty additions + Maturity Sum Assured, if any.
2. Loyalty addition: After the policy has been in full force for at least 10 years, it will be declared.
3. Partial Surrenders: After completion of 3 years or more from the DOC provided full premiums have been paid subject to conditions can be made any time.
4. Auto cover: If subsequent premiums are not paid, the risk cover under the main plan will continue for 12 months from the date of first unpaid premium (If a policy is in force for full benefits for 3 or more years).
5. Optional Riders: For an additional premium ()Accidental Death & disability benefit rider. ()Term Assurance Rider will be available & their SA will not exceed the death Death Benefit
6. Death Benefits: Loyalty Additions + 250 times the monthly basic premium (called Death Benefits SA) + Return of premiums paid (excluding 1st year premium & extra/rider premium) if any
7. Surrender value: the policy can be surrender after it has been in force for at least 3 full years. The surrender value will be the greater then guaranteed surrender value or special surrender value as given below: Guaranteed surrender value (GSV): the GSV will be equal to the 30% of the total amount of premium paid excluding the premium for the first year and all the extra premiums and premium for accident / term riders. Special surrender value (SSV): the special surrender value under the policy shall be paid as the sum of (a) and (b) gives as under: - Discounted value or accumulated value, as the case may be, of the following: 80% of maturity S.A. if 4 years premium have been paid, 90% of the maturity S.A. if or more years but less then 5 years premiums have been paid and 100% of the maturity S.A. if 5 or more years premium have been paid.
- The loyalty additions, if any as announced while declaring the results of the corporation's valuation as on 31st march, immediately preceding the date of surrender.
8. Other Details:
(a) Under all LIC Plans, Accident Benefit/Term Assurance will be Rs. 50 lakhs as a max cover.
(b)Maturity SA for ages 12 to 17 will be the same as that for 18 years.
(c) Based on basic premium before allowing any mode rebate, Maturity SA is to be calculated. Excluding any extra premium under this plan for sub-standard life, the rebates will apply to the basic premium thereafter.
(d) For Endowment plan, all underwriting rules will apply. The death benefit SA should be considered for the purpose of Underwriting and SUC. As per Endowment plan, Standard extra premium (eg. Occupational extra or in case of physically handicapped lives) would be.
9. Flexible term: the policyholder can choose a maximum term but can surrender after 10 years without any surrender penalty or loss.
10. Partial surrenders: the plan will allow partial surrender from 4th year onwards subject to certain conditions for which please refer to policy document. Due to existence of the flexible term and partial surrender the policyholder will enjoy a lot of liquidity under the plan. The plan also provides for 15 days free look period". 11. Maturity sum assured (MSA): has to be calculated on the basic premium only, before mode rebate & death accident benefit. 12. Maturity benefit: Maturity sum assured (MSA) + Loyalty additions, if any 13. Death benefit: 250 times the monthly premium + Return of premiums
(Excluding extra/rider premium and first year premium),+ the Loyalty Addition, if any 14. Double Accident Benefit. - Additional risk covers in case of accidental death. The amount assured as accident cover is payable in addition to the Normal Risk Cover Amount. 15. Permanent Disability Benefits: If the policyholder survives an accident but becomes permanently disabled then the premium for the basic plan is completely waived off to the extent of the rider sum assured. Plus, 10% of the sum assured is paid for the next 10 years, which helps in providing that extra money and takes care of sudden financial set back that occurs after a tragic disability. 16. If you choose yearly payment option than you will get 2% discount on your premium amount. 17. Income Tax Benefit U/s 80c. 18. Maturity Amount is Tax Free. 19. Loan facility is available after 3 years. 20. Maximum Term is 35 years but policy can be surrendered at any time without any surrender PENALTY or LOSS and any number of withdrawals through partial surrendering after completion of 10 years or more from the date of commencement. 21. This plan is a combination of endowment and moneyback plan. No need not buy multiple term policies.Only one policy enough to fulfill your all dreams. 22. L.I.C. is giving more return in this plan as compared to other traditional plan. This investment is very useful for future plans. You can secure your retirement period by saving while you are earning. Or else, you can save from now for your children education, marriage, and retirement solution for self or other such requirements.
Death benefit S.A. will be 250 times the monthly basic premium. To arrive at DAB we have to calculate death benefit S.A. e.g. if yearly premium is Rs.6000
The death benefit S.A. = 6000/12 x 250 = 1,25,000 for this DAB will be @ Re.1per thousand which come out to be Rs.125.
Plan parameters : Age at entry: Min.12 yrs (completed) Max. 60 yrs (NBD)
Maturity age: Min.70 yrs
Term: Min.10 yrs Max. 35 yrs
Min. premium
Age 12 to 49:Rs.250 P.M
Age 15 to 60: Rs.400 P.M
Max. Premium: No. Limits
Premium in
Multiples: Rs.50 p.m.
Mode of payment: YLY/ HLY/ OLY/ SSS
Accident benefit: Re. 1extra per
(max. 50 Lac inclusive
all plan)
Policy loan: yes @ 10.5%
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term: yes Underwriting condition
Form no: 300/340
Age proof: Std/ NSAP-1
Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: Basic SA
Risk coverage: Death benefit S.A. + return of premium paid + LA (if any)
Dating back @ 8%: Allowed Example: Mr. ashok is 25 years old and is working in auto industry. He opts for jeevan saral plan for 15 years term and chooses monthly basic premium of Rs.500/- after adding DAB premium of Rs.510 (500 x 250 = 1,25,000 x 1/1000 x 1/12 = 10 + 510). On maturity he will receive Rs.97655/- as maturity sum assured (MSA) + Loyalty Addition which will be decided by the corporation. If he dies after 4 years, his nominee will get Rs.1,25,000 (250 x 500) + premium paid for 4 years - first year premium = 1,25,000 + 24,480 - 6120 = 1,43,360/- + Loyalty Addition, if any. LIC v/s Monthly Recurring Scheme
Maturity at the end of 10 years in Monthly Scheme | PREMIUM | LIC Jeevan Saral | POST OFFICE | LIC GAIN | | 500 | 106452 + Free insurance | 89010 - income Tax | 17442 | | 1000 | 212904 + Free insurance | 178021 - income Tax | 34883 | | 1500 | 319356 + Free insurance | 267031 - income Tax | 52325 | | 2000 | 425808 + Free insurance | 356042 - income Tax | 69766 | | 2500 | 532260 + Free insurance | 445052 _ income Tax | 87208 | | 3000 | 638712 + Free insurance | 534063 - income Tax | 104649 | | 3500 | 745164 + Free insurance | 623073 - income Tax | 122091 | | 4000 | 851616 + Free insurance | 712084 - income Tax | 139532 | | 5000 | 1064520 + Free insurance | 890105 - income Tax | 174415 |
| It is one of best as compared to Mutual funds, NSC, PPF , Bank's F.D. and Bank's RD. Reasons are : 1. Is not dependent on stock market returns like Mutual funds. 2. No risk as Mutual funds.. 3. NSC returns are taxable, whereas LIC returns are non taxable (U/s 10-10D) 4. PPF and NSC rate of return is around 8%, whereas this scheme is offering compounded 8 to 10% with high risk cover. 5. PPF and NSC do not provide any insurance. This scheme provides 250 times of your monthly investment as Insurance Cover (for example: if your investment is Rs 1000 than you will get an insurance cover of Rs 2,50,000/-) 6. Every year increase in life risk cover is available without payment of extra premium and without undergoing other formalities like medical exams report. 7. Unlike NSC and PPF, your monthly investment will be directly debited from your bank account thru ECS. Pls find attached herewith
1.Table of Return calculator for your reference.
2.Comparision with Jeevan Mitra Plan.
For More details Contact us Thx & Regards Nikhil Vadia – 98197 55658
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