LIC Jeevan Saral is Best Plan

LIC Jeevan Saral Plan is actually an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans. Hence Jeevan Saral is categorized under Special Plans.

Jeevan Saral is a non unit-linked insurance plan with Double Death Benefit of Sum Assured + Return of Premium.

Key Features of LIC Jeevan Saral:

1. Premium is chosen by the policyholder and Sum Assured is 250 times the Monthly Premium amount
2. Under Jeevan Saral, Death Benefit is Sum Assured + Return of premiums excluding extra/rider premium and first year premium + Loyalty Addition.
3. Maturity Benefit under LIC Jeevan Seral is Maturity Sum Assured + Loyalty Additions, if any.
4. Partial surrender of the Jeevan Saral policy is allowed after the 3rd policy year
5. Jeevan Saral offers extended risk cover for one year after 3 years premium payment
6. Policy holder of jeevan saral has option to get higher cover, through Term Rider and Accidental Death and Disability Benefit
7. The Jeevan Saral policyholder can choose a maximum term but can surrender at any time without any surrender penalty or loss after 5 years
8. Under Jeevan Saral, Loyalty Additions are provided from 10th policy year onwards.

Benefits Of LIC Jeevan Saral

Income Tax Benefit under section 80C :

Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity benefit is tax free under section 10(10)D provided all conditions have been fulfilled.
Death Benefit:

In case of death of the Life Insured, the nominee receives

• Sum Assured (i.e. 250 times the Monthly Premium) +
• Return of premiums excluding extra/rider premium and first year premium +
• Loyalty Addition, if any

Maturity Benefit of Jeevan Saral:

At the maturity of the Jeevan Saral policy, the insured will get

• Maturity Sum Assured (Depends on age of entry and policy term) +
• Loyalty Additions, if any.

If you stop paying the Jeevan Saral premium:

If you stop paying the Jeevan Saral premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

Surrender Value of Jeevan Saral:

Jeevan Saral gives Guaranteed Surrender Value after 3 policy years Guaranteed

1) Surrender Value:

30% of all premiums paid – 1st year’s premium

2) Special Surrender Value of Jeevan Saral = 80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid;

90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and

100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid
Jeevan Saral Guaranteed Surrender Value:

The time period for surrendering the policy depends on that the policy must be in power for 3 years or more. Apart from the premiums paid during the first year and extra premium paid, the Guaranteed Surrender value before the commencement of risk is 90% of premium paid. After the commencement of risk the Guaranteed Surrender value is 90% of premium paid plus 30% of extra premium paid.