Lic Jeevan Saral

Jeevan Saral by Lic of India

LIC’s Jeevan Saral is a unique plan by Life Insurance Corporation of India having good features of the conventional plans and
the flexibility of unit linked plans. This is a Monthly Recurring Life Insurance Plan by Lic of India where the proposor get 250 times monthly premium + total premium paid + LA if any in case of death. To the policyholder it provides —

higher life cover
a smooth return,
liquidity & a lot of flexibility

BENEFITS

LIC Monthly Recurring type Scheme
This is like a Post office or Recurring Deposit Scheme. You can deposit Yearly, Hly, Quarterly or Monthly in LIC scheme
Maturity amount received is Tax Free under section 10-10d of income Tax act.
Any number of partial withdrawals through partial surrendering after 10 years
The amount deposited in LIC is exempted under section 80c of income Tax act.
In case of death 250 times monthly premium + Total Premium paid - (1st years premium & Extra premium paid ) + LA if any payable.

Special Features:

High life cover at very low premium
Extended risk cover for one year after 3 years premium payment.
Optional higher cover available through Term Riders
The policyholder can choose a maximum term but can surrender at any time
without any surrender penalty or loss after 5 years

Premium Mode :You have an option to choose the premium mode MONTHLY ECS / SSS . Quarterly , Half Yearly or Yearly. There is no single premium payment mode available under this policy. For monthly premium option you cannot pay by cheque. ECS is compulsory for monthly mode.
Quarterly , Half Yearly and yearly premium can be paid thru ECS , Cheque or LIC Online premium payment .

Any time money ( ATM ) Plan 165 Jeevan Saral By LIC of India call us for more details.

Query Corner

Hi, my age is 35. I took Jeevan Saral policy previous year, with a monthly premium of Rs. 1500. As mentioned in the chart showed by LIC agent, if I surrender the policy after 25 years, I will get Rs. 20 lakh as a surrender or maturity amount. Please let us know your views on this. What is the probable loyalty addition after 15 years? The chart indicates a 10% internal rate of return. Is this sensible?
Pradip K - Mumbai

Reply: LIC Jeevan Saral is an endowment assurance plan. The loyalty addition is not assured but may be payable from the 10th year onwards depending on LIC’s future performance. The expected investment return of 10% is not guaranteed. I advise you to read & understand the benefits of the plan before buying the policy.

I am a 28 and want to know if it is worth investing in LIC’s Jeevan Saral policy. I want to know: -
1. Is the claim of insurance at 250 times premium as told by agent is realistic? In Jeevan Saral, the nominee will be paid the total of Sum assured , All premiums paid excluding first year and loyalty bonus if any in case of death of the policy holder
2) Are the returns guaranteed, like in a recurring deposit?
3) What are the returns from LIC in case the policy is surrendered before maturity?
Anil Joshi - Pune

Reply: The returns are not assured as such, but the same are not market linked too. The funds shall be invested as per the IRDA norms, in which the funds primarily invested in government securities comprising more than 50% and the balance in approved investments. You can expect a debt sort of returns from this plan. The policy shall be considered to have matured in case of premature withdrawal or surrender anytime after five-year term. Dissimilar to other traditional LIC plans, there is no surrender penalty or charges in this plan.

I have taken a Saral LIC policy. But, after a short time I cancelled the policy. Will I get my money back? Is there any provision in the LIC Act to get back the premium paid? Archana - Pune

Reply: The policy can be surrendered after it has been in force for as a minimum three full years however some surrender fee will be applicable if you surrender your policy before the completion of five years. There is no penalty if you surrender after 5 years, you get 100% of the maturity sum assured corresponding to the term for which premiums have been paid under the policy.

I have taken LIC’s Jeevan Saral policy in August 2008 and I am paying a premium of Rs 4900 per month. I was promised maturity proceeds of Rs 25 lakh at the end of 15 years by my agent. Does LIC pay such high bonuses? My purpose to invest in Jeevan Saral was only for my daughter’s higher education. Abhijeet - Thane

Reply: Jeevan Saral is an endowment assurance plan. Some benefits are guaranteed and some are variable with returns based on LIC’s future performance. Loyalty addition is not assured in this plan but may be payable from 10th year onwards. If you assume a LA of 6% per annum, you can get Rs 12,00,000 on maturity after 15 years. Bearing in mind your investment perspective, I would advise you to invest in diversified equity mutual fund scheme through Systematic Investment Plan for your child’s higher education. You also can buy a term insurance plan to complete your insurance need.

lic jeevan saral policy

Jeevan Saral by Lic of India

Query Corner