W.e.f. 16-02-2004

General Conditions of Jeevan Saral:

  • Min. age at entry:  12 years (completed).
  • Max. age at entry:  60 years (nbd).
  • Modes Rebate: Yearly 2%; Half yearly 1%
  • Max. Maturity age: 70 years.
  • Modes Allowed: Yly/Hly/Qly/SSS
  • Accident benefit per 1000 SA: Re. 1 extra.
  • Min Term: 10 years.
  • Max Term: 35 years.
  • Premium in multiples: of Rs. 50 pm
  • Minimum Premium
  1. Age 12 to 49  : Rs 250 p.m.
  2. Age 50 to 60  : Rs 400 p.m.
  • Max.  Premium  :  No limit.
  • Term Rider option: Yes (Optional).

Requirements in writing:

  • Female lives category: I/II/III
  • Non-Medical General :  Allowed
  • Non-Medical Professional:  Allowed
  • Non-Medical Special:  Allowed
  • Risk Coverage: Death benefit SA + return of premium paid + LA, if any.
  • Age proof: Std./NSAP-1/2/3
  • Form Number:  300/340

Policy Servicing:

  • Term Rider : Yes.
  • Policy Loan @ 9%: Yes.
  • Revival: Yes.
  • Surrender of Policy: Yes.
  • Housing Loan: Yes.
  • Assignment: Yes.
  • Key-Man Insurance: No.

Term Rider Conditions:

  • Min. age at entry:  18 years (completed).
  • Max. age at entry:  50 years.
  • Min. S.A.: Rs. 50,000.
  • Max. SA.: Any amount.
  • Max. Maturity age: 60 years.
  • SA in Multiples: 10000
  • Term Same as Main Plan.

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 Net worth 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 fo 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 SA.

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: After it has been in forced for at least 3 years, the policy can be surrendered.

a. Gtd. Surrender Value: 30% of total premiums paid excluding: 1st year premium, all extra premiums & accident benefit/Term Rider premiums.

b. Special Surrender Value:  It will be sum of both these two points. (1) If less than 4 years premium has been paid then 80% of MSA will be paid.  If between 4 to less than 5 years premium paid, 90% MSA. If premiums are paid for 5 years and above, 100% of MSA. (2) The loyalty Additions, if any, for the term for which the policy has been in force, as announced as at 31st March immediately preceding the date of surrender.

8. Other Details: (a) Under all Plans, Accident Benefit/Term Assurance will be Rs. 25 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.

Example:

Mr. Mehndi aged 18 years takes a policy for a 20 year term & opts for an yearly basic premium of Rs 6000. After deducting 2% yearly mode rebate which comes to Rs 5880 & adding Double Accident premkum of Rs 125 (6000 Yly premium divided by 12 months = 500 monthly premium multiplied by 250 times = 125000 which is Death Benefit SA. For this DAB @ Re. 1 per 1000 SA = 125) he will pay a premium of Rs 6005. On maturity, he will receive Rs 140530 as maturity SA (Plus Loyalty Addition as declared at that time). In case of his natural death, after 5 years from the date of commencement of policy, his nominee will receive 250 times the monthly basic premium i.e. Rs 125000 (6000 basic yearly premium divided by 12 months = 500. Rs 500 X 250 times) + premiums paid for 5 years (less 1st year premium) Rs 23520. Hence nominee will totally receive 148520.

Click here for more details about LIC’s Investment plus Risk Plan.

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