LIC of India : Jeevan Saral

(Product Summery)

* Product Type : Endowment Assurance plan

* Monthly Premium (Rs) : Min : 500.00

Max. : No Limit

* Premium Payment Options : Yearly, Half-yearly, Quarterly, Monthly

* Tax Benefit : Maturity : Tax Free Under Sec. 10-10D Premium : Exempted U/s 80C

* Loyalty Additions : Loyalty Additions may bepayable from the 15th year onwards

* Death Benefit : 250 times the monthly premium with Loyalty additions (If Any)

* Riders (Optional) : Term Assurance Rider, Accidental and Disability Benefit Rider is available by the payment of an premium Rs. 1.00/ Rs 1000.00 SA (Max. 50.00 :Lacs)

* Benefit Illustration : Age at entry: 31 years
Policy term: 20 years
Mode of premium payment: Yearly
Amount of annual premium: Rs.500*12 = 6000.00

Amount of annual premium: Rs 125*12 = 1500.00

Total Premium Paid :7500.00 (PA), Rs 625 (PM)

1. Sun Assured : Rs 125000.00 + Rs 125000.00 (Rider)

2. Return (if Live) : Total Premium + Assured Bonus

OR

Return (If Death) : Sum Assured + Rider (If Any)+ Assured Bonus

LIC has been periodically discontinuing some of its high-return policies. Simultaneously, it has been launching new plans to make up for the withdrawn lot, or reintroducing them in a new format. Continuing with this trend, on February 28, the insurance behemoth will withdraw Bima Nivesh Triple, which offers an assured return of over 6.5 per cent.

Made to order. In its place, LIC will launch Jeevan Saral, which comes with high liquidity features so far available only in unit-linked plans of private insurers. LIC’s new plan primarily covers risk and has a blend of flexible features. And unlike traditional LIC products, where you have to calculate premiums based on a fixed sum assured and the policyholder’s age, Jeevan Saral will offer cover based on the contributions made by you. This means that you have the choice to fix the premium (contribution) depending on funds available with you. The uniform risk cover (death benefit) during the term is equal to 250 times the monthly premium, plus a refund of premiums paid, along with loyalty additions as applicable.

If you surrender the policy, you get back all premiums paid, barring the first year premium. Indicatively, if you surrender after 10 years, you get back up to 90 per cent of the premium paid. However, you stand to gain more if you stay on beyond 10 years, as you will then receive loyalty additions. The maturity amount will depend on the bonus declared.

Unlike unit-linked plans, where the premium is invested in funds of varying risks, this LIC plan doesn’t offer multiple options and declares an annual bonus. Jeevan Saral is a good option for those who want a low-risk policy that combines the benefits of a traditional life cover with the flexibility of modern policies.

Per Day Saving	17.00	33.00	50.00	67.00
Return After Years	500	1000	1500	2000
	Monthly Premium	Monthly Premium	Monthly Premium	Monthly Premium
20	280,518.00	561,036.00	841,554.00	1,122,072.00
22	348,851.00	697,701.00	1,046,552.00	1,395,403.00
24	430,847.90	861,696.50	1,292,544.40	1,723,392.30
26	529,280.50	1,058,560.30	1,587,840.80	2,117,121.30
28	647,483.20	1,294,965.70	1,942,448.90	2,589,931.40
30	789,779.20	1,579,557.70	2,369,336.90	3,159,115.40