Jeevan Saral Lic Plan
This is an Endowment Assurance plan where the proposer has simply to choose the amount and mode of premium payment. The plan provides financial protection against death throughout the term of the plan. LICs Jeevan Saral brings you
• Higher cover
• Smooth return
• Liquidity and
• Considerable flexibility
Features
• Under this plan death cover will be same irrespective of age at entry and term.
• The sum payable at maturity however differs for different entry ages and terms.
• This plan is very appropriate for employees seeking life cover through Salary Savings Schemes.
• Premiums are payable yearly, half-yearly, quarterly, or monthly through salary deductions as opted by you throughout the term of the policy or till earlier death.
LOYALTY ADDITIONS
Only loyalty additions will be declared under the plan. The minimum term after which a policy can earn loyalty addition will be 10 years. However, Loyalty additions will also be payable if death occurs in the 10th year of the policy provided that the policy is in force at the time of death. Loyalty additions will be subject to Corporations experience, and may be paid incase of death, maturity and surrenders.
Benefits
On death:
• 250 times the monthly premium, plus return of premiums excluding extra/rider premium and first year premium, plus the loyalty addition, if any.
On Maturity:
• Maturity sum assured, plus Loyalty additions, if any.
Extra benefits(optional)
An additional premium is required to be paid for these benefits. The plan offers a number of other benefits :
Auto Cover :
The plan offers Auto cover of 12 months after the policy has been in force for a period of 3 years or more.
Flexible Term :
The policyholder can choose a maximum term but can surrender at any time without any surrender penalty or loss.
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 surrenders the policyholder will enjoy a lot of liquidity under the plan. The plan also provides for “15 days free look period”.
Loan:
Loan is permissible under the policy after it requires a paid up value. The terms and conditions of the loan and the rate of interest applicable will be as fixed by the Corporation from time to time. At present, the rate of interest is 10.5% p.a compounding half yearly.
Grace Period
A grace period of 1 month but not less than 30 days will be allowed for payment of yearly, half yearly or quarterly premiums. If the premium is not paid before the expiry of the days of grace, the Policy will be lapsed.
Revival
Subject to production of satisfactory evidence of good health, a lapsed policy can be revived by paying arrears of premium together with interest within a period of 5 years from the due date of first unpaid premium. The rate of interest at present is 9%.
Surrender Value
Surrender values are available on earlier termination of the contract. The surrender value will be the greater of the guaranteed surrender value and special surrender. The plan also allows for partial surrenders.
Guaranteed Surrender Value (GSV)
80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums has been paid.
90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums has been paid.
100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid.
The Maturity Sum Assured for this Para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.
ELIGIBILITY
Entry age: Minimum 12 years (completed) and maximum 60 years nearest birthday. Maturity age: Maximum 70 years.
Term: All terms from 10-35 years.
Premium: Minimum premium of Rs.250 per month for entry age upto 49 years and Rs.400 per month for entry age 50 years and above. The premium shall be in multiple of Rs.50 per month.
REBATES FOR MODE OF PREMIUM PAYMENT AND HIGH SUM ASSURED
Mode rebate: 2% for yearly mode and 1% for half yearly mode. There are no rebates for quarterly and SSS mode.
