Thursday, 6 December 2012

JEEVAN SARAL LIFE INSURANCE POLICY BY LIC (Suitable for all ages)


Feature of Jeevan Saral plan: 

Lic Jeevan Saral is the most sold plan by Life Insurance Corporation of India. Jeevan Saral is a very flexible plan designed by keeping in mind the ever changing demand of customer's. Jeevan saral is a kind of endowment plan which can be taken for a maximum period of 35 years. One can start with yearly, half yearly, quatertly, ECS or monthly payment option from as little as Rs.250 per month and there is no upper limit. Ideally in Mumbai one should at least take Rs.3060 per month Jeevan saral policy as it will give you and your family a highly secure and safe invesment option. You will be covered for 250 times for death risk and 500 times for accidental death risk.

In simple terms
a)3000 X 250 = 7,50,000/- (Death Risk paid to the nominee)
b)3000 X 500 = 15, 00,000/- (Death Risk paid to the nominee)
c)Maturity paid to survior Appox Rs. 1,10,13,305/-
(Term 35 years projected @10% Loyalty Addition)

However please note that this is not a gauranteed plan and hence the returns shown above can fluctuate depending upon the loyalty addition declared by Lic of India.

This plan contains good feature of the conventional plans and the flexibility of endowment plans. It provides higher cover, smooth return, liquidity and considerable flexibility. In this plan one has to choose the premium he wants to pay whereas in normal plans one chooses the S.A. 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 age and terms. This plan is very appropriate for employees seeking life cover through salary savings schemes.

Surrender value: the policy can be surrender after it has been in force for at least 3 full years. The surrender value will be the greater then guaranteed surrender value or special surrender value as given below:

Guaranteed surrender value (GSV): the GSV will be equal to the 30% of the total amount of premium paid excluding the premium for the first year and all the extra premiums and premium for accident / term riders.

Special surrender value (SSV): the special surrender value under the policy shall be paid as the sum of (a) and (b) gives as under:

Discounted value or accumulated value, as the case may be, of the following: 80% of maturity S.A. if 4 years premium have been paid, 90% of the maturity S.A. if or more years but less then 5 years premiums have been paid and 100% of the maturity S.A. if 5 or more years premium have been paid.
The loyalty additions, if any as announced while declaring the results of the corporation's valuation as on 31st march, immediately preceding the date of surrender.
Auto cover: the plan offers auto cover of 12 month 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 surrender the policyholder will enjoy a lot of liquidity under the plan. The plan also provides for 15 days free look period".

Optional rider: term assurance rider, accidental death and disability benefit rider is available by the payment of an addition premium.

Maturity sum assured (MSA): has to be calculated on the basic premium only, before mode rebate & death accident benefit.

Death benefit S.A. will be 250 times the monthly basic premium. To arrive at DAB we have to calculate death benefit S.A. e.g. if yearly premium is Rs.6000

The death benefit S.A. = 6000/12 x 250 = 1,25,000 for this DAB will be @ Re.1per thousand which come out to be Rs.125

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