The Life Insurance Corporation of India (LIC) offers a range of life insurance plans which promise attractive benefits. Both traditional, as well as market-linked insurance plans, are offered by LIC. One such policy is LIC’s Jeevan Saral policy which was quite popular among individuals when it was offered. The policy, however, has been withdrawn by the company. update Your aadhar
LIC Jeevan Saral is a traditional life insurance plan promising guaranteed death and maturity benefits. The plan promised a secured corpus which was why many individuals invested in it. Let’s understand how –
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What is LIC’s Jeevan Saral Plan?
LIC’s Jeevan Saral Plan is a traditional endowment plan which has a guaranteed death or maturity benefit. The plan requires you to pay a premium depending on which the death and maturity benefits are calculated.
Salient features of LIC’s Jeevan Saral Plan
- You could choose the amount of premium that you wanted to pay and the premium payment mode
- This is a participating endowment plan wherein you get loyalty additions when the plan matures or in case of death
- The death benefit is 250 times the monthly premium that you pay along with the loyalty additions
- There are riders under the plan which you could choose as per your coverage requirements
Benefits of LIC’s Jeevan Saral Plan
LIC’s Jeevan Saral Plan gives you the following benefits –
- You can get the guarantee of death benefit throughout the policy tenure. Thus, the plan provides financial security
- Loyalty additions enhance the corpus and give you additional returns
- Since you can choose the premium you have the flexibility of choosing the amount that you want to invest under the plan
- The plan can be surrendered if you have paid at least three full years’ premium. The surrender benefit is guaranteed and depends on the number of premiums that you have paid
LIC Jeevan Saral Calculator
LIC’s Jeevan Saral is a beneficial plan which gives a lot of benefits to policyholders. Let’s understand how the death and maturity benefits of the plan are calculated.
Jeevan Saral calculator – death benefit
The death benefit under the plan is calculated using the following formula-
Death benefit = (250 * monthly premium paid) + Loyalty Additions paid on death
Jeevan Saral calculator – maturity benefit
The maturity sum assured is calculated based on your entry age and the premium that you have paid. It also depends on the policy tenure. On maturity, the benefit paid would be calculated as follows –
Maturity benefit = maturity sum assured + loyalty additions
Let’s understand the working of the plan with the help of an illustration –
Illustration
Suppose a 35-year-old male buys the plan for a term of 25 years. The premium is paid yearly and the amount of annual premium is INR 4704. Given these details, let’s check the maturity and death benefit promised by the plan –
Jeevan Saral Calculator
| Policy year | Annual premium | Cumulative premium | Loyalty Additions* | Guaranteed Death Benefit | ||
| Case 1 | Case 2 | Case 1 | Case 2 | |||
| Year 1 | INR 4704 | INR 4704 | NA | NA | INR 100,000 | INR 100,000 |
| Year 5 | INR 4704 | INR 23,520 | NA | NA | INR 119,200 | INR 119,200 |
| Year 10 | INR 4704 | INR 47,040 | INR 7000 | INR 18,000 | INR 150,200 | INR 161,200 |
| Year 15 | INR 4704 | INR 70,560 | INR 13,000 | INR 41,000 | INR 180,200 | INR 208,200 |
| Year 20 | INR 4704 | INR 94,080 | INR 30,000 | INR 100,000 | INR 221,200 | INR 291,200 |
| Year 25 | INR 4704 | INR 117,600 | INR 65,000 | INR 211,000 | INR 280,200 | INR 426,200 |
(*Loyalty additions are not guaranteed. That is why they have been calculated at an assumed rate for calculation purposes.)
When the policy matures after 25 years, you get the guaranteed benefit of INR 280,200 or INR 426,200 depending on the loyalty addition added under the policy.
Since the policy has been withdrawn, you cannot apply for a fresh plan. However, if you have already invested in the plan when it was sold, you can check your maturity value and death benefit using the Jeevan Saral Calculator. Moreover, you have two options for managing your policy. You can either continue the coverage by paying the premium or you can surrender the plan and apply for a new endowment policy offered by LIC as well as other leading life insurance companies. When you surrender the Jeevan Saral plan, you get a surrender value if you have paid at least the first three years’ premiums. Do you know how the surrender value is calculated?
Jeevan Saral calculator – surrender benefit
If you have paid three full years’ premiums, you can surrender the plan. On surrender, the policy pays the surrender benefit. This benefit is calculated to be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). Special Surrender Value is applicable when premiums for more than three years have been paid. The values are calculated as follows –
GSV = 30% of total premiums paid – first-year premium
SSV depends on the number of premiums paid and is calculated as follows –
- 80% of the maturity sum assured if premiums for more than 3 years but less than 4 years have been paid
- 90% of the maturity sum assured if premiums for more than 4 years but less than 5 years have been paid
- 100% of the maturity sum assured if premiums for more than 5 years have been paid
So, if the above illustration is considered, here are the surrender values which you can expect from the policy –
LIC Jeevan Saral Calculator – calculation of surrender benefit
| Policy year | Annual premium | Cumulative premium | Loyalty Additions* | Guaranteed Surrender Value | ||
| Case 1 | Case 2 | Case 1 | Case 2 | |||
| Year 3 | INR 4704 | INR 14,112 | NA | NA | INR 8099 | INR 8099 |
| Year 5 | INR 4704 | INR 23,520 | NA | NA | INR 18,660 | INR 18,660 |
| Year 10 | INR 4704 | INR 47,040 | INR 7000 | INR 18,000 | INR 50,360 | INR 61,360 |
| Year 15 | INR 4704 | INR 70,560 | INR 13,000 | INR 41,000 | INR 88,200 | INR 116,200 |
| Year 20 | INR 4704 | INR 94,080 | INR 30,000 | INR 100,000 | INR 136,124 | INR 206,124 |
| Year 25 | INR 4704 | INR 117,600 | INR 65,000 | INR 211,000 | INR 200,296 | INR 346,296 |
(*Loyalty additions are not guaranteed. That is why they have been calculated at an assumed rate for calculation purposes.)
Claiming the maturity benefits of LIC Jeevan Saral Plan
If you do not surrender but continue the plan to term, you get the maturity benefit when the term comes to an end. To avail the maturity benefit you would have to fill up a Maturity Discharge Form and submit the same to LIC. You would also have to submit the original policy document for the claim process to be properly completed. In case you have lost the original policy bond you would have to file a police FIR and fill up an indemnity bond. Your claim would then be processed based on the FIR and the indemnity bond and the maturity amount would be credited to your bank account.
LIC’s Jeevan Saral Policy pays guaranteed benefits and lets you decide on the premium that you want to invest. So, understand the policy benefits before you invest in the plan. Use LIC Jeevan Saral calculator to calculate the plan benefits so that you know the benefits which you can receive in case of death, early surrender or maturity. LIC Jeevan Saral calculator helps you to quantify the benefits giving you an estimate of the funds which you can create with the plan. However, the plan has been withdrawn and so if you are looking for other endowment plans which give a guaranteed benefit, here are some of the best options –
- It is a participating endowment plan which offers simple reversionary bonuses throughout the policy tenure
- There are two optional riders if you want to increase the scope of coverage under the plan
- You get premium discounts if you pay premiums yearly or half-yearly and also if the chosen sum assured is INR 5 lakhs and above
Plan parameters
| Entry age | 8 years to 59 years |
| Sum assured | INR 2 lakh onwards |
| Premium | Depends on the coverage, age and term selected |
| Policy term | 16, 21 or 25 years |
| Premium payment mode | Limited pay |
- There are four coverage options to choose from
- Two additional riders are available under the plan
- The plan promises guaranteed incomes till 99 years of age if you choose Lifelong income coverage option
Plan parameters
| Entry age | 5 years to 60 years |
| Sum assured | Depends on age, term, premium amount and the coverage option selected |
| Premium | Minimum – INR 30,000/yearMaximum – no limit |
| Policy term | 6 years to 20 years |
| Premium payment mode | Limited pay |
ICICI Pru Life Cash Advantage Plan
- The plan offers guaranteed incomes every year for 10 years during the term of the plan
- Premiums are payable for a limited tenure after which the guaranteed incomes start
- A guaranteed maturity benefit is paid when the plan matures
Plan parameters
| Entry age | 0 years to 60 years |
| Sum assured | 7 or 10 times the annual premium depending on the age |
| Premium | Minimum – INR 12,000/yearMaximum – no limit |
| Policy term | 15, 17 or 20 years |
| Premium payment mode | Limited pay |
Bajaj Allianz POS Goal Suraksha
- The policy offers guaranteed additions which help in enhancing the corpus
- On maturity, the benefit payable is guaranteed
- You can avail a policy loan for financial needs
- You can choose to change the premium payment mode during the policy tenure
Plan parameters
| Entry age | 18 years to 55 years |
| Sum assured | Minimum – INR 30,000Maximum – INR 10 lakhs |
| Premium | Minimum – INR 3000/yearMaximum – depends on the maximum sum assured, age and term |
| Policy term | 10 or 15 years |
| Premium payment mode | Limited pay |
