Jeevan Saral

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. The death benefit is directly related to the premiums paid. The Maturity Sum Assured depends on the age at entry of the life to be assured and is payable on survival to the end of the policy term. It also offers the flexibility of term and a lot of liquidity.
Premiums:
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:
This is a with-profits plan and participates in the profits of the Corporation’s life insurance business.  It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit.  Loyalty Additions may be payable from the 10th year onwards depending upon the experience of the Corporation.
Jeevan Saral is nothing but an endowment assurance plan where the policyholder simply has to choose the amount and mode of premium payment. The plan provides protection against death throughout the plan term to the extent of 250 times of the monthly premium. For example, anyone opting to pay a monthly premium of Rs 1000 will get a risk cover of Rs 2,50,000 during the policy period.
The policy term varies according to the age of the policyholder. The death benefit includes the total risk cover and loyalty bonus, if any. LIC also promises return of premiums, excluding first-year premiums and extra/rider premiums.
This scheme also offers an accidental death benefit. In real life, it's rare for a policyholder to die during the term of the policy. Even LIC accepts that over 95% of its policyholders survive the policy period and for most policyholders, insurance becomes just another investment. However, unlike pure investment, in case of insurance policies, one would have to wait till end of the policy term to get back the amount assured. This may be as long as 20-25 years. Early policy surrender involves costs in terms of penalty. But this does not hold true for Jeevan Saral.
The policy offers high liquidity to the policyholder. After five years of active policy (premium paid without default), which corresponds to the term for which premiums have been paid under the policy, one may receive 100% of the Maturity Sum Assured (MSA). (These MSA values are given by LIC). However, one can withdraw partial or full MSA amount after the 10th year.
Moreover, this is a with-profits plan. Loyalty additions (i.e. bonus) are payable from the 10th year, along with guaranteed maturity benefits. Loyalty addition is nothing but terminal bonus, which actually depends on the profits of LIC's life insurance business. Thus, it is variable return that cannot be estimated at the beginning of the policy.
Jeevan Saral as an investment option needs to be compared with other avenues such as recurring deposit (RD) offered by banks and post offices or periodical investments in Public provident Fund (PPF). Recurring deposits enjoy liquidity but no tax benefits, while PPF carries tax benefit minus liquidity. Since Jeevan Saral offers both the benefits, it is necessary to compare its returns with other schemes.

Jeevan Anurag

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of the educational needs of children. The plan can be taken by a parent on his or her own life. Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. In addition, this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy.

Assured Benefit
Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus, if any shall be payable. For example, if term of the policy is 20 years, 20% of the Sum assured will be payable at the end of the 17th,18th, 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.

Death Benefit
Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured.

LIC Jeevan Anurag Plan is a plan designed specifically to take care of your child’s education needs. In this plan, you get an Assured Benefit and Death Benefit. On death of the Life Insured, the Sum Assured is paid immediately to the nominee and all future premiums are waived off, but the policy continues. Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity, and on maturity the remaining 40% of the Sum Assured along with the bonus would also be paid, irrespective of whether the life insured is alive or not.

Key Features of LIC Jeevan Anurag Plan

• Double Benefit Plan.
• On Maturity the remaining 40% of the Sum Assured along with the bonus would be paid.
• Premium needs to be paid till maturity and in case of an early death, future premiums are waived off.
• Various riders available.
• Large Sum Assured Rebate available in this LIC plan.

  

Benefits you get from LIC Jeevan Anurag Plan

Death Benefit – In case of death of the Life Insured, the nominee would get the Sum Assured immediately. The future premiums would be waived and again 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity and then the Maturity Benefit would also be paid.

Survival Benefit – On Survival of the Life Insured, he receives 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity.

Maturity Benefit – On maturity, the life insured or his nominee gets the remaining 40% of the Sum Assured plus the Bonus.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.

Eligibility conditions and other restrictions in LIC Jeevan Anurag Plan

	Minimum	Maximum
Sum Assured (in Rs.)	50,000	No Limit
Policy Term	5 years for Single Premium, 10 years for Regular Premium	25 years
Entry Age of Policyholder	20 years	60 years
Age at Maturity	-	70 years
Payment modes	Single, Yearly, Half-Yearly, Quarterly & Monthly

Sample illustration of LIC Jeevan Anurag Plan

Premium = Rs.4,606/-

Age = 35 years

Policy Term = 25 years, yearly mode

Premium paying term = Regular Pay

Sum Assured = Rs 1,05,000

Total Investment = Rs 4,606 X 25 = Rs 1,15,150/-

Bonus Assumptions :

Regular Bonus - Rs.21 per thousand S.A at 6% rate of return

                            Rs.55 per thousand S.A at 10% rate of return

Terminal Bonus - Rs. 170 per thousand S.A at 6% rate of return

                             Rs. 450 per thousand S.A at 10% rate of return

Guaranteed Returns :

Beginning of Year 23 = Rs 21,000/-

Beginning of Year 24 = Rs 21,000/-

Beginning of Year 25 = Rs 21,000/-

Maturity Benefit at the End of Year 25 = Rs 42,000/- + Bonus (Variable)

  

Additional Features and Benefits of LIC Jeevan Anurag Plan

Riders – Premiums Waiver Benefit is an inbuilt rider. Other 3 optional additional riders available are

1.     Accidental Death and Disability Benefit rider

2.     Critical Illness rider and

3.     Premium Waiver Benefit rider for Critical Illnesses.

                                  

What happens if?

You stop paying the premium – The policy will lapse if the premium stops. However, if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.

You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. For regular premium, the Guaranteed Surrender Value is 30% of basic premiums paid excluding the first year’s premium and the additional premium paid for the rider benefits. In c ase of single premium mode, the guaranteed surrender value will be 90% of the premium paid excluding all extra premiums and the premiums paid for optional / rider benefits. The cash value of any existing vested bonus additions will also be payable on surrender.

You want a loan against your policy – Loan is available under this policy after it acquires a paid-up value but before starting of payment of assured benefits. The present rate of interest is 9% p.a. compounding half yearly but it may change from time to time.

JEEVAN ANKUR

LIC’s Jeevan Ankur is a conventional with profits plan, specially designed to meet the educational and other needs of your child. If you are the parent of a child aged upto 17 years, LIC’s Jeevan Ankur is the most suitable insurance plan for you which ensures that your responsibilities are met whether you survive or not and without depending on anyone else.

The risk cover under this plan will be on your life as a parent and the named child shall be the nominee under the plan. The policy term shall be based on the age at maturity of the child.

1. Benefits

i) Death benefit:

On death of the Life Assured during the policy term: Basic Sum Assured shall be payable to the nominee and an income benefit equal to 10% of Basic Sum Assured shall be payable on each policy anniversary, from the policy anniversary coinciding with or next following the date of death, till the end of the policy term.

On death of child, when Life Assured is alive: On death of the child, the Life Assured will have an option to nominate another child/person and the policy will continue with the same benefit payable to new nominee/legal heirs after the death of the Life Assured during the term of the policy.

On death of child/nominee after Life Assured’s death: The policy shall continue and the benefits shall be payable to the legal heir(s).

ii) Maturity Benefit: At the end of the policy term an assured maturity benefit equal to Basic Sum assured along with Loyalty Addition, if any, shall be payable irrespective of survival of the Life Assured.

iii) Loyalty Addition: Depending upon the Corporation’s experience the policy will be eligible for Loyalty addition on the stipulated date of maturity irrespective of survival of Life Assured.

2. Optional Benefits: You may choose  the following optional riders by payment of additional premium-

i) Accident Benefit Rider:  This benefit is available under regular premium policies only. An additional sum equal to Accident Benefit Rider Sum Assured is payable upon death due to accident. The Accident Benefit Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 70 yrs.

  ii) Critical Illness Rider:  An amount equal to Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illnesses. The Critical Illness Rider Sum Assured may be opted for an amount upto the Basic Sum Assured subject to a minimum of Rs. 50,000 and a maximum of Rs. 5 lakh (including all policies with LIC of India). This benefit will be available provided the policy matures on or before the Life Assured attains 60years of age.

Critical Illness Rider can be availed with or without Premium Waiver Benefit. If Critical Illness Rider is opted with Premium Waiver Benefit, then in the event of Life Assured diagnosed with any of the Critical Illnesses covered under the policy, the total future premium in respect of the policy will be waived. The Basic Sum Assured under such policies should be equal to the Critical Illness Rider Sum Assured. 

3. Eligibility Conditions and Other Restrictions (For Basic Plan):

a) Minimum Sum Assured                               :   Rs. 100,000

b) Maximum Sum Assured                              :   No Limit

                  (The Sum Assured shall be in multiples of Rs. 5000/-)

c) Minimum Age at entry for Life Assured   : 18 years (completed)

d) Maximum Age at entry for Life Assured  : 50 years (nearest birthday)

e) Maximum Maturity Age for Life Assured : 75 years (nearest birthday)

f) Minimum Age at entry for child                : 0  years (last birthday)

g) Maximum Age at entry for child               : 17 years ( last birthday)

h) Minimum Term                                        : Higher of (18 – age of child, 8) years

i) Maximum Term                                       : (25 – age of child) years

4. Sample premium Rates:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid.

A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

5. Sample premium Rates:

 Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:

Single Premium
Age	Policy term
	10	15	20	25
20	615.45	494.95	405.95	348.00
30	618.80	503.35	422.10	375.30
40	638.75	541.60	483.60	463.60

Annual Regular Premium
Age	Policy term
	10	15	20	25
20	90.65	56.45	39.70	31.10
30	91.20	57.50	41.35	33.50
40	94.70	62.35	47.80	41.75

6. Mode and High S.A. Rebates:

Mode Rebate:

Yearly mode                            -    2% of Tabular Premium
Half-yearly mode                     -   1% of the Tabular premium
Quarterly & Salary deduction   -     NIL

Sum Assured Rebate:

Single Premium:

             Sum Assured                         Rebate (Rs.)

            1,00,000 to 1,95,000               Nil

            2,00,000 to 4,95,000               4.00 %o S.A.

            5,00,000 and above                6.00 %o S.A.

     Regular Premium:

             Sum Assured                         Rebate (Rs.)

            1,00,000 to 1,95,000               Nil
            2,00,000 to 4,95,000               2.00 %o S.A.
            5,00,000 and above                3.00 %o S.A.

7. Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived from the date of first unpaid premium and before the date of maturity by paying all the arrears of premium together with interest within a period of five years, subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the life assured. Riders shall be revived along with the basic plan and not in isolation.

8. Paid-up Value:

Under regular premium policies, if after atleast three full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy for a reduced paid-up sum assured. This Paid-Up Sum Assured shall be payable on the date of maturity or on Life Assured’s prior death.

Further, in case of death during the term of the policy, the paid up value shall be paid immediately on death. But, neither income benefit nor paid up value on maturity shall be payable.

Accident Benefit and Critical Illness riders do not acquire any paid-up value.

9. Surrender Value:

The Guaranteed Surrender Value will be as under:

1. Single Premium Policies: The Guaranteed Surrender value will be available after completion of atleast one policy year and is equal to 90% of the premium paid excluding premium for optional rider and extras, if any.

1.    Regular Premium Policies: The Guaranteed surrender value will be available after completion of three policy years and atleast three full years’ premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.

Corporation may, however, pay Special Surrender value, as the discounted value of the Paid-up Sum Assured as applicable on date of surrender, provided the same is higher than Guaranteed Surrender value.

10. Policy Loan:

No loan facility will be available under this plan.

11. Service Tax: 

Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on premium(s) as and when the premiums are paid.

12. Cooling-off period:

If you are not satisfied with the “Terms and Conditions” of the policy you may return the policy to us within 15 days from the date of receipt of the policy bond.

13. Exclusion:

Suicide:- This policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time within one year from the date of commencement of risk and the Corporation will not entertain any other claim by virtue of this policy except to the extent of a maximum of 90% of single premium paid excluding any extra premium (in case of single premium policies).