Is Jeevan Saral good policy?

Asked by: Prof. Americo Welch PhD  |  Last update: February 11, 2022
Score: 5/5 (71 votes)

As a non-unit linked insurance plan LIC Jeevan Saral is one of the most beneficial endowment plans that provide a lump sum amount of 250 times the premium paid. It provides the dual benefit of protection cum saving.

What is the benefit of Jeevan Saral LIC policy?

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.

Is it good to continue Jeevan Saral policy?

Jeevan Saral is supposed to give better surrender and/or paid-up value. It was considered a good plan with a lot of flexibility for young people. The main issue with the product is for those in the higher age group. Moneylife has received several complaints from Jeevan Saral policyholders.

Why Jeevan Saral is closed?

The spotlight is back on endowment plans. Life Insurance Corporation of India's (LIC) Jeevan Saral, withdrawn in 2014, was in the news recently after a PIL was filed in the Supreme Court , alleging that LIC had mis-sold the product by misleading policyholders.

What is return on Jeevan Saral?

LIC Jeevan Saral Benefits

The premium return excludes the first-year premium payments and rider premium. Maturity Benefit: The maturity sum assured amount along with the loyalty addition (if any) is payable as a lump sum at the time of maturity.

Jeevan Saral Policy Bumper Return With Proof || Don't Surrender After 10 Jeevan Saral || जीवन सरल

16 related questions found

What is the bonus rate of LIC Jeevan Saral?

Jeevan Saral (Plan 165) has been a very popular plan from the LIC of India. This Year LIC has declared the loyalty addition rates for the 19-year term also and the rate ranges from 670 to 930 as per the monthly premium band.

What is Jeevan Saral with profits?

LIC Jeevan Saral is actually an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans. Hence it is categorized under Special Plans. ... In this plan, the premium amount is decided by the policyholder and he gets 250 times the monthly premium as Sum Assured.

What is the surrender value of LIC Jeevan Saral policy?

The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

How can I check my LIC maturity amount?

Step 1:The insured needs to visit the official website of LIC. Step 2:On the home page, the user can select the option of "New User." Step 3:In the next step, he can fill up his personal details such as name, date of birth, policy number, mobile number, email address, etc.

Can I surrender Jeevan Saral after 5 years?

LIC's Jeevan Saral policy surrender value will be the greater of the guaranteed surrender value (GSV) or special surrender value. ... Special Surrender Value will be 100% of the Maturity Sum Assured, if 5 or more years' premiums have been paid.

Is Jeevan Saral a term plan?

Introduced with the intention of helping customers make an informed choice, Saral Jeevan Bima is a standard term insurance plan that can be purchased at affordable premium rates. *Standard Terms and Conditions Apply. **Tax benefits are subject to changes in Income Tax Act.

What is reduced paid up in LIC?

Meaning of Reduced Paid-Up in LIC

When the policyholder cannot further pay premiums for the life insurance policy for any reason, the sum assured for the policy is reduced by the insurer (LIC in this case). ... It can be paid up if the future premiums are not paid by the policyholder.

Can we break LIC before maturity?

When you opt-out of a policy before its maturity, then it is called surrendering of the policy and the amount that you receive at the time, is LIC policy surrender value. ... However, surrender of policy is not recommended since the LIC surrender value will always be subsequently low.

What is loyalty addition in Jeevan Saral?

Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral.

What happens if I stop paying LIC premium after 3 years?

So if you have already paid 3 years' premium, not paying any future premiums will convert the policy into a paid-up policy. You won't get any money back in the year you turn it into a paid-up policy but will have to wait till the policy's original maturity.

How can I withdraw my LIC Jeevan Saral policy?

For surrender, you can contact your insurance agent or the nearest LIC branch and fill the surrender application form along with a cancelled cheque and a mandate form for direct credit to your bank account.

Is LIC bonus guaranteed?

Though LIC policies have paid out steady Simple Reversionary Bonuses each year, you as an investor need to note that these are not guaranteed. ... Do note that the Reversionary Bonus rate of LIC are calculated as a proportion of the Sum Assured in your policy and NOT the accumulated premiums paid by you.

How maturity is calculated in LIC Jeevan Anand?

Details of your Plan:
  1. Sum Assured (A): = Rs. 5,00,000.
  2. Total Bonus Amount on Maturity (B): * = Rs. 1000.
  3. Maturity Amount (A+B): = Rs. 35,000.
  4. Period of Maturity = Dec, 2021.

Is LIC taxable after maturity?

The maturity proceeds of a life insurance policy enjoy exemption under section 10(10d) of income tax act provided the premium paid in respect of the life insurance policy does not exceed 10% of the sum assured for any year during the premium paying term for the policies issued after 01-04-2012.

What is Jeevan Sneha plan?

LIC Jeevan Sneha is a money back plan that offers a periodic return of sum assured with a facility to encash 20% of sum every five years till the tenure of the policy. ... This plan is exclusively designed for women and provides fund in times of needs like education, sickness, and marriage etc.

How is Jeevan Saral maturity calculated?

LIC Jeevan Saral policy maturity amount=sum assured + loyalty additions.