Should I continue Jeevan Saral?

Asked by: Hubert Cummerata  |  Last update: February 11, 2022
Score: 4.1/5 (17 votes)

In future, do not buy endowment plans like Jeevan Saral. Such insurance-cum-investment plans typically offer a very small insurance cover and they also offer very modest returns. These plans are also silent on expenses. Do not mix your insurance and investment needs in future.

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.

Should I surrender my Jeevan Saral policy after 10 years?

Premiums paid are exempted from income tax-free for Jeevan Saral policy under Sec 80 C. The maturity proceeds of Jeevan Saral are also exempted from tax under Section 10 (10D). ... This policy can only be surrendered after the completion of 3 years.

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 Life Insurance Corporation of India's (LIC) Jeevan Saral, withdrawn in 2014, was in the news recently after a PIL was filed in the Supreme Court , alleging that LIC had mis-sold the product by misleading policyholders.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

LIC Jeevan Saral Plan 165 details in Hindi | जीवन सरल प्लान 165 | LIC Table No. 165

22 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.

How is maturity amount calculated in LIC Jeevan Saral?

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

What happens if I surrender my LIC policy after 10 years?

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.

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 are loyalty additions 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.

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.

What is the benefit of LIC Jeevan Saral 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.

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.

How can I check my LIC policy surrender value?

How to Check the Surrender Value of your LIC Policy? You can calculate the surrender value of your policy using this simple formula [Basic sum assured (Number of premiums paid/Total number of premiums payable) + Total bonus received] x Surrender Value Factor.

Can I cancel my LIC policy?

A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.

What happens if I stop paying LIC premium after 1 year?

For single premium policies, the surrender value gets acquired after the first year itself. In case you haven't paid even 2 or 3 years' premium (as per the case above) and want to discontinue, the insurer will not pay you back anything and will not convert it into a paid-up policy either. The money is all but lost.

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.

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.

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.

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 does Jeevan Saral calculate loyalty addition?

Loyalty Addition for per 1000 of Maturity Sum Assured

So loyalty addition will be 100000 x 640/1000= 64,000. If death of the policy holder happens in 10th policy year then applicable Loyalty Addition rate will be 425 and total loyalty addition will be 1,00,000 x 425/1000= 42,500.