LIC's Saral Jeevan Bima
LIC’s Saral Jeevan Bima Plan is a Non-Linked, Non-Participating, Individual, Pure Risk Life Insurance plan which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term.
1. Benefits:
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Death Benefit:
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During the Waiting Period of 45 days from the date of commencement of Risk:
This Policy will cover death due to accident only during the waiting period of 45 days from the date of commencement of risk.
In case of death of the Life Assured other than due to accident during the waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, shall be paid and the Basic Sum Assured shall not be paid. In case of death of the Life Assured due to accident during the Waiting Period and provided the Policy is in force, the Death Benefit amount payable as a lump sum is:
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For regular premium or limited premium payment policy, equal to Sum Assured on Death which is the highest of:
10 times the Annualized Premium, or
105% of all premiums paid as on the date of death, or
Absolute amount assured to be paid on death.
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For Single premium policy, equal to Sum Assured on Death which is the higher of:
125% of Single premium or
Absolute amount assured to be paid on death.
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After the Expiry of Waiting Period of 45 days from the date of Commencement of Risk:
On death of the Life Assured after the expiry of Waiting Period but before the stipulated Date of Maturity and provided the Policy is in force, the Death Benefit amount payable as a lump sum is:
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For Regular premium or Limited premium payment policy, “Sum Assured on Death” which is the highest of:
10 times of annualized premium; or
105% of all the premiums paid as on the date of death; or
Absolute amount assured to be paid on death.
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For Single premium policy, “Sum Assured on Death” which is the higher of:
125% of Single Premium or
Absolute amount assured to be paid on death.
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Premiums referred above shall not include any extra amount chargeable under the policy due to underwriting decision if any. Absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured.
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Maturity Benefit:
No Maturity Benefit shall be payable on the Life Assured surviving the stipulated Date of Maturity.
2. Eligibility Conditions and Other Restrictions:
| Minimum Age at entry | : 18 years (Last Birthday) |
|---|---|
| Maximum Age at entry | : 65 years (Last Birthday) |
| Maximum age at Maturity | : 70 years (Last Birthday) |
| Minimum Basic Sum Assured | : ₹5,00,000/- |
| Maximum Basic Sum Assured | : ₹25,00,000 per life basis |
| (The Basic Sum Assured shall be in multiples of ₹50,000/-) | |
| Policy Term Single/Regular/Limited Premium | : No limit |
| : 5 to 40 years | |
| Premium Paying Term | |
| Regular Premium | : Same as policy term |
| Limited Premium | : 5 and 10 years |
| Single Premium | : Premium is payable in lumpsum |
3. Payment of Premium:
Regular Premium, Limited Premium and Single Premium payment options are allowed under this plan. In case of Regular Premium and Limited Premium payment option, the premium can be paid regularly during the premium paying term with modes of premium payment Yearly, Half-yearly or Monthly (through ECS/NACH only).
The premium payable will depend on the age at entry of the life to be assured, policy term, premium paying term and sum assured chosen.
4. Grace Period:
A grace period of 30 days shall be allowed for payment of yearly or half-yearly premiums and 15 days for monthly premiums from the date of First Unpaid Premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.
5. Sample Illustrative Premium:
The sample illustrative annual/single premiums for Basic Sum Assured of ₹5 lakh for Standard lives under Offline sales are as under
| Premium Payment Option | Age=30 years, Policy Term=20 |
|---|---|
| Regular | ₹ 2095 |
| Limited (PPT=10 years) | ₹ 3010 |
| Limited (PPT=5 years) | ₹ 4955 |
| Single | ₹ 20310 |
The sample illustrative for Basic Sum Assured of Rs 10 lakh and Policy Term 25 years for Standard lives under Offline/ Online sales for different combinations are as under
| Distribution Channel: Offline | ||||
|---|---|---|---|---|
| Age | Single Premium | Regular Premium Payment Option | ||
| Annual | Half Yearly | Monthly | ||
| 25 | 41,610 | 3,850 | 1,965 | 331 |
| 30 | 52,260 | 4,670 | 2,383 | 401 |
| 35 | 70,840 | 6,110 | 3,117 | 525 |
| 40 | 98,630 | 8,340 | 4,254 | 716 |
| 45 | 1,38,230 | 11,660 | 5,948 | 1001 |
| Distribution Channel: Online | ||||
|---|---|---|---|---|
| Age | Single Premium | Regular Premium Payment Option | ||
| Annual | Half Yearly | Monthly | ||
| 25 | 40,776 | 3,574 | 1,826 | 308 |
| 30 | 51,213 | 4,336 | 2,216 | 373 |
| 35 | 69,421 | 5,675 | 2,900 | 488 |
| 40 | 96,655 | 7,749 | 3,959 | 667 |
| 45 | 1,35,463 | 10,837 | 5,536 | 932 |
The above premium is exclusive of taxes.
6. Rebates/Loadings:
The following rebates/loadings shall be applicable:
| Mode Loadings (applicable for Regular and Limited Premium Payment): | |
|---|---|
| Yearly Mode | : Nil |
| Half-yearly Mode | : 2% of Tabular annual premium |
| Monthly (ECS/NACH) | : 3% of Tabular annual premium |
| High Sum Assured Rebate | |
| Basic Sum Assured (B.S.A) | Rebate (in ₹) |
| 5,00,000 to 9,50,000 | Nil |
| 10,00,000 to 14,50,000 | 0.10‰ B.S.A. |
| 15,00,000 to 19,50,000 | 0.20‰ B.S.A |
| 20,00,000 and above | 0.25‰ B.S.A. |
| Rebate under Online Sale | |
| Proposal to be completed under online sales without any assistance of Agent / intermediary shall be eligible for rebate on tabular premium at the following rates | |
| Premium Paying Term | Online Sale (Rate of rebate) |
| Single Premium | 2.00% |
| 5 to 9 years | 5.00% |
| 10 to 14 years | 6.00% |
| 15 years and above | 7.00% |
7. Revival of Lapsed Policies:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium and before the date of maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest at a rate which shall be determined as follows:
The rate of interest applicable for revival of policies during the 12 months’ period from 1st May to 30th April, shall be compounding halfyearly rate not exceeding 10 year G-Sec Base/Par yield p.a. compounding half-yearly plus 300 basis points. The 10 year G-Sec Base/Par yield shall be as at last trading date of previous financial year.
Accordingly, for 12 months’ period commencing from 1st May, 2020 to 30th April, 2021, the applicable interest rate for revival shall be 9.50% p.a. compounding half-yearly.
In addition to the arrears of premium with interest, proof of continued insurability of the Life assured may be required for revival of the discontinued policy. Proof of continued insurability is the information that may be sought from the policyholder to decide revival of the policy. This includes Form of declaration of Good Health, Medical Reports, Special Reports and any such document as may be called for by the Corporation, in accordance with the Underwriting Policy of the Corporation.
The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the policyholder.
If a lapsed policy is not revived within the revival period (i.e. 5 consecutive years from the date of first unpaid premium) but before the Date of Maturity, the policy will automatically terminate. In case of Regular Premium policies, nothing shall be payable. However, in case of Limited Premium Payment policies, the Policy Cancellation Value shall be refunded and the policy will terminate.
8. Surrender Value:
Surrender value is not applicable under this Plan.
9. Policy Cancellation Value:
Policy Cancellation Value shall be payable:
upon the Policyholder applying for the same before the stipulated date of maturity in case of Single premium Policy; or
upon the Policyholder applying for the same before the stipulated date of maturity or at the end of revival period if the policy is not revived, in case of Limited Premium Payment Policies.
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The amount payable shall be as follows:
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Single Premium Policies:
The Policy Cancellation Value acquires immediately after receipt of Single Premium and is calculated as follows:
70% ×Single Premium paid x Unexpired Policy Term Original Policy TermSingle Premium shall be inclusive of any extra amount if charged under the policy due to underwriting decisions.
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Limited Premium Payment Term (5 years or 10 years):
The Policy Cancellation Value acquires if at least two (2) consecutive full years’ premiums are paid and is calculated as follows:
70% × Total Premiums Paid x Unexpired Policy Term Original Policy TermTotal Premiums Paid shall be inclusive of any extra amount if charged under the policy due to underwriting decisions.
No Policy Cancellation Value shall be payable in respect of regular premium policies.
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10. Policy Loan:
No loan will be available under this policy.
11. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of applicable taxes as per the prevailing rates, shall be payable by the policyholder on premiums including any extra amount if charged under the policy due to underwriting decisions, which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this plan, please consult your tax advisor for details.
12. Free Look Period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to Corporation within 15 days (30 days in case of online purchase) from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period of cover and expenses incurred on medical examination and stamp duty charges, within 15 days of receipt of the request.
13. Suicide Exclusion:
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Under Regular/Limited Premium Policy:
This policy shall be void if the Life Assured commits suicide at any time within 12 months from the date of commencement of risk, provided the policy is inforce or within 12 months from the date of revival and the Corporation will not entertain any claim except for 80% of the premiums paid (excluding any extra amount if charged under the policy due to underwriting decisions and taxes, if any) till the date of death.
This clause shall not be applicable for a lapsed policy as nothing is payable under such policies.
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Under single Premium Policy:
This policy shall be void if the Life assured commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except 90 % of the Single Premium paid excluding any extra amount if charged under the policy due to underwriting decisions and taxes, if any.
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