A Short Review On Lic Jeevan Saral

A Short Review On Lic Jeevan Saral

Many readers requested me for the review on LICs Jeevan Saral.
I check Lattice for the reserve on Jeevan Saral and stick there are utterly of lattice pages passionate to this policy.
So let me put only the significant aspect of this policy and my views on it.
Jeevan Saral is an Endowment plan with diversity. It comes with many good features complementary to No surrender charge, Imperfect slump facility near ULIP, premium selection by policy holder etc.
1 ) You select the premium.
Usually we first decides on the Sum assured and based on this we come to distinguish trap premium amount but in Jeevan Saral you choose the premium first based on this maturity sum assured gets persevering.
You can select funny book premium as low as Rs. 250.
2 ) High risk cover.
Normal endowment policy only pays Sum assured + handout, but here once you decide on top of the gazette premium an amount equal to 250 times paper premium ( called as Death benefit S. A ) + premium paid ( excluding first year and rider premiums ) + loyalty addition is paid.
This makes continues increase in the risk cover as the term progresses.
For example: On Statement premium of Rs. 250 / - Death benefit SA is 250 * 250 = 62, 500 + Total Premium paid as mentioned over + LA.
On maturity you will get Maturity Sum Assured + Loyalty Additions.
Loyalty addition will be avowed by LIC from 10th year onwards.
3 ) Flexible surrender terms
< style= " " > 80 % of the maturity S. A.
more than 4 but less than 5 years premiums paid: 90 % of maturity S. A.
5 year +: 100 % of maturity S. A.
Now this is the pad where agent misleads the clients.
Although 100 % MSA is payable after 5 years but actually you end up loosing your money if you withdraw money in the initial year. Here is the example.
Age: 35 years. Term: 25 years.
Premium: Rs. 4704 / - Per Annum.
YearTotal Premium paidMSALAProfit ( Loss )
523520186600 ( 4860 )
628224231800 ( 5044 )
942336378920 ( 4444 )
104704043360 1800014320
So at no point of time you get your money back if you surrender before 10th year ( or partially withdraw the money ).
LA figure is not guaranteed and it would be based on gravy of LIC.
4 ) Partial Withdrawal.
This is one of the good parts of Jeevan Saral.
In the first year you can set a high annual premium and at the successive mechanism you can reduce the premium by withdrawing a part of policy.
A installment of the policy can be surrendered and money can be accepted from LIC, if premiums, have been paid for a minimum of 3 years, topic to the close conditions:
The basic annual premium and all other benefits will be callous to the bound of fragmentary blow.
Any no. of times, partial relinquish is allowed.
There should be a gap of minimum of one year between two next partial surrenders.
Minimum annual premium that can be leave flat at a time is Rs. 1, 200 / - p. a. and should be in multiples of Rs. 600 / - p. a. thereafter.
The reduced basic annual premium after surrender shouldnt be less than Rs. 3, 000 / - p. a. for age upto 49 years and Rs. 4, 800 / - p. a. for age 50 and dominant.
The occasion benefit, term rider benefit and further premium payable will also be reduced proportionately.
For example: If youre current Annual premium is Rs. 12, 000 and you want to reduce it to Rs. 6000 by imperfect depression after 8 years.
An amount equal to MSA for an annual premium of Rs. 6000 is paid to you.
In my view LIC Policy is good for those who want risk cover with low premium and licentiousness to reduce premium at the following stage. However on the return front policy doesnt looks good. LA is not guaranteed and it is paid only after 10th policy year. Early Surrender and partial downturn features are misleading.