JEEVAN SARAL- LIC(Life corporation of India)

INTRODUCTION  –

Life Insurance Corporation of India is abbreviated like LIC. It is fully owned by the government. It runs according to government policies and procedures. This plan has been introduced many years ago. When this plan was introduced, only few people showed interest. When the people got to know about a few people showing interest, then others also followed the similar pattern. Thisbuild the trust of the consumers. Since then, the other people also ¬showed interest. The nearby customers were the first ones to know of this plan. JeevanSaral is made of 2 hindi words – ‘JEEVAN’ and ‘SARAL’. Jeevan means life in English. Saral means simple in English.

The name of the policy tries to suggest and mention its aim. The purpose of the policy is to simplify the life of people. It aims at making the lives of people simpler. It does this through the policy activation. It is simple to get access to this policy. This policy, due to its aim, is simple. This benefits the people and they are more accepting of the policy. This helps the people to be benefited from this policy. The ease of the functioning of the policy makes it popular. Its popularity has increased further recently.

THE MECHANISM

The policy demands the customers to be aware. This awareness is important. If a person is not aware about how the policy functions, its aims and benefits, then it can be problematic.So, the to-be policyholders should be in touch with the policy mechanism. The policyholders are suggested to be responsible at the beginning, in the middle and the end. The policyholders should ensure that they have the complete information about the policy. When the policyholders are not able to understand the policy, they should reach out to the staff of the LIC (Life insurance Corporation).

Once the LIC staff gets to know about the issue, they can help. The LIC staff is very informed. It knows how to handle such situations and circumstances. The staff is punctual, responsible, supportive and personable. It is very much capable to tackle any difficult situation. The staff has always observed the principles and the ethical mores. It knows that LIC places great importance on customer satisfaction. LIC staff is motivated and enthusiastic. The staff knows that they are bound to their duties. They act in a polite and sophisticated way to ensure full customer approval. When the customers are satisfied, then LIC assumes that its purpose is achieved. When the staff has any problems they can reach out to the superiors. The superiors are polite and encouraging. They ensure that the customers are safe and sound. The comfort of the customer is given priority. The benefits are vast and varied. This is the reason that people are happy with the policy.

WARNINGS

Following is the list of warnings that one needs to be aware about before going for the Life Insurance corporation of India policy –
  1. Some of the benefits are assured.
  2. Some of the benefits are variable.
  3. Some of the benefits (which are variable) have the condition of monetary rewards on the basis of the performance of the life insurance corporation.
  4. If a policy guarantees returns, then examples will reveal different rates of specific return on investment.
  5. The assumed return rates are not assured.

CONDITIONS  –

The following content enlists the conditions that need to be analysedby the customers –
  1. The age of the person looking to enter an agreement will be 35 years.
  2. The policy term will be of 25 years.
  3. The mode of payment of premium will be yearly.
  4. The specified return rates don’t have a particular limit of what an individual will receive as the value of your policy.
  5. It shows its dependence on various factors that might include investment future output.
  6. The amount of annual premium will be 4074 Rupees.

FEATURES

Following is a list of features that one should keep in mind. These all are related to Life Insurance Corporation of India –
  1. One gets the option to choose the premium amount that one wants to pay.
  2. It is a participating plan where one gets loyalty additions at the maturity plan or in the situation of death.
  3. This benefit of death is 250 times the monthly premium that one pays along with the loyalty additions.
  4. Depending on one’s coverage requirements, there are riders under the plan which one can choose.

BENEFITS

Following is a list of LICJeevanSaral plan benefits that one should know prior to applying for the policy
  1. This plan simplifies the financial security concerns of people.
  2. One can get the death benefit guarantee from the beginning till the end of the policy tenure.
  3. One has the flexibility of choosing the amount that an individual wants to invest.
  4. If an individual has paid at least 3 full years’ premium, then the surrender benefit is guaranteed. It would depend on the premiums that one has paid.
  5. One gets additional returns and additions (loyalty) which enhance the corpus.

ELIGIBILITY CRITERIA FOR THE POLICY

The eligibility criteria and restrictions of JeevanSaral Plan by LIC plan are as under   –
  1. The assured amount in the policy should be minimum 250 times of the monthly premiums.
  2. Rupees 10,000 will be the upper limit monthly premium.
  3. Minimum policy term would lie between 10 years (lower limit) to 35 years (upper limit).
  4. 70 years is the maximum maturity age. However, the minimum age is not needed at the time of maturity.
  5. The minimum entry age for the insured is specified to be 12 years. The maximum maturity age is 70 years.

DIFFERENT CASES

  1. IN THE CASE ONE STOPS MAKING PAYMENT
If you stop making payment of the premiums after 3 years of purchase of the policy, the value (paid-up) will be acquired for a reduced sum assured by the policy. But, the policy will qualify for any future additions on a continuous basis.
  1. IN THE CASE ONE WISHES TO SURRENDER THE PLAN
After the completion of three policy years,one will receive surrender value that would be guaranteed. Guaranteed value (surrender) would be equal to 30 percent of the premiums paid minus premium of the first year. Special surrender value would be equal to the 80 percent of the assured sum on maturity for three years, but payment of premiums for less than four years period.
  1. LOAN FACILITY AGAINST THE POLICY    –  In this, the loan facility will be made available.
4. LIC JEEVAN SARAL CALCULATOR  OF MATURITY   The maturity sum in JeevanSaral Plan of LIC will be loyalty addition (LA) + Maturity Sum Assured (MSA)would be declared in the maturity year. This calculator utilizes the following –
  1. Age (at the time of buying the policy)
  2. Premium
  3. Term
  4. Loyalty addition
All of the above will give you the approx. maturity value.

Positive Points OfLIC JEEVAN SARAL PLAN

Following are the positive points of the JeevanSaral Policy –
    1. Death benefit
    2. Maturity benefit
    3. Income Tax Benefit
    4. Supplementary benefit
    5. Premium
    6. Loyalty additions
    7. Guaranteed benefits
    8. Surrender Value

Details of the above positive points mentioned –

  • Death benefit – In case of death of the life insured, the nominee receives – sum assured, return of premiums excluding extra premium and first year premium, loyalty addition

  • Maturity benefit – At the maturity of the policy, the insured will get maturity sum assured { depend on  the age of entry and policy term } + loyalty additions.

  • Income Tax Benefit – Exemptions of the premiums paid is done.JeevanSaral maturity proceeds are also exempted from tax under section 10(10D).

  • Supplementary benefit – As the name suggests these are benefits that are in addition to the regular benefits. These benefits can be added to the basic plan for more protection. Ideally, people should opt for these benefits. It ensures better policy facility.

  • Premium – There is an amount of premium associated with this policy. The premiums can be payble on the following time period basis – Yearly, half-yearly, quarterly, monthly. It may/may not  include deductions of salary.

  • Loyalty Additions–This plan makes sure it has profits. This plan is known to participate in corporate’s profit. These loyalty additions are the terminal bonuses which are to be paid. These are paid according to the 10th year later. It will depend on the experience of the corporation.

  • Guaranteed surrender – It is to be noted that the policy can be surrendered within 3 years. If a policyholder wishes to surrender this policy, then the surrender value (guaranteed) is calculated differently. The special surrender value would be 80 percent of the sum assured (maturity).

  • Surrender Value – One should be aware of this long-term commitment. This feature has to be kept in mind as it is very important.If the contract is terminated earlier, then the surrender values are made available.