LIC Saral Jeevan Bima

LIC Saral Jeevan Bima

These days, every normal working Indian is looking for a budget-friendly and base insurance plan that will resonate with their evolving requirements. To assuage the growing demand, intrigued protection products have been launched by various insurers with interesting features, benefits, riders, and so on. In January 2021, IRDAI mandated insurance companies to offer a standard term life insurance “Saral Jeevan Bima” to policyholders.

LIC Saral Jeevan Bima policy plan is a non-linked, non-participating, individual, and pure risk life insurance plan that offers financial support and assistance to the insured policyholder’s family in case of his/her unanticipated death during the policy tenure.

LIC Saral Jeevan Bima Plan features

• This plan offers policyholders to choose from various premium payment options – Single-Premium, Regular Premium, and Limited Premium Payment.
• You can purchase this policy online and offline.
• The policy offers a rebate on the higher sum assured.
• No surrender value is applicable under this policy.
• No loan will be available under this policy.
• If the policyholder doesn’t pay the premiums 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 the first unpaid premium and before the date of maturity.

LIC Saral Jeevan Bima Eligibility criteria

LIC Saral Jeevan Bima Plan benefits

Death Benefits

During the waiting period of 45 days from the date of commencement of Risk

This policy will cover death due to accidents only during the waiting period of 45 days from the date of commencement of risk.

• If the insured policyholder dies other than an accident during the waiting period, an amount equal to 100% of all premiums will be received (excluding taxes).
• If the insured policyholder dies due to an accident during the waiting period and the policy is in force, the death benefit amount will be payable as a lump-sum.

For regular premium or limited premium payment policy, the amount will be equal to the sum assured on death which is the higher of

(a) 10 times the Annualized Premium, or

(b) 105% of all premiums paid as on the date of death,

For Single premium policy, equal to the sum assured on death which is the higher of:

(a) 125% of Single premium or

(b) Absolute amount assured to be paid on death

After the expiry of the waiting period of 45 days from the date of commencement of Risk

If the insured policyholder dies after the waiting period but before the maturity and the Policy is in force, the death benefit amount is payable as a lump sum.

(1) 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;

(2) 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

Maturity Benefit

There is no maturity benefit under this policy if the insured survived till the stipulated date of maturity

Tax Benefit

According to the Income Tax Act, you can avail of the tax benefit towards the premiums that you have paid for this policy.

LIC Saral Jeevan Bima Exclusions

• Suicide within 12 months
• Breach of law with criminal intent
• Participation in any illegal or unlawful act
• Use of drugs, alcohol, solvent, etc.

LIC Saral Jeevan Bima Plan Review

LIC Saral Jeevan Bima is a basic term plan that offers financial security and protection to the insured’s family in case of his or her sudden demise within the policy period. You can purchase this policy either online or offline mode and as a policyholder, you are free to choose the premium options of your plan.