Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to be the largest life insurance company and also the largest investor of the country. It was founded in the year 1956 and has been serving people ever since. The main objective of this corporation was to spread awareness about the life insurance among the financially backward people as well as the urbanites. it gave you a way to save and buy affordable packages which would eventually be beneficial for you.
LIC of India has made its mark in the country from years. The main headquarters of LIC is in Mumbai with approximately eight zonal units and over 2048 branches established across the country. It has subsidiary groups in more than twelve other countries with the same objective in mind. It has helped millions of lives in the past 55 years.
The basic plan is that where the payment of a specified amount of money to the insured person is made, at the plan’s maturity, or to the family in the event of the insured person’s death. Often you don’t realize the importance of your life, LIC has made its prime objective to make sure people know the importance of their life and keep their future safe by investing in different policies of LIC as per their requirements. The insecurity of people is fully taken care of by the LIC.
Most of the policies do not care about the future of the individual. But LIC takes care of the whole endowment policy by providing a bonus that is accumulated with the policy. LIC offers various plans for its policy holders such as; Endowment plans, children plans, special plans for handicaps, money back plans, whole life plans, pension plans, group plans, health insurance plans. All these plans are especially designed for the welfare of the people.
Due to the formulated plans and objectives of the LIC Corporation, it has hit the mark where most insurance companies never reached. They have stayed as the biggest competitor and therefore have been termed as one of the biggest Life Insurance in the republic.
- LIC was founded on September 1, 1956, hence Every year LIC celebrates 1st September as LIC day and
- First week of September as Insurance Week.
LIC Jeevan Varsha Summary:
Jeevan Varsha (Plan No. 196) is a money back plan with Guaranteed Additions and Loyalty Additions, if any.
Jeevan Varsha is a close ended plan and it would be open for sale from 16th February, 2009 to 31st March, 2009.
- Short-Term Money-Back for for 9 Years or 12 years.
- Policy Term for 9 Years or 12 Years
- Assured Money-Back every 3 years (Survival Benefit)
- Guaranteed Returns – Rs.65 per Thousand for 9 Years and Rs.70 per Thousand for 12 Years
- Complete Risk Coverage throughout the Tenure
- Profit-Sharing through Loyalty Additions.
A) Death Benefit:
On death during the policy term excluding last policy year: Sum Assured with accrued Guaranteed Additions.
On death during last policy year: Sum Assured with accrued Guaranteed Additions along with Loyalty Addition, if any.
B) Survival Benefits in Jeevan Varsha:
Survival benefits will be payable as given below:
|Survival at end of
||15% of Sum Assured
|10% of Sum Assured
||25% of Sum Assured
||20% of Sum Assured
||60% of S.A +G.A + L.A
||30% of Sum Assured
||40% S.A+ G.A+ L.A
c) Maturity Benefit
For policy term of 9 years: 60% of the Sum Assured along with Guaranteed Additions and Loyalty Addition, if any, will be payable.
For policy term of 12 years: 40% of the Sum Assured along with Guaranteed Additions and Loyalty Addition, if any, will be payable as described in above survival benefit table.
D) Guaranteed Addition:
The Guaranteed Addition will accrue for each policy year at the following rates:
– Rs. 65 per thousand Sum Assured per year for a policy of 9 years term.
– Rs. 70 per thousand Sum Assured per year for a policy of 12 years term.
In case of a death claim or surrender of fully paid up policy (applicable for policy term of 12 years), the Guaranteed Additions for the policy year of death or surrender will be added fully.
In case of surrenders and paid-up policies, the Guaranteed Additions for the policy year in which the last premium is received will be added on proportionate basis. For example, if two months’ premiums have been received for the policy year, then 2/12th of the Guaranteed Additions for that policy year shall be added.
E) Loyalty Addition:
Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the Corporation.
Eligibility Conditions and Restrictions Jeevan Varsha:
a) Minimum Sum Assured: Rs.75,000/- for ECS monthly mode OR Rs 50,000/- for other modes
b) Maximum Sum Assured: No limit
c) Minimum age at entry: 15 years completed.
d) Maximum age at entry: 66 years (nearest birthday) for policy of term 9 years 63 years(nearest birthday) for policy of term 12 years
e) Maximum age at maturity : 75 years nearest birthday
f) Policy Term : 9 & 12 years
g) Premium Paying Term:9 years
The Sum Assured shall be in multiples of Rs. 5,000.
Age at entry for the life assured is to be taken as age nearest birthday except for the minimum age at entry i.e. 15 years.
4. Modes of Premium Payment :
You can pay premium Yearly, Half yearly, Quarterly and Monthly (through ECS only)
Grace Period For Payment Of Premium:
A grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.
If death occurs within this period and before the payment of the premium then due, the policy will still be valid and the Sum Assured shall be paid after deduction of the said premium as also unpaid premiums falling due before the next Policy anniversary.
If premium is not paid before the expiry of the grace days, then the Policy will lapses.
5. Rebates (Discount):
Rebates are available at the following rates:
Yearly mode : 2% of tabular premium
Half-yearly mode: 1% of the tabular premium
Sum Assured Rebates:
|Less than Rs.1, 00,000
|Rs 1, 00,000 to Rs 1, 99,999
|Rs 2, 00,000 ato Rs. 4,99,999
|Rs. 5,00,000 and above
6. Paid-Up Value:
If after at least 3 full years’ premiums have been paid in respect of this policy and any subsequent premium be not duly paid, this policy shall not be wholly void, but shall subsist as a paid-up policy for a reduced sum.
7. Guaranteed Surrender Value:
The Guaranteed surrender value will be available after the expiry of 3 policy years, provided the premiums have been paid for at least three years. The guaranteed surrender value allowable under this policy is equal to 30 percent of the total amount of the premiums paid excluding the premium for the first year, all extra premiums that may have been paid and the amount of survival benefits paid earlier. The cash value of any existing guaranteed additions will also be payable.
Jeevan Varsha Special Surrender Value:
Special surrender value will be payable if it is more favorable to the policyholder. The Special Surrender Value will be the discounted value of the Sum Assured and Guaranteed Additions accrued. The discount factors shall be the special surrender value factors used for Endowment Assurance plan, which will depend on the policy term and the duration elapsed since commencement of the policy. The cash value of any existing guaranteed additions will also be payable.
Loan facility will be available under this plan after the policy acquires paid up value.
The rate of interest charged for this loan amount would be determined from time to time by the Corporation (LIC Of India).
Update: LIC Jeevan Varsha Plan No. 196 Has Been Discontinued.
Life insurance policies should be as simple as Jeevan saral Table No. 165. It gives you 250 times risk cover on your monthly premium.
Jeevan saral Features
- Higher cover
- Smooth return
- Liquidity fund
- Considerable flexibility
Under this plan death cover will be same irrespective of age at entry and term. The sum payable at maturity however differs for different entry ages and terms. This plan is very appropriate for employees seeking life cover through Salary Saving Schemes (SSS).
==> On Death:
- 250 times the monthly premium, plus
- return of premiums excluding extra/rider premium and first year
- premium plus
- The loyalty addition, if any.
==> On Maturity:
- Maturity sum assured, plus
- Loyalty additions, if any.
The policy can be surrendered after it has been in force for at least 3 full years. The surrender value will be greater of Guaranteed Surrender Value or Special Surrender Value.
Jeevan Saral offers following optional riders by payment of additional premium:
- Accidental death and disability benefit
- Term Assurance benefit.
The maximum cover for the above riders will be Rs.25 lakhs under all policies of the Corporation taken together.
The plan offers Auto Cover of 12 months after the policy has been in force for a period of 3 years and more.
The policyholder can choose a maximum term but can surrender at any time without any surrender penalty or loss.
The plan will allow partial surrender from 4th year onwards subject to certain conditions. Due to existence of the flexible term and partial surrenders the policyholder will enjoy a lot of liquidity under Jeevan saral.
Loan is permissible under the policy.
Only loyalty additions will be declared under the plan. The minimum term after which a policy can earn loyalty addition will be 10 years. However, loyalty additions will also be payable if death occurs in the 10 year of the policy provided that the policy is in force at the time of death. Loyalty additions will be subject to Corporations experience, and may be paid in case of death, maturity and surrenders.
Eligibility conditions for LIC Jeevan Saral:
Age at entry: Minimum 12 years completed and maximum 60 years nearest birthday.
Age at maturity: Maximum 70 years.
Term: All terms from 10-35 years.
Premium: Minimum Rs.250/- per month for entry upto 49 years and
Rs.400/- per month for entry age 50 years and above. The premium
shall be in multiple of Rs.50 per month.
Mode: Yearly/ Half yearly/ Quarterly and Monthly under Salary Saving Scheme.
LIC Jeevan saral is most selling and recommended plan by LIC agents due to its simplicity and features. This is also called as ATM plan as you can withdraw partial money from your Jeevan Saral account after completing 10 policy year.
This Plan has been Discontinued.