LIC Saral Jeevan Bima Plan 859 Review, Features & Benefit with Example

LIC Saral Jeevan Bima Plan is a Non-Linked, Non-Participating, Individual, Pure risk life insurance plan. This plan provides financial protection to the insured’s family in case of unfortunate death of the policyholder during the policy term. So If a policyholder survives till the end of the policy term, no benefits are paid. You can buy this plan through offline as well as online mode.

Plan NameLIC Saral Jeevan Bima Plan
Table No.859
UIN No.512N341V01
Plan TypeTerm Plan
Launch Date19 April 2021
LIC Saral Jeevan Bima Plan 859 Summary
LIC Saral Jeevan Bima Plan – Paisakaudi

Key Features of LIC Saral Jeevan Bima Plan

  • LIC Saral Jeevan Bima Plan is a pure term insurance plan which provides fixed amount to the insured’s family at a very affordable price.
  • Flexibility to choose Premium Payment
    • Single premium payment
    • Regular premium payment
    • Limited premium payment
  • Premium rebates are available for online and offline mode.
  • No Maturity benefit and surrender value benefit available under this plan
  • Loan benefit is not available under LIC Saral Jeevan Bima Plan.
  • There is a waiting period of 45 days in this plan.
  • LIC Saral Jeevan Bima Plan provides tax benefits as well.

LIC Saral Jeevan Bima Plan Benefits

  • 1) Death Benefit in LIC Jeevan Saral Bima Plan
  • During the waiting period of 45 days from the date of commencement of risk.
    • If death happens other than accident within a waiting period of 45 days then only the amount equal to 100% of premiums received (excluding taxes) shall be paid.
    • If death happens due to accident within 45 days of date of commencement of risk then Sum Assured on Death payable would be,
      • For Regular and limited premium policy, sum assured on death shall be highest of,
        • 10 times the annual premium, or
        • 105% of all premiums paid as on the date of death, or
        • Absolute amount assured to be paid on death.
      • For single premium policy, sum assured on death would be the highest of,
        • 125% of single premium, or
        • Absolute amount assured to be paid on death.
  • After the expiry of waiting period of 45 days from the date of commencement of risk
    • If death happens after the expiry of waiting period (provided the policy is in force) then Sum Assured on Death payable would be,
      • For Regular and limited premium policy, sum assured on death shall be highest of,
        • 10 times the annual premium, or
        • 105% of all premiums paid as on the date of death, or
        • Absolute amount assured to be paid on death.
      • For single premium policy, sum assured on death would be the highest of,
        • 125% of single premium, or
        • Absolute amount assured to be paid on death.

Here the absolute amount assured to be paid on death will be equal to basic sum assured.

  • 2) Death Benefit in LIC Jeevan Saral Bima Plan

As this is a pure term insurance plan so if the policyholder survives till the end of the policy term, no maturity benefit is payable.

Eligibility conditions and other restrictions in LIC Saral Jeevan Bima Yojana

MinimumMaximum
Basic Sum Assured₹ 5,00,000₹ 25,00,000 (Per life basis)
Policy Term5 years40 years
Premium Paying TermRegular Premium – Same as policy term
Limited Premium – 5 and 10 years
Single Premium – Premium is payable in lumpsum
Entry Age18 years (Last birthday)65 years (Last birthday)
Maturity Age70 years (Last birthday)
Eligibility Criteria in LIC Saral Jeevan Bima Plan – Paisakaudi

How LIC Saral Jeevan Bima Plan Works with Example

As this is a pure protection plan so insured’s nominee will only get a death benefit.

Suppose Ram takes this plan with following details in regular premium:

Ram’s Lifestyle : Non-smoker, healthy
Age – 30
Policy Term – 25 years
Sum Assured – 10 Lakhs
Premium Paying Term – 25 Years

Based on Ram’s lifestyle, age, policy term and sum assured his premium will be calculated and he will have to pay the premium Rs. 4,670/- annually (Offilne) and Rs. 4,336/- annually (Online).

  • Scenario 1 – If Ram dies during a waiting period of 45 days from the date of commencement of risk. So here two cases possible.
    • If Ram’s death happens other then accident so his will receive the premium paid i.e. Rs. 4,670/- (If paid offline) and Rs. 4,336/- (If paid online)
    • If Ram’s death happens due to accident so here his nominee will receive the Sum Assured on Death which will be the highest of,
      • 10 times the annual premium, or
      • 105% of all premiums paid as on the date of death, or
      • Absolute amount assured to be paid on death.

So 10 times annual premium will be 10 x 4670 = Rs. 46,700
105% of all premiums paid (4670 x 105) / 100 = Rs. 4,903
Absolute amount assured to be paid on death is same as basic sum assured = 10 Lakhs

Therefore we can clearly see that out of all the three amounts, 10 Lakhs is the highest so Ram’s nominee will receive 10 Lakh as sum assured on death and policy will close.

  • Scenario 2 – If Ram dies after the expiry of 45 days of date of commencement of risk.
    • So here Ram’s nominee will receive the Sum Assured on Death which will be the highest of,
      • 10 times the annual premium, or
      • 105% of all premiums paid as on the date of death, or
      • Absolute amount assured to be paid on death.

So 10 times annual premium will be 10 x 4670 = Rs. 46,700
105% of all premiums paid (4670 x 105) / 100 = Rs. 4,903
Absolute amount assured to be paid on death is same as basic sum assured = Rs. 10 Lakhs

Therefore we can clearly see that out of all three 10 Lakhs is highest so Ram’s nominee will receive 10 Lakh as sum assured on death and policy will close.

Payment of premium in LIC Saral Jeevan Bima Policy

Regular premium, limited premium and single premium options are allowed in this plan.

Grace period in LIC Saral Jeevan Bima Plan

Under this plan a grace period of 30 days shall be allowed for payment of yearly or half yearly premiums and 15 days are allowed for monthly premium from the date of fist unpaid premium. If premiums are not paid before expiry of the grace period, the policy lapse and nothing shall be payable.

LIC Saral Jeevan Bima Sample Illustrative premiums chart

Sample illustrative premiums for basic sum assured of Rs. 10 Lakhs for Male, Non-Smoker (Offline Mode)

Age (Last Birthday)Single PremiumRegular Premium – AnnualRegular Premium – Half YearlyRegular Premium – Monthly
25
Rs. 41,610
Rs. 3,850
Rs. 1,965
Rs. 331
30
Rs. 52,260
Rs. 4,670
Rs. 2,383
Rs. 401
35
Rs. 70,840
Rs. 6,110
Rs. 3,117
Rs. 525
40
Rs. 98,630
Rs. 8,340
Rs. 4,254
Rs. 716
45
Rs. 1,38,230
Rs. 11,660
Rs. 5,948
Rs. 1,001
Note: The above illustrative premiums are exclusive of GST

Sample illustrative premiums for basic sum assured of Rs. 10 Lakhs for Male, Non-Smoker (Online Mode)

Age (Last Birthday)Single PremiumRegular Premium – AnnualRegular Premium – Half YearlyRegular Premium – Monthly
25
Rs. 40,776Rs. 3,574Rs. 1,826Rs. 308
30
Rs. 51,213Rs. 4,336Rs. 2,216Rs. 373
35
Rs. 69,421Rs. 5,675Rs. 2,900Rs. 488
40
Rs. 96,655Rs. 7,749Rs. 3,959Rs. 667
45
Rs. 1,35,463Rs. 10,837Rs. 5,536Rs. 932
Note: The above illustrative premiums are exclusive of GST

Rebate / Loading in LIC Saral Jeevan Bima Plan

The following rebates are applicable under this plan.

  • Mode Rebate (Applicable for regular and limited premium payment)
ModeRebate
Yearly ModeNil
Half-yearly mode2% of tabular annual premium
Monthly (ECS/NACH)3% of tabular annual premium
Mode Rebate in LIC Saral Jeevan Bima Plan – paisakaudi

  • High sum assured rebate
Basic sum assured (BSA)Rebate (Rs)
5,00,000 to 9,50,000Nil
10,00,000 to 14,50,0000.10 % of BSA
15,00,000 to 19,50,0000.20 % of BSA
20,00,000 and above0.25 % of BSA
High Sum Assured Rebate in LIC Saral Jeevan Bima Plan – paisakaudi

Premium paying termOnline sale (Rate of Rebate)
Single premium2.00% of tabular premium
5 to 9 years5.00 % of tabular premium
10 to 14 years6.00 % of tabular premium
15 years and above7.00 % of tabular premium
Online sale Rebate in LIC Saral Jeevan Bima Plan – paisakaudi

Revival in LIC Saral Jeevan Bima Plan

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 but before the end of policy term. For revival you will have to pay all the arrears of premium with interest at a rate which will be declared by the corporation.

Surrender Value in LIC Saral Jeevan Bima Plan

There is no surrender value under this plan.

Loan Facility in LIC Saral Jeevan Bima Plan

There is no loan facility available under this plan.

Tax Benefit in LIC Saral Jeevan Bima Plan

  • Premiums paid are exempted under section 80C of the income tax act of 1961.
  • The maximum exemption can be availed is 1.5 Lakhs
  • Also the Death amount received are exempted under section 10(10D).

Free Look Period in LIC Saral Jeevan Bima Plan

If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same. After receiving the request, the Corporation shall cancel the policy and return the premium amount after deduction of risk premium, expenses incurred on medical examination, special report if any and stamp duty charges.

Exclusion in LIC Saral Jeevan Bima Plan

Suicide:

  • Under single premium policy:
    • If policyholder commits suicide within 12 Months from the date of commencement of risk, the corporation will not entertain any other claim except 90% of the single premium paid.
  • Regular / Limited Premium Payment Policy:
    • If the policyholder commits suicide within 12 Months from the date of commencement of risk provided policy is in force or within 12 months from the date of revival, the corporation will not entertain any other claim except 80% of the premiums paid till the date of death.

How to buy LIC Saral Jeevan Bima Plan

LIC Saral Jeevan Bima Plan can be purchased offline and online as well.

Step by step process to buy LIC Saral Jeevan Bima Plan Online

  1. Log on to www.licindia.in website.
  2. Click on Buy Policies online.
  3. Click on Term Assurance heading.
  4. Then select LIC Saral Jeevan Bima Plan.
  5. Click on buy online.
  6. You will be asked that have you been diagnosed with COVID in past three Months?
  7. If you will say yes then your journey will end but if you will say no then you have to enter your personal details and an OTP will be sent to your phone.
  8. Then Choose your desired sum assured, premium payment option, residence country, Payment mode, policy term, premium paying term, gender.
  9. After adding all these details, a premium calculator will calculate the premium for the selected parameters.
  10. After this enter Name, Address, Occupation, Qualification etc to complete the proposal form online.
  11. At last pay the premium online and fulfil the underwriting requirements if any.

Documents required to buy LIC Saral Jeevan Bima Plan

You need to have the following documents to buy this plan.

  • LIC Proposal form, duly filled by the Policyholder online.
  • Age proof of the proposer
  • Identity proof of the proposer/Policyholder
  • Address proof of the proposer
  • Medical examination report of the life insured if required by the policy because of the age and/or the sum assured chosen
  • Income proof of the proposer if the sum assured or the premium of the policy is high
  • PAN card of the proposer

How to make claim in LIC Saral Jeevan Bima Plan

Maturity Claim / Surrender Claim

  • There is no maturity benefit under this plan
  • If you are making a surrender claim, you have to inform the company in writing or contact your agent for this.

How to make a Death claim in LIC Saral Jeevan Bima Plan?

In case of death claim, nominee can get the death benefit by submitting required documents.
Below are the list of documents which nominee has to submit to get the policy amount.

  • Claim Form ‘A’ in Form No.3783.
  • If policy has run for 3 years or more from date or risk, claim Form No.3783A may be used
  • Certified extract from death register issued by hospital/Doctors/District level authorities.
  • The original policy document with Deed of assignment

In case you face any issue, contact your agent or visit your respective servicing branch.

Click here to Read LIC Jeevan Amar Plan in Detail

I hope this helps you to understand LIC Saral Jeevan Bima Plan really well. If you have any question about this policy, please comment below and we will get back to you immediately.

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