LIC Saral Jeevan Bima 859
LIC Saral Jeevan Bima 859 is a term insurance plan. The plan provide money to the insured person’s family if the policyholder dies during the period of coverage. Since it’s a term plan, the premium is quite low for higher coverage on the sum assured value and can be purchased offline and online.
Two types of premiums exist: one for non-smokers and one for smokers. Non-smokers get special rates only after passing a Urinary Cotinine test.
Let’s look at LIC Saral Jeevan Bima chart:
Age | Minimum: 18 years |
Policy Term | 5-40 years |
Sum Assured | Min. Sum Assured – Rs. 5,00,000/- Max. Sum Assured – Rs. 25,00,000/- |
Premium Paying Term |
Single-Premium: Lum Sum (One Time) Regular Premium: Same as Policy Term Limited Premium: 5 and 10 years
|
Maturity Age | 70 years. |
Premium Paying Mode | Monthly, Quarterly, Half-Yearly and Yearly |
Riders (Optional) | No, Rider is available for this plan |
Tax Benefits | Premium is exempted (80c) and Death Claim is Tax-Free 10(10D) |
Maturity Amount | Only Death Claim |
Claim Payment Option | LUM SUM Or INSTALMENT PAYMENT: Over five years (Monthly, Quarterly, Half Yeary, Yearly) any one Lic will pay interest in instalment mode. |
LIC Saral Jeevan Bima policy details:
Death Benefit
During the initial 45-day waiting period from the start of coverage, this policy covers accidental death only. Suppose the policyholder passes away for reasons other than an accident during this period.
In that case, all premiums paid (excluding taxes) will be refunded, and the basic sum assured will not be paid. If the policyholder dies in an accident during this waiting period and the policy is active, the death benefit will be as follows:
For regular premium or limited premium policies:
- 10 times the annual premium, or
- 105 percent of all the premiums paid till death or
- The absolute assured amount for death.
For single premium policies:
- 125 percent of the single premium, or
- The absolute assured amount for death.
After the 45-day waiting period and before the specified maturity date, if the policyholder passes away while the policy is active, the death benefit will be:
For regular premium or limited premium policies:
- 10 times the annual premium, or
- 105 per cent of all premiums paid till death, or
- The absolute assured amount for death.
For single premium policies:
- 125% of the single premium, or
- The absolute assured amount for death.
The absolute amount assured to be paid on death shall be = Basic Sum Assured.
Maturity Benefit
If the policyholder is still alive at the end of the policy period, this plan does not pay any maturity amount or value.
Tax Benefit
Premium and payout tax benefits are available with the Saral Jeevan Bima plan. You can deduct premiums under Section 80C of the Income Tax Act, but Section 10(10D) makes the sum assured tax-free.
Rebate
LIC Saral Jeevan Bima 859 plan offers rebates based on the premium paying modes and sums assured we chose:
Regular and Limited Premium Payment:
Yearly – Nil.
Half-yearly – 2% of Tabular annual premium.
Monthly – 3% of Tabular annual premium
Sum Assured Rebate:
BASIC SUM ASSURED | REBATE |
Rs. 5,00,000/- to Rs. 9,50,000/- | – |
Rs. 10,00,000/- to Rs. 14,50,000/- | .10 % of Basic Sum Assured |
Rs.15,00,000/- to Rs. 90,50,000/- | .20 % of Basic Sum Assured |
Rs. 20,00,000/- and above | .25 % of Basic Sum Assured |
Rebate on Online Sale:
Premium Paying Term | REBATE (Online Sale) |
Single Premium | 2.00% |
5 to 9 years | 5.00% |
10 to 14 years | 6.00% |
15 years and above | 7.00% |
Loan Facility
Loan facility is not available with LIC Saral Jeevan Bima Term Plan.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Policy Cancellation
The Policy Cancellation Value is paid in these situations:
a) If the Policyholder asks for it before the maturity date for Single Premium Policies.
b) If the Policyholder requests it before the maturity date or at the end of the revival period for Limited Premium Payment Policies if the policy isn’t revived.
c) The amount you get is determined as follows:
i) For Single Premium Policies:
= 70% x Single Premium paid x the remaining Policy Term / the Original Policy Term.
ii) For Limited Premium Payment Terms of 5 years and 10 years:
=70% x Total Premiums Paid x the (unexpired) remaining Policy Term / the Original Policy Term.
d) No Policy Cancellation Value is given for regular premium policies.
Free-look Period
If a policyholder is dissatisfied with the terms and conditions of the insurance policy. In that case, they have 15 days from receipt to return it (30 days for online purchase) and get a full refund after deducting examination charges, stamp duty, and any other charges, if any.
Saral Jeevan Bima Premium calculation
Calculation of premium of LIC Saral Jeevan Bima (Plan 859)
- Sum Assured: ₹25,00,000
- Policy Term: 10 years
- Age: 30 years
- Annual Premium: (Assuming the premium is ₹25,000 for this sum assured)
- GST Rate: 18%
Premium Calculation with GST
- Calculate GST:
GST=Annual Premium× GST Rate
GST=25,000×0.18=₹4,500
- Total Annual Premium including GST:
Total Premium=Annual Premium+GST
Total Premium=25,000+4,500=₹29,500
Total Premium Paid Over 10 Years
Total Premium Paid=Total Annual Premium×Number of Years Total Premium Paid=29,500×10=₹2,95,000
Summary of Calculation
- Total Premium Paid (including GST): ₹2,95,000 (over 10 years)
- If he live: No money back.
- If something happens: Your family gets ₹25,00,000.