LIC Jeevan Saral Plan: Check Features, Benefits & Maturity Calculator

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An overview of LIC’s popular comprehensive insurance policy – Jeevan Saral – its benefits to the policyholder, and its special feature – the maturity calculator

The popular insurance company, LIC, has a wide array of life insurance plans in its kitty. One of its most popular offerings was the traditional endowment plan called the Jeevan Saral Plan. This policy has now been withdrawn by LIC; however, its investors can continue to reap its rewards by way of death and maturity benefits. As the name suggests, the plan was indeed aimed at simplifying your life, not just within your lifespan but also beyond it. LIC Jeevan Saral Plan promised a decent death or maturity financial benefit to the surviving family of the policyholder after the latter’s death.

This is one of the key reasons why several people invested in it. And, these investors can continue to enjoy its multiple benefits. The blog below throws more light on this plan, its benefits, and the maturity calculator that helps simplify the calculation of the maturity amount due under the plan.

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What is Jeevan Saral Plan 165?

LIC plan 165 was the company’s traditional life insurance endowment policy that guaranteed the investor or policyholder an assured death or maturity benefit, as applicable. The policyholder or the investor would pay a certain amount of premium regularly and the death and/or maturity benefits would be calculated based on the premium paid.

What are the Key Features of Jeevan Saral 165?

LIC Jeevan Saral Plan had the following salient features for investors:

  • It was a participating plan that allowed for loyalty additions upon plan maturity or in the event of the death of the policyholder
  • It offered add-on riders that the policyholder could choose based on their need for coverage
  • It enabled the policyholder to choose the premium amount that he/she could comfortably pay and also the mode of premium payment convenient to them
  • The death benefit offered under the plan is at least 250 times the premium payable per month. The benefit is paid at the time of payment of loyalty additions.

Benefits of LIC Jeevan Saral Plan

Though LIC withdrew the plan, its benefits can still be availed by its investors in the following ways:

  • The loyalty additions offered at the time of maturity of the plan boost the corpus and provide extra returns to the investor
  • The investor has the flexibility to surrender the plan upon payment of at least 3 years of the full premium amount. LIC guarantees surrender benefits to the investor based on the number of premium amounts payable.
  • The plan offers absolute financial security to the policyholder. The death benefit is guaranteed all through the tenure of the plan to the bereaved family of the policyholder in the event of the latter’s death.
  • The investor is given the flexibility to choose the premium amount that he/she wishes to invest in the plan

Jeevan Saral Calculator

One of the most promising features of the LIC Jeevan Saral Plan is its maturity calculator, an online tool that can help a prospective investor assess the exact premium amount payable under the plan as also the value received upon plan maturity.

Jeevan Saral maturity calculator works in the following way:

Maturity amount = Sum Assured + Loyalty Additions

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LIC Jeevan Saral Surrender Value Calculator

As stated earlier, LIC has withdrawn its Jeevan Saral Plan with effect from 2014. Those investors who had invested in the policy before its withdrawal can surrender the same against cash. You can use the LIC Jeevan Saral Surrender Value Calculator easily available online to view the total amount that you would receive upon policy surrender.

If you choose to surrender your LIC Jeevan Saral plan upon completion of 10 years, you will be entitled to a minimum of 30% of all the premiums paid so far.

Benefits of Using the LIC Jeevan Saral with Profits Maturity Calculator

LIC Jeevan Saral (with profits) online maturity calculator is a highly effective tool that allows the investor to get a fair and accurate idea of the amount due to him/her upon plan maturity. Some of the key benefits of using this tool are:

  • It enables the investor to choose the rate of return on the premium amount invested as per their expectation
  • In case the maturity benefits do not match your expectation, you may make slight changes to the inputs entered to obtain your desired coverage
  • You can also opt for the add-on rider benefit that offers extended coverage in case of death by accident and/or disability. The calculator would then compute the changed premium amount as well as the resultant benefit from it.

Sample Maturity Calculator by LIC Jeevan Saral

To give you a better picture of how the maturity calculator works, here’s a small sample illustration. The table below enlists the maturity sum assured on a premium payment of Rs. 100 per month. The term of the policy and the eligible age of entry is also highlighted in the table:

Age of Entry (in years)

10 Years (Policy Term)

15 Years (Policy Term)

20 Years (Policy Term)

25 Years (Policy Term)

20

11,156 19,628 28,039 36,839

30

11,053 19,300 27,345

35,492

40 10,431 17,839 24,598

30,854

Note: The sample above does not include loyalty additions as part of the plan.

What are the Conditions of LIC Jeevan Saral Policy Eligibility?

Below are the eligibility criteria for LIC Jeevan Saral Policy:

Age at entry  Min – 12 years, Max – 60 years
Age at maturity  70 years
Policy term  Min – 10 years, max – 35 years
Payment mode yearly/half-yearly/quarterly/monthly
Sum Assured  INR 1,00,000
Monthly premium Min – INR 250, Max – INR 10,000

How to Use the LIC Jeevan Saral 165 Maturity Calculator? – Sample Illustration

Let’s assume that you want to calculate the maturity amount of LIC Jeevan Saral Plan 165 using the calculator. The numbers you enter in the calculator are:

  •  INR 400 – monthly premium
  • 30 years – term of policy
  • 35 years – age at entry, and
  • Accident benefits

The estimated benefits displayed are:

In 30 years, you pay a total premium of – INR 400*12*30 = INR 1,44,000

  • The assured return you get is – INR 1,62,416
  • The loyalty addition you receive is – INR 76,480
  • Thus, the total benefit you receive is – INR 2,38,896

What are the LIC Jeevan Saral Policy Exclusions?

Below are some exclusions of the plan:

  • If the policyholder commits suicide and dies, no benefits will be paid to the nominee and the plan will be regarded as void
  • The plan will also be annulled if the policyholder commits suicide within the first year of the policy initiation date even if the risk under the plan starts

Documents Required to Avail the Plan

The below documents are required to submit for purchasing Jeevan Saral Policy of LIC:

  • Duly filled application form
  • Medical and health details of the insured
  • Address proof of insured
  • KYC details of the insured
  • Medical reports (in some cases as per the age and sum assured of insured)

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In Conclusion

LIC Jeevan Saral Plan was a comprehensive insurance product for investors. Most of them still have policies ongoing and they can derive benefit from it either by surrendering it against cash, receiving maturity benefit, or death benefit. All these benefits entitled to the investor can easily be computed with the help of the online tool – Jeevan Saral Maturity Calculator. Visit PayBima today to access this online tool for free and to get an indicative picture of the total amount due to you as part of your LIC Jeevan Saral policy.

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FAQs on: LIC Jeevan Saral Plan, Benefits, and Maturity Calculator

How is the maturity amount of Jeevan Saral calculated?

The maturity amount equals 30% of the total premium payable to date minus the premium amount of the 1st year.

How is Jeevan Saral Plan 165 calculated?

The simple formula for calculating the death coverage under the plan is as follows:
Death coverage = 250 times the basic monthly premium (death sum assured) + the premium paid so far (which excludes the premium amount paid in the 1st year and rider premiums) + loyalty additions (if applicable)

Who is eligible for Jeevan Saral?

Individuals aged between 40 and 80 years are eligible to receive benefits under the policy.

Where to use the calculator to estimate the maturity of LIC Jeevan Saral Plan 165?

You may go to the official LIC portal to access the maturity calculator of the plan.

While calculating the LIC Jeevan Saral Plan death benefit can I include the benefits under riders?

No, the benefits of the riders and the initial premium paid are excluded at the time of calculating the death benefit.

Does the maturity calculator of LIC Jeevan Saral Plan 165 allow flexible payment modes?

Yes, it displays different payment modes such as yearly, half-yearly, quarterly, and monthly.

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May 25, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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