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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 This policy has now been withdrawn by LIC; however, its investors can continue to reap its rewards by way of death and maturity benefits.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.
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.
LIC Jeevan Saral Plan had the following salient features for investors:
Though LIC withdrew the plan, its benefits can still be availed by its investors in the following ways:
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
As stated earlier, LIC has withdrawn its Jeevan Saral Plan with effect from 2014.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.
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:
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)
Note: The sample above does not include loyalty additions as part of the plan.
Below are the eligibility criteria for LIC Jeevan Saral Policy:
|Age at entry
|Min – 12 years, Max – 60 years
|Age at maturity
|Min – 10 years, max – 35 years
|Min – INR 250, Max – INR 10,000
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:
The estimated benefits displayed are:
In 30 years, you pay a total premium of – INR 400*12*30 = INR 1,44,000
Below are some exclusions of the plan:
The below documents are required to submit for purchasing Jeevan Saral Policy of LIC:
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.
The maturity amount equals 30% of the total premium payable to date minus the premium amount of the 1st year.
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)
Individuals aged between 40 and 80 years are eligible to receive benefits under the policy.
You may go to the official LIC portal to access the maturity calculator of the plan.
No, the benefits of the riders and the initial premium paid are excluded at the time of calculating the death benefit.
Yes, it displays different payment modes such as yearly, half-yearly, quarterly, and monthly.
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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