1. The Magic of Jeevan Saral
An insight into this unique plan of L.I.C. of India

2. Life insurance companies offer two types of plans
Conventional plans
Unit Linked plans

3. Conventional Plans Positive features Negative features
Guaranteed return (extent of guarantee depends on type of product)
A smooth return over the term
Easy to understand and sell
Negative features
Less flexibility
Less liquidity

4. Unit Linked Plans Positive features Negative features Flexibility
Liquidity
More/less insurance cover can be chosen
Negative features
No or little guarantee
Uneven return
The policyholder has to review investment option all the time and should be lucky to exercise best option in order to earn a better return

5. Jeevan Saral - a plan with a difference
Jeevan Saral is a unique plan which offers the best features of a conventional plan and a unit linked plan in one product itself

6. How is it different?
Instead of starting with Sum Assured you start by deciding how much premium you want to invest
Risk cover is same for all ages for a specific modal premium. i.e. For Rs p.a. the risk covered for age 20 as well as age 45 is the same

7. Salient Features of Jeevan Saral
A lot of guarantee
A smooth return over the term
Flexibility of term
A lot of liquidity
A higher cover, particularly for lower terms and higher entry ages

8. Salient Features of Jeevan Saral
Client has to decide
premium to be paid, and
Mode only
He/she can choose any term
No surrender penalty after 5 years
Participating – loyalty additions after 10 or more years

9. Salient Features of Jeevan Saral
Death Benefit
250 times the monthly premium, plus
return of premiums excluding extra/rider premium and first year premium, plus
the Loyalty Additions, if any.
Maturity Benefit
Maturity Sum Assured, plus

10. Unique Feature
In case of death claim, in addition to the Sum Assured payable on death, All Premiums Paid, (excluding the first year premium, extra premiums and premiums for rider benefits), will be refunded. This is the first time that such a feature has been introduced. The result is a continuously increasing Risk Cover from the second year onwards.

11. Is Jeevan Saral a With Profit Plan ?
YES. But bonus will not be declared each year as under other plans.
Only “Loyalty Addition” will be given after atleast 10 years of premium payments and duration.
This Loyalty Addition is payable even when a policy is Surrendered

12. Paid-up and Surrenders
Available after 3 years
No Surrender penalty after 5 years.
For e.g. if a 20 year is being surrendered after 12 years, it will be treated as if the policy was originally taken for a term of 12 years, and the maturity value corresponding to term 12 will be paid.
In this sense, Jeevan Saral can be called a Flexible Term plan.

13. Another Unique Feature
Partial Surrender
If you need money, you can partially surrender the policy
The premium will correspondingly reduce and thereby the associated benefits too.
This means that you can virtually break one policy into multiple policies
This also means that you can use this policy as a flexible Money back Plan.

14. Another Mega Benefit
There is a misconception that Loyalty addition is just a little sweetener and the main growth comes from bonus / G.A.
But it will not be so in the case of Jeevan Saral. Actuarial analysis will show that the actual L.A. that can be paid will not be less than the total regular bonus payable on death claim, surrender or maturity.
In fact the policy holder will stand to gain more due to this concept

15. Another Mega Benefit (cont.)
Reversionary bonus is declared after assessment of surplus.
On this surplus first a tax of 12.5% + 10% surcharge on tax and 2% educational cess, i.e. a total of 14% has to be paid.
Thereafter 5% is the government share
Then there is also a Solvency Margin provision to be made
The remainder is then distributed as bonus to the policy holders

16. Another Mega Benefit (cont.)
Loyalty Additions and Final Addition Bonuses are not based on assessment of surplus.
Hence there is NO TAX, NO GOVERNMENT SHARE AND NO SOLVENCY MARGIN PROVISION to be made.
The result naturally is substantially higher benefit to the policy holder

17. Standard Terms of this Plan
For a chosen premium, the level of benefits payable at maturity (The Maturity Sum Assured) will be quoted
Policyholder can choose term from 10 years to 35 years
Modes available – Yearly, Half-yearly, Quarterly & SSS

18. Eligibility Conditions
No Limit
Maximum Premium
Rs.400/- pm
Minimum premium for entry age 50 years or above
The monthly premium should be in multiples of Rs.50/-
Rs.250/- per month
Minimum premium for entry age 49 years or below
10 years
35 years
Minimum term
Maximum term
70 years
Maximum age at maturity
12 years (completed)
60 years
Minimum age at entry
Maximum age at entry

19. Rider Benefits Accident benefit (optional)
Term Assurance Rider (optional)
Standard Term Assurance and AB rider Sums Assured limits apply
The Term Assurance and AB rider Sums Assured will not exceed the Death Benefit Sum Assured

20. Conditions for Partial Surrender
Atleast 3 years premiums are paid
Minimum basic annual premium after withdrawal /- where age at entry was 49 years or below and 4800/- where age at entry was 50 years or above
Minimum basic annual premium for withdrawal /-

21. Conditions for Partial Surrender
Withdrawal in multiples of /- annual premium
Minimum waiting period between successive withdrawals - 1year
No loan should be o/s on the policy at the time of withdrawal
All future benefits and premiums under the policy will get reduced proportionately

22. Agent’s Commission 40% of FY commission Bonus Commission 5% 7.5% 20%
10 to 14 years
25%
15 years & above
Thereafter
2nd & 3rd Yr
First Year
Policy Term

23. Thank you