Life Insurance Corporation of India (LIC) has launched LIC Saral Jeevan Bima (Plan No. 859) which is a standard term insurance plan. This term assurance policy is as per the guideline of IRDAI for the Saral Jeevan Bima. The salient features and benefits of this policy remain the same across insurance companies. In this post, let us take a look at the features and benefits of LIC Saral Jeevan Bima (Plan No.859).
Table of Contents
LIC Saral Jeevan Bima Yojana 2021
LIC Saral Jeevan Bima is a pure life cover policy. It is a non-linked, without profit, pure protection term insurance policy. It provides financial protection to the insured’s family in case of his/her unfortunate death. This policy can be purchased online as well as offline.
Under this policy, against payment of premium, your beneficiaries will get the sum assured in case of your unfortunate death during the policy term. Please note that nothing is payable to you if you survive till the end of the policy term.
Features of LIC Saral Jeevan Bima Policy
1. LIC Saral Bima Yojana 2021 is a pure term plan.
2. It is available online as well as offline mode. To buy the policy online, click here.
3. You cannot propose for anyone other than yourself.
4. The minimum sum assured is Rs.5 lakhs and the maximum sum assured is Rs.25 lakhs.
5. There is a waiting period of 45 days for new policies from the date of commencement of risk.
6. Loan is not available under Saral Bima Yojana LIC.
7. The policy is allowed to NRIs with certain conditions.
8. The Unique Identification Number (UIN) for this plan is 512N341V01.
9. Premiums paid in this term plan will qualify for income tax benefits under section 80C.
Benefits of Saral Jeevan Bima LIC
1. Death Benefit
(a). During waiting period of 45 days:
(i). In the event of death due to any reason other than an accident, a death benefit equal to 100% of all premiums paid shall be paid.
(ii). In the event of death due to accident provided, the sum assured on death shall be paid to the nominee.
Sum assured on death for regular premium and limited premium payment policies is defined as the highest of:
- 10 times of annualised premiums (or)
- 105% of all premiums paid as on the date of death (or)
- Absolute amount assured would be paid on death i.e. 100% of the basic sum assured.
Sum assured on death for single premium policies is defined as the higher of:
- 125% of single premium
- Absolute sum assured would be paid on death i.e. 100% of the basic sum assured.
(b). After a waiting period of 45 days
In the event of death after a waiting period including death due to an accident sum assured on death shall be paid to the nominee. Sum assured on death is as mentioned above.
2. Maturity Benefit
Nothing would be payable on survival till the end of the policy term.
Eligibility Criteria for Saral Jeevan Bima Yojana LIC
1. Minimum Sum Assured: Rs.500,000
2. Maximum Sum Assured: Rs.25,00,000
3. Minimum age at entry: 18 years (completed)
4. Maximum age at entry: 65 Years (completed)
5. Maximum cover ceasing age: 70 years (completed)
6. Minimum policy term: 5 years
7. Maximum policy term: 40 years
Mode of PaymentÂ
You can pay premiums either under regular premium, limited premium, or single premium payment options.
If you choose regular premium and limited premium, then you can pay regularly during the premium paying term. The modes of premium payment are yearly, half-yearly, and monthly (only under ECS/NACH).
Eligible Life
To be eligible, you must have your own earned income. You cannot propose for anyone other than yourself. Note that this plan is not allowed to housewives and pregnant female lives.
Final Thoughts
I hope now you know what LIC Saral Jeevan Bima policy is. This term plan is for low-income group people. Therefore, if you want to take a <25 lakh term insurance plan with a trusted brand like LIC, then go for this plan.
Also Read: How to Save Money: 10 Super Easy Money Saving Tips
Also Read: Top 4 Best ELSS Mutual Funds to invest