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LIC Jeevan Saral Policy Details and Analysis

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licjeevansaralJeevan Saral is an Endowment Plan which provides financial protection against death during the policy term. The death benefit is directly related to the premium paid i.e., 250 times of monthly premium plus return of premium and Loyalty Additions, if any. It is a simple endowment plan where the proposer can choose the amount and mode of premium payment as per his need. The Maturity Sum Assured will be different as it will depend on the age at entry of life of the assured and is payable only on survival at the end of policy term along with the Loyalty Additions, if any.

The primary purpose of this plan is protection cum saving; however it has some other features which may fulfil your needs at different life stages.

Benefits under Jeevan Saral policy

Maturity Benefit

1) Maturity Sum Assured      Plus     2) Loyalty Additions, if any (Loyalty additions will depend on future profits and as such is not guaranteed)

Death Benefit

1) 250 times of Monthly Premium   Plus   2) Loyalty Additions, if any (Loyalty additions will depend on future profits and as such is not guaranteed)Plus

3) Return of Premium Paid till the time of death excluding First Year Premium and

       any extra/rider premium

Additional Optional Protection

1) Accidental Death and Disability Benefit2) Term Rider

Tax Benefit

1) Section 80 (C) -   Premium paid are exempted from tax

2) Section 10 (10D) – Maturity proceeds are exempted from tax


Who can take this policy- Eligibility Criterion?



Entry Age

12 years

60 years

Maturity Age

22 years

70 years

Policy Term

10 years

35 years

Premium Paying Term

10 years

35 years

Sum Assured

250 times of Monthly Premium

250 times of

Monthly Premium

Payment Modes

Yearly, Half-Yearly, Quarterly and Monthly


Other options available under Jeevan Saral

Non- Payment of premium: If it happens within first 3 policy years, the policy will lapse without any value.

And after 3 completed policy years, the policy acquires a Paid-Up Value for a proportionately reduced Sum Assured.

Surrender Option: The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid, excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Special Surrender Value: 80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid.

Loan: You can avail Loan under this policy.


Sample Illustration of Jeevan Saral policy

Age and Gender

35 years Male

Premium Paying Term

25 years

Annual Premium

Rs. 4,704

Total Premium Paid


Sum Assured


Guaranteed Death Benefit During Policy Term

Rs.2,15,200 plus loyalty

additions, if any

Total Survival Benefit (at the rate 6%p.a Loyalty)

Rs. 2,00,296

Total Survival Benefit (at the rate 10%p.a Loyalty)

Rs. 3,46,296


Loyalty Additions under Jeevan Saral

This is a with-profits plan and participates in the profits of the LIC business.  It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death benefit or maturity benefit.  Loyalty Additions may be payable from the 10th year onwards, depending upon experience of the Corporation.

Merits of Jeevan Saral policy

  •        Protection for your family against uncertainties of life like Death and Disability.
  •        Comparatively Higher Surrender Value.

Demerits of Jeevan Saral policy

  •        Lack of clarity on Loyalty Additions Rate, as no past track record is available for the same.
  •        No bonus within 10 years

At the end I would say any Endowment Plan should be purchased only if it is actually suitable for his/her long term needs.  It should NOT be the primary long term solution for your life insurance needs. And it is very vital to have an adequate life cover due to day to day uncertainties in our life.

Would be happy to hear your views, please share!!!

Also Read:

LIC Jeevan Anand Policy Details

About the Author:

Gaurav Gahlout is an Insurance Trainer and CFP with great interest in the field of personal finance. He can be reached at expert@investmentyogi.com

  • Marina S Rao

    Among all varieties of Life Insurance Plans, only Term Insurance Plans without return of premiums will give value for money to the policyholders.

    • Av Suresh

      Perfect. Term insurance should be the priority when it comes to protecting the family. Investment options are plenty.

  • paribhas capital investments


  • AKGaur

    Actual return is only 4% if you survive.

    • Av Suresh

      Yes, you are right. Actual returns are very less on account of the charges involved in the endowment plans.

  • Bhavesh Furia

    What amount of money I get If I surrender after 10 years ? Is their any perfect formula to arrive at that figure ?

    • Av Suresh

      Surrender charges and Maturity value will be mentioned in the policy document you have received. You can also find them in the LIC provided brochure for Jeevan Saral. You need to deduct the surrender charges from the premium paid for 10 years to arrive at the amount you will get.

  • Amit Desai

    I have jeevan saral policy for 35 year term of 45k per annum. Already paid 3 premiums and now unable to make the same from now onwards due to liabilities. Would like to change term to 10 years and 5K per annum. Please let me know it’s possibility, charges, fine, and affect on bonus etc. Please suggest.

    • Av Suresh

      Amit, its not possible to change the tenure and premium of a policy. However, if you are not able to pay premiums, you can make it a paid up one or surrender when the charges are minimum.

      • Amit Desai

        I am surprise to listen this as i got to know from one of the LIC agent yesterday that its possible to change the term and premium on the cost of sum assured in same Jeevan Saral Policy.

      • Amit

        can ihave your contact number please?

  • Bhushan Raut

    last 12 months i didnt pay my lic jeevan saral policy premium….now i want to continue to my policy….please suggest me

    • Yogi Cfp

      Bhushan, the policy would have lapsed. You need to check with LIC and ask for the amount to be paid to revive it. There would be some penalty levied for it.

  • Santanu Gayen

    In jiban saral I have paid one full year in 2011 but due to family problem dis contineued now I want to open the same please suggest me and give advice

    • Av Suresh

      You can contact LIC so that they can revive the lapsed policy with penalty. However, if you believe the penalty quoted is high, you can take a call on whether to continue it or not.

  • Asif

    Hi, Mi policy completed five full years, can anyone suggest how much amount I will get if choose to close the policy. SA is 2 lakh.

    • Av Suresh

      Surrender value for the policy is 30% of the total premium paid till date.

      • abhi

        how can it be 30%..it has completed 5 years

        • n.h.nazer

          what he is already paid five year full premium

      • Roland

        Stop replying to questions when you don’t have knowledge please

  • Vishal

    Is Maturity benefit exempted Like PPF??

    Is there any limit for exempted value??

    • Av Suresh

      Yes, it is exempt on maturity. There is no such limit.

  • Rehaman Sheik

    I’ve taken a Jeevan saral policy for 36000(per year). I’ve paid only one time. Now i want to cancel this policy…Could you please suggest me which is best time to cancel this policy… i mean when i may get good amount back. i heard that if i continue this policy for 5 years and withdraw then i’ll get all the amount (i.e 36000 x 5). Is this true? Please let me know… Thanks in advance…

    • Av Suresh

      Yes, if you have paid all 5 year premiums, you would get the entire paid amount back.

      • Roland

        No you don’t. They say 100% of maturity value after 5 years. Maturity value is not equal to the amount you pay. It is lesser till less than 10 years. Please get your facts right Av Suresh before misinforming people.

    • abhi

      You would not get all amount paid i.e. 36000*5=180000.
      It would be around 36000*4=144000.
      LIC would deduct 1 premium if you surrender anytime before completing 10 years.

  • http://bankerswall.com/ Neha Sharma

    can any one tell review of Atal Pension Yojana? is it good pension plan?

    • hardik shah


  • http://bankerswall.com/ Neha Sharma

    can any one tell review of Atal Pension Yojana? is it good pension plan?

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