LIC’s Jeevan Saral plan is a exclusive plan having nice features of the regular plans and the flexibility of unit linked plans. This plan provides life cover | a smooth income, | liquidity and | lots of flexibility
BENEFITS:

On death of policy holder:
1.    250 times the monthly premium, in addition
2.    give back of premiums not including extra/rider premium and first year premium, as well as
3.    the loyalty addition, if any.

On Maturity i.e. if policy holder survives till the end of the policy term:
1.    Guaranteed maturity sum assured, in addition
2.    The Loyalty Additions, if any

Special Features:
• High life cover at minimal premium
• Extended life cover for one year after three years premium payment.
• Optional additional life cover through Term Riders.
• The policyholder can opt a maximum policy term but can surrender at any time without any surrender fine or loss after 5 years
• Unlimited withdrawals through partial surrendering.

Common Queries :

I am 35. I have already taken LIC Jeevan Saral policy last year, with a monthly premium of Rs. 3,000. I am planning to take one more Jeevan Saral policy, with a monthly premium of 2,000. I want to have the policies for 15 years term. if I surrender the policies in 2026, What is your opinion on Jeevan Saral? What is the predictable loyalty addition after 15 years? The chart show a 10% internal rate of return. Is this sensible? Prathamesh

LIC Jeevan Saral is an endowment assurance plan. The loyalty addition is not guaranteed or assured but perhaps payable from the completion of 10th policy year onwards depending on the performance of LIC. The predictable investment return of 10% is not guaranteed. I suggest you to read and understand the benefits of the plan before buying the policy.

I started the Jeevan Saral policy in 2008 with an yearly premium of Rs. 48,000. The lock-in period of three years gets over in Dec 2011. If I surrender this policy, what would be the surrender value and is there any tax payable on that amount receivable.?  Niraj

If you surrender your Jeevan Saral policy after completion of the 3 years lock-in period but before the end of four years from the date of commencement of policy, you will get 80% of the maturity sum assured value applicable in that year, provided three full-year premiums have been paid. The surrender value of your policy will be exempted u/s 10 (10 D) of the IT Act, 1961.