Calculation of Sum assured for LIC Jeevan Saral

POSTED BY emailarpitarora ON September 6, 2012 2:31 am COMMENTS (34)

Hi Manish/Team,

I request your help on the below mentioned query:

I have purchased a Jeevan Saral (With profits) policy from LIC through my agent. My Annual premium (I pay it every half year a Rs. 30325) is Rs. 60650 and term is 21 years. Before I purchased this policy, my agent had shared a Return’s spreadsheet with me that showed me the return in 21st year to be Rs. 3105748, it is shown in the same spreadsheet that effective yield without tax benefit is 7.6% and with tax benefit it is 10.41%.

After a few days, I recieved the policy document which had following details:

Maturity sum assured: Rs. 1467850
Death Benefit sum assured under main plan – Rs. 1250000
Accident benefit sum assured – Rs. 1250000

I got concerned reading these figures as nowhere in the policy the sum assured amount mentioned was close to what was shown to me i.e. Rs. 3105748. I called up my agent to check the same to which He said that LIC may have published the figure just for the sake of it and the Return spreadsheet that He had shared with me was on a conservative side and eventual return at the end of 21st year will be much more than Rs. 3105748. I was not convinced with his statement however trusted his words as He is like a family friend.

Now I needed your help to figure out if the figure (maturity amount) He shared with me would be close to what I would get at maturity. Please advise. Also, I have couple of other questions:

1. Is Jeevan Saral a good policy to go with?
2. Which is the best policy to be bought for your child?

Thanks in advance!

Arpit Arora

34 replies on this article “Calculation of Sum assured for LIC Jeevan Saral”

  1. saya says:

    i got the policy paper after 15 days itself. How come they given short term. Even LIC is fully black box. No one knows what is happning, evan they have given online benifit but it is only for pay premium and get the premium recipt.

    1. Hi saya

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

  2. shivaji patil says:

    I HAD PURCHASE A JEEVAN SARAL POLICY 7 YEARS BEFORE & MY AGE IS 26YEARS AT THE TIME . I HAVE PAID PREMIUM RS.12010.00 PER YEAR. PLEASE GUIDE ME MATURITY SUM ASSURED FOR 10 YEARES&15 years

    1. Hi shivaji patil

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

      1. Arup Basu says:

        Please reply to the point, don’t reply diplometicaly

  3. Annamalai says:

    Sir i have a lic jeevan saral policy. I have paid premium yearly Rs.36000. Policy term 20 Years, Please tell me maturity amount & Benefits?

    1. Hi Annamalai

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  4. Samir says:

    Sir i have a lic jeevan saral policy. I have paid premium half yearly Rs.9704. Policy term 35 Years, Please tell me maturity amount?.

    1. Hi Samir

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  5. SauravJain says:

    For all JEEVAN SARAL investors,

    Please do not panic and DO NOT SURRENDER your policy before 10 years of completion. You will get NOTHING.
    Let me explain quickly.
    This policy’s maturity benefit says SA+LA if any. LA declared in 2015 was approximately between 300 to 500 per 1000 depending upon the premium amount you paid. 500 is for premiums paid above Rs 50000 per year.

    Suppose your SA is 500000 then after 10 years your return could be approximately -> SA is (500000),
    LA is (500000/1000)*(500) = 250000,

    So SA+LA = Rs.7,50,000/- approximately.

    I am just a passionate investor. This is my personal understanding and view on Jeevan Saral. I am no expert, So kindly consult your Advisor/Agent.

    Stay Healthy!

    1. Sajeendranath S says:

      Hi Saurav,

      I have taken the Jeevan Saral Policy 3 years ago and pay a monthly installment of 5104 for a term period of 16 years. The agent assured me a guaranteed amount of 23 lakh however the Maturity Sum assured + Death Benefit Sum Assured + Accidental Benefit Sum Assured + Term Rider Sum Assured is 1060050 + 1250000 + 1250000. Where the term rider is not mentioned.
      After going through multiple forums its very obvious that I have made a made investment and looking for a way out.
      I have two queries and hoping you can help me with it.

      1. The above calculation for LA is after 10 years. So if an individual decides to surrender the policy after 10years. Would he get the same amount as when the policy maturity date; for example 16 years.?

      2 . What is the advantage of LA if an individual surrenders the policy after 10 years or of he decides to keep it for 16 years as in my case.

      Kindly help me in clearing out the confusion as I am very disappointed and trying to salvage whatever is left.

      Thanks,

      Sajeendranath S

  6. SUNILKUMAR says:

    Hello Experts,
    I need one clarification regarding LIC Jeevan Saral (Table No-165) Plan. I am very confused about the returns. Please guide me. I am posting the details and queries below:

    LIC Name: LIC Jeevan Saral (Table No-165) Plan
    LIC Opened On – Nov,2013.
    Payment – 30,325 (Mode- Half Yearly), So, yearly payment is Rs. 60,650
    Policy Term – 25 years
    Sum Assured mentioned in the LIC paper – 12,50,000

    My Question:
    1) If i continue to pay premium & survive till next 25 years, how much lumpsum amount i will get ?
    2) If i continues only till 10 years and would like to withdraw/close fully, how much lumpsum amount i will get?

    Please guide me how they calculate the Return amount

    1. Hi SUNILKUMAR

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  7. bhupendra says:

    i m bhupendra , i bought jeevan saral with profits, my half yearly premium is 6065 /- something, term is 35 years, so what amount i will get after 35 years?? in table chart they are showing 3671102/-. but in document the sum assured is only 5 lac and something. so want to know what is the final amount i will get After 35 years

    1. Hi bhupendra

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  8. AJAY says:

    I HAD PURCHASE A JEEVAN SARAL POLICY 7 YEARS BEFORE & MY AGE IS 30 YEARS AT THE TIME . I HAVE PAID PREMIUM RS.12010.00 PER YEAR. PLEASE GUIDE ME MATURITY SUM ASSURED FOR 10 YEARES.

  9. Srini says:

    Hi,
    I took Jeevan Saral policy some time back in 2010 and paying Rs. 60,050/- as premium. Till now I paid 5 for years. When I verified in website sum assured is showing as 12,50,000 which is less than the amount which I will be paying for 30 terms. If I continue for 30 terms I end up paying 18,00,000/-
    Also vetted bonus is showing as 0 and asking to contact the branch which I am not sure about it.
    Is the amount sum assured is what I get at the time of maturity of the policy? Is Jeevan Saral is reliable policy. My agent showed me good amount of figures at the time of buying the policy.

    1. Hi Srini

      I think you should make it paid up or surrender the policy.

      Manish

    2. Chetan says:

      Srini also check your Guaranteed Maturity Sum assured which is printed on Policy bond also misguided by LIC OF INDIA . A person who having 10 years Jeevan Saral Policy Ex. Sum Assured 500000 (MSA printed on Policy bond is 240200 (This guaranteed on Legal Bond by LIC OF INDIA) and premium Rs.24020/-

      Now See how misguided by LIC OF INDIA
      Total premium paid : Rs. 240400/- in 10 years
      As per LIC Policy Bond MSA : 240200/- + Loyalty Addition Appx 60000/- means total 3 lacs
      But LIC gave maturity Rs. 830000/- (MSA 61000/- & LA 21000/-) if you want proof pleas send us personal mail or check your own policy to connecting Branch

      What the fucked happened LIC Never intimated about mistake since 10 years completed

      Now we are going to suit file against LIC OF INDIA even I am LIC Agent since 15 years
      Who wants to Join us please mail us on our mail ID

      1. vasu says:

        Dear Chethan,

        Have you got this resolved ? even in my case also LIC is saying they have made some typo error in BOND and needs to correct in bond and asked us to submit the bond.

        Please let me know progress in your enquiry

        mail me on vasupoojary@rediffmail.com

        thanks

        Vasu

      2. Prabhu says:

        Hi self also purchased this policy sum assured. 3750000 .pls advice whether to continue or not, bit confused

      3. satya says:

        Really LIC is playing with customers like that only. They are not disclosing anything and when you will go for withdraw than you will now what is happening in black sea. Which is not at all favourable.

  10. Prem says:

    Sir i have a lic jeevan saral policy(with profit). I have paid premium of six months and aftet that no premium were deducted from my account. I complained to my lic agent but he making me fool.the starting six month i had paid him in cash and i have receipt also.so advice me what to do? Should i stop my lic or continue. If i stop may i get my money.

    1. First check if your payment was done by agent or not ?

  11. Rudra says:

    I purchaged jeevan saral in nov 2012 with yearly pemium of rs 60050. It come to my knowledge that return is not as shown to me by agent. Now I want to surrender this policy. Please tell me when to surrenderthis policy so that there is minimum loss to me. Thanks

    1. Prabhakar says:

      It is not beneficial to surrender your policy before 10 years as you will get only 30% of your premium paid that also if you have completed 3 years from the commencement date…after 10 years you will get the loyalty benefits also…after a lot of research on net i could conclude this….for exact clarification better contact your agent…Think before surrendering your policy …you can avail loan against this policy…

  12. Dear Arpit Arora, please read now all the prev. discussions on Jeevan saral in the forum itself. The data sheet shared with you by your money friend (you think he is your family friend but truth is he is simply the friend of your money) is a false statement nothing else.

    If you still want to believe him, so be it. My personal choice for you ‘ll be to simply surrender the policy in the free look period if it’s not over yet.

    Purchase a good term cover of at least 15 times of your yly income & start investing in pure investment oriented instruments like PPF, MFs, FDs for your kid.

    Thanks

    Ashal

    1. emailarpitarora@gmail.com says:

      Hi Ashal,

      Thanks for all your responses!!! Really appreciate it.

      Can you help me understand one more thing? My policy is not in free look period and I have so far paid Rs. 30325 as my half year installment. Can you guys please advise that if I stop paying my premium now, what will happen to my policy and money paid?

      Will I be able to get this money back after a certain period of time?

      Regards, Arpit

      1. Dear Arpit Arora, please do understand, the 1st year prem. (actually 1/2yly prem. in your case) is almost gone in your case. Please treat this loss as your lesson for your future. Yes I do know it’s a hard lesson but life is like that only. In the past (10-12Y ago), I had also learnt my own lessons by burning my fingers.

        The way ahead is clear to you – please purchase a good sum assured term cover & divert your savings in pure investment instruments.

        Thanks

        Ashal

  13. bharat shah says:

    for child security, don’t go for any so called child plan. better go for the term life insurance plan for the life of the earning parent/s of suitable a/m plus the suitable investment/saving plan depending upon the risk profile of the earning parents for that (child’s related ) goals.

  14. Deepak R khemani says:

    Sorry! The reply should have been addressed to ARPIT ARORA

    1. emailarpitarora@gmail.com says:

      Hi Deepak & Everyone,

      Thanks for all your responses!!! Really appreciate it.

      Can you help me understand one more thing? My policy is not in free look period and I have so far paid Rs. 30325 as my half year installment. Can you guys please advise that if I stop paying my premium now, what will happen to my policy and money paid?

      Will I be able to get this money back after a certain period of time?

      Regards, Arpit

  15. Deepak R khemani says:

    HI Manish,
    Long question and a slightly long answer, Here Goes,
    What the agent has shown you is a chart assuming a growth of 10% per year,
    What is mentioned in the policy document is MSA(Maturity Sum Assured), that is the amount assured to you if you pay all your premiums on time for the period chosen by you
    i e 21 years. It does not include the Loyalty additions which will be declared over the term and since it is not known how much will it be it is not mentioned on the policy document.

    The Sum assured for Jeevan Saral for a payment of 60,650/= in a year is as mentioned by you Rs 12,50,000/= which means that your life is covered for 12,50,000/= or in other words if death takes place during the term your nominee will get 12,50,000/= PLUS return of all premiums paid(MINUS FIRST YEAR) and any loyalty additions.
    Whether this policy is suitable for you is for you to decide, that must have been the first consideration before you bought the policy,
    If it is less than 15 days since you RECEIVED the policy and you feel it is not suitable for you, you can cancel it in the free look period.
    A child plan is a different discussion altogether, wherein you have not mentioned all the details.
    I hope this answers your queries.

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