Tag Archives: LIC Jeevan Saathi review

LIC Jeevan Saathi: Features, Benefits & Illustration

LIC Jeevan Saathi: This is an Endowment Assurance Plan issued on the lives of husband and wife. The plan provides financial protection against death of both the lives. It pays the maturity amount on survival of one or both the lives to the end of the policy term.

Premiums : 
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the term of the policy or till the first death of the lives covered, whichever is earlier.

Bonuses : 
This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Such bonuses are to be added till date of maturity or the second death of the lives covered, whichever is earlier. Final (Additional) Bonus may also be payable provided policy has run for certain minimum period.

Benefits of Jeevan Saathi:

Death Benefit : 
On first death the Sum assured is payable in a lumpsum. If the survivor of the two lives dies thereafter during the remaining policy term, Sum Assured along with the all bonuses is payable again in a lumpsum.

Maturity Benefit :
If one or both the lives survive till the end of the policy term, Sum Assured along with all bonuses declared up to maturity date is payable in a lump sum.

Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Survival benefits:
If one or both the lives survive to the maturity date, the sum assured, along with the accumulated bonus, is payable.

Death Benefits:
In case either of the couple dies during the policy’s term, two things happen. One, LIC pays to the surviving spouse the full sum assured. And, two, the policy continues on the life of the surviving partner without him/her having to pay any further premiums, i.e. the life cover on the survivor continues free of cost.

The sum assured is again be payable on the death of the other partner in case both the husband and wife were to die during the term of the policy. Vested bonus would also be paid along with the sum assured on the second death.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender values are available under the plan on earlier termination of the contract.

Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium.

Illustration of Jeevan Saathi:

Age at entry : 35 years (Equivalent age)
Policy Term : 25 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 5361 /-

End of year
Total premiums paid till end of year

Benefit payable on first death of lives covered

Benefit payable on second death of lives covered during the policy term or on survival of one or both the lives till the date of maturity

Guaranteed

Guaranteed

Variable

Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

5,361

100000

100000

2,100

5,700

102,100

105,700

2

10,722

100000

100000

4,200

11,400

104,200

111,400

3

16,083

100000

100000

6,300

17,100

106,300

117,100

4

21,444

100000

100000

8,400

22,800

108,400

122,800

5

26,805

100000

100000

10,500

28,500

110,500

128,500

6

32,166

100000

100000

12,600

34,200

112,600

134,200

7

37,527

100000

100000

14,700

39,900

114,700

139,900

8

42,888

100000

100000

16,800

57,000

116,800

145,600

9

48,249

100000

100000

18,900

57,000

118,900

151,300

10

53,610

100000

100000

21,000

57,000

121,000

151,300

15

80,415

100000

100000

31,500

85,500

131,500

185,500

20

107,220

100000

100000

56,000

152,000

156,000

252,000

25

134,025

100000

100000

69,500

189,500

169,500

289,500