LIC Jeevan Saathi is an endowment plan which insures the lives of husband and wife jointly. The policy offers comprehensive coverage and financial protection to the policyholders. The policy pays the death benefit for both husband and wife if died during the policy term. The maturity benefit is paid even if any one of them or both partners are alive till the end of the policy term. The policy is also popular as a double death benefit plan.
Under LIC Jeevan Saathi policy, if any of the wife or husband dies during the policy term, the sum assured is paid in a lump sum. However, the policy continues, and future premiums are waived. If the last survivor also dies during the policy term, the sum assured is paid to the nominee along with the accrued bonus and the plan comes to an end. However, if one or both the policyholders outlive the policy term, the sum assured along with accrued bonus is paid, and the policy comes to an end.
Following are the salient features of LIC Jeevan Saathi Plan
Death benefit: Upon the death of one of the policyholders, the sum assured is payable as lumpsum to the beneficiary. Upon the death of the second policyholder, the lump sum benefit along with the bonuses are paid to the beneficiary. In the event of the first death, the future premiums are waived off and paid by the insurance company. The survivor continues having a life cover for the rest of the policy tenure without paying any future premiums.
Maturity benefit: In case either one of the two or both the life insured survives till the end of the policy term, the sum assured along with bonus up to the date of maturity are given as a lump sum benefit.
Survival benefit: The sum assured along with accrued bonuses are payable to the policyholders as survival benefit.
| Particular | Criteria |
|---|---|
| Minimum entry age | 18 years |
| Maximum entry age | 55 years |
| Maximum age at maturity | 70 years |
| Policy term | Regular premium: 10, 15 and 20 years Single premium: 10 to 20 years |
| Premium payment mode | Yearly, half-yearly, quarterly, monthly and single premium option |
Following is the premium details for a regular premium option.
| Premium payment term | Minimum Premium Amount |
|---|---|
| 15 to 20 years | Rs. 10,000 (Rs. 1000 for monthly mode) |
| 10 years | Rs. 15,000 (Rs. 1500 for monthly mode) |
| Single premium mode | Rs. 40,000 |
Below is the illustration for a healthy non-tobacco user (male and female) opting for a sum assured of Rs. 1 lakh with policy term and premium payment term of 25 years. The premium depending on their ages:
| Age | Annual premium |
|---|---|
Husband 30, Wife 25 |
Rs. 4523 |
Husband 30, Wife 30 |
Rs. 4711 |
Husband 40 Wife 30 |
Rs. 5531 |
Surrender benefit: The policyholder has an option to surrender the plan after completion of minimum three policy years. The Guaranteed Surrender Value (GSV) that equal to 30% of the total premiums is paid. However, the premiums paid in the first year are excluded from the calculation of surrender benefit.
In most cases, the company provides a special surrender value that is calculated based on the term for which the policy was in force and the premiums paid. The special surrender value is payable only if it is higher than or equal to the guaranteed surrender value.
Simple Reversionary Bonus: At the end of every financial year, the insurance company will declare a simple reversionary bonus. The bonus is calculated and announced per thousand of the sum assured.
The final bonus: The company may pay a final bonus if the policy is in force for a certain period specified by the company in the policy document.
Tax benefits: Premiums paid towards LIC Jeevan Saathi Policy are eligible to avail tax benefits under Section 80C of the Income Tax Act, 1961. The benefits availed from the policy are also eligible for tax exemption as per Section 10(10D) of the Income Tax Act, 1961. Grace period: Policyholder is given additional time to make payment after premium due date when the insurance policy is in-force with risk cover. LIC Jeevan Saathi policy offers a grace period of 30 days for plans with yearly, half-yearly, and quarterly premium payment frequencies. The grace period for plans with a monthly premium payment frequency is 15 days. The insurance policy remains in force during the grace period, and the insurance company is liable to honour the claim, if it arises.
Policy revival: If premium remains unpaid within the grace period, the policy is subject to lapse. However, the policyholder has an option to revive a lapsed policy within the revival period as specified by the insurance company. In order to restore a lapsed policy, it is mandatory to pay all due premiums and corresponding taxes along with the applicable interest. LIC Jeevan Saathi policy offers two years of revival period from the date of first unpaid premium. Once the policy is restored, all contractual benefits are reinstated.
Rider: The policy offers an in-build rider that is premium waiver rider. If any of the wife or husband dies during the policy term, the sum assured is paid to the surviving partner, and the policy continues. Under this rider, the future premiums are waived off and paid by the insurance company.
Accidental death benefit rider- Sum assured is paid to the beneficiary if the policyholder dies due to an accident. The rider can be availed by paying a nominal premium of Rs. 2 per Rs. 1000 sum assured. In case either of the life insured dies due to an accident, his/her spouse will receive:
Loan facility: Policyholders can avail loan facility for an amount of up to 80% of the surrender value as loan. It is possible to avail a loan against the policy once it reaches a surrender value.
Life Insurance Corporation of India has been serving Indian customers for over 60 years. The company has always successfully maintained its reputation when it comes to providing the best services to its customers. The company has a good claim settlement ratio in the past years. It is not too much to say that LIC is one of the most preferred insurance companies in the country. The company has several branches throughout the country, which makes it easy to communicate with the officials.
Applying LIC Jeevan Saathi Plan is simple and effortless. To begin with, the customer needs to submit the following documents to the insurance company. These documents include:
Age proof: Birth certificate, driving license, passport, school or college certificate and PAN card can be submitted as a valid age proof. Identity proof: Passport, Aadhaar card, PAN card, Voter ID, or driving license can be submitted as a valid identity proof.
Address proof: Utility bill, Aadhaar card, or bank account statement, bank passbook can be submitted as an address proof.
Along with the photocopies of the documents listed above, the customer has to fill up an application form and also provide self-attested photocopies of the mentioned KYC documents.
Suicide clause: In case life insured dies due to suicide within 12 months from the date of commencement of the plan, the nominee is entitled to receive 80% of the premiums paid. In case the policyholder commits suicide within 12 months from the date of revival, either 80% of the total premiums paid till the death or surrender value, whichever is higher is payable.
LIC Jeevan Saathi is a double cover joint endowment policy that offers dual benefits. Unlike many other joint plans that terminate upon the demise of any of the partner, LIC Jeevan Saathi not only provides financial security against the death of the policyholder, but also provides a lump sum maturity amount as survival benefit to one or both the partners at the end of the policy term.
In the unfortunate event of the demise of any of the partners, the sum assured will be paid to the surviving partner and the coverage will continue to remain in force. The surviving partner shall continue to be covered under the plan during the policy term, without having to pay further premiums. In case of the untimely demise of the second partner during the policy term, the entire sum assured along with applicable bonuses is paid to the nominee.
The premium costs of Rs. 4711 is for Rs. 1 lakh sum assured, where the policyholder has an option to choose the premium payment mode as per his/her convenience. Policyholders can choose premium payment mode, premium payment term and the sum assured as per their requirement. The policy offers a free-look period at the time of policy commencement and a grace period to pay the due premiums in order to keep the policy active. The plan can be surrendered once three full year’s premiums are paid. The benefits received and the premiums paid towards the policy are eligible to receive tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.
