LIC of India initiated Jeevan Saral Policy as a combination of whole life insurance and endowment plan. This policy is also known as LIC ATM Plan. This is a top plan from LIC of India with benefits of superior savings and risk cover. The special surrender value makes this plan risk free investment.
LIC Jeevan Saral plan is also known as LIC ATM plan. This policy has a unique feature of anytime maturity after a minimum period of 10 years. No charges will be applicable in case of partial or full withdrawal after 10 years. The plan can be keep continue even after partial withdrawal and policy will share bonus facility. life insured can continue the plan by paying premiums every year or can put the insurance policy on hold and will get the loyalty additions even after partial withdraw and the risk cover will also continue as per bond. This policy can be sued as a pension plan or regular saving account. After 10 years in case of nonpayment of premium, policy will be getting the share of loyalty addition after 10 years till the end of actual maturity term.
Not only any time money feature but also the surrender value of the policy makes policy different from others. In case of policy being surrendered after 5 years, policyholder will be not charged any extra surrender charges and full maturity sum assured will be provided in case policy being surrendered after 5 years. Special surrender value also offers 80 % of maturity sum assured and 90% of maturity sum assured return in case policy being surrendered after 3 and 4 years respectively.
Death benefits in Jeevan Saral plan is at its the best. The normal death benefits depends up on monthly premium being paid. It is simply 250 times of your monthly premium. In case of accidental death it will be 500 times of monthly premium after paying double accidental benefit premium charges. Apart from the SUM assured all premium excluding first year premium will be return back along with loyalty additions, if any. This is not a unit linked plan or market base plan. A minimum amount of maturity sum assured provided is defined in the end bond paper at the time of inception. Another part of maturity will be the loyalty additions which are declared from 10th year onwards. These maturity benefits are depend upon up on the corporation earnings. This premiums paid in LIC ATM plan are tax exempted under 80 c and the maturity received will be also tax free under 10 10 D as per income tax act 1961.