The LIC Jeevan Saathi Plus is a unit linked plan which entitles a couple to take an insurance cover for their lives with a single policy. This LIC policy allows the couple to pay the premium either in a single premium where the payment will made lump sum or by making regular payments throughout the term of the policy. The proposer under this policy is called the Principal Life Assured or PLA and the other life (wife/husband) will be called Spouse Life Assured or SLA. Four types of investment Funds are offered under this policy with options of making additional investments such as top – up premiums.
Eligibility Conditions for the LIC Jeevan Saathi Plus
|Minimum Entry Age||After completing 18 years of age|
|Maximum Entry Age||55 years (age closer to birthday)|
|Maximum Maturity Age||70 years (age closer to birthday)|
Policy Terms for the LIC Jeevan Saathi Plus
|Regular Premium||10, 15, 20 years|
|Single Premium||10 – 20 years|
Premium Payments Offered by the LIC Jeevan Saathi Plus
|Minimum Premium||Regular Premium (other than monthly ECS mode) –
|Minimum Sum Assured||
|Maximum Sum Assured||Inclusive of PLA + SLA + satisfying the minimum sum assured condition|
Note the following -
- If the Minimum Sum Assured is not in multiples of Rs. 5000, in that case that it will be rounded off to the nearest multiple of Rs. 5000
- Annualized Premiums must be paid in multiples of Rs. 1000 (does not include ECS monthly)
- For monthly ECS, the premium must be paid in multiples of Rs. 250
Key Features of LIC Jeevan Saathi Plus
|Type of Plan||Unit linked plan for couples under a single premium|
|Premium Payment options||Yearly, Half – Yearly, Quarterly, Monthly(only through the ECS mode)|
|Top – Up / Additional Premium||Multiples of Rs. 5000|
|Partial Withdrawals||In the form of fixed amount or fixed number of units|
|Switching between fund types||
|Increase of Risk Covers||Not allowed|
|Decrease of Risk Covers||Allowed once a year. However, once reduced, cannot be increased or restored|
|Option to continue the cover after revival period||Must be exercised at least 1 month prior to the completion of revival period|
|Cooling off period||Within 15 days|
|Reinstatement||A surrendered policy cannot be reinstated|
|Revival||Upon the lapse of the policy, it can be revived during a 2 year period starting from the date of the first unpaid premium or before the maturity, depending on whichever is earlier|
|Settlement Option||Spread over a period not exceeding 5 years|
What you need to know about LIC Jeevan Saathi Plus
- The PLA will choose the Sum Assured (level of cover) for both, the PLA and the SLA. This will however depend on the following –
- Whether a Single Premium or a Regular Premium is chosen
- The age and the amount of premium
- In case of demise of the PLA during the term of a Regular Premium policy, the plan will provide a waiver on all future premiums including any outstanding premiums if life cover is in force
Charges under this policy
Allocation Charge for Single Premium are as follows -
|Premium Band||Allocation Charge|
|Up to Rs. 15, 00, 000||4.25 percent|
|Rs. 15, 00, 001 and ABOVE||4 percent|
Allocation Charge for Regular Premium are as follows -
|Premium Band||Allocation Charge - First Year||Allocation Charge - Second and Third Year||Allocation Charge - Thereafter|
|Rs. 10, 000 up to Rs. 1, 50, 000||29% per annum||5% per annum||2.50% per annum|
|Rs. 1. 50, 001 up to Rs. 2, 50, 000||28% per annum||5% per annum||2.50% per annum|
|Rs. 2, 50, 001 and ABOVE||27.50% per annum||5% per annum||2.50% per annum|
Note - Top - Up Allocation Charge is 1.25%
|Policy Administration Charge||
|Fund Management Charge||
|Switching Charge||The first 4 switches within a policy year are free of charge. Subsequently, Rs. 100 per switch will be charged|
|Bid / Offer Spread||No Charge|
|Surrender Charge||No Charge|
|Miscellaneous Charge||Rs. 50|
|Service Tax Charge||The current Service Tax effective rate is 10.30%|
Right to Revise Charge
This implies that the corporation has the right to revise any or all of the aforementioned charges to a maximum limit mentioned below (excluding the service tax) -
|Policy Administration Charge||
|Fund Management Charge||
|Switching Charge||Shall not exceed Rs. 200 per switch|
|Miscellaneous Charge||Shall not exceed Rs. 100|
Payment Options for the Premiums offered by LIC Jeevan Saathi Plus
The PLA can pay the premiums regularly using the following options –
- Half – Yearly
- Monthly intervals throughout the term of the policy (only through the ECS mode)
The PLA can also choose to pay a Single Premium
Advantages and Benefits of LIC Jeevan Saathi Plus
The LIC Jeevan Saathi Plus provides the following key benefits
Additional Premium or Top - Up Feature -
The PLA can top – up the premium in multiples of Rs. 1000 at any given time throughout the term of the policy without having to increase the sum assured. Top – up can only be paid when all due premiums under the respective policies have been paid – Yearly, Half – Yearly, Quarterly or Monthly (ECS) mode of payment. Please note that the aggregate of the top – up premiums cannot exceed 25% of the total amount under the regular premiums that have been paid until that date or 25% of the single premium. Top – up premiums are not allowed after the death of the PLA.
Partial Withdrawals -
The PLA can partially encash the units after the completion of the third anniversary of the policy provided the following criteria have been met –
- For regular premium policies, if the premium has been paid for lesser than 3 years and no further payments have been made towards the premium, the partial withdrawals will not be allowed.
- For regular premium policies wherein the premiums for at least 3 years have been paid, partial withdrawal will be allowed provided a minimum balance of 2 annualized premiums have been maintained in the Policyholder’s Fund Value.
- Fore single premium policies, partial withdrawal is allowed provided a minimum balance of Rs. 5000 is maintained in the Policyholder’s Fund Value OR 10 percent of a single premium is maintained, depending on whichever is higher.
- For top – up premiums, partial withdrawal from the Policyholder’s Fund Value will be allowed only after completing 3 years from the allocation date of that top – up premium. This condition is not applicable if the top – up premiums have been paid during the last 3 years of the term of the policy.
- In case of death benefit sum assured is being transferred to the Policyholder’s Fund on either the demise of the PLA or the SLA, the same can be withdrawn from the fund without any restrictions of the 3 year waiting period.
- After the demise of the PLA during the term of the policy, the SLA can partially withdraw the units provided the aforementioned conditions have been satisfied.
Partial withdrawals can be in the form of fixed number of units or fixed amount.
The policyholder – the PLA or the SLA after the death of the PLA is allowed to switch between any types of funds during the term of the policy. Within the given year of a policy, 4 switches can be made free of cost. Subsequently, the charges are Rs. 100 per switch.
Increase and Decrease of Risk Covers -
Increase of covers is not allowed under this policy. Decrease of the risk cover can be made by the PLA once a year during the term of the policy if all the due premiums under this policy have been paid. Note that once the risk cover has been reduced, the same cannot be restored or increased in any way.
Option of Death Benefit (sum assured) transfer to Policyholder’s Fund -
In case of death of either the PLA or SLA, the surviving individual will have the option of not taking the Death Benefit (sum assured) immediately and instead transferring this amount to the policyholder’s fund. Note that this option must be exercised along with the death intimation. This amount can then be withdrawn partially or fully from the policyholder’s fund through Partial Withdrawals at any given time in the future without the restriction of the 3 year waiting period.
Continuation of the Cover after the Revival Period -
The PLA can continue the cover of the policy beyond the revival period without reviving the policy or paying any further premiums if the premiums for at least 3 years have been paid under the policy. The PLA must exercise this option at least 1 month before the completion of the revival period. If the PLA avails this option, the cover under the policy will be continued by deducting all the relevant charged from the policy fund. This option will be continued until the Policyholder’s Fund Value reaches 1 annualized premium. After the revival period elapses, no further premiums will be allowed to be paid.
Discontinuing Premiums -
If the premiums have not been paid within the grace period under the policy, the said policy will lapse. This applies to yearly, half – yearly, quarterly and monthly (ECS). The lapsed policy can be revived within a period of 2 years from the date of the first unpaid premium.
If 3 years’ of premiums have been paid and the policy lapses, the Premium Waiver Benefit cover and the Life Cover will continue during the revival period. During this period, the mortality charges and other additional charges will be taken out of the Policyholder’s Fund Value by cancelling appropriate units. This will continue to provide risk covers for -
- 2 years from the date of the first unpaid premium OR
- Until the maturity date OR
- Until a period where the Policyholder’s Fund Value reduces to 1 annualized premium, whichever from the above is earlier
Death Benefits that will be payable under different contingencies
- Demise of the PLA while the SLA is alive – Sum Assured as applicable to the PLA will be payable to the SLA + future payment of premiums under the policy will be waived.
- Demise of PLA after the demise of SLA - Sum Assured as applicable to the PLA + policyholder’s fund value with an amount that is equivalent to all future premiums will be payable and the policy will be terminated.
- Demise of SLA while the PLA is alive - Sum Assured as applicable to the SLA will be payable to the PLA
- Demise of SLA after the demise of PLA - Sum Assured as applicable to the SLA + policyholder’s fund value with an amount that is equivalent to all future premiums will be payable and the policy will be terminated.
- Simultaneous death of the PLA and SLA – Sum Assured as applicable to both, PLA & SLA + policyholder’s fund value with an amount that is equivalent to all future premiums will be payable and the policy will be terminated.
- Upon maturity – The Policyholder’s Fund Value
- Upon Surrender (this includes Compulsory Surrender) - The Policyholder’s Fund Value. However, the surrender value will only be paid after completing 3 policy years
Upon maturity of the policy, the policyholder who is the PLA or SLA (after the demise of the PLA) can exercise the “Settlement Option” wherein the policy money will be paid in installments that will be spread over a period not exceeding 5 years from the maturity date. When the “Settlement Option” is chosen, only the Fund Management Charge will be deducted, not other charges will be deducted. No life cover will be provided during this period.
Exclusions under the policy
If at any given point in time within 1 year, the PLA commits suicide, no claim will be entertained by the corporation except to the extent of the Policyholder’s Fund Value upon death and if at any given point in time within 1 year, the SLA commits suicide, no claim by virtue will be entertained by the corporation under this policy.
The policy will lapse if the premium is not paid within the days of grace. The policy can be revived by the PLA during a 2 year period starting from the date of the first unpaid premium or before the maturity, depending on whichever is earlier. The period during which the PLA can revive the policy is referred to as the “Revival Period” or the “Period of Revival”.
There is no loan available under this policy
Assignment is available under this plan
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017