LIC Saral Jeevan Bima (Plan No. 859, UIN 512N341V01) is a non‑linked, non‑participating, pure risk term insurance plan that offers basic life cover without any savings or investment component. It is part of the IRDAI‑mandated “Saral Jeevan Bima” framework, designed so that any person meeting simple age and sum‑assured criteria can buy a straightforward term plan with standard features and wording.
Key features
- Pure protection plan: Only death benefit is payable; there is no maturity benefit if the life assured survives the policy term.
- Standardized product: Features, wording and basic structure are standardized across all insurers as per IRDAI guidelines, making it easy to understand and compare.
- Flexible premium options: Single premium, regular premium and limited premium (5‑year or 10‑year) options are available.
- Policy term flexibility: Policy term ranges from 5 years to 40 years, allowing both short‑term and long‑term cover.
- Basic sum assured band: Minimum sum assured ₹5 lakh and maximum ₹25 lakh, in permitted multiples, subject to underwriting.
- Waiting period: 45‑day waiting period from date of commencement of risk during which only accidental deaths are covered; non‑accidental deaths (other than suicide exclusions etc.) after this period are covered as per terms.
- Available online and offline through LIC branches, agents, and digital platforms.
Eligibility and basic parameters
As per current product information, typical eligibility is:
- Minimum entry age: 18 years (last birthday).
- Maximum entry age: 65 years (last birthday).
- Maximum maturity age: 70 years (last birthday).
- Policy term: 5 to 40 years.
- Minimum Basic Sum Assured: ₹5,00,000.
- Maximum Basic Sum Assured: ₹25,00,000 (₹25 lakh), subject to LIC’s underwriting norms.
- Premium payment term:
- Premium payment modes (for non‑single‑premium options): Yearly, half‑yearly, quarterly and monthly, subject to LIC’s rules and NACH/auto‑debit facilities.
Death benefit and waiting period
LIC Saral Jeevan Bima has a 45‑day waiting period from the date of commencement of risk, during which only accidental deaths are fully covered. The waiting period does not apply on revival; it applies only once at the start of the policy.
During the 45‑day waiting period
If the life assured dies during the first 45 days from commencement of risk and the death is due to causes other than accident, the insurer typically refunds only the total premiums paid (excluding taxes and extras), as per policy conditions. In case of accidental death during this waiting period, the full Sum Assured on Death is payable as defined by the plan.
After the waiting period
If death occurs after the 45‑day waiting period and before the end of the policy term, while the policy is in force, the nominee receives the Sum Assured on Death.
For Regular and Limited premium options, the Sum Assured on Death is generally defined as the highest of:
- 10 times the annualised premium (as per IRDAI standard Saral norms),
- 105% of total premiums paid up to the date of death (excluding taxes, extra premiums and rider premiums), or
- The Basic Sum Assured.
For Single premium, the Sum Assured on Death typically is the higher of:
- 125% of the single premium, or
- The Basic Sum Assured.
There is no maturity benefit if the life assured survives till the end of the term.
Who should consider LIC Saral Jeevan Bima?
- Individuals looking for a simple, easy‑to‑understand term plan in the ₹5–25 lakh range, without complex features.
- Customers who may face eligibility issues in regular term plans because of income, education, occupation or location, but still want basic life cover.
- First‑time insurance buyers who want to start with a standardized, regulator‑defined pure protection product before moving to higher cover or more advanced plans.
- People who prefer a no‑frills safety net for family protection and are comfortable that there is no maturity or surrender value in most situations.
Example: A 40‑year‑old self‑employed individual from a semi‑urban area opts for a ₹15 lakh Saral Jeevan Bima for 20 years with regular premiums, to create a basic protection layer for spouse and children while business income fluctuates.
Important points and disclaimers
Tax benefits are subject to current provisions of the Income‑tax Act (for example sections 80C and 10(10D)) and may change in future; customers should seek personalised tax advice.
LIC Saral Jeevan Bima is a pure term plan with no built‑in savings; in most cases, there is no maturity benefit and limited or no surrender value, as per the policy conditions.
Waiting period and exclusions (including suicide clause) must be explained clearly to clients so that expectations on early‑period claims are realistic.
Actual premium, eligibility and underwriting depend on age, sum assured, term, premium option, and health and lifestyle disclosures.
Clients should read the latest LIC Saral Jeevan Bima sales brochure, Customer Information Sheet and policy document for full terms, conditions and definitions.