Feature of plan: This plan contains good feature of the conventional plans and the flexibility of
unit linked plans. It provides higher cover, smooth return, liquidity and considerable flexibility. In
this plan one has to choose the premium he wants to pay whereas in normal plans one chooses
the S.A. under this plan death cover will be same irrespective of age at entry and term. The sum
payable at maturity however differs for different entry age and terms. This plan is very
appropriate for employees seeking life cover through salary savings schemes.
Surrender value: the policy can be surrender after it has been in force for at least 3 full years.
The surrender value will be the greater then guaranteed surrender value or special surrender
value as given below:
Guaranteed surrender value (GSV): the GSV will be equal to the 30% of the total amount of
premium paid excluding the premium for the first year and all the extra premiums and premium
for accident / term riders.
Special surrender value (SSV): the special surrender value under the policy shall be paid as
the sum of (a) and (b) gives as under:
· Discounted value or accumulated value, as the case may be, of the following: 80% of
maturity S.A. if 4 years premium have been paid, 90% of the maturity S.A. if or more
years but less then 5 years premiums have been paid and 100% of the maturity S.A. if 5
or more years premium have been paid.
· The loyalty additions, if any as announced while declaring the results of the corporation's
valuation as on 31st march, immediately preceding the date of surrender.
Auto cover: the plan offers auto cover of 12 month after the policy has been in force for a
period of 3 years or more.
Flexible term: the policyholder can choose a maximum term but can surrender at any time
without any surrender penalty or loss.
Partial surrenders: the plan will allow partial surrender from 4th year onwards subject to
certain conditions for which please refer to policy document. Due to existence of the flexible term
and partial surrender the policyholder will enjoy a lot of liquidity under the plan. The plan also
provides for 15 days free look period".
Optional rider: term assurance rider, accidental death and disability benefit rider is available by
the payment of an addition premium.
Maturity sum assured (MSA): has to be calculated on the basic premium only, before mode
rebate & death accident benefit.
Death benefit S.A. will be 250 times the monthly basic premium. To arrive at DAB we have to 11
calculate death benefit S.A. e.g. if yearly premium is Rs.6000
The death benefit S.A. = 6000/12 x 250 = 1,25,000 for this DAB will be @ Re.1per thousand
which come out to be Rs.125
Plan parameters
Age at entry: Min.12 yrs (completed) Max. 60 yrs (NBD)
Maturity age: Min.70 yrs
Term: Min.10 yrs Max. 35 yrs
Min. premium
Age 12 to 49:Rs.250 P.M
Age 15 to 60: Rs.400 P.M
Max. Premium: No. Limits
Premium in
Multiples: Rs.50 p.m.
Mode of payment: YLY/ HLY/ OLY/ SSS
Accident benefit: Re. 1extra per
(max. 50 Lac inclusive
all plan)
Policy loan: yes @ 10.5%
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term: yes
Underwriting condition
Form no: 300/340
Age proof: Std/ NSAP-1
Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: Basic SA
Risk coverage: Death benefit S.A. + return of premium paid + LA (if any)
Dating back @ 8%: Allowed
Benefit
Maturity benefit: Maturity sum assured (MSA) + Loyalty additions, if any
Death benefit: 250 times the monthly premium + Return of premiums
(Excluding extra/rider premium and first year premium),+ the Loyalty Addition, if any
Example: Mr. ashok is 25 years old and is working in auto industry. He opts for jeevan saral plan
for 15 years term and chooses monthly basic premium of Rs.500/- after adding DAB premium of
Rs.510 (500 x 250 = 1,25,000 x 1/1000 x 1/12 = 10 + 510). On maturity he will receive
Rs.97655/- as maturity sum assured (MSA) + Loyalty Addition which will be decided by the 12
corporation. If he dies after 4 years, his nominee will get Rs.1,25,000 (250 x 500) + premium
paid for 4 years - first year premium = 1,25,000 + 24,480 - 6120 = 1,43,360/- + Loyalty
Addition, if any.