A husband and a wife both need insurance cover and so joint life insurance plans are offered by insurance companies. These plans cover a married couple under a single policy thereby proving a convenient way to fulfil the insurance needs of both individuals under a single policy. LIC Jeevan Saathi Plan is one such joint life policy for a married couple.
Overview of LIC Jeevan Saathi Plan
LIC Jeevan Saathi policy is a joint life endowment plan which can be taken to cover both the husband and wife under the same policy. The plan is a savings oriented life insurance plan which offers either a death benefit or a maturity benefit.
Key features of LIC Jeevan Saathi plan
Here are some features which make LIC Jeevan Saathi plan unique –
- Being a participating life insurance plan, this plan earns simple reversionary bonuses every year. Moreover, a final additional bonus might also be paid on death or maturity
- Even after the death of either of the insured, the plan continues to run till the full policy tenure
- The double death benefit is paid if the surviving spouse also dies during the policy period
- The maturity benefit is guaranteed even if either one of the insured survives till maturity
- There is also an optional rider under the plan which can be bought by paying an additional premium
- Premiums are waived after the first death of the insured
Benefits offered by LIC Jeevan Saathi
Here are the benefits that the plan promises to pay –
- Death benefit
If during the term of the policy, either of the insured members dies, the sum assured is paid immediately to the surviving spouse. The plan, however, continues since one member is still alive. The future premiums are waived off. Thereafter, if the surviving member also dies during the term of the policy, the sum assured would be paid again along with the vested bonuses and any financial additional bonus.
- Maturity benefit
If both or either one of the members is alive on the completion of the policy tenure, the sum assured and vested bonuses are paid as maturity benefit.
- Optional benefit
The plan also has an optional rider which you can take as a supplementary cover. To opt for the cover you would have to pay an additional premium.
- Surrender value
The policy can be surrendered before the completion of the chosen tenure. When the policy is surrendered, a surrender value would be paid if the premiums for the first three policy years have been paid. LIC pays either the guaranteed surrender value or the special surrender value, whichever is higher, as the surrender benefit. The guaranteed surrender value is calculated as 30% of the aggregate premiums paid till surrender excluding the first year premium. The special surrender value, on the other hand, is not guaranteed. It is determined by LIC from time to time depending on its profit experience.
How does LIC Jeevan Sathi Plan work?
To understand the working of LIC Jeevan Sathi plan, let’s take an example. Suppose, the equivalent age of the insured individuals is 35 years and the policy is taken for a period of 25 years. The sum assured selected is INR 1 lakh for which the annual premium works out to be INR 5361. Here’s how the plan would work –
- If during the policy tenure, either of the insured members dies, the sum assured of INR 1 lakh would be paid
- Future premiums would be waived off and the policy would continue to run till the chosen tenure
- If the other surviving member also dies, INR 1 lakh is paid again with the vested bonuses and a final additional bonus. On the death of the second member, the plan would be terminated
- If, however, one or both members survive the duration of the plan, the sum assured, vested bonuses and a final additional bonus would be paid on maturity of the policy
How to buy LIC Jeevan Sathi plan?
LIC Jeevan Sathi policy has been withdrawn by LIC and is no longer available in the market. You cannot, therefore, buy a new plan. There are, however, other endowment policies offered by LIC which you can choose instead for insurance and savings. These policies can be bought through LIC’s branches or from licensed LIC agents.
Alternatively, you can find the best joint-life endowment plan on Turtlemint. Turtlemint is partnered with leading life insurance providers that offer some of the best endowment policies in the market. You can just visit www.turtlemint.com/life-insurance, choose the type of insurance plan that you need, fill in your details and you would be able to check out the best plans available. Turtlemint also allows you to compare the available plans on their coverage and premiums. You can, therefore, choose the best policy through Turtlemint’s website by comparing. Buying the best policy is also easy as Turtlemint allows you online purchases. Just fill up an online proposal form and pay the premiums through any digital method and your policy would be bought. No need to visit the offices of the insurance company or look for insurance agents. Turtlemint’s website takes care of everything and you can buy the policy of your choice.
Making a claim under the LIC Jeevan Shanti Plan
In case of a death claim, the survivor should inform LIC of the death of the insured spouse. Claim Form 3783 needs to be filled and submitted with the following documents –
- Death certificate
- Policy bond
- Police FIR, coroner’s report, post mortem report, etc. in case of accidental death
LIC would verify the claim and the documents and then pay the death benefit. Premiums would be waived and when the plan matures, the maturity benefit is paid. For claiming the maturity benefit the claim discharge voucher is to be filled and submitted along with the identity proof of the claimant. Bank details are also required so that the claim is forwarded directly to the bank account.
The claim can also be made through Turtlemint. Turtlemint gives claim assistance to its customers and if you have bought the policy from Turtlemint you can easily get your claims settled. Just inform Turtlemint at 1800 266 0101 or through a mail at firstname.lastname@example.org and the company would take up your claim with LIC. The claim process would be followed by Turtlemint and you would get the settlement of your claim quickly.
Since LIC Jeevan Sathi is a joint life plan, it covers two individuals under the policy. Both these individuals might have different ages and so LIC calculates an equivalent age considering the ages of both the individuals. The premiums are then calculated on this equivalent age.
You can pay the premiums annually, monthly, quarterly or half-yearly as per the mode which suits you.
The rate of simple reversionary bonus allowed under the plan is not fixed beforehand. It depends on the profit experience of the insurance company. The bonus is declared by LIC after the completion of each financial year and the rates vary every year.