LIC Jeevan Saathi (Plan 89) is a participating joint life endowment insurance policy introduced by the Life Insurance Corporation of India (LIC) to provide comprehensive financial protection and long-term savings for married couples. The policy combines life insurance coverage with wealth creation through bonus participation, ensuring financial security for the surviving spouse while helping families achieve their long-term financial goals. Although the plan is no longer available for new purchases, it continues to provide valuable benefits to existing policyholders.
Purpose and Objectives: The policy is designed to provide financial security, life insurance protection, and systematic wealth creation for couples.
Participating Plan: A participating plan allows eligible policyholders to share in LIC’s profits through declared bonuses.
Joint Life Insurance: Joint life insurance provides life cover to both husband and wife under a single insurance policy.
Financial Protection: The policy offers financial support to the surviving family members through policy benefits in the event of an insured contingency.
Savings Component: The policy helps build long-term savings by combining regular premium payments with bonus accumulation.
Current Status: LIC Jeevan Saathi is discontinued for new purchases but continues to provide benefits to existing policyholders.
Ideal Use Case: The policy is suitable for married couples seeking both insurance protection and long-term financial planning.
Long-Term Value Proposition: The policy delivers lasting financial value by combining life insurance, disciplined savings, and bonus participation over the policy term.
2. Key Features and Highlights
LIC Jeevan Saathi offers a combination of life insurance protection and long-term savings through a single joint life policy. Its key features are designed to provide financial security, wealth creation, and flexible policy benefits for married couples.
Joint Life Coverage: The policy provides life insurance protection for both husband and wife under a single policy.
Participating Plan: The policy participates in LIC’s profits through bonus declarations.
Life Insurance Protection: The policy provides financial protection against the loss of an insured life during the policy term.
Long-Term Savings: The policy encourages disciplined savings while providing life insurance coverage.
Maturity Benefit: The policy pays a maturity benefit when it remains in force until the end of the policy term.
Bonus Participation: Eligible policies receive bonuses declared by LIC based on its business performance.
Loan Facility: The policy allows policyholders to borrow against the policy after it acquires surrender value.
Surrender and Paid-up Benefits: The policy provides financial value even if it is discontinued after meeting the required conditions.
Policy Revival: A lapsed policy can be restored within the specified revival period.
Tax Benefits: The policy offers tax advantages under the applicable provisions of the Income Tax Act.
Optional Rider Benefits: Additional riders can be added to enhance the policy’s protection.
3. Eligibility and Policy Specifications
Eligibility and policy specifications define who can purchase LIC Jeevan Saathi and outline the technical conditions, coverage limits, policy term, and premium structure applicable to the plan.
- Entry age criteria for both husband and wife.
- Policy term and premium paying term options.
- Minimum and maximum Basic Sum Assured limits.
- Maximum maturity age and policy eligibility conditions.
- Premium payment frequency and available payment modes.
- Underwriting requirements and policy issuance conditions.
4. Premium Structure and Bonus Participation
The premium structure determines the amount payable for the policy, while bonus participation allows eligible policyholders to benefit from LIC’s declared profits throughout the policy term.
- Premium depends on age, Sum Assured, and policy term.
- Multiple premium payment modes are available.
- Modal rebates are offered for eligible payment frequencies.
- High Sum Assured rebates may apply as per plan rules.
- Eligible policies participate in Simple Reversionary Bonus.
- Final Additional Bonus may be payable at claim or maturity.
5. Policy Benefits
LIC Jeevan Saathi offers comprehensive financial benefits that provide protection, long-term savings, and bonus accumulation to support policyholders and their families.
- Death benefit provides financial support to beneficiaries.
- Maturity benefit is payable on successful policy completion.
- Bonus benefits increase the overall policy value.
- Optional rider benefits enhance insurance protection.
- Joint life coverage protects both spouses under one policy.
- Long-term savings help build a financial corpus.
6. Policy Value, Loan, Surrender, and Revival
These policy provisions provide financial flexibility by allowing policyholders to access policy value, restore lapsed policies, and manage coverage according to changing financial needs.
- Loan facility is available after acquiring surrender value.
- Guaranteed and Special Surrender Values are available as applicable.
- Paid-up value is available after meeting minimum premium conditions.
- Lapsed policies can be revived within the permitted revival period.
- Grace period allows delayed premium payment without immediate lapse.
- Free-look period enables policy review after issuance.
7. Tax Benefits and Policy Servicing
The policy offers tax advantages under applicable laws and provides various servicing facilities to help policyholders manage their policy efficiently throughout its duration.
- Premiums may qualify for tax benefits under applicable laws.
- Policy proceeds may receive eligible tax treatment.
- Nomination facility allows appointment of beneficiaries.
- Assignment facility enables transfer of policy rights.
- Policy servicing includes premium payment and record updates.
- Customer support assists with claims and policy-related services.
8. Terms, Conditions, and Important Provisions
Understanding the policy terms and conditions helps policyholders know their rights, responsibilities, benefit conditions, and important provisions throughout the policy period.
- Suicide clause applies as per policy provisions.
- Exclusions specify situations where benefits may be limited.
- Claims require submission of prescribed documents.
- Policy alterations are permitted under applicable conditions.
- Claim settlement follows LIC’s established procedures.
- Policyholders must comply with premium and servicing requirements.
9. Advantages, Considerations, and Suitability
LIC Jeevan Saathi combines insurance protection with long-term savings, making it suitable for families seeking financial security while considering the policy’s long-term commitment.
- Provides joint financial protection for married couples.
- Encourages disciplined long-term wealth creation.
- Participates in LIC’s bonus declarations.
- Offers financial security for the surviving spouse.
- Early surrender may reduce overall policy benefits.
- Best suited for couples planning long-term financial security.
10. Policy Summary
LIC Jeevan Saathi is a comprehensive joint life insurance policy that combines financial protection, long-term savings, and bonus participation to support the financial well-being of policyholders.
- Joint life insurance coverage under a single policy.
- Death and maturity benefits with eligible bonuses.
- Long-term savings through disciplined premium payments.
- Loan, surrender, revival, and paid-up value provisions.
- Tax benefits and policy servicing facilities available.
- Designed to provide lasting financial security for families.