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Showing posts with label ENDOWMENT PLANS. Show all posts
Showing posts with label ENDOWMENT PLANS. Show all posts

Sunday, October 14, 2018

10:13 AM

LIC Jeevan Rakshak Plan(827)

LIC Jeevan Rakshak - Table No. 827:



LIC Jeevan Rakshak Policy is a participating endowment plan which provides both investment and insurance benefits. Since it is a participating plan, bonus benefits will be available. This is a standard endowment plan. There are some additional benefits which you can take in the form of riders. We will explain the benefits of this plan with the help of a few examples.

Launch Date5th March 2014
Plan DetailsTable No. 827
Policy TypeEndowment

KEY FEATURES:

  • Sum Assured (SA): The Minimum SA is  Rs 75,000  and the  Maximum allowed is Rs 2 Lakh
  • Policy Tenure: Minimum 10 years and maximum allowed is 20 years
  • Age entry (Life Assured’s): Minimum is 8 years and the maximum is  55 years.
  • Maximum maturity age – 75 years
  • Death benefit before 5 years of policy existence –Basic Sum Assured (BSA)
  • Death Benefit anytime after the 5th year – Higher of BSA or 10 times of annualized premium or 105 % of all premium paid as on date of death plus Loyalty Addition (LA) (if any)
  • Maturity Benefit – Basic Sum Assured (BSA) plus Loyalty Addition
  • Loan – Loan can be taken on the policy after 3 premium payment years
  • In the case of surrendering the policy then no Loyalty Addition is payable
  • LA is applicable only after 5 years

LIC Jeevan Rakshak Premium quotes:

LIC Jeevan rakshak premiums

Let us understand how a 20-year LIC Jeevan Rakshak policy works.


LIC Jeevan Rakshak


















Kindly note these important points before opting for Jeevan Rakshak:


  • The average return on endowment policies will be around 4% to 6%. You may find better investment avenues in the financial markets. In the above calculation, the returns are around 6%.
  • As you can analyze from the above example, the rate of return largely depends on the amount of Loyalty Addition paid.
  • Kindly remember that no Loyalty Addition is paid if the policy is surrendered. And it is applicable only after 5 years of policy existence.
  • Section 80 C limit has been increased to Rs1.5 Lakh. Now there is every chance that you may be convinced or lured to buy this policy to save taxes. Tax benefits on Life insurance may reduce the cost of insurance. But, it should not be THE deciding factor.
  • The maximum Sum Assured offered in this plan is just Rs2 Lakh. This amount is payable on death or maturity. So, the value of Rs 2 Lakh is very less (say after 20 years).
  • If you can afford to take the risk (depending on your age & financial goals) then it may be a wise decision to avoid these kinds of endowment policies. The returns on these policies are below the average rate of inflation. So, they do not create wealth for you.

Benefits in the LIC Jeevan Rakshak Plan:

In case of the death of the policyholder before the end of the policy term, the nominee will receive the highest of the following:
  • Basic Sum Assured
  • 10 times the Annualised Premium
  • 105% of all premiums paid till date of death
The premiums mentioned above refer to premiums without the tax component and also does not consider any rider premiums.

Loyalty Additions, if declared will be payable as part of the Death Benefit in case the death occurs after 5 policy years.
 

Maturity Benefit in LIC Jeevan Rakshak Plan


At the end of the policy term, the policyholder will receive the following:
  • Basic Sum Assured
  • Loyalty Additions, if declared

LIC Jeevan Rakshak Plan with an Example:

    We have Anurag Reddy, age 30 who wishes to buy this plan. He goes in for the plan with the following:

    Sum Assured - Rs. 2,00,000
    Term - 20 years
    Premium Payment Term - 20 years

    Based on these parameters, his annual premium is Rs. 6,746 + Taxes = Rs. 7,050. Here we have assumed the current tax rate of 4.5%.


    Death Benefit:

    Scenario 1 : If Anurag dies after 4 policy years.

    His nominee gets the highest of the following:
    • Basic Sum Assured - Rs. 2,00,000
    • 10 times the Annualised Premium = 10 x 6,746 = Rs. 67,460
    • 105% of all premiums paid till date of death = 105% x 4 x 6,746 = Rs. 28,333 

    The highest of the above is Rs. 2,00,000 - which is what the nominee will receive. Since the policy has not completed 5 years, no Loyalty Additions will be payable.

    Scenario 2 : If Anurag dies after 15 policy years

    His nominee gets the highest of the following:
    • Basic Sum Assured - Rs. 2,00,000
    • 10 times the Annualised Premium = 10 x 6,746 = Rs. 67,460
    • 105% of all premiums paid till date of death = 105% x 15 x 6,746 = Rs. 1,06,250 

    The highest of the above is Rs. 2,00,000. Since the plan has completed 5 policy years, it is eligible to receive Loyalty Additions. So nominee will receive Rs. 2,00,000 + Loyalty Additions. The value of Loyalty Additions can only be known when it is declared.
     

    Maturity Benefit 


    Scenario 3 : If Anurag survives till the end of the policy term of 20 years - Anurag will get the  Basic Sum Assured + Loyalty Addition as declared. 

    Total Premiums Paid = Rs. 1,40,991 (including taxes)

    Basic Sum Assured = Rs. 2,00,000

    Loyalty Additions - As declared.

    

    YearNet Cash Flows
    

    1-7058Premium instalment
    

    2-7058Premium instalment
    

    3-7058Premium instalment
    

    4-7058Premium instalment
    

    5-7058Premium instalment
    

    6-7058Premium instalment
    

    7-7058Premium instalment
    

    8-7058Premium instalment
    

    9-7058Premium instalment
    

    10-7058Premium instalment
    

    11-7058Premium instalment
    

    12-7058Premium instalment
    

    13-7058Premium instalment
    

    14-7058Premium instalment
    

    15-7058Premium instalment
    

    16-7058Premium instalment
    

    17-7058Premium instalment
    

    18-7058Premium instalment
    

    19-7058Premium instalment
    

    20-7058Premium instalment
    

    21280000Maturity Benefit (SA + LA)
    

    

    Returns6.15%
    

    

    

    
Sample Premium Illustration of LIC Jeevan Rakshak Policy:
    Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.

    Term: 15 Years
    Age: 30,50 & 50 Years
    Sum Assured: 1,00,000



    Eligibility Criteria for buying LIC Jeevan Rakshak Policy:

    MinimumMaximum
    Sum Assured *Rs. 75,000Rs. 2,00,000
    Policy Term10 years20 years
    Premium Payment TermSame as policy term
    Entry Age8 years (completed)55 years (nearest birthday)
    Maximum Maturity Age70 years (nearest birthday)
    Premium paying frequencyAnnually, Half-yearly, Quarterly, Monthly

    Tax Implications in LIC Jeevan Rakshak Plan:

    • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. 
    • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act  
    • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act

    Other Benefits in the LIC Jeevan Rakshak Policy:

    • Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
    • Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days. 
    • Loan - You can avail along against this policy after you have paid 3 years of premium.
    • Riders  - You have the choice of taking the following rider by paying an extra premium amount:
      • LIC’s Accident Benefit Rider
    • Surrender Value - If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. Click to find the Guaranteed Surrender Value in LIC Jeevan Rakshak Plan.

    CHECK YOUR PREMIUM HERE:
















    CHECK YOUR MATURITY AMOUNT HERE:















    VIDEO TUTORIAL:


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    6:27 AM

    Limited Premium Endowment Plan(830)

    LIC Limited Premium Endowment Plan - Table No. 830:


    LIC’s Limited Premium Endowment Plan is a participating endowment plan which offers both investment and insurance benefits. Being a limited-pay policy, the premium payment term is less than the policy term. The customer has the option of selecting of a policy term of 12, 16 or 21 years - but needs to pay premiums for 8 or 9 years depending on the choice made at the beginning of the policy. We will understand the workings of this plan with the help of a few examples.

    Launch Date01st December 2014
    Plan DetailsTable No. 830
    Policy TypeEndowment
    UIN512N293V01

    LIC Limited Premium Endowment Policy (Plan No:830):


    LIC’s Limited premium endowment policy (Plan No: 830) is a non-linked guaranteed life insurance plan which provides protection with investment. This plan is having fixed premium paying terms of 8 & 9 years and fixed policy terms 12, 16 & 21 years which allows the policyholder to plan for financial requirements by paying less number of years and secure life and receive maturity at the later stage.
    This plan may be recommended for everyone because of the following reasons.
    • A sound combination of Life insurance and investment.
    • Less number of premium paying term than policy term.
    • Eligible for bonus and Final Addition bonus declared by LIC.
    • Comparatively High Bonus
    • Double Accidental benefit with the rider.
    • Tax saving on premium paid.
    • Tax-Free maturity amount.

    Plan Parameters

    Age of Entry18 to 62 years
    Premium Paying ModeYearly, Half Yearly, Quarterly, Monthly (ECS Only)
    Premium Payment Term8 or 9 Years (Fixed)
    Policy Term12, 16 and 21 Years (Fixed)
    Basic Sum Assured300000 and above ( in multiple of 10000)
    Policy Revivalwithin 2 year
    Rebate Premiums2% on yearly, 1% on Half Yearly, Nil on Quarterly
    LoanAfter 2 years
    SurrenderAfter 2 years of full premium payment
    Guaranteed Surrender ValueFrom 30% to Maximum 80% of the total premium paid

    How does LIC Limited Premium Endowment Policy work?


    When buying the LIC Limited Premium Endowment Plan, the customer has to decide on the following:
    1. Basic Sum Assured - this is the amount of cover that you want. You can choose a minimum amount of Rs. 3,00,000. There is no upper limit.
    2. Policy Term - this is the period for which you wish to have the cover. The term can be 12, 16 or 21 years.
    3. Premium Payment Term - you need to pay premiums for this many years. You can choose between 8 or 9 years.
    4. Riders selected - you will have to pay an additional premium for the same. You have the choice of 2 riders:
      • Accidental Death & Disability Benefit Rider
      • New Term Assurance Rider
    Based on the basic sum assured, your age and the policy term, the premium payment term selected and choice of riders selected. your annual premium will be decided.

    Benefits in the LIC Limited Premium Endowment Plan


    Death Benefit in LIC Limited Premium Endowment Plan

    In case of the death of the policyholder before the end of the policy term, the nominee will receive all of the following:
    • “Sum Assured on Death” - this is defined below
    • Simple Reversionary Bonus
    • Final Addition Bonus
     
    The Sum Assured on Death mentioned above is defined as the highest of the following:
    • 10 times the Annualised Premium
    • 125% of Basic Sum Assured
    • 105% of all premiums paid
    The premiums mentioned above refer to premiums without the tax component and also does not consider any rider premiums.


    Maturity Benefit in LIC Limited Premium Endowment Plan

    At the end of the policy term, the policyholder will receive the following:
    • Basic Sum Assured
    • Simple Reversionary Bonus which has accrued
    • Final Addition Bonus if declared


    LIC Limited Premium Endowment Plan with an Example:


    We have Raghav Saxena, age 30 who wishes to buy this plan. He goes in for the plan with the following:

    Sum Assured - Rs. 3,00,000
    Term - 12 years
    Premium Payment Term = 9 years
    Riders - None selected

    Based on these parameters, his annual premium is Rs. 29,944 + Taxes = Rs. 31,291. Here we have assumed the current tax rate of 4.5%.

    Death Benefit

    Scenario 1     : If Raghav dies after 4 policy years.

    Now Sum Assured on Death is the highest of the following:
    • 10 times the Annualised Premium = 10 x 29,944 = Rs. 2,99,440
    • 125% of Basic Sum Assured = Rs. 1.25 x 3,00,000 = 3,75,000
    • 105% of all premiums paid = 105% x 4 x 29,944 = Rs. 1,25,765
    Hence the Sum Assured on Death = Rs. 3,75,000

    His nominee gets the sum of the following:
    • Sum Assured on Death = Rs. 3,75,000
    • Simple Reversionary Bonus = 4 x 12,000 = Rs. 48,000
    • Final Addition Bonus = Nil 
    Here we have assumed the Simple Reversionary Bonus Rate of Rs. 40 per 1,000 Sum Assured. So the bonus in a year will be 40 x 3,00,000 / 1,000 = Rs. 12,000. Please keep in mind that is an assumption - the actual bonus rates will only be known when LIC declares it every year.

    His nominee will get Rs. 3,75,000 + Rs. 48,000 = Rs. 4,23,000

    Scenario 2 : If Raghav dies after 8 policy years

    Now Sum Assured on Death is the highest of the following:
    • 10 times the Annualised Premium = 10 x 29,944 = Rs. 2,99,440
    • 125% of Basic Sum Assured = Rs. 1.25 x 3,00,000 = 3,75,000
    • 105% of all premiums paid = 105% x 4 x 29,944 = Rs. 1,25,765

    Hence the Sum Assured on Death = Rs. 3,75,000

    His nominee gets the sum of the following:
    • Sum Assured on Death = Rs. 3,75,000
    • Simple Reversionary Bonus = 8 x 12,000 = Rs. 96,000
    • Final Addition Bonus = Nil 

    Here we have assumed the Simple Reversionary Bonus Rate of Rs. 40 per 1,000 Sum Assured. So the bonus in a year will be 40 x 3,00,000 / 1,000 = Rs. 12,000. Please keep in mind that is an assumption - the actual bonus rates will only be known when LIC declares it every year. The Final Addition Bonus is also an assumption.

    His nominee will get Rs. 3,75,000 + Rs. 96,000 = Rs. 4,71,000


    Maturity Benefit 

    Scenario 3 : If Raghav survives till the end of the policy term of 12 years - He will get the sum of the following:

    Basic Sum Assured = Rs. 3,00,000 
    Simple Reversionary Bonus = Rs. 1,44,000
    Final Addition Bonus = Nil  

    Here we have assumed the Simple Reversionary Bonus Rate of Rs. 40 per 1,000 Sum Assured. So the bonus in a year will be 40 x 3,00,000 / 1,000 = Rs. 12,000. Please keep in mind that is an assumption - the actual bonus rates will only be known when LIC declares it every year. The Final Addition Bonus is also an assumption.

    On Maturity Raghav will get = Rs. 3,00,000 + Rs. 1,44,000 = Rs. 4,44,000

    Sample Premium Illustration of LIC Limited Premium Endowment Policy:


    Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.


    Policy Term: 12,16,21 (years)
    Premium Paying Term: 8 (year)
    Sum Assured: Rs. 3,00,000
    Age: 25,30,40 (years)


    Tax Implications in LIC Limited Premium Endowment Plan:


    • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. 
    • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act  
    • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act

    Other Benefits in the LIC Limited Premium Endowment Policy:


    • Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of receiving the policy bond. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
    • Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days. 
    • Loan - You can avail a loan against this plan once it acquires a Surrender Value
    • Surrender Value - If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. Check the Surrender Value of LIC Limited Premium Endowment Plan.
    • Exclusions in case of Suicide - the following 2 conditions apply:
      • In case the policyholder commits suicide within 12 months of the risk commencement date, the maximum claim can only be to the extent of 80% of basic premium (excludes taxes, extra premium, rider premium except for term assurance rider).
      • In case the policyholder commits suicide within 12 months of reviving the policy, the maximum claim can only be to the extent of 80% of basic premium (excludes taxes, extra premium, rider premium except for term assurance rider) or the Surrender Value shall be payable.
    CHECK HERE FOR YOUR PREMIUM:














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    5:39 AM

    Aadhaar Shila (844)

    LIC Aadhaar Shila - Table No. 844:


    LIC’s Aadhaar Shila Plan is a participating endowment plan which is available only for Females. As the name suggests, this plan can only be purchased by those who have an Aadhaar Card. This plan offers a combination of protection and savings. In case of death of the policyholder, the plan will offer a cover amount to the nominee. The policyholder will get a lump sum as Maturity Benefit. We will understand the plan better with the help of a few examples.




    LIC Aadhaar Shila Plan (844) Details:


    LIC Aadhaar Shila plan (Table 844) with profit is a non-linked regular premium paying endowment assurance plan based on loyalty addition. This Policy exclusively designed for Female lives having Aadhaar Card (UIDAI). This plan will be available to standard healthy lives without any medical test requirement.

    Key Features:

    • Female Only Plan
    • Low Premium Plan
    • Auto Cover Facility
    • Paid premiums are exempted from income tax under 80C
    • Maturity amount is tax-free under 10 (10D)

    Plan Parameters

    GenderFemale Only
    Age at Entry8 Years (Completed)
    Maximum Age at Entry55 (Nearest Birthday)
    Calculate your Age
    Minimum Term10 Years
    Maximum Term20 Years
    Maximum Age at Maturity70 Years (Nearest Birthday)
    Sum AssuredMinimum 75,000 and Maximum 3,00,000
    Premium Paying ModeYearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)
    Premium Mode Rebate2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly

    Maturity benefit

    • On survival of year term, Maturity will be Basic Sum Assured + Loyalty Addition.

    Death benefits

    • On death during First Five Years of the policy:
      • Death claim amount will be equal to 110% of Basic Sum Assured.
    • On death after 5 years of the policy and before maturity:
      • Death claim amount will be equal to 110% Basic Sum Assured + Loyalty Addition(LA).
    Please Note: It understandable that Loyalty Addition is applicable after successful completion of 5 Policy years.

    Optional Accidental Benefit Rider

    Policyholders above 18 years of age have the option to opt for Accidental Benefit Rider with this plan, which will provide the additional amount equal to basic sum assured in case of death caused due to the accident.

    LIC Aadhaar Shila Plan with an Example:

    We have Priya Dixit, age 30 who wishes to buy this plan. He goes in for the plan with the following:

    Sum Assured - Rs. 1,00,000
    Term - 20 years
    Premium Payment Term = 20 years

    Based on these parameters, his annual premium is Rs. 3,641 + Taxes = Rs. 3,805. Here we have assumed the current tax rate of 4.5%.


    Death Benefit

    Scenario 1: If Priya dies after 4 policy years.

    Her nominee gets the highest of the following:
    • Basic Sum Assured - Rs. 1,00,000
    • 10 times the Annualised Premium = 10 x 3,641 = Rs. 36,410
    • 105% of all premiums paid till date of death = 105% x 4 x 3,641 = Rs. 15,292 

    The highest of the above is Rs. 1,00,000 - which is what the nominee will receive. Since the policy has not completed 5 years, no Loyalty Additions will be payable.


    Scenario 2: If Priya dies after 15 policy years

    Her nominee gets the highest of the following:
    • Basic Sum Assured - Rs. 1,00,000
    • 10 times the Annualised Premium = 10 x 3,641 = Rs. 36,410
    • 105% of all premiums paid till date of death = 105% x 15 x 3,641 = Rs. 57,346 

    The highest of the above is Rs. 1,00,000. Since the plan has completed 5 policy years, it is eligible to receive Loyalty Additions. So nominee will receive Rs. 1,00,000 + Loyalty Additions. The value of Loyalty Additions can only be known when it is declared.


    Maturity Benefit

    Scenario 3: If Priya survives till the end of the policy term of 20 years - Anurag will get the  Basic Sum Assured + Loyalty Addition as declared. 

    Total Premiums Paid = Rs. 76,097 (including taxes)

    Basic Sum Assured = Rs. 1,00,000

    Loyalty Additions - As declared.

    Sample Premium Illustration of LIC Aadhaar Shila Policy:


    Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.

    << Use standard premium graph. Get values from LIC site>>


    Tax Implications in LIC Aadhaar Shila Plan:


    • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. 
    • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act  
    • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act

    Other Benefits in the LIC Aadhaar Shila Policy:


    • Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
    • Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days. 
    • Loan - You can avail along against this policy after you have paid 3 years of premium.
    • Riders  - You have the choice of taking the following rider by paying an extra premium amount:
      • LIC’s Accident Benefit Rider
    • Surrender Value - If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. Check the Surrender Value of LIC Aadhaar Shila Plan.

    CHECK HERE YOUR PREMIUM:
















    CHECK HERE YOUR MATURTY AMOUNT:
















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