Insurance India

Dear viewers, here you can get the proper information of insurance and financial investment

Breaking

Showing posts with label SINGLE PREMIUM PLANS. Show all posts
Showing posts with label SINGLE PREMIUM PLANS. Show all posts

Thursday, October 11, 2018

9:02 AM

LIC Single Premium Endowment Plan - Table No. 817

LIC Single Premium Endowment Plan - Table No. 817



As the name suggests, this is Single Premium Plan - you just make a single premium payment at the beginning of the policy term. It is a participating endowment plan, which means that bonus will be paid through the term of the policy. The bonus is an accumulated and at the end of the policy term, the sum assured + the accrued bonus is paid to the policyholder.

You should keep in mind that such plans are not helpful for tax savings purposes. Read more about it under the tax benefits section below.

Launch Date10th Oct 2013
Plan DetailsTable No. 817
Policy TypeTraditional Endowment Plan

How does the LIC Single Premium Endowment Policy work?:

When buying the LIC Single Premium Endowment Plan, the customer has to decide on the following:
  1. Sum Assured - this is the amount of cover that you want. You have to choose a minimum of Rs. 50,000. There is no upper limit.
  2. Policy Term - this is the period for which you wish to have the cover. You can choose a policy term between 10 to 25 years.
Based on the above 2 factors and the age at which you are taking the policy, your annual premium will be decided. 

Since it is a Participating plan, you will be eligible for the following at various points through the policy term. These are not guaranteed and you will only know the values as and when they are declared by LIC.
  • Simple Reversionary Bonus
  • Final Addition Bonus, if any

Benefits in the LIC Single Premium Endowment Plan:

Death Benefit in LIC Single Premium Endowment Plan

In case of death of the policyholder at any time during the policy term, the nominee will receive the sum of the following:
  • Sum Assured
  • Simple Reversionary Bonus which has been declared will date
  • Final Addition Bonus if declared in that year
In case the policyholder is less than 8 years of age, the death coverage will start either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more at the time of taking the policy, death cover will start immediately. In case of death of the policyholder, before the death coverage has started, the single premium minus the taxes would be paid to the nominee.

Maturity Benefit in LIC Single Premium Endowment Plan

At the time of maturity of the plan, that is when the policy term gets over, the policyholder will receive the sum of the following:
  • Sum Assured
  • Simple Reversionary Bonus which has been declared at the end of every year
  • Final Addition Bonus if declared in that year

Let us understand the LIC Single Premium Endowment Plan better with the help of an example


We have Divyesh Divecha, age 35 who wishes to buy this plan. He goes in for the plan with the following:

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

Based on these parameters, his annual premium is Rs. 1,05,200 + Taxes = Rs. 1,09,934. Here we have assumed the current tax rate of 4.5%.

Death Benefit

Scenario 1 : If Divyesh dies after 3 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus. 

Total Premiums Paid = Rs. 1,09,934

Sum Assured = Rs. 2,00,000

Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 3 years i.e. (Rs. 45 x 200 x 3) = Rs. 27,000. Here we have assumed that every year a bonus of Rs. 45 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this. 

Final Addition Bonus - Nil. Usually Final addition bonus is declared after a much longer premium payment term.

So nominee will get Rs. 2,00,000 + Rs. 27,000 = Rs. 2,27,000

Scenario 2 : If Divyesh dies after 15 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

Total Premiums Paid = Rs 1,09,934

Sum Assured = Rs. 2,00,000

Simple Reversionary Bonus = Rs. 45 per 1,000 Sum Assured for 15 years i.e. (Rs. 45 x 200 x 15) = Rs. 1,35,000. Here we have assumed that every year a bonus of Rs. 45 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this. 

Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.

So his nominee will get Rs. 2,00,000 + Rs. 1,35,000 + Rs. 4,000 = Rs. 3,39,000


Maturity Benefit

Scenario 3 : If Divyesh survives till the end of the policy term of 25 years - Arvind will get the  Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

Total Premiums Paid = Rs. 1,09,934

Sum Assured = Rs. 2,00,000

Simple Reversionary Bonus = Rs. 45 per 1,000 Sum Assured for 20 years i.e. (Rs. 45 x 200 x 20) = Rs. 1,80,000. Here we have assumed that every year a bonus of Rs. 45 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this. 

Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.

So Sumit will get Rs. 2,00,000 + Rs. 1,80,000 + Rs. 4,000 = Rs. 3,84,000

Sample Premium Illustration of LIC Single Premium Endowment Plan


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


Tax Implications in the LIC Single Premium Endowment Plan


  • Premiums – Only a part of the premiums will be exempt from taxation under Section 80C of the Income Tax Act. 
  • Maturity Claim – The maturity amount will be taxable as per current income tax laws
  • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act
Click Income Tax Deductions for Single Premium Plans to understand how these plans are taxed.

Other Benefits in the LIC Single Premium Endowment 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. 
  • Loan - You can avail along against this policy after completion of one policy year.
  • Surrender Value - You get back part of the single premium paid in case you surrender the plan. The guaranteed surrender value is on the premium amount without tax.
    • Surrender in the 1st year - You get back 70% of the single premium
    • Anytime after that - You get back 90% of the single premium
    • Bonus values - The bonus which has been declared for the plan also has a surrender value. This can be better understood here - Surrender Value Calculations in LIC Single Premium Endowment Plan
  • 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. 
  • Loan - You can avail along against this policy after completion of one policy year.
  • Surrender Value - You get back part of the single premium paid in case you surrender the plan. The guaranteed surrender value is on the premium amount without tax.
    • Surrender in the 1st year - You get back 70% of the single premium
    • Anytime after that - You get back 90% of the single premium
    • Bonus values - The bonus which has been declared for the plan also has a surrender value. This can be better understood here - Surrender Value Calculations in LIC Single Premium Endowment Plan.
CLICK HERE TO KNOW YOUR PREMIUM:












CLICK HERE TO KNOW YOUR MATURITY:

















VIDEO TUTORIAL:

























0
By at No comments:
Labels: , ,

Wednesday, October 10, 2018

6:40 AM

LIC Bima Bachat Plan (816)

NEW Bima Bachat




LIC's New Bima Bachat:


Ever come across a large pile of banknotes? You know, by winning the lottery or hitting the jackpot at your favorite casino? Your first instinct must have been to buy a Porsche (that can’t really show its true skills owing to the Indian roads and the traffic) or to buy a house that could, possibly, contest for winning the show – MTV Cribs.
But, instead of dwelling on utopia, wouldn’t it be more prudent to consider your immediate surroundings? For example, your mother who loves to have you around just to start a bit of friendly banter or your younger brother who aspires to get into Yale but spends his weekends watching Gossip Girl.
Feeling a little less reckless, aren’t we? The new LIC Bima Bachat Plan is for all those people who would prefer security overspending. It is a single premium participating endowment policy, that is, it is the traditional cash back plan with scheduled payments coupled with the return of the entire premium in addition to loyalty points given at the completion of policy tenure.
LIC's New Bima Bachat is a participating non-linked saving cum protection plan, where the premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.

1. BENEFITS:

a) Death benefit: 
On death during the first five policy years: Sum Assured.
On death after completion of five policy years: Sum Assured along with Loyalty Addition if any.

b)Survival Benefits: 
Payable as given below in case of Life Assured surviving to the end of the specified duration:
For policy term 9 years: 15% of the Sum Assured at the end of each of 3rd & 6th policy year
For policy term 12 years: 15% of the Sum Assured at the end of each of 3rd, 6th & 9th policy year
For policy term 15 years: 15% of the Sum Assured at the end of each of 3rd, 6th, 9th & 12th policy year

c) Maturity Benefit:
Payment of Single Premium (excluding taxes and extra premium, if any) along with Loyalty Addition, if any, in case of Life Assured surviving to the end of the policy term.
d) Loyalty Addition:
Depending upon the Corporation's experience the policies shall participate in the profits and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable on death after completion of five policy years and on policyholder surviving to maturity, at such rate, and on such terms as may be declared by the Corporation.

About LIC Bima Bachat:

  • It is a simple money back plan, wherein an individual buys this by paying a single lump-sum premium to get periodic repayment for various life goals
  • The single premium is based upon the fixed policy term of 9 or 12 or 15 years
  •  A periodic repayment after every 3rd year till maturity
  •  Bima Bachat plan provides risk cover and loyalty additions on maturity
  • It offers rebates on the higher sum assured chosen

Eligibility Criteria:

  • Eligibility Criteria
    MinimumMaximum
    Sum Assured (in Rs.)Rs. 35,000No Limit
    Policy Term (in years)9yrs, 12yrs,15yrs
    Premium Payment Term (in years)Single Premium
    Entry Age of Life Insured (in years)15yrs66yrs
    Age at Maturity(in years)-75yrs
    Premium (in Rs.)Nothing Specified
    Payment ModesYearly, Half-yearly, Quarterly, Monthly and SSS

    A Few Obligations To Keep In Mind Regarding The LIC New Bima Bachat Plan:


Some rules that all policyholders must abide by:
1. LIC New Bima Bachat policy attains maturity when the investor turns 75 years of age.
2. There are three choices of policy term offered to the investor depending on their age and requirements – 9, 12 and 15 years, among which the applicant must choose at the time of application.
3. The minimum sum assured varies as the term of the policy. For nine years’ term, a minimum of Rs 35000 must be insured, whereas, for 12 years’ and 15 years’ terms, Rs 50000 and Rs 70000 are the minimum amounts of premiums required, respectively.
4. Also, the applicant must keep in mind that the amount assured must be a multiple of Rs 5000.
5. To make things easier, the LIC Bima Bachat Plan requires a single premium only.

Key Details Of The LIC New Bima Bachat Plan:


Want to know what you’re getting into with this insurance policy? After all, not every life insurance plan is synonymous with each other. Take a look at the features that this policy entails:
1. It is a single premium cash back plan, that is, the lump sum of money is invested in the policy in return for a death benefit.
2. The loyalty addition promised is payable upon maturation of policy or on earlier demise.
3. 15% of the sum assured is returned after three years as a survival benefit (will be elaborated later).
4. Discount is provided on the higher sum assured.
5. Surrender Benefit or Policy Termination: Within the first year of the policy term’s commencement, if the applicant withdraws, 70% of the single premium is returned excluding taxes. If one retreats after the 2nd year launches, then 90% of the single premium is returned.
6. If the policy seems unapproachable for you, the option of canceling the LIC New Bima Bachat Plan within 15 days rests with you.

0
By at No comments:
Labels: , ,