LIC Jeevan Shagun is new Money Back Plan Single premium policy from LIC. Jeevan Shagun (Plan No. 826) is good option as it provides good return and is available against one time payment.
Jeevan Shagun is a close ended plan which would be open for sale from 01 September , 2014 for a maximum period of 90 days.
Jeevan Shagun provides assured return and gives you life cover of 10 times the single premium you pay.
Key Features of LIC Jeevan Shagun:
- It is good Single Premium Plan from LIC as it offers Risk Cover and assured return in a Single Plan.
- Maturity period/ Lock in period is only 10-12 years
- On Maturity life insurer get assured return + loyalty addition
- Income tax Benefit under Section 80C is available
- Good Plan for Professionals, Self Employed, Businessmen & Employees in unorganised sector.
Benefits Of LIC Jeevan Shagun
Eligibility conditions and other restrictions in LIC Jeevan Shagun Plan
| Description | Minimum | Maximum |
| Sum Assured (Rs) | 60,000 | No limit |
| Policy Term (in years) | 12 years | 12 years |
| Entry Age of Policyholder (in years) | 8 years | 45 years |
| Premium (in Rs.) | 30,000 for Single | No Limit |
| Payment modes | Single Premium Only | |
| Death sum assured | 10 x single premium (< 5 years from policy date) and 10 x single premium + loyalty additions (if any) after 5 years from policy date | |
Income Tax Benefit under section 80C :
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity benefit is tax free under section 10(10)D provided all conditions have been fulfilled.
Death Benefit of Jeevan Shagun:
- On death within 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged would be payable
- On death after 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged + loyalty additions (if any) would be payable.
Maturity Benefit / Guaranteed Return of Jeevan Shagun:
- At the end of 10th policy year: 15% of the Maturity Sum Assured.
- At the end of 11th policy year: 20% of the Maturity Sum Assured.
- On maturity,(ie 12 the year) 65% of the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.
Loyalty additions would be purely based on LIC’s claim experience.
The Loyalty Addition, if any, shall be payable on death or surrender, provided the policy has run for atleast five policy years, or on policyholder surviving to the maturity, at such rate and on such terms as may be declared by the Corporation.
Benefits Illustration of Jeevan Shagun
This illustration is for
Entry age : Person who has purchased policy at age of 30 years
Policy term of Jeevan Shagun: is 12 years
Mode of premium is Single ie only one single premium is payable
Premium payable for Jeevan Shagun: Rs 31275 (exclusive of service tax)
Maturity Sum assured in Jeevan Shagun is 60000
Basic sum assured under Jeevan Shagun Rs 312750
Amount you will get on maturity of LIC jeevan Shagun.
Amount you will get in case of Death in Jeevan Sugam.
Flexibility in Premium Payment Jeevan Shagun:
Only one single premium is payable. You dont have to worry about making payments every year.
Premium example
Premium payable for Maturity Sum assured (MSA) in case of different ages is given below:
- Age 8 Yrs MSA Rs.1,00,000=Rs.50,880.
- Age 20 Yrs MSA Rs.1,00,000=52,390.
- Age 25 Yrs MSA Rs.1,00,000=Rs.52,803.
- Age 30 Yrs MSA Rs.1,00,000=Rs.53,736.
- Age 35 Yrs MSA Rs.1,00,000=Rs.56,019.
- Age 40 Yrs MSA Rs.1,00,000=Rs.61,380.
- Age 45 Yrs MSA Rs.1,00,000=Rs.74,106
Rebate for higher premium:
If the maturity amount exceeds Rs. 150,000. The incentive is computed on maturity amount.
If the maturity sum assured chosen is Rs. 4 lakhs, then the incentive would be 4.5% on Rs. 4 Lakhs = Rs. 18,000. ie The total maturity amount would be Rs. 418,000 + loyalty additions (if any).
| Maturity amount | Incentive |
| 150,000 | Nil |
| 151,000 to Rs. 395,000 | Rs 15 |
| Rs. 400,000 and above | Rs 20 |
LOAN against Jeevan Shagun policy
Loan can be availed under this plan after one year during the policy term.
SURRENDER VALUE
Jeevan Shagun policy can be surrendered for cash at any time during the policy term. The minimum Guaranteed Surrender Value allowable shall be as under:
First year: 70% of the Single premium (net of service tax) excluding all extra premiums, if any.
Thereafter: 90% of the Single premium (net of service tax) excluding all extra premiums, if any.
Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.
Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.
The Corporation shall pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.
If the policy is surrendered after completion of five policy years Loyalty Addition, if any, based on surrender value, shall also be payable.
SERVICE TAX: Service tax, if any, shall be as per the Service Tax laws and the rate of 3.09% of premium Amount.
The amount of service tax as per the prevailing rates shall be payable by the policyholder on the premium.
Our Conclusion:
LIC New Jeevan Shagun is a good plan. It offers Assured return with loyalty additions.This traditional plan will offer less return then Fixed deposit.But return in Jeevan shagun is tax free, whereas Fixed deposit interest is taxable.
It will provide return lower than PPF, Jeevan Shagun provides additional life cover which is not available in PPF.
For best investment , it is advisable to invest in Term deposit and balance amount in PPF.
Do you want to purchase LIC Jeevan Shagun policy. Contact us now for Investing in Jeevan Shagun
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