LIC Jeevan Shagun

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:

1. It is good Single Premium Plan from LIC as it offers Risk Cover and assured return in a Single Plan.
2. Maturity period/ Lock in period is only  10-12 years
3. On Maturity life insurer get assured return + loyalty addition
4. Income tax Benefit under Section 80C is available
5. 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.

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

LIC Jeevan Ankur

LIC Jeevan Ankur Plan is a Traditional Plan with profits. This is a child benefit Endowment Plan where the parent is the Life Insured and the child is the nominee. This plan has been especially designed so that the benefits are payable for the child’s future even if the parent does not survive till the end of the policy tenure

Key Feature of LIC Jeevan Ankur

1) Here the Parent is Life Assured, compared to other Children plan the Child is life Assured
2) This is a endowment plan with Loyalty Additions
3) In case of death of the Life Insured within the policy tenure, Sum Assured is paid immediately and 10% of the Sum Assured is paid every year till the end of the Policy Tenure as Income benefit facility
4) When the policy matures, the Maturity Benefit is paid irrespective of whether the Life Insured is alive or not.
5) This policy offers Loyalty additions on the policy maturity irrespective of whether the Life Insured is alive or not.
6) You can take 3 Different Rider (Accident, Critical Illness, And Premium Wavier)
7) There is large Sum Assured rebate in this plan
8) The premium is little high compared for a traditional Life Plan. For a person aged 35 if he take policy for 25 years for sum insured for Rs 1,00,000/-, Premiumis is only Rs 358/-+ service tax

Benefits you get from LIC Jeevan Ankur Plan


Death Benefit – In case of death of the Life Insured, i.e. the Parent, immediate Death Benefit of the Sum Assured is paid to the nominee + 10% of Sum Assured is also paid on every policy anniversary till the end of the policy term as Income Benefit

Maturity Benefit – When the policy matures, the Maturity Benefit is paid irrespective of whether the Life Insured is alive or not.
Maturity Benefit = Basic Sum Assured + Loyalty Additions, if any.

Income Tax Benefit - 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.



Should you opt for the policy?
Yes, because of the high risk, rider options to avail and the death benefit for the Life assured it is a good plan.

What about komal Jeevan and Jeevan Chaya plans?
Komal Jeevan is a Money Back policy for children, comparing to Jeevan Ankur, Jeevan Ankur is better to the High Risk and the parent being Life Insured.
For Jeevan Chayya and Jeevan Kishore, the risk is started little later. Even the death benefit is not good as compared to Jeevan Ankur. Also, the option for adding 3 riders, none of the plans have.
Jeevan Ankur policy will never terminate if 3 years of Premium has been paid. Only the Sum Assured will reduce so you basically do not lose your money and yet the cover exists.
For more details call us at 9810150489 or visit http://www.insuranceindiamart.com/

KOMAL JEEVAN LIFE INSURANCE POLICY BY LIC (table:159)

Features of plan

This is money back plan for children with guaranteed addition @ 75/- per 1000 S.A. the above policy has been introduced to provide the best education which can be very expensive for the proposer's children. The payment of premium ceases on policy anniversary immediately after the child attain 18 years of age The plan, besides offering risk cover, also offers payment of S.A. in installments at age 18, 20,22,24 and guaranteed and loyalty addition, if any, at the age of 26. Risk covers starts from the policy anniversary after completion of 7th year of the child or 2 yrs. From the commencement of the policy, whichever is later.


POLICY AS A GIFT: the close relation such as grandparents, elder brothers or sister, uncles both from paternal or maternal side can gift single premium policy for love and affection under this plan, in such cases also, the policy will be proposed by father, mother or legal guardian. No medical examination is required for the child

Premium waiver benefit: Premium waiver benefit can be availed by the proposer under this plan for which addition premium will be payable. Lives up to the age of 50 (nearer birthday) are eligible, subject to normal underwriting requirements like production of proposer's standard age proof and medical exam. Of the proposer is must.

Term rider benefit: term rider benefit can be availed by the proposer to the extent of 20% of the basic S.A. under the policy not exceeding Rs.100000/- the benefit will be payable in case the proposer dies before the policy anniversary on which the child completes 18 years.

Lives up the age of 50 (nearer birthday) are eligible for this benefit subject to normal underwriting requirements.

Plan parameters

Age at entry: Min.0 yrs. LBD Max.10 yrs LBD

Maturity age: 26 yrs. LBD

PPT: Min. 8 yrs. Max.18 yrs

Sum assured: min. 1Lac Max. 25Lac

S.A. in multiples: 25,000

Mode of payment: YLY/HLY/QLY/SSS/MLY & single premium

Accidents benefit: N.A.

Policy loan: N.A.

Housing loan: N.A.

Revival: yes

Surrender of policy: yes

P.W.B.: yes

Term rider: yes

CIR: N.A.



Underwriting

Form no: 360

Age proof:

Child 5 yrs. & above: school certificate

If not5yrs. And above: Birth certificate with parent
joint declaration

Female lives category: I/II

Non-medical: Not required for L.A.

When PWB + TRB is: Medical exam. Is necessary with

Opted by the proposer, Standard age proof and form no.300

Actual sum assured: Basic SA

Risk coverage: SA+GA+LA

Dating back @ 8%: Allowed



BENEFIT

Maturity benefit: at the end of age 18 yrs, and 20 yrs. 20% of S.A. is paid and at the end of age 22 & 24 yrs. 30% of S.A. is paid finally, at the end of age 26 yrs G.A. + L.A. if any is paid.

Example: Mr. Vineet aged 32 yrs. Takes a komal jeevan policy for his daughter Shefali aged 4 years for Rs.2 Lac S.A. with PWB and TRB. Risk cover of baby Shefali starts from the policy anniversary after completion of 7th year.


Shefali will get Rs.40,000 as ist instalment, at the age of 18 years, then Rs.60,000 respectively finally, at the age of 26 years she will get Rs.3,30,000 as Guaranteed Addition @ 75/- per thousand + loyally addition, if any, if Shefali dies after commencement of the risk

i.e. 7 years maturity full S.A. i.e. Rs.2 Lac + G.A @ 75/- per thousand S.A+ L.A , if any, will be given to the nominee without deducting earlier paid installments.