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’s New Bima Gold Summary: (Table No.179)

Gold never loses its value, just like LIC Of India‘s New Bima Gold insurance policy. LIC’s
New Bima Gold (plan no.179) is a special with profit money back plan that offers 50% of the life cover during extended term even after maturity.

Features:

Auto-cover Facility: If atleast two full years’ premiums have been paid in respect of this policy, any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the date of First Unpaid Premium(FUP) or till the end of policy term, whichever is earlier.

Benefits:

Survival Benefit: Payable in case of life assured surviving to the end of the specified durations provided the policy is in full force as given below:

For policy term 12 years:
15% of the Sum Assured under Basic Plan at the end of each 4th & 8th policy year.

For policy term 16 years:

15% of the Sum Assured under Basic Plan at the end of each 4th, 8th &12th policy year.

For policy term 20 years:

10% of the Sum Assured under Basic Plan at the end of each 4th, 8th, 12th & 16th policy year.

On expiry of policy term:

Total amount of premiums (excluding extra/optional rider premiums, if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid earlier.

Death Benefit:

During the policy term: Payment of an amount equal to Sum Assured under the Basic Plan on death of the Life Assured during the policy term provided the life cover is in force.

During the extended term: Payment of an amount equal to 50% of Sum Assured under the Basic Plan on death of the Life Assured during the extended term provided all the premiums under the policy have been paid.

Extended Term: The extended term shall be half of the policy term after the expiry of the policy term.

Payment of Premiums:

Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments.

Eligibility Conditions and Restrictions for LIC Of India’s
New Bima Gold:

FOR BASIC PLAN:

1. Minimum age at entry: 14 years (completed)
2. i. Maximum age at entry: 57 years (nearest birthday) for Term 12 years
ii. Maximum age at entry: 51 years (nearest birthday) for Term 16 years
iii.Maximum age at entry: 45 years (nearest birthday) for Term 20 years

Age at expiry of extended term: Maximum 75 years (nearest birthday)

Policy Term: 12, 16 and 20 years.

Minimum Sum Assured: Rs. 50,000 /-

Maximum Sum assured: No limit

Sum Assured will be in multiples of Rs.5,000 /- only.

FOR THE ACCIDENT BENEFIT RIDER OPTION :

1. Minimum age at entry: 18 years (completed)

2. Maximum age at entry: 57 years (nearest birthday) for
Term 12 years

ii.Maximum age at entry:
51 years (nearest birthday) for Term 16 years

iii.Maximum age at entry:
45 years (nearest birthday) for Term 20 years

Minimum Sum Assured: Rs. 50,000 /-

Sum Assured will be in multiples of Rs.5,000 /- only.

Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may
return the policy to LIC of India within 15 days.

he Unique Identification Number (UIN) for LIC
Of India‘s New Bima Gold Plan is 512N236V01.

MONEY BACK 20 YEARS INSURANCE POLICY BY LIC

Unlike ordinary endowment insurance plan where the survival benefits are payable only at the end of the endowment period, this scheme provides periodic payments of partial survival benefits as follows during the term of the policy. Of course so long as the policyholder
is alive this plan is best suitable for businessmen and professionals.



In case of a 20-year money-back policy (table 75), 20% of the S. A. become payable each after 5,10,15 year, and the balance 40% plus the accrued should have attained majority.

An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full S.A. without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full S.A.



Plan parameters

Age at entry: Min. 13 yrs LBD, Max. 50 yrs (T- 75) Max. 45 yrs (T-93)
Maturity age: Max.70 yrs.
Sum. in Multiples: 5000, Min. Max No Limit
Term: Min. 20 yrs, Max. 20yrs (T-75) Max. 25yrs (T-93)
Mode of Payment: YLY/HLY/QLY/SSS/MLY
Accident Benefit: Re.1 Extra per
(Max. 50 Lac inclusive 1000 S.A. All plan)
Policy loan: yes,@ 10.5%
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: yes
CIR: yes



Underwriting condition



Form no.: 300/340

Age proof: std /NSAP-1,2,3

Female lives category: I/II/III

Non-medical (Gen): allowed

Non-medical (pro): allowed

Non-medical (special): allowed

Actual sum assured: basic SA

Rusk coverage: SA + bonus

Dating back@ 8%: Allowed

Benefits

Death benefits: payment of full S.A. + bonus
on full S.A. + FAB. If any is paid to the nominee The
survival benefit already paid, if any is not deducted.

Maturity benefit: balance survival benefit +
bonus on full S.A. + FAB, if any

Example: Ms. Neha, aged 25 invests Rs.2lac in a money back policy (T.No-75) paying an annual premium of Rs.12,546/- for 20 years period. she receives Rs.40,000 at the end of each 5th, 10th, 15th year. On maturity balance Rs.80,000+ Rs.1,64,000/- (as per bonus rate
of 2005 i.e. Rs.41per thousand p.a.)+Rs.4000/- FAB

if Ms. Neha dies after 8 year, his nominee will receive S.A. +Bonus without deducting the survival benefit survival benefit already paid to Ms. Neha

JEEVAN ANAND LIFE INSURANCE POLICY

Features of plan

Jeevan Anand plan is the combination of whole life policy and endowment insurance policy the plan provides the per-decided S.A. and bonus at the end of the stipulated PPT, but the risk cover on the life continues till death. This policy is suitable for the people of all ages and social groups. The policyholder will be benefited by giving protection to their families from a financial setback that may occur owing to their demise The amount assured if not paid by reason of his death earlier will be payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's of this plan is moderate premiums, high liquidity, saving oriented.Premiums are usually payable for the selected term of years or until death if it occurs during the term period. Accident benefit is available during engaged in hazardous occupations attracting occupational extra.

Plan parameters
Age at entry: Min.18 yrs Max. 65 yrs.
PPT maturity age: Max. 75 yrs
Sum assured: Min. 1,00,000 Max. No. Limit
S.A. in multiples: 5000Term: Min.5 yrs Max. 57 yrs
Mode of payment: YLY/HLY/QLY/SSS/MLY
Accident benefit: Incl. in. T.P.Policy loan: yes
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: N.A.CIR: yes

UNDERWRITING CNDITION
Form no: 300 (rev.)
Age proof: std/ NSAP- 1,2,3
Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: Basic SA
Risk coverage: SA+ Bonus
Dating back @ 8%: Allowed

BENEFITS
Maturity benefit: S.A. +Bonus + FAB, if any is at the end of the premium paying term (PPT)

Death benefit:

If death occurs during the premium paying term S.A. + Bonus +FAB, if any is payable and premium payment is ceased. An extra amount equal to the S.A. is payable if death occurs after the premium paying term. No bonus is paid on death after the premium paying term.Accident benefit: The double accident benefit is available during the premium paying term and thereafter up to age 70. the premium for this has been built into the tabular premium rate.

Example: Mr. Ram 25 years, opts for jeevan anand policy for 20 years with S.A. Rs.1 Lac. He has to pay annual premium of Rs.5490/- on maturity, Mr. Ram will get Rs.1,98,000/- (S.A. + Bonus as per 2005 rates i.e. Rs.43 per thousand per annum which become 43 x 100 x 20 = 86,000/-).

Even after the premium paying term is over, risk cover continues till the death of Mr. Ram .But if, Mr. Ram dies at the age of 65 years his nominee will get an additional amount equal to the S.A. i. e. Rs.1 Lac in cash, Mr. Ram dies during premium paying term his nominee will receive Rs. 1Lac + accumulated Bonus.