Salient Features:: LIC Introduces New Jeevan Nidhi' - Deferred Pension Plan

LIC introduces New Jeevan Nidhi Deferred Pension Plan
LICs New Jeevan Nidhi Plan is a conventional with profits pension planwhich provides for death cover during thedeferment period and offers annuity on survival to the date of vesting.
Salient Features:
o o o o 1. a) Risk Cover and Regular Annuity payments in a Single Plan. Guaranteed Additions @ Rs.50 per thousand for first 5 years. Reversionary Bonuses every year, from 6th year onwards plus Final Additional Bonus (if any). Perfect Plan for Professionals, Self Employed, Businessmen & Employees in unorganised sector. Eligibility Conditions and Other Restrictions (For Basic Plan): Minimum Basic Sum Assured : Rs.1,00,000 under Regular Premium policies
Rs.1, 50,000 under Single Premium policies b) Maximum Basic Sum Assured : No Limit
(The Sum Assured shall be in multiples of Rs.5000/-) c) d) e) f) g) 2. Minimum Entry Age Maximum Entry Age Policy Term Minimum Vesting Age Maximum Vesting Age Payment of Premiums: : 20 years (nearest Birthday) : 60 years (nearest birthday) : 5 to 35 years : 55 years (nearest birthday) : 65 years (nearest Birthday)
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid. A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. 3. Sample Premium Rates: Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:
Single Premiums Age at entry 10 Policy term 20 30
25 35 45
-
852.55
612.00 632.80
435.80 456.15 -
Annual Premiums Age at entry 10 25 35 45

4. Mode Rebate: Yearly Half-Yearly Quarterly 2% of tabular premium 1% of tabular premium Nil
Policy term 20 53.60 57.15 30 32.75 34.80 -
115.25
Mode and High S.A. Rebates:
Sum Assured Rebate: For Regular Premium policies: Sum Assured 1, 00,000 to 2, 95,000 3, 00,000 and above For Single Premium Policies: Sum Assured 1, 50,000 to 2, 95,000 3, 00,000 and above 5. Revival: Rebate Nil 5%o S.A. Rebate Nil 2%o S.A.
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived from the date of first unpaid premium and before the date of vesting by paying all the arrears of premium together with interest within a period of five years, subject to submission of satisfactory evidence of continued insurability. The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the life assured. Accident Benefit Rider, if opted for, shall be revived along with the basic plan and not in isolation. 6. Policy Loan:
No loan facility will be available under this plan. 7. Service Tax:
Service tax, if any, shall be as per the Service Tax laws and the rate of service tax as applicable from time to time. The amount of service tax as per the prevailing rates shall be payable by the policyholder on premium(s) as and when the premiums are paid. 8. Cooling-off period: If the Life Assured is not satisfied with the Terms and Conditions of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the risk premium, expenses incurred on medical examination and stamp duty. 9. Exclusion: Suicide: This policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time within one year from the date of commencement of risk and the Corporation will not entertain any other claim by virtue of this policy except to the extent of a maximum of 90% of single premium paid excluding any extra premium (in case of single premium policies).
Income Tax Benefits on Various Plans of LIC

1) Deduction allowable from Income for payment of Life Insurance Premium (Sec. 80C). (a) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, deduction allowed upto 20% of capital sum assured during any financial year. (b) Contribution to deferred annuity Plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction. (c) Contribution to Pension/Annuity Plans New Jeevan Dhara-I & Jeevan Akshaya VI
2) Jeevan Nidhi Plan & New Jeevan Suraksha I Plan (U/s. 80CCC) A deduction to an individual for any amount paid or deposited by him from his taxable income in the above annuity plans for receiving pension (from the fund set up by the Corporation under the Pension Scheme) is allowed. NOTE: The premium can be paid upto Rs.1,00,000/- to avail deduction u/s.80C, 80CCC & 80CCD (80CCD- Deduction in respect of contribution to pension scheme of Central Government.). However, there is no sectoral cap i.e. the limit of Rs.1,00,000/- can be exhausted by paying premium under any of the said sections. 3) Investment under long-term infrastructure bonds notified by the Central Government. (Sec. 80CCF) A deduction up to Rs. 20000/- is available to individuals and HUF for amount paid or deposited as subscription to long-term infrastructure bonds notified by the Central Government. This is in addition to Rs. ! lakh deduction available under section 80C. 3) Deduction under section 80D 1. Deduction allowable upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e. Spouse & children) 2. Additional deduction upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of parents 3. In case of HUF, deduction allowable upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of any member of that HUF Note: If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the health of any person specified therein who is a senior citizen, then the deduction available will be upto Rs.20,000/-. provided that such insurance is in accordance with the scheme framed by a) the General Insurance Corporation of India as approved by the Central Government in this behalf or; b) Any other insurer and approved by the Insurance Regulatory and Development Authority. 4) Jeevan Aadhar Plan (Sec.80DD) : Deduction from total income upto Rs.50000/- allowable on amount deposited with LIC under Jeevan Aadhar Plan for maintenance of an handicapped dependent (Rs.1,00,000/- where handicapped dependent is suffering from severe disability) 5) Exemption in respect of commutation of pension under Jeevan Suraksha & Jeevan Nidhi Plans: Under Section 10(10A) (iii) of the Income-tax Act, any payment received by way of commutations of pension out of the Jeevan Suraksha & Jeevan Nidhi Annuity plans is exempt from tax under clause (23AAB). 6) Income tax exemption on Maturity/Death Claims proceeds under Section 10(10D) Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy (other than amount to be refunded under Jeevan Aadhar Insurance Plan in case of handicapped dependent predeceases the
individual or amount received under a Keyman Insurance Plan) is exempted from income-tax. However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section.

Salient Features:: LIC Introduces New Jeevan Nidhi' - Deferred Pension Plan

Uploaded by

Copyright:

Available Formats

Salient Features:: LIC Introduces New Jeevan Nidhi' - Deferred Pension Plan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Salient Features:: LIC Introduces New Jeevan Nidhi' - Deferred Pension Plan

Uploaded by

Copyright:

Available Formats

LIC introduces New Jeevan Nidhi Deferred Pension Plan

Single Premiums Age at entry 10 Policy term 20 30

Annual Premiums Age at entry 10 25 35 45

Policy term 20 53.60 57.15 30 32.75 34.80 -

Mode and High S.A. Rebates:

No loan facility will be available under this plan. 7. Service Tax:

Income Tax Benefits on Various Plans of LIC

You might also like