New Jeevan Nidhi – Pension plan

January 21, 2013 Pension Plan

New Jeevan Nidhi policy is a conventional with-profits pension plan from Life Insurance corporation of India (LIC). Any person between 20 to 60 years of age can buy this policy for a period of 5 to 35 years so that the age at the time of vesting/pension be 55 to 65 years. The Vesting age would be (=) Age + Deferment period. On maturity, policy holder will need to buy an immediate pension plan with sum assured received from LIC.

New Jeevan Nidhi Key features:

  • Death Cover during the deferment period
  • Option to take immediate annuity or Purchase a Single premium deferred pension plan on survival to the date of vesting.
  • Guaranteed Additions @ Rs.50‰ Sum Assured for the first 5 years.
  • Entitled for Simple Reversionary Bonus from the 6th policy year.
  • Option for Accident Benefit Rider.(under Regular Premium plans)
  • No max limit on Sum Assured.
  • Premium Mode: Single, Yearly,Half-yearly,Quarterly, Monthly(ECS/SSS)

Benefits on Vesting:
On Vesting of the policy, you will get the Basic Sum Assured (BSA) along with Accrued
Guaranteed Addition, Simple Reversionary Bonuses and Final Additional Bonus, if any.
Policy holder will need to use this money to buy a new Single Premium deferred pension plan.

Death Benefit:

  1. If policy holders death occurs during the initial 5 years then Basic Sum Assured plus accrued Guaranteed additions is payable.
  2. If death occurs after the 6th policy year then the Basic Sum assured along with accrued Guaranteed additions plus Simple Reversionary Bonus and Final Additional Bonus if any is payable.

The nominee can claim death benefit either in lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity/pension.

Sum Assured:
New Jeevan nidhi pension Plan does not have any maximum sum assured limit and the minimum sum assured is as follows:

  • For single Premium plans: Rs.1,50,000/-
  • Regular premium plan : Rs.1,00,000/-

Whats the eligibility?

  • Minimum Basic Sum Assured: Rs.1,00,000 under Regular Premium policies
  • Rs.1, 50,000 under Single Premium policies
  • Maximum Basic Sum Assured: No Limit (The Sum Assured shall be in multiples of Rs.5000/-)
  • Minimum Entry Age: 20 years (nearest Birthday)
  • Maximum Entry Age: 60 years (nearest birthday)
  • Policy Term: 5 to 35 years
  • Minimum Vesting Age: 55 years (nearest birthday)
  • Maximum Vesting Age: 65 years (nearest Birthday)

Guaranteed Additions:
Payable for the first five years @ Rs.50/- per thousand Basic Sum Assured for each completed year.

Participation in profits
Simple Reversionary Bonus will be added from the 6th policy year onward till the end of the deferment period.

Final Additional Bonus will be given either on vesting or on earlier death at the rates announced from time to time.

Accident Benefit Rider:

Death due to Accident: Accident Benefit Sum Assured will be payable as lump sum along with the death benefit under the Basic plan.
Disability due to Accident: All Future Premiums are waived and An amount equal to the Accident Benefit Sum Assured will be paid in monthly installments spread over 10 years.

Revival within 5 years: A lapsed policy may be revived within a period of 5 years from the date of first unpaid premium and before the date of vesting subject to proof of continued insurability and payment of all the arrears of premium together with interest at such rates as may be prevailing at the time of the payment

Surrender after 3 years: The policy can be surrendered at any time after completion of at least 3 policy years provided that 3 years premiums have been paid.

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LIC Jeevan Vriddhi

April 2, 2012 Single Premium Policy

lic Jeevan VriddhiLife Insurance Corporation has been a household name over the years. With the development in insurance sector, it has come up with a new single premium insurance plan called as “Jeevan Vriddhi” Plan (Table no.808). In this particular plan, you just have to pay the premium just once which would give you the benefit of five times the premium paid. If in between, the policy holder dies, only the basic sum assured is paid to him. Or else, at the end of the maturity period, you get almost double the amount of your investment.

Benefits of LIC’s Jeevan Vriddhi Policy-

Death benefit- The death benefit of Jeevan vriddhi policy is assured benefit of 5 times the premium paid by the policy holder. If the single premium paid by you is Rs. 1,00,000, den the death benefit would be Rs. 5,00,000. In case of death of the policy holder, the nominee will get the basic sum assured.

Maturity benefit- The maturity benefit varies as per the joining age of the policy holder. The maturity sum is also known as the guaranteed sum assured. The amount if paid to the policy holder after the policy gets mature as per the number of years specified as per the plan.

If a person joins at an early age, it is seen that he gets the sum assured which is almost double the premium paid by the policy holder. As the joining age increases, the sum assured decreases.

Loyalty additions- the loyalty additions are not guaranteed payments. These additions are add-on benefits which are offered to the policy holder on maturity. In this benefit, the amount paid may vary.

Eligibility for Jeevan Vriddhi Plan

  • Minimum Age at Entry: 8 years.
  • Maximum Age at Entry: 50 years.
  • Policy payment mode:  Single premium.
  • Policy term: 10 years.
  • Minimum single premium paid:  Rs. 30,000/-
  • Minimum sum assured :  5 times of Rs. 30,000/-
  • Maximum sum assured:  No limit

Higher Premium Incentive: there is an increase in the guaranteed sum assured. A basic 1.25% increase in the guaranteed sum assured for a basic premium of Rs. 50000 to Rs. 99000; whereas a 3% increase for a premium of Rs. 100000 and above is assured.

Illustration-

The example shows the guaranteed sum assured for different joining age for a single premium of Rs. 1,00,000/-

Joining age         Guaranteed sum assured
8 years             -              Rs. 198460

10 years           -              Rs. 197915

15 years           -              Rs. 196405

25 years           -              Rs. 195095

30 years           -              Rs. 194160

40 years           -              Rs. 185710

50 years           -              Rs. 158225

LIC Jeevan Vriddhi is the close ended policy. It will be available for a limited time. Apply for Jeevan Vriddhi now.

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LIC Jeevan Saral

November 4, 2011 Endowment plan

LIC Jeevan SaralJeevan Saral (Table 165) is a unique insurance cum investment plan. LIC’s Jeevan Saral monthly recurring scheme ATM Plan is also a Golden Peacock award winner. It has features of traditional Insurance plans with the liquidity like ULIP plans. The insurance cover depends on your monthly premium. You will get 250 times risk cover on your monthly premium. For example, if you pay monthly premium of Rs.1000/- your insurance cover will be 1000×250=2,50,000/- This is the only policy from Life Insurance Corporation of India where you choose the premium you want to pay instead of Risk cover or Sum Assured.

LIC Jeevan Saral Features:

  • Higher life insurance cover
  • Good return
  • partial withdrawals
  • Double accidental benefit

Benefits:

  • LIC Monthly Recurring scheme
  • This is better than post office deposits and you can deposit Yearly, Half yearly, Quarterly and monthly basis.
  • Tax Benefit: Premium and Maturity both receive tax benefit.
  • The premium paid is exempted under section 80c of income Tax act while Maturity is exempted under s 10-10D
  • Higher life cover at very affordable premium
  • Unlimited partial withdrawals after 10 years (ATM Plan)
  • Risk cover continues for one year, even if you forget to pay your premium on time.
  • You can choose a maximum term and surrender anytime prior to maturity without any fine or surrender charge after 5 year.
  • Term Riders can be optionally chosen to get more risk cover

Death Benefit: 250 times of the monthly premium plus refund of premiums
(Excluding first years premium and rider premium if any), plus the Loyalty Addition, if any.

Maturity Benefit: Sum Assured plus Loyalty additions, if any.

Surrender value: After 3 years of policy, you may surrender your Jeevan Saral policy.

Guaranteed Surrender value: it will be equal to the 30% of total amount paid minus first years premium.

Eligibility for Jeevan Saral Policy:

  • Minimum Age at Entry: 12 years.
  • Maximum Age at Entry: 60 years.
  • Maximum Maturity Age: 70 years.
  • Minimum Term: 10 years.
  • Maximum Term: 35 years.
  • 12 to 49 years: Minimum Premium Rs.250/month
  • 50 to 60 years: Minimum Premium Rs.400/month
  • Maximum Premium: Rs. 10,000/month
  • Policy Loan: Yes at 10.5%

Example:
If 25 years old Mr. Anna apply for LIC Jeevan Saral plan for 15 years and pay Rs.500/month premium. If he opts for Double accidental benefit then he will pay DAB premium of Rs.510 (500 x 250 = 1,25,000 x 1/1000 x 1/12 = 10 + 510). After 15 year on maturity Anna will receive Rs.97655/- as sum assured + Loyalty Addition. Loyalty additions will be decided by the LIC. If Anna expires after 4 years, his nominee will receive Rs.1,25,000 (250 x 500) + premium paid for 4 years – first years premium = 1,25,000 + 24,480 – 6120 = 1,43,360/- + Loyalty Addition, if any.

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LIC Policy Status

November 1, 2011 LIC

Are you looking for your LIC policy status? It is your responsibility to keep yourself updated and do not let your LIC policy lapse before the maturity period. Many of us just rely on our LIC agent. Apart from LIC Agent, you should also know how to check the LIC policy status yourself. World’s largest life insurance company “Life Insurance Corporation of India” (LIC of India) has millions of policyholders and millions of lic policy being issued every year.

Benefits/Objectives of checking your LIC Policy status periodically.

  • To know the current value of your LIC policy
  • To make sure every information is accurate
  • To avoid policy being lapsed
  • To know when your premiums are due
  • To Know how much loan you can avail on your policy (If applicable)

There are 4 ways to check your LIC policy status:

1. Your LIC Agent:

You can call your LIC Agent and ask him/her to provide the SR (Status Report) of your LIC policy, which is actually a print out of all the information of your policy. LIC agents also has access to Agents portal, where they can check the policy details and send you a screenshot or email the details to your email address.

2. LIC Helpline 1251

You can call toll-free LIC helpline No. 1251 (from MTNL or BSNL Phones) and quote your LIC Policy number on IVR to check the status. LIC of India has a dedicated contact center and helpline number, where you can call and get all the information regarding your policy, loan, surrender value, due date and other useful information that you may want.

3. Check your policy details online:

You can also check your policy details online by logging into your account on www.licindia.in if you don’t have the account on official LIC website yet, you may register and add your policy in your account. To register your account, you need to have your LIC policy number, Premium amount etc.

4. Policy status by SMS

LIC of India is keen to utilize the latest technology to provide best service to their policyholders. Now you can also check the policy status by SMS. You can check the following details:

ASKLICPREMIUM/REVIVAL/BONUS/LOAN/NOM

For example:

AskLIC 888812345 Loan

and send it to 56677

Using all the methods above, you can check your LIC policy status online, by sms, by phone, Anytime and anywhere.

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Life insurance Corporation of India

September 22, 2011 LIC

Life insurance is a protection in the form of coverage that is provided to various individuals or group of people. It is way of investment and a security for your family as it acts as a protection cover in case of unpleasant incidents. Not only the security or investment, it also deals with various economic or educational needs of the policy holder.

The life insurance corporation of India, a government project came up with the objective of giving out life insurance policies to the maximum people with a view of spreading information about the policy in the all the corners of the country including the rural areas. The company was founded on 1st September, 1956 with distinguished goals. And as per the growing fame and success of this company it’s obvious that the goals and objectives were well achieved.

The main purpose of the life insurance is to provide cover to the individual in affordable rates. There are many add on benefits also like tax benefits and the investment plans which make sure you are satisfied with the amount you pay. This way, it has successfully managed to establish its company and create 8 zonal offices, 109 divisional offices, 2048 branch offices, which is a great achievement in itself. Over the past 55 years, LIC has made enormous growth with good profit as well as providing security to the people as per their needs.

The life insurance corporation has a large number of policies for individuals, students, old age people, retire people, but there is a need to study the rules or conditions is each policy so as to know the exact suitable policy as per you need. So it’s necessary that you go and buy the policy through an insurance agent, as they are professionals and can provide you better judgement about the required subject.
The different existing policies are unit linked plans, endowment policies, health plans, pension plans, joint plans, etc which are standardized as per your requirements. The best thing is to be well informed and choose the policy as per your needs and affordability.

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