Category: LIC INSURANCE PLAN

New customer service form LIC OF INDIA

Posted on February 7, 2019February 14, 2019 by avinash

Life Insurance Corporation (LIC) of India is going start sending sms to message customer from the March 1, 2019, the policyholders will get automated SMS to update their customers regarding politics payment due, lapsation,revival ,surrender and maturity also.

One will get SMS, Like

“Dear Customer, we inform you that LIC will send Premium Due Intimations and reminders for your Policy Number xxxxxxxx by SMS only, with effect from 01.03.2019.”

If you have not received this SMS, it means your mobile number is not registered with LIC politics.

It is very easy to register your Mobile number with LIC of India,you may call to LIC agent to whom you have purchased politics.

If your agent is not in contact with you then you can go to LIC branch and submit letter to update it.

You may also do it online by visiting www.licindia.in/Customer-Services

or by calling 24×7 helpline number 022-68276827.

The corporation will send about 65 such messages, apart from reminder for premium payment, in case of a policy gets lapsed, revived or foreclosed, a policy bond is dispatched,bonus or loyalty is added, NEFT or NACH mandate is registered or rejected, maturity amount becomes due or paid and even greeting message on New year etc.

LIC CUSTOMER CARE

Earlier you had to either depend to your LIC AGENT or you have to call customer care in office hour for the sake of finding information about your LIC plan.

Now it’s a great initiative that Customer care help available for round the clock.

24×7 helpline number 022-68276827.

LIC Customer Portal:

If your tecno sevy and want to know every time regarding bonus accrued , surrender value,loan available, premium paid certificate ,to pay your premium online etc, you can enroll your LIC POLITICS in customer portal what you may find on LIC website.

3 things is necessary to enroll your policy

Your Premium amount without service tax.
Your date of birth
Your LIC POLICY number

LIC CUSTOMER ZONES:

Thare are still few services which is directly related to parent branch. Parent branch are those ,from whare you brought your politics. If you see you original LIC bond paper you can easily find LIC branch number. Through such branch number you can find address. There you must have to visit for few services like Nominee change,revival of your politics etc.

You might find uncomfortable to visit there ,as if you have changed your city etc.

Now LIC has established customer zone which is near you and you can get any kind of services there without visiting parent branch.

Deduction allowable from income for Payment of life Insurance Premium section 80c

Posted on January 23, 2019May 21, 2019 by avinash

a) life insurance premium paid in order to effect or to keep in force an insurance on the life of assessee or the life of the spouse or any child of assessee and in the case of h u f, premium paid on the life of any member thereof under an insurance policy (other than a contract for a deferred annuity), issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.

b) life insurance premium paid in order to effect or to keep in force an insurance of the life of the assessee or on the life of the spouse or any child of assessee and in the case of HUL , premium paid on the life of any member thereof , under an insurance policy( other than a contract for and deferred annuity) , issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured aur actual premium paid whichever is less.

Where the policy, issued on or after the first day of april, 2013, is for insurance on life of any person .

Who is—

i) a person with disability aur a person with severe disability as referred to in section 80u, or

ii) suffering from disease or ailment as a specified in under section 80dd b, deduction under the section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.

c) 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 is eligible for deduction, provided such contract does not contain a provision to exercise an option by the insured to receive cash payment in lieu of the payment of annuity.

d) contribution to annuity plans lIC new Jeevan Dhara and and new Jeevan Akshay is eligible for deduction.NOTE: The aggregate amount of deduction under section 80c, 80ccc and 80ccd (1) shall not not in any case exceed 150000 rupees.

PROOF OF INCOME
The following documents can be considered as proof of income:

Salary Certificate
Personal Financial Questionnaire
Chartered Accountant’s Certificate
Income Tax Returns (ITRs) with computation of income statement of Income Tax Orders
Audited Company/ Firm Accounts including Profit & Loss Accounts.
Bank’s Statements (Pass Book)
The land revenue records in form of 7/12 extracts certificate from Tahasildar regarding crop pattern indicating crop yield, whenever source of income is shown as agriculture.
Whenever income from export is indicated in proposal form / I.T. returns/ Computation of income/ CA’s certificate, then income certificate in the form of report under 80 HHC and Form No. 10 CCAC duly completed and attested should be obtained.

Proof of Income to be submitted depends on the total rated up sum assured as shown below:

Total rated up sum assured mentioned above for the purpose of calling for proof of income will be calculated as under :-

Total rate up sum assured on the life of the proposer

Total rated up insurance on the lives of all children aged up to 25 (financed by parents)
Total rated up insurance on the life of wife (financed by husband up to a maximum of Rs. 30 lacs)/ total rated up insurance on the life of husband (proposed and financed by wife) +Total rated up credit given to sons and unmarried daughters aged more than 25 years. In the case of proposals on the lives of children aged upto 25, proof of income of the personal (father or mother) funding the insurance is to be called for.

The proof of income will depend on the total rated up sum assured calculated as above. In the case of proposals on the lives of married women on the basis of husband’s income, proof of income of the husband is to be called for. The proof of income will depend on the total rated up sum assured calculated as above. Income shown in the Income tax returns: Income Tax Returns (ITRs) show only net income.

Therefore, standard deduction if allowed can be added to the total income. If any interest is paid for housing loans and if it is claimed as a deduction against income from housing property, it can be added back to the total income. If income exempted from income tax (e.g. dividend income, export income, interest on tax- free bonds, agricultural income etc) is either mentioned in the ITRs or in the computation of income statement attached with ITRs, then separate proof of such income need not be called for.

However, if such exempted income is not mentioned it ITRs or computation of income Statement, Proof of the income should be called for.

Share of profit from Partnership firms:

Copies of partnership deed and ITRs/ audited accounts for last three years are to be called for, it is to be ensured that the partnership deed is still in force and the partners are actually receiving their share of profit.

निगम गीत ,भारतीय जीवन बीमा निगम

Posted on January 21, 2019June 2, 2019 by avinash

आओ प्यारे साथ हमारे,
जनसेवा हित सांझ सकारेl

सम्यक संचय और निवेशन
जन जन का हित संवर्धन,
निगम नीति का उच्च लक्ष्य है,
व्यक्ति और परिवारोंत्थान ।

लोक हितैषी सेवा दीक्षा,
जन मन प्रेरित सतत सुरक्षा,
योगक्षेमं ही परम ध्येय है,
निगम हमारा प्रिय संस्थान।

उठो निगम के सच्चे सेवक,
अभिकर्ता जन और प्रबंधक,
बुला रहे हैं ,कार्य लोकहित ,
तुम पर निर्भर जनकल्याण।

आओ प्यारे साथ हमारे,
जनसेवा हित सांझ सकारे।।

LIC of India Corporate Flag and the Corporate Anthem (Nigam Geet) were introduced in 1994. Every meeting LIC agent and LIC staff starts with this prestigious Nigam Geet.

Income Tax exemption on maturity death claim proceeds section 10 (10D)

Posted on January 21, 2019January 21, 2019 by avinash

1.Any death claim received under a life Insurance policy is fully exempt from tax, provided:

a) policy has not been issued under section 80dd(3)

b) policy has not been issued a Key men policy.

2. Any sum received other than death claim under a life insurance policy, including the sum allocated by way of bonus one such policy is exempt from text, provided:

a) policy has not been issued under section 80dd (3) or,

b) policy has not been issued as a key man insurance policy,
c) policy has been issued 31st March 2003 or

d) policy has been issued between 1st April 2003 and 31st March 2012 and the premium paid in any of the Year during the term of the policy does not exceed 20% of the actual capital sum assured or

e) policy has been issued on or after april 1st 2012 and the premium paid in any of the Year during the term of the policy does not exceed 10% of the actual capital sum assured.

Where the policy issued on or after the first April 2013 is for insurance on life of any person ,

who is :

– a person with disability for a person with severe disability as referred to in section 80u or

– suffering from disease or ailment as specified in the rule under section 80DDB.

Exemption under section shall be available payable in any of the years is not more than 15% of the actual capital sum assured.

Surrender Value Calculation of Jeevan Shanti

Posted on September 16, 2018September 24, 2018 by avinash

1. Jeevan shanti policy can be surrendered at any time after three months from the Date of issuance of policy or after expiry of the free-look period, whichever is later.
2. Surrender is allowed only under the following annuity options:

a) Immediate annuity–
 Option F: Immediate Annuity for life with return of Purchase Price.
 Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as
long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

b) Deferred annuity–
 Option 1: Deferred annuity for Single life.
 Option 2: Deferred annuity for Joint life.
3. On payment of the surrender value all other benefits payable will cease.
Procedure for Determining Surrender Value:
a. Surrender During deferment period under Deferred Annuity:
SV = F3 x (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price)
Where:

 F1 is Annuity Factor applicable at age lbd on the date of Vesting.
 F2 is the Risk Factor applicable for age lbd on the date of Vesting.
 F3 is the Factor applicable for outstanding deferment period in complete full years as at date of
surrender.
For Example: if the policy with deferment Period 20 years is surrendered during 20th year of policy, then outstanding period will be Zero.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.

Example:
Age at Entry (lbd): Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value payable during 4th
year.
 Age lbd of Younger age at Vesting = 35 + 20 = 55 years
 Annuity rate Payable p.a. for 10 lacs Purchase Price under Joint Life = 225.10 + 2.10 = 227.20
Annuity Payable Per annum = 10,00,000 x 227.20/1000 = 2,27,200
 Outstanding Deferment Period = 20 – 4 = 16 years.
 Factor F1 at Age 55 lbd = 9.4760
 Factor F2 at Age 55 lbd = 0.1306
 Factor F3 for Outstanding Deferment Period of 16 years = 23.94%
Surrender Value = F3 x (F1 x Annual Annuity Payable + F2 x 110% of Purchase Price)
= 23.94/100 x (9.4760 x 2,27,200 + 0.1306 x 11,00,000)
= 0.2394 x (21,52,947 + 1,43,660)
= 0.2394 x (22, 96,607) = 5,49,807

Surrender Value and Loan Payable during each year under Above Example:

b) Surrender after deferment period under Deferred Annuity and under Immediate Annuity:

Surrender Value =
(F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) – Annuity
installments paid under the policy during the policy year of surrender up to date of surrender.
Where:
 F1 is Annuity Factor applicable for age lbd on the date of surrender.
 F2 is the Risk Factor applicable for age lbd on the date of surrender.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.
Example:
Age at Entry (lbd): Single/Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value after 3 years (During 4th year after Vesting):
a) Under Option F of Immediate Annuity and
b) Option 2 of Deferred Annuity
a) Under Option F of Immediate Annuity:
 Age lbd of Annuitant on the date of Surrender = 45 + 3 = 48
 Annuity Rate under option F for 10 Lacs Purchase Price Payable yearly = 63.30 + 2.10 = 65.40
 Annuity payable p.a = 10,00,000 x 65.40 /1000 = 65400
 Factor F1 for Age lbd 48 years = 10.0515
 Factor F2 for Age lbd 48 years = 0.0828
SV = (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) –
Annuity installments paid under the policy during the policy year of surrender up to date of surrender.
SV = (10.0515 x 65400 + 0.0828 x 11,00,000) – Nil ( As Annuity mode is yearly).
= 6,57,368 + 91,080 = 7,48,448

LOAN CALCULATION OF LIC JEEVAN SHANTI PLAN

Posted on September 16, 2018October 15, 2018 by avinash

Loan facility of JEEVAN SHANTI POLICY will be available after completion of one policy year and will be available under the following
annuity options only:

a) Immediate Annuity:

i. Option F – Immediate Annuity with return of Purchase Price
ii. Option J – Joint Life Annuity with 100% Annuity to last survivor and return of Purchase price.

b) Deferred annuity–

i. Option 1: Deferred annuity for Single life.
ii. Option 2: Deferred annuity for Joint life.

Under Deferred Annuity during Deferment period:

 Maximum amount of loan available will be such that the annual interest amount payable on loan shall not
increase 50% of the annual annuity amount payable under the policy after deferment period and shall be
subject to maximum 80% of Surrender Value.

 Loan interest during deferment period shall be paid on compounding half yearly basis.

 In case loan is not repaid during the deferment period and if there is no default in interest payment as at
end of deferment period, then interest on loan shall be recovered from the annuity amount payable after the deferment period.

 In case loan is not repaid during the deferment period and there is a default in interest payment as at end
of deferment period, the difference of surrender value and loan outstanding along with interest shall be
payable to Primary / Secondary annuitant and policy shall be terminated.

 During the deferment period, if interest is not paid on due dates and when the outstanding loan amount
along with interest exceeds the surrender value, the policy shall be forfeited and difference of surrender
value and loan outstanding along interest shall be payable to Primary / Secondary annuitant and policy
shall be terminated.

Example:
Age at Entry: 45 years,

Purchase Price – 10,00,000, Deferment Period – 20 years.

Annual Annuity Payable – 2,27,200, Loan Interest rate – 9.50%
Calculate Loan amount during 4th Year of policy:

 50% of Annuity – 2,27,200 / 2 = 1,13,600
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 1,13,600 x 100 / 9.50
= 11,95,789
 Surrender Value During 4th year of Policy: 5,49,807
 Loan Amount will be restricted to 80% of SV i.e. 80% of 5,49,807 = 4,39,846.

Under Immediate Annuity and Deferred Annuity after Deferment Period:

 Maximum amount of loan available will be such that the annual interest amount payable on loan shall not
increase 50% of the annual annuity amount payable under the policy and shall be subject to maximum
80% of Surrender Value.

 Loan interest will be recovered from the annuity amount payable under the policy.

 Loan interest will accrue as per frequency of the annuity payment under the policy and will be due on the due date of annuity.

 Outstanding loan amount will be recovered from the claim proceeds at the time of exit.

Example:
Age at Entry Single/Primary annuitant: 45 years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Loan Interest rate – 9.50%
Calculate Loan amount during 4th Year of policy under:

a) Under Option F of Immediate Annuity and
b) Option 2 of Deferred Annuity
a) Under Option F of Immediate Annuity:
 Annuity Payable Per Annum = 65,400
 50% of Annuity – 65,400 / 2 = 32,700
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 32,700 x 100 /9.5
= 3,44,210
 Surrender Value During 4th year of Policy: 7,48,488
 80% of SV = 0.80 x 7,48,488 = 5,98,790
 Maximum Available Loan will be = 3,44,210.
b) Under option 2 of Deferred Annuity:
 Annuity Payable Per Annum = 2,27,200
 50% of Annuity – 2,27,200 / 2 = 1,13,600
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 1,13,600 x 100 /9.5
= 11,95,789
 Surrender Value During 4th
year after Vesting: 22,52,448
 80% of SV = 0.80 x 22,52,448 = 18,01,958
 Maximum Available Loan will be = 11,95,789.

What is Grace period for LIC Premium payments?

Posted on May 28, 2018May 28, 2018 by avinash

Grace period

If you fail to pay LIC PREMIUM on time then LIC gives you days to pay Your premium without any hassle.

Grace period of one calendar month 30 days will be allowed for the payment of premium under early half yearly quarterly mode and 15 days of premium under monthly mode without changing the interest.

If premium paid after Grace period then interest from due date of premium is charged.

In case of death of life assured in grace period full death claim is payable. However the unpaid premium falling due to before next policy anniversary will be deducted claim amount payable.

If premium chart not paid expiry Grace period the policy lapses and clean under the policy is not payable in case of death after Grace period.

So agent has also to ensure the policy holders pay the premium within Grace period and policy holder should also take it note.

The above Grace period will also apply for the rider premiums and benefit also.

GST Rates (Service Tax) On LIC Policy

Posted on May 26, 2018 by avinash

Goods and Services Tax or GST has come into effect from July 1st, 2017 earlier GST on LIC Policy in the form of Service Tax .GST is a biggest tax reform in India history .It impact every one and all industries then How LIC can keep themselves apart from it. GST rate on LIC should be abolish,because LIC is paying huge dividends to Govt.

GST is also chargeable on the Interest Charged for Delayed Premium that late fees .we can say now GST will be applicable on Interest charged on delayed receipt of premium.

Rate will be applicable according to the type of premium collected. Here Types of premium means Mode of premium (yearly ,half-yearly,quarterly,monthly)

If you paid LIC premium by Bank Cheque ,but for any reasons your cheque bounced

(known as CDA ) then also GST is applicable .CDA Charges will be 18%.

There are few tax exemptions are in GST as decided by GST council

( i) Services of life insurance business provided by way of annuity under the NPS regulated by PFRDA

( ii) Services provided by IRDAI to insurers under IRDAI

(iii) Services of life insurance business provided under following schemes

Janashree Bima Yojana(JBY)
Aam Aadmi Bima Yojana (AABY
Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees;
Varishtha Pension Bima Yojana
Pradhan Mantri Jeevan Jyoti Bima Yojana
Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Vaya Vanadan Yojana
Any other insurance scheme of State Government as may be notified by Government of India on recommendation of GSTC

New RATE Of GST on LIC POLICIES

PLANS of LIC	Earlier service tax	New Rates w.e.f. 1.7.2017
Term & Health Products and ULIP charges	15%	18%
NB premium(including Single Premium) of Life and Pension products and First year premium of Annuity products	3.75%	4.50%
Renewal premium	1.875%	2.25%
Single premium of Annuity Products	1.50%	1.80%

Surrender of LIC Insurance policy

Posted on May 21, 2018May 21, 2018 by avinash

If you don’t want to continue LIC policy for any reason then LIC gives you an option to surrender your Policy. There are Lock in period for 3 years in Endowment Plan and 5 years for ULIP plan. LIC policy is not allowed in LOCK in period. It does not matter of policy term but it is clear that delay in surrender gives you better amount. Normally LIC agents in Mumbai are doing all this procedure for surrender of LIC policies.

Where can you surrender your LIC policy

ü LIC parent Branch: Where you have taken your policy, you may go there and do all procedure.

ü LIC Customer Zone: LIC has opened several Customer Zone to help its customer.Here one can get any service related to LIC policies irespestive of parent branch. It is compulsory that Customer has to visit by own along with ID card.You can find Customer Zone in your locality with the help of internet.

ü LIC agent: Just do a call to LIC agent,he will do all documentation of behalf of you.

Documents Require To surrender LIC Policy

Ø Original Policy Paper (Bond Paper)

Ø Surrender Form (No.5074)Surrender Value(Form No.5704)

Here and take the printout

Ø Your Bank cancelled cheque (your name should be printed on cheque)

If Your Name is not printed on cheque or you don’t have Cheque Book then

Submit bank passbook photocopy.

Ø NEFT form :Fill all bank details , so that amount will go directly to you.

Ø Aaadhar Card and PAN card self attested zerox copy

Ø One questionnaire form also should be fill in LIC office.

How to Calculate Surrender Amount?

The exact value will be conveyed to you through servicing branch or you can also collect it through SMS/LIC customer care.but you can also calculate it by own.

{(Total Premium Paid in years/total premium Payable years)X Sum Assured } + Accrued Bonus } X Surrender Factor

Suppose Mr A has take a policy of rs 30 Lac for 30 years terms. Now Having paid for 10 years , Mr A wants to surrender it.

{(10/30) X 30 lac} + Bonus } LIC surrender Factor}

Note:Once you submit the all necessary documents, then wait for 5-10 days they transfer the fund to your bank account.

If you plan to surrender your endowment policy, bear in mind all the money you have paid that you may never get back.

What is Riders in LIC Policies

Posted on May 7, 2018May 20, 2018 by avinash

Insurance rider is a kind of add-on benefits to the primary policy, which offers extra benefits with a bit extra premium over the policy subject to certain condition.On such way to maximize the policy benefits on your LIC policy and You may customize it to suit your specific needs is by opting for rider.

So Rider is for extra benefits with extra cost. But extra premium will not affect Maturity.
Suppose i took DAB (double accidental benefit ) rider alongwith my LIC policy, If i die due to accident then my family will get double of sum assured.

Types of RIDERS in LIC

1.PWB (Premium waiver benefit)

2.A.B(Accidental Benefits)

3.A.D& D.B (Accidental Benefits and Disability benefits)

4. T.R.(Term rider)

5. C.I.R (Critical illness Rider)

1.PWB (Premium waiver benefit)

PLANS available for PWB: 832, 834 & 848.

If father/mother take policies for child they can take pwb rider, in this rider if proposer dies then next premium will be waived.
It can be included at time of INCEPTION or LATER (atleast min 5 years ppt/term must be left before Date Of Maturity (DOM)

The death of the proposer must be before the completion of 18 yrs of age.

All the future premiums will be waived till Prem Paying Term/Policy Term.

2) A.B(Accident Death Benefit)

Plans numbers available for this Riders are 827, 835, 843, 844 (845, 847, 848).

It covers Accidental death before the DOM or 70 yrs of age.

For plans in the bracket till ppt only.

3. A.D.& D.B(Accidental Death & Disability Benefit)

Plans available for this Riders are 814, 815, 820, 821, 830, 833, 836, 838, 845, 846, 847 & 848.

AD & DB covers both Accidental death and disability due to Accident.

Disability means due to any of the 4 out of 6 activities couldn’t be performed mention below.

1) Dressing
2) Feeding
3) Washing
4) Toileting
5) Mobility
6) Transfering

Benefits of Disability riders

1) Waiver of future premiums
2) AB sum assured divided by 120 and payable mly for 10 yrs
3) SB if any payable
4) Maturity benefits payable.
If Death occurs before Maturity Death Claim also payable.

4) T.R(Term Rider) benefits

Plans available for this Riders are: 814, 815, 820, 821, 830, 833, 836, 845, 847 & 848..

An Additional S. A is payable on Death of the P.H before maturity by any way.

5) C.I.R(Critical Illness Rider)

Plans available for this Riders are: 814, 815, 820, 821, 830, 836, 838, 845, 847 & 848.

On the 1st diagnosis of any of the 15 diseases mentioned in the circular dt 19.12.2016 N.B Dept. The CIR S.A is payable to the PH ON survival after 30 days of the Diagnosis.

Min. 1 lakh

Max. S.A. Overall limit 25 lakhs per person.

(If we take Cancer Cover plan this benefit is upto 50 lacs.)