Category: LIC INSURANCE PLAN

LIC term insurance is costlier than others

Posted on by avinash

Insurance Premium of term insurance plan of LIC is very costly than other insurer in India. What would be the reason?If 30yrs old person gets term insurance than Yearly premium would be rs 19000 for 1cr sum assured policy even though private insurer charge approx 10 to 11k only.
Few reasons to ponder prior to take LIC term insurance:

LIC CLAIM RATIO: LIC CLAIM statement is the highest in the world Its 98.3% as per IRDA data. We all know LIC has huge customers but maintaining greatest CLAIM RATIO .

Government’s backing: LIC is paying huge dividends to government from its Yearly profit . On the contrary Government provides sovereign Guarantee on each policies . Which is not available in PRIVATE INSURER.

Mortality Rate: it is basic ingredient to calculate premium of any policies . But we know that mortality Rate is common for all insurer. Private company must not reduce it. Even though longevity of every citizen has been increased and on an average people living 72 years normally.Which is common for all insurance company

Admin Charge: LIC has the lowest administration charge amongst almost all insurers. Salary of LIC staff,Offices and all other expenditure is very less in LIC.It is visible to all.

Note: The only reason for high premium of its Guaranteed CLAIM payments. One can take online term insurance from LIC with reduced premium.

LIC Term Insurance Plan: New Anmol Jeevan And New Amulya Jeevan Plan

Posted on by avinash

LIC’s Term Insurance is a protection plan which gives only financial protection to the insured’s family in case of his/her unfortunate demise.
There are two Term Insurance Plans are in LIC of India

  • Anmol Jeevan
  • Amulya Jeevan

Eligibility Conditions And Other Restrictions for Anmol Jeevan

  • Minimum Sum Assured: Rs. 6,00,000
  • Maximum Sum Assured:  Rs. 24,00,000
  • (The Sum Assured shall be in multiples of Rs. 1, 00,000/-)
  •  Minimum age at entry   18 years (completed)
  • Maximum age at entry    : 55 years (nearest birthday)
  • Maximum cover  age     : 65 years (nearest birthday)
  • Minimum policy term : 5 years
  • Maximum policy term    : 25 year

Eligibility Conditions And Other Restrictions for Amulya Jeewan Plan

  • Minimum Sum Assured  : Rs. 25,00,000
  • Maximum Sum Assured : No uper limit
  • (The Sum Assured shall be in multiples of Rs. 1, 00,000/-)
  • Minimum age at entry         : 18 years (completed)
  • Maximum age at entry        : 60 years (nearest birthday)
  • Maximum cover  age : 70 years (nearest birthday)
  • Minimum policy term : 5 years
  • Maximum policy term   : 35 years

Features and benefits:


Death Benefit: In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.


Maturity Benefit: On survival to the end of the policy term, nothing shall be payable.

 

Paid -Up value– Both policy can not be Paid Up.

 

Surrender Value: No Surrender Value will be available under this plan.

Taxes: Income Tax benefits (80 c) are available 

Cooling-off period:If the Policyholder is not happy with the “Terms and Conditions” of the policy, the policy may be returned to us within 15 days from the date of receipt of the policy .


Suicide: This policy shall be void if the Life Assured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk or from the date of revival, an amount equal to 80% of the premiums paid till the date of death (excluding any taxes, extra premium, if any,), provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.

Revival of Policy: If Premiums are not paid on time with in grace period then then the policy ,A lapsed policy can be revived with in the two consecutive years from the date of first unpaid premium.

 

 

Suppose A Person age 35 yrs old took this Term Insurance for 35 years
Plan Amulya jeevan (823)
Sum Assured :5000000
Premium With Tax 18.0% :

Yearly : 23128 (19600 + 3528)  Halfly : 11795 (9996 + 1799)

TERM INSURANCE FROM LIC IS COSTLY THAN OTHER INSURER, BEFORE HAVING THIS PLAN ONE MUST HAVE A LOOK CLAIM RATIO REPORT FROM IRDAI

LIC gives BONUS to policy holders

Posted on by avinash

LIC declare Bonus rate every years but it not paid immediately, it will be paid at the time of maturity or premature death of policy holder. Bonus varies as per the plans term and condition.Bonus rate of LIC is declared on per thousand of sum assure(SA) basis.
Original bond paper consist the detail of type of bonus available in the Insurance PLAN. One can get bonus rate charts of desired year from LIC website home page

 

 Types of LIC bonus

There are four types of bonuses declared by LIC.

  • Simple Reversionary Bonus

  • Final Additional Bonus (FAB) or Terminal Bonus

  • Loyalty Additions

  • Guaranteed Additions (GA

Simple Reversionary Bonus

  • What we simply meant when we say Bonus is this “Simple Reversionary Bonuses”. This bonus is declared per thousand of the Sum Assured Amount in each financial year by LIC but will be paid at the end of maturity period or on the death of the policyholder, whichever is earlier.

  • For instance if you are holding Jeevan Lakshya policy with Sum Assure amount of Rs.10 lakhs and policy term exceeding 20 years and the bonus declared this year is Rs.49, then your bonus amount would be Rs.49,000 for current year, but as said earlier, you will get this amount only at maturity or on death.

Final Additional Bonus (FAB) or Terminal Bonus

  • This is the second type of bonus declared by LIC termed as Final Additional Bonus (FAB). FAB is a onetime payment and paid only to those policyholders who have policy of longer duration, say 15 years and more, and has paid premium for all 15 years. Usually, policies having Guaranteed Additions are not eligible for FAB.

Loyalty Additions

Loyalty Addition is a non-guaranteed bonus which is given as an appreciation of being a long-term loyal customer of LIC. Usually this is also declared per thousand of sum depending and at the end of the policy term but for some policies it gets declared after completion of certain policy period such as in Jeevan Saral Policy, loyalty additions will be awarded to the policyholders after completing minimum of 10 years. But likewise FAB, loyal addition is also paid at the end of maturity period or on death whichever is earlier subject to completion of minimum policy period.

Guaranteed Additions (GA)

  • Some of the LIC Policies offers a “Guaranteed Additions” which means that policyholder will get an assured amount of sum for a specified period. For instance, Jeevan Shiromani policy provides a Guaranteed Additions of Rs.50 per year per thousand sum assured for first five years of the policy.

  • Another such policy is Komal Jeevan (Now closed plan). Guaranteed Additions are added with the Basic Sum Assured and paid at the time of claim.

How to Calculate LIC bonus

  • Suppose SA =10,00,000 and policy is taken for Term 30 yrs

  • Bonus declared = 49/1000

                                        then   1000000X49X30  

                                                       1000

                    =14,70,000

  • FAB declared = 1100/1000

=11,00,000

 

Then Total Maturity =SA + Bonus + FAB

 

= 10 lac+14.70 lac+11 lac=35.70 lac

How to link LIC Policy with Aadhaar Card & PAN Card ?

Posted on by avinash

Its compulsory to link your Aadhaar and PAN card wilth New LIC policy and OLD LIC policy otherwise you will not get maturity amount. You can link aadahr and PAN card online and offline both manner.As per Govt Directives it is mandatory to link Aadhar with all financial instruments.

There are two methods to link Aadhaar and PAN with LIC plan

 

1) Offline: We have shown forms and also elaborate how to fill this form.

2) Online:Go to official LIC web site and update  

 

Offline Method

There is form available in every LIC office collect it fill will all existing  LIC POLICy details and submit there. 

 
 

Online Method

Follow some Step 

 

  • Go to official website of LIC of India 
  • Click to link Addahr Card 
  • New window will be open
  • Fill all the detail as Aadhar card
  • Get OTP on resitered Mobile 
  • Submit All
 

JEEVAN LAKSHYA PLAN 833

Posted on by avinash

Its a complete Financial protection

  1. For Child Future Provision
  1. (Kanyadan,Marriage,Education)
  1. Own Particular dream)

It is a combination of Saving and risk cover both.

Eligibility:

  • Min & Max Age at entry   18 to 50 years lbd (Last BirthDay) 
  • Age at maturity : 65 years.
  • Policy Term  : 13 to 25 years.
  • PPT (Policy Term – 3) years
  • Premium Mode Yly, Hly, Qly , SSS and ECS.
  • Mini Sum assured 100,000. No upper Limit.
  • Riders DAB available upto 1 cror and Term rider

Age proof Only Standard age proof and NSAP I & II acceptable.**

  • Mode Rebate
  •  Yly: 2% of TP,
  • Hly: 1% of TP, 
  • Qtly & monthly : NIL
  • Date Backing  Allowed 
  • Surrender & loan  Allowed after 3 yrs. 
  • Female  All categories allowed as per LIC rules

Non Medical  allowed as per present rules.
NRI   Allowed for Both NRI and FNIO in V,VI & VIII   countries. 

Maturity :

SA+Bonus+FAB will be paid

Example     

Now see risk cover from this Plan with example

Now see risk cover from this Plan with example

Jeevan lakshya plan 833 returns if Policy Holders dies

  1. Immediate 110% of Sum Assured

  2. 10% of Sum Assured till policy end

  3. Maturity Benefit also goes to family

  4. Premium will stop

  5. Tax Benefit

Suppose if Policy holder dies at 10 year after taking this policy,

Till 10th year He/She  paid premium =4.5 Lac (45000 yearly X 10 years)

  • Immediate 11 lac (+ 10 lac if accidental death )

  • 1 lac every yearly till 14th year = 14 lac

  • Maturity 26.75 lac

Total 51.75 Lac tax free amount goes to family

Note : This is much suitable for young age group . even though it is not a child Plan but one may have for child Education and Daughter”s  marriage.

This Plan is also called  “KANYA DAN” policy .

LIC NEW MONEY BACK POLICY PLAN 820 AND PLAN 821

Posted on by avinash

LIC a has New Money Back Plan for 20 years and for 25 years term .It is a non-linked plan means returns will not affected by Share/Equity market .It offers an attractive combination of Risk cover of death throughout the policy term along with the periodic payment, called as Survival benefits at every 5 years of duration of during the term. A unique combination provides financial help for the family if death occur any time before maturity and lump sum amount at the time of maturity for the surviving policyholder.Plan also gives liquidity needs through its loan facility and surrender of policy.

Example for New Money Back  820 for Maturity and Survival benefits

Policy term= 20 years

PPT= 15 years (One Has to pay premium only 15 years)

Survival Benefit(Money back) = 20% Of Sum assure every 5 years

On Maturity = 40 % of SUM ASSURE + Bonus+ Final Addison Bonus

Example:

Age 35yrs

SA – Rs 10,00,000

Example for New Money Back  820 for Maturity and Survival benefits

Policy term= 20 years

PPT= 15 years (One Has to pay premium only 15 years)

Survival Benefit(Money back) = 15% Of Sum assure every 5 years

On Maturity = 40 % of SUM ASSURE + Bonus+ Final Addison Bonus
SA – Rs 10,00,000

 Death Benefit

What is Sum Assured on Death?

Sum  Assured on Death shall be Higher of ~

125% of Basic Sum Assured (1.25 x BSA)

OR

10 times Annualised Premium.(10 x AP).

         [Premiums – excluding taxes, extra premiums and premiums for riders, if any]

LIC New Policy Jeevan Shiromani plan 947

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LIC introduce LIC’s Jeevan Shiromani Plan (Plan No.947) with effect from 19th December, 2017.

https://licinsurance.online/jeevan-shiromani-plan-847/LIC’s Jeevan Shiromani plan is a non-linked, with-profits, limited premium payment money back life insurance plan especially designed for targeted segment of High Net-worth Individuals. This plan provides financial support for the family not only in case of death of Life Assured during the policy term but also provides for payment of a lumpsum amount on diagnosis of any of the specified Critical Illnesses.

Earlier it was plan no 847 ,now it is plan number 947.

Under this plan Guaranteed Additions shall accrue at the rate of Rs.50 per thousand Basic Sum Assured for the first five years and Rs.55/- per thousand Basic Sum Assured from 6th policy year till the end of premium paying term as detailed in Para 4 below.
In addition, the policy shall participate in the profits in form of Loyalty Additions .
 The benefits and other details of the Insurance plan are given below.
ELIGIBILITY CONDITIONS AND RESTRICTIONS FOR BASE PLAN:

a) Minimum Basic Sum Assured : Rs. 100,00,000/-

b) Maximum Basic Sum Assured : No Limit (The Basic Sum Assured shall be in multiples of Rs. 500,000/-)

c) Policy Term : 14, 16 , 18 and 20 years 

d) Premium Paying Term (PPT) : (Policy term less 4) years

e) Minimum Age at entry : 18 years (completed)

f) Maximum Age at entry 

55 years (nearer birthday) for policy term 14 years

51 years (nearer birthday) for policy term 16 years

48 years (nearer birthday) for policy term 18 years

45 years (nearer birthday) for policy term 20 years

 g) Maximum Age at Maturity : 69 years (nearer birthday) for policy term 14 years

67 years (nearer birthday) for policy term 16 years

66 years (nearer birthday) for policy term 18 years

65 years (nearer birthday) for policy term 20 years

Date of Commencement of Risk: Under this plan the risk will commence immediately from the Date of issuance of policy.

Date of issuance of policy is a date when a proposal after underwriting is accepted as a policy and the contract gets effected.

BENEFITS UNDER THE BASE PLAN:

The benefits payable under an inforce policy are as under: 

a) Death Benefit:

On death during first five years: “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable.

On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.

 Where “Sum Assured on Death” is defined as the higher of

  • 10 times of annualised premium or
  • Absolute amount assured to be paid on death, i.e. 125% Basic Sum Assured

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premiums, if any.

 b) Survival Benefit:

On the life assured surviving to each of the specified durations during the policy term, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

 For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th policy anniversary For policy term 16 years: 35% of Basic Sum Assured on each of 12th and 14th policy anniversary For policy term 18 years: 40% of Basic Sum Assured on each of 14th and 16th policy anniversary For policy term 20 years: 45% of Basic Sum Assured on each of 16th and 18th policy anniversary

 c) Maturity Benefit:

On the life assured surviving to the end of the policy term, “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.

 Where “Sum Assured on Maturity” is as under:

For policy term 14 years: 40% of Basic Sum Assured For policy term 16 years: 30% of Basic Sum Assured For policy term 18 years: 20% of Basic Sum Assured For policy term 20 years: 10% of Basic Sum Assured

 d) Inbuilt Critical Illness Benefit:

  1. On first diagnosis of any one of the 15 Critical Illnesses as specified below, provided the policy is inforce on the date of diagnosis, the following benefits/ facilities shall be available.
  2. Lumpsum Benefit: Inbuilt Critical Illness Benefit equal to 10% of Basic Sum Assured shall be
    payable.
  3. The claim is proved as admissible to the satisfaction of the Corporation

Want to be LIC advisor ? click here

The list of the 15 Critical Illnesses conditions covered under LIC  Jeevan Shiromani are:

  1. Cancer of specified severity:
  2. Open chest CABG
  3. Myocardial infarction
  4. Kidney failure requiring regular dialysis
  5. Major organ /bone marrow transplant (as recipient)
  6. Stroke resulting in permanent symptoms
  7. Permanent paralysis of limbs
  8. Multiple sclerosis with persisting symptoms
  9. Aortic surgery
  10. Primary (idiopathic) pulmonary hypertension
  11. Alzheimer’s disease/ dementia
  12. Blindness
  13. Third degree burns
  14. Open heart replacement or repair of heart valves
  15. Benign brain tumour
LIC Jeewan Shiromani plan
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