Income Tax and Tax benefits from Life Insurance

Published by Philip George on August 24th, 2011 - in Income Tax, Life Insurance
INCOME-TAX AND TAX BENEFITS FROM LIFE INSURANCEA] INCOME-TAX RATES FOR ASSESSMENT YEAR 2011-2012 (FINANCIAL YEAR 2010-2011)

Income Slabs

Tax Rates

Individual & HUF below age of 65 years

Woman below age of 65 years

Individual above age of 65 years

Income upto Rs.1,60,000 Income upto Rs.1,90,000 Income upto Rs.2,40,000

NIL

Rs.1,60,001 to Rs.5,00,000 Rs.1,90,001 to Rs.5,00,000 Rs.2,40,001 to Rs.5,00,000

10%

 Rs.5,00,001  to  Rs.8,00,000 Rs.5,00,001  to  Rs.8,00,000 Rs.5,00,001  to  Rs.8,00,000

20%

Above Rs.8,00,001 Above Rs.8,00,001 Above Rs.8,00,001

30%


Education Cess : An additional surcharge called as ‘Education Cess’ is levied at the rate of 2% on the amount of Income tax and   surcharge (if any) in all cases shall be levied.
Secondary and Higher : An additional surcharge, called the “Secondary and Higher Education Cess on income- at the rate of 1% of income-tax and surcharge (not including the “Education Cess on Income-tax”) in all cases shall be levied.

B] SOME IMPORTANT INCOME TAX BENEFITS AVAILABLE UNDER VARIOUS PLANS OF LIFE INSURANCE ARE HIGHLIGHTED BELOW:

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.



Pension Plans

Published by Philip George on August 23rd, 2011 - in Insurance Plans, LIC Policy, Life Insurance

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

Pension Plans



New Jeevan Suraksha-I

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance


Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for regular income after the selected term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum (single premium).

Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

Bonuses:
These are with-profit plans and participate in the profits of the Corporation’s annuity / pension business. Policies get a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period.



New Jeevan Dhara-I

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance


Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for regular income after the selected term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum (single premium).

Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

Bonuses:
These are with-profit plans and participate in the profits of the Corporation’s annuity / pension business. Policies get a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period.



Jeevan Akshay-VI

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance

Introduction:
It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.

Options Available:
The following options are available under the plan

Type of Annuity:

  • Annuity payable for life at a uniform rate.
  • Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
  • Annuity for life with return of purchase price on death of the annuitant.
  • Annuity payable for life increasing at a simple rate of 3% p.a.
  • Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  • Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

You may choose any one. Once chosen, the option cannot be altered.

Mode:

  • Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.

Salient features:

  • Premium is to be paid in a lump sum.
  • Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
    Mode Minimum Annuity
    Monthly Rs. 500 per month
    Quarterly Rs. 1000 per quarter
    Half-yearly Rs. 2000 per half year
    Yearly Rs. 3000 per year
  • No medical examination is required under the plan.
  • No maximum limits for purchase price, annuity etc.
  • Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday.
  • Age proof necessary.

Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:

Age last birthday

Yearly annuity amount under option
  ( i ) ( ii ) (15 years certain) ( iii ) ( iv ) ( v ) ( vi )

40

7510

7440

6930

5610

7310

7120

45

7770

7660

6960

5890

7500

7240

50

8140

7950

7000

6280

7760

7420

55

8650

8330

7050

6810

8130

7670

60

9350

8790

7110

7530

8640

8030

65

10410

9330

7180

8590

9400

8570

70

12080

9830

7260

10220

10560

9370

75

14510

10220

7360

12590

12240

10590

Incentives for high purchase price:
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due to available incentives.

Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond. On receipt of the policy we shall cancel the same and the amount of premium deposited by you shall be refunded to you after deducting the charges for stamp duty.

Paid-up value:

The policy does not acquire any paid-up value.

Surrender Value :
No surrender value will be available under the policy.

Loan :
No loan will be available under the policy.

Section 41 of Insurance Act 1938 :

  • No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer:   provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
  • Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

Note : For full details please refer to the Policy document or contact our nearest Branch             Office.



Jeevan Nidhi

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance
LIC’s JEEVAN NIDHI is a with profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The plan also provides a risk cover during the deferment period. The USP of the plan being the pension can commence at 40 years.  The premiums paid are exempt under Section 80CCC of Income Tax Act.

Salient Features:

a . Guaranteed Additions:  Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.

b. Participation in profits: The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.

c. Benefit On Vesting:

1. Option to commute up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any.

2 . Annuity as per the option selected: Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.

d. Annuity Options:

On vesting, the annuity instalment, mode of annuity payment and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions.

Currently the following options are available under LIC’s immediate annuities:

1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.

2. Annuity Guaranteed for certain periods: The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.

3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.

4. Increasing annuity: The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.

5. Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.

e. Death Benefit on death before annuity vests: On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee will also have the option to purchase an annuity with this amount.



Pension Plus

Published by Philip George on August 23rd, 2011 - in Insurance Plans, Life Insurance

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. 

You have a choice of investing your premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or   quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

2 . Eligibility  Conditions  And  Other  Restrictions:
a)  Minimum Entry Age – 18 years (last birthday)
b)  Maximum Entry Age – 75 years (nearest birthday)
c)  Minimum Vesting Age  – 40 years (completed)
d)  Maximum Vesting Age -  85 years (nearest birthday)
e)  Minimum Deferment Term  -  10 years
f)   Sum Assured – NIL
g)  Minimum Premium –
Regular premium (other than monthly (ECS) mode) : Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode) : Rs. [1,500] p.m. 
Single premium:  Rs. [30,000] 
h)  Maximum Premium –
Regular premium : Rs. [1,00,000] p.a.
Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.

3. Charges under the Plan:
A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

 For Single premium policies:  3.3%
 For Regular premium policies:

Premium

Allocation Charge

First Year

6.75%

2nd to 5th Year

4.50%

thereafter

2.50%

Allocation charge for Top-up: 1.25%

B) Other Charges: The following charges shall be deducted during the term of the policy:

  1. Policy Administration charge:  Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.
  2. Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates:

    0.70% p.a. of Unit Fund for “Debt” Fund
    0.80% p.a. of Unit Fund for “Mixed” Fund
    Fund Management Charge shall be appropriated while computing NAV.

  3. Switching Charge –This is the charge levied on switching of monies from one fund to another. Within a given policy year 2 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.
  4. Bid/Offer Spread – Nil.
  5. Discontinuance Charge – The discontinuance charge for regular premium policies is as under:

    Where the policy is discontinued during the policy year

    Discontinuance charges for the policies having annualized premium up to Rs. 25,000/-

    Discontinuance charges for the policies having annualized premium above Rs. 25,000/-

    1

    Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/-

    Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-

    2

    Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/-

    Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-

    3

    Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-

    Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-

    4

    Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/-

    Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-

    5 and onwards

    NIL

    NIL

          
    AP – Annualised Premium
    FV – Policyholder’s Fund Value excluding the fund value in respect of Top-up premiums paid, if any, on the date of discontinuance.

    There shall not be any discontinuance charge under Single Premium
     

  6. Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.
  7. Miscellaneous Charge – This is a charge levied for change in premium mode, if opted for by the policyholder during the deferment term. An alteration may be allowed subject to a charge of Rs. 50/-.

C)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge, with the prior approval of IRDA.
Although the charges are reviewable, they will be subject to the following maximum limit:

– Policy Administration Charge

Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

– Fund Management Charge: The Maximum for each Fund will be as follows:

  1. Debt Fund: 1.20% p.a. of Unit Fund
  2. Mixed Fund: 1.30% p.a. of Unit Fund

– Switching Charge shall not exceed Rs. 200/- per switch.
– Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value which shall be utilised to provide an annuity.

4. Discontinuance of Premiums:

If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

  1. Revival of the policy, or
  2. Complete withdrawal  from the policy

During the notice period of 30 days, the policy shall be treated as in force till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period) and the charges shall be taken, as usual.
 
If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

There shall be no change in payments of benefits during the notice period.

The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below will compulsorily be utilized to provide an annuity, and shall be payable after completion of 5 years from the date of commencement of the policy.

If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value will compulsorily be utilized to provide an annuity.

5. Method of calculation of Monetary amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

6. Other Features:
i ) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums if any, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.

The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.

ii )Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

iii ) Top-up (Additional Premium) : You can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of policy. Top-up shall not be allowed during the last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.

iv) Switching: You can switch between the two fund types during the policy term subject to switching charges, if any.

v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.

vi) Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

vii) Conversion to annuity: The benefit amount, payable in case of surrender or on discontinuance of premium or on vesting, shall compulsorily be utilized to provide an annuity subject to the following conditions:

1. You will have an option to commute upto a maximum of one third of the

a) Higher of Policyholder’s Fund Value and Guaranteed Maturity Proceeds, in the event of vesting, or
b) Proceeds of the discontinued policy, if policy is discontinued or surrendered within 5 years from the date    of commencement of policy, or
c) Policyholder’s Fund Value, if policy is discontinued or surrendered after 5 years from the date of    commencement of policy,
whichever is applicable.

The commutation will be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. 
The balance amount shall compulsorily be utilised to provide an annuity based on the then prevailing immediate annuity rates under the relevant annuity option.

2. The minimum amount of annuity payable shall be subject to the provisions of section 4 of Insurance Act, 1938 as applicable on the date of payment of annuity. In case the applicable amount as mentioned in (a) to (c) of Para 10.vii) above is insufficient to purchase the minimum amount of annuity, then the said amount shall be refunded as a lump sum to you.

3. You shall have an option to purchase immediate annuity from any other life insurance company “registered with IRDA” subject to Regulatory provisions. In such cases, LIC will transfer your fund amount directly to the chosen Insurer.

If you opt to purchase immediate annuity from any other life insurance Company, you would be required to inform your such intention to the Corporation six months prior to the vesting date.

7. Reinstatement:

A policy once surrendered cannot be reinstated.

8. Risks borne by the Policyholder:

  1. LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
  2. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
  3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Pension Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
  4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
  5. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
  6. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

9. Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus PolicyAdministration charge deducted      
Less charges @ Rs. 0.20 per thousand of Total Premiums payable during entire term of policy

10. Loan:
No loan will be available under this plan.

11. Assignment:

Assignment shall not be allowed under this plan.

 


Children’s Plans from LIC

Published by Philip George on August 13th, 2011 - in LIC Policy, Life Insurance, Videos



Wide range of policies from LIC ::: Why go anywhere else?

Published by Philip George on August 12th, 2011 - in LIC Policy, Life Insurance, Videos



LIC Endowment Plus ::: Unit linked insurance policy with wide range of options

Published by Philip George on August 11th, 2011 - in LIC Policy, Life Insurance, Videos



© Philip George
Tuesday, 16 August 2022