Archive for the ‘Life Insurance’ Category

Bima Bachat ::: ഓഹരി വിപണിയിലെ നിക്ഷേപത്തിന് താല്പര്യമ്മില്ലാത്ത നിക്ഷേപകർക്ക് പരിഗണിക്കാവുന്ന പോളിസി

Published by Philip George on October 15th, 2011 - in Insurance Plans, Investments, Life Insurance

What is Bima Bachat?

ഓഹരി വിപണിയിലെ നിക്ഷേപത്തിന് താല്പര്യമ്മില്ലാത്ത നിക്ഷേപകർക്ക് പരിഗണിക്കാവുന്ന പോളിസിയാണ് എൽ ഐ സിയുടെ ബീമാ ബചത്ത്. നിക്ഷേപതുകക്ക് പൂർണ്ണ സുരക്ഷിതത്വം ഉറപ്പാക്കുന്നതോടൊപ്പം മികച്ച റിട്ടേണും ഈ പോളിസിയിൽ നിന്നു ലഭിക്കുന്നു. സ്കീമിൽ ചേരുന്ന സമയത്ത് മാത്രം നിക്ഷേപം നടത്തിയാൽ മതി. 15 വർഷം വരെ ഇൻഷുറൻസ് സംരക്ഷണം ഈ സ്കീമിൽ നിന്നു ലഭിക്കും. കൂടാതെ അടക്കുന്ന പ്രീമിയത്തിനും തിരികെ ലഭിക്കുന്ന തുകക്കും ആദായ നികുതി ഇളവും കിട്ടും. വസ്ത്തു വിൽപ്പന നടത്തി ലഭിച്ച തുക , ചിട്ടി പണം, ലോട്ടറിയിൽ നിന്നു ലഭിച്ച തുക തുടങ്ങി ജീവിതത്തിൽ വല്ലപ്പോഴും ലഭിക്കുന്ന വൻ തുക നിക്ഷേപിക്കുവാൻഅനുയോജ്യമാണ് ഈ സ്കീം. Read more…

മുൻനിര സ്വകാര്യ ലൈഫ് ഇൻഷുറൻസ് കമ്പിനികൾക്ക്ക്ക് കനത്ത തിരിച്ചടി

Published by Philip George on September 11th, 2011 - in Life Insurance

ബജാജ് അലിയാൻസ് ലൈഫ് ഇൻഷുറൻസ് കമ്പിനിയുടെ ഏപ്രിൽ, മെയ് , മാസത്തെ ആദ്യ വർഷ പ്രീമിയത്തിൽ 58.56%വും റിലയിൻസ് ലൈഫിന്റെതിൽ 51.70%വും ബിർളാ സൺലൈഫ് ഇൻഷുറൻസിന്റെ ആദ്യവർഷ പ്രീമിയത്തിൽ 34.86%വും എച്ച് ഡി എഫ് സി സ്റ്റാന്റേഡ് ലൈഫിന്റെ പ്രീമിയത്തിൽ 27.30%വും ഐ സി ഐ സി ഐ പ്രുഡൻഷ്യൽ ലൈഫിന്റെ പ്രീമിയത്തിൽ 29.01%വും ഇടിവ് രേഖപ്പെടുത്തിയിട്ടുണ്ട്.
Read more …

സ്വകാര്യ ഇൻഷ്വറൻസ് ഏജന്റ്മാരുടെ കൊഴിഞ്ഞു പോക്ക്    

Published by Philip George on September 10th, 2011 - in Life Insurance

സ്വകാര്യ ഏജന്റ്മാരുടെ കൊഴിഞ്ഞു പോക്ക് ഉത്തരം കിട്ടാതെ ഉപഭോക്താക്കൾ

(കടപ്പാട് ധനം മാഗസിൻ 15-ആഗസ്റ്റ് 2011)
മൂന്ന് വർഷം മുൻപാണ് സ്വകാര്യ സ്ഥാപനത്തിലെ ജീവനക്കാരിയായ യുവതി സ്വകാര്യ ഇൻഷുറൻസ് കമ്പനിയുടെ പോളിസി എടുത്തത് മൂന്ന് വർഷം കൊണ്ട് നിഷേപിച്ച തുക ഇരട്ടിയാകുമെന്നായിരുന്നു വാഗ്ദാനം. എന്നാൽ ഇപ്പോൾ പോളിസി തുകയിൽ കാര്യമായ വർധന ഉണ്ടായിട്ടില്ല. മാത്രമല്ല നിക്ഷേപിച്ച തുകയിലും കുറവ് വന്നിരിക്കുന്നു, പോളിസിയിൽ ചേർത്ത ഏജന്റ് വേറൊരു കമ്പനിയിലെ ജീവനക്കാരനാണിപ്പോൾ ഇനി എന്തു ചെയ്യണം, പോളിസി സംബദ്ധിച്ച് ആരോട് ചോദിക്കണം എന്നറിയാതെ വിഷമിക്കുകയാണ് യുവതി. Read more ….

“Private Insurance Agents dropping out” ::: consumers are left without answer!!!

Published by Philip George on August 26th, 2011 - in Life Insurance

(Kadappaad Dhanam Magazine – 15th August 2011)
It was three years ago that a woman employed in a private institution took the policy of a private insurance company on the promise that within three years the policy would be doubled. But till now there is no significant increase in the amount. Not only that the deposited amount also has reduced. The agent who gave the policy has quit and is employed in another company. What to do now? Whom to ask about the policy matters? She is at a loss!
(more…)

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.

© Philip George
Thursday, 19 May 2022