Budget 2018 Key Highlights

Budget 2018 Key Highlights

No Change in Tax Slabs in this Budget:

  • There will no change for tax slabs for income tax.
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried class.
  • Section 80D limit proposed to be hiked to Rs 50,000 for senior citizens

Proposals and Announcements:

  • All trains will soon have Wifi and CCTV.
  • All railways stations with footfall more than 25,000 to have escalators
  • PAN a must for transactions above Rs 2.5 lakh or more
  • Govt health scheme to cover 10 crore poor families is world’s largest government-funded health protection scheme.
  • Electronic IT assessment will be rolled out across the country,
  • Kisan credit card facility extended to fisheries and animal husbandry sectors.
  • 2 crore more toilets will built under Swachh Bharat Mission.
  • 1 crore houses to be built under Pradhan Mantri Awas Yojana (PMAY) in rural areas.
  • Rs 4.6 lakh crore sanctioned under MUDRA Scheme to target 3 lakh crore for lending under PM Mudra Yojana
  • 99 cities selected for smart cities project with an outlay of Rs 2.04 lakh crore.
  • 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access
  • Cash payments of more than Rs 10,000 by trusts and institutions will not be allowed.
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent:
  • 60 crore bank accounts under the Jan Dhan Yojana to be opened.
  • Bitcoins not a legal tender and Govt. will identify it as illegitimate transaction.
  • Govt will bring a scheme to provide a unique ID to every enterprise similar to Aadhaar.
  • Health and education cess has been increased to 4% from 3%
  • Rs 600 crore alloted to Tuberculosis patients undergoing treatment.
  • Amrut program to focus on water supply to all households in 500 cities.
  • Government to contribute 12 per cent of EPF contribution for new employees in all sectors
  • proposed to introduce tax on distributed income by equity oriented mutual funds at 10 per cent.
  • proposed to tax long term capital gains exceeding Rs 1 lakh at 10% without indexation.
  • Specialised railway university to be set up at Vadodara.
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY), to be increased to Rs 15 lakh from the present Rs 7.5 lakh.
    Airport capacity to be hiked to handle 1 billion trips every year.

Some Tax Changes:

  • Customs duty on dental hygiene, perfumes, after-shave, room deodorizers, deodorants, preparations for use on hair increased to 20%.
  • Import duty on fruit juice increased from 30% to 50%.
  • Customs duty on mobile increased to 20% from existing 15%
  • Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%, duty on smart watches, wearable devices, footwear increased to 20%.

Salary Changes:

proposed revising salary of:

  • Rs 5 lakh for the President of India
  • Rs 4 lakh for the Vice President
  • Rs 3.5 lakh for the Governors

In short, the budget 2018-19 is balanced budget to every sector. There is no change in Salaried class but 1% extra in form of cess to be extra burden. Let us know in comments if you are happy with the budget.

Jeevan Shiromani – Money Back Plan

Jeevan Shiromani – Money Back Plan

LIC Jeevan Shiromani Plan No.847 is the Money Back Plan. It is Non linked, Limited premium payment with guaranteed additions plan. Shiromany is specifically designed for High Net-worth customers with minimum Sum assured of Rs.1 Crore. The insurance cover starts immediately upon issuance of the policy.

Jeevan Shiromani Features:

  • It is money back plan
  • Minimum Sum Assured 1 Crore
  • It also covers 15 Critical Illness
  • Limited premium payment
  • Policy term can be 14, 16, 18 or 20 years.
  • Premium paying term will be 4 years lesser than the selected term.

lic jeeva shiromani
Eligibility Conditions and Restrictions:

  • Minimum entry age: 18 years
  • Maximum entry age: 55 years
  • Minimum basic sum assured (BSA) : 1 crore
  • Maximum basic sum assured (BSA) : No Limit

Policy term and premium paying term :

  1. For a 14 year Policy : PPT is 10 years
  2. For a 16 year Policy : PPT is 12 years
  3. For a 18 year Policy : PPT is 14 years
  4. For a 20 year Policy : PPT is 16 years

Guaranteed Additions under Jeevan Shiromani:

  • Guaranteed Addition for first 5 policy years is Rs 50 per Rs 1,000
  • From 6th Year onwards, Guaranteed Addition will be Rs. 55 per Rs 1,000.

Critical Illness Benefit (InBuilt) :

Jeevan Shiromani plan has an inbuilt 15 Critical illness benefit rider.

  • 10% Basic Sum Assured will be Payable on Diagnosis of Critical Illness.
  • Premiums will be Deferred for 2 years.
  • Settlement option for death benefit and survival benefit also available.
  • The policyholder can receive the settlement amount, like death, survival benefit or maturity benefit, in installments over the chosen periods of time like 5 years, 10 years or 15 years. Alternately policyholder can also get one-time lump sum payment if he/she don’t want installment feature.

LIC Jeevan Shiromani Plan Benefit

Survival Benefit:

If the policy holder survives till the end of the policy period. Policyholder will get the following benefit depending on opted policy term.

  • 14 year Policy : 30% of Sum-assured is payable on 10th & 12th policy year. Rest 40% on 14th year.
  • 16 year policy : 35% of Sum Assured on 12th & 14th year. Rest 30% on 16th Year.
  • 18 year policy : 40% of Sum Assured on 14th & 16th year. Rest 20% on 18th Year.
  • 20 year policy : 45% of SA on 16th & 18th year. Rest 10% on 20th year.

Maturity Benefit:

If the policy holder survives till the maturity of the policy, policy holder will get the survival benefit mentioned above and he/she will also get Guaranteed Addition (GA) and Loyalty Addition (LA) on top of the Basic Sum Assured.

Death Benefit:

  • If the policyholder dies within 5 years : Sum assured (SA) + Guaranteed Addition (GA) is payable to the nominee.
  • If the policyholder dies after 5 years : Sum assured (SA) + Guaranteed Addition (GA) + Loyalty Addition (LA) is payable to the nominee.

“Sum Assured on Death” is defined as HIGHER of the below.

  • 10 times of your annual premium (excluding taxes, the extra amount due to underwriter decisions or rider premium).
  • 125% of Basic Sum Assured.
  • 105% of all the premiums paid as on date of death.

jeevan shiromani benefits

Jeevan Shiromany Ready Reckoner Premium Calculator:

Jeevan Shiromani premium

Link Aadhaar with your Insurance Policy, It’s Compulsory.

Link Aadhaar with your Insurance Policy, It’s Compulsory.

First of all, if you still don’t have an Aadhar card, get it as soon as possible. Aadhar is very important document and you will need it in every point of life. Govt. wants to curb on Money-laundering (Maintenance of Records) and have a clean economy. Hence all the financial services needs to be linked with PAN and Aadhar.

Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory to link the unique identity number Aadhaar with all insurance policies.

IRDA has issued a circular which is as mentioned below:

Central Government vide gazette notification dated 1st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aadhar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same.
The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.
These Rules have statutory force and, as such, Life and General Insurers (Including Standalone Health Insurers) have to implement them without awaiting further instructions.

link aadhaar with insurance

How to Link LIC policy with Aadhar?


  1. If you have your policy details handy, like Date of Birth, Policy Number and mobile number as mention on your policy then you can link it here: https://www.licindia.in/Customer-Services/Help-Us-To-Serve-You-Better
  2. If you have username and password for LIC customer portal, you can login to your account and update Aadhar and PAN card directly here: https://ebiz.licindia.in/D2CPM/#Login
  3. If you have a pension policy you can link it here: https://www.licindia.in/Bottom-Links/PensionPolicyLinking

Also Read: Check Your LIC Policy Status online


Visit your servicing branch with your Aadhaar card, they will get your LIC policy linked. If your multiple policies issued in different branches, you will need to visit all the branches where your policy belongs to. Or better transfer all your policy in one branch, so it will become easier for you in future too.

Also Read: Check LIC Policy Status by SMS

Last Date:

Last date to Link your Aadhaar with your insurance policy is 31st December 2017.

What’s the Benefit?

Linking Aadhar card with your Insurance is beneficial for both. company will get less fraudulent claims and policyholders will see faster claim settlement.

What happens, if I do not link my Aadhar?

Your policy will continue provided you submit your KYC documents at the time of renewal. If you have health insurance policy then your claim might not be approved until your submit your KYC documents (Check with your health insurance company). So it’s better to link your Aadhaar with your policy as soon as possible.

What Kind of Insurance Policy needs to be linked?

All Insurance policies including Life Insurance, General Insurance, Health Insurance, Motor Insurance etc needs to linked with Aadhar.

Also Read: How To Link PAN card with Aadhar card

We have about 24 life insurance and 33 general insurance (including standalone health insurers) companies in India. Irrespective of company and type of policy, you will have to link your Aadhaar before 31st December 2017.

Cancer Cover Plan 905

Cancer Cover Plan 905

LIC Cancer Cover Plan No. 905 Features & Details:

LIC has introduced a new plan specific to cancer care. Cancer Cover Plan No.905 is non-linked regular premium paying Health Insurance plan. This scheme provides fix benefit on cancer detection of first stage and second stage.

Benefits of LIC Cancer Cover Plan

With this policy you will live worry free for cancer.

Sum assured is available from Rs. 10 lakh to Rs. 50 lakh. There were two options — sum assured and increment of the sum assured by 10 per cent of basic sum assured for the first five years.

LIC cancer cover
Types Of Sum Assured:

  • Basic Sum Assured
  • Increasing Sum Assured (10% Increase in Sum Assured Every Year for first 5 years)

Cancer cover plan
Types Of cancer Covered

  1. First Stage or Early Detection
  2. Second stage or Major Stage

On Early Detection of First stage

  • 25% of Basic Sum Assured payable
  • 3 Years premium will be waived off

On Major Detection

Option 1:

  • 100% Sum Assured

Option 2:

  • % Applicable Sum Assured per month for next 10 years irrespective of Live or death
  • All future Premiums waived off.

LIC Cancer Care Eligibility Conditions

  • Entry Age: 20 Years – 65 Years
  • Policy Term: 10 Yrs – 30 Years
  • Cover Ceasing Age: 50 Yrs – 75 Yrs
  • Basic Sum Assured: 10 lacs to 50 lacs
    (Note: Subject to an overall limit of 50 lacs taking all existing critical illness cover policies including cancer cover and new proposal under consideration Payment of Claims by Claims Dept of LIC (Not by TPA)
  • Minimum Premium 2400 for all modes
  • Waiting period 180 dayslic cancer care

Tax Benefits:

Keep in mind this is special plan and hence you will get:

  • No Surrender Value
  • No Loan on Policy Applicable
  • No Maturity value
  • No Mode Rebate

Due to rise in cancer cases this policy will safeguard your life against unexpected Cancer disease.

Example: Mr. Avinash Aged 25, opts for Cancer Care Plan for 10 years for 10 lakhs Sum Assured. After 2 years Avinash diagnosed with early Cancer detection. LIC pays 2.5 lakh to Avinash as 25% Basic Sum Assured of 10 lakhs. Also Avinash gets 3 years Premium Holiday. So he does not have to pay premium for next 3 years.

If Avinash Diagnosed again with second stage within policy period he will also get rest of BSA (7.5 lakh as he already received 25% benefit earlier) and all future premiums will be waived off.

In another scenario, If Mr. Avinash Does not diagnose with cancer throughout the policy term, He will not get any maturity benefit.

Share this policy on with others so others can also take benefit of this scheme.

What is NAV And How It Is Important?

What is NAV And How It Is Important?

LIC has some Plans which are NAV based because those funds are invested in market and LIC’s NAV is similar to Mutual Fund NAVs. Here we will talk about Mutual Fund NAV’s.

If you want to check your LIC NAV then you may search for it on Life Insurance Corporation’s Website.

Also Read: LIC Policy Status Online

If you want to make an investment in share market or in mutual fund there are various things that you should know. So from these, Today I am going to discuss NAV. It is very important for you to understand what is NAV. if you want to invest in a mutual fund. Those who do not want to directly invest in the stock market or they do not know the stock market, they can invest in the mutual fund. By investing in the mutual fund, your investment is in the hands of experts and in this way you can reduce the risk of direct investment in the stock market. Today, we will learn here that what is the NAV in the mutual fund, how it is counted and how important it is.

First of all, what is NAV

Net Asset Value, or NAV, means the value of the total property. Net asset value, or NAV, in any of the mutual fund, after deducting the liabilities from the total value of all the shares of the portfolio, including cash, the outstanding balance is obtained by dividing it by the total number of units remaining.

Also Read: ULIP vs Mutual Fund

NAV fund is per unit’s total asset value (excluding expenditure) and at the end of each day’s business, it is calculated by the asset management company (AMC) of that fund. On any given day, if that mutual fund is terminated, then the unitholder of that mutual fund will get the price for each unit as per the rate of that unit of that day. In a way, you can say that NAV is the book value of any mutual fund unit.

Most of the unit’s base value in the mutual fund is Rs 10 or Rs.100. In each business day, the NAV curve of the unit increases according to the market value of the fund’s portfolio.

Also Read: ULIP How it Works?

Importance of NAV

NAV refers to the growth of the unit of a mutual fund. If you invest Rs 12 per unit in a fund at NAV and after one year, if the NAV of that unit goes up to 15 rupees per unit then that fund has 25% growth. It is wrong to believe that the mutual fund with lower NAV will give good returns and mutual fund with more NAV fund will give fewer returns.

From the NAV of any fund, it can be known that how any fund has performed in the past but in future how any fund will perform cannot be decided by the NAV. So it all depends on market condition, It can go up or down.

Also Read: ELSS Mutual Fund

Where To Check NAV?

You can check NAV of your Mutual Fund company’s website or Directly go to AMFI’s website

If you are a regular investor you may know all these but if you are new then kindly read all the terms and conditions and risk involved before investing in any fund.