Atal Pension Yojana (APY)

Atal Pension Yojana (APY)

Atal Pension Yojana is a scheme which is launched by our honorable Prime Minister Mr. Narendra Modi. According to this Yojana a person can get pension after the age of 60 by depositing some amount monthly, quarterly or yearly this scheme is mainly beneficial for the person who is working in unorganised sector. This scheme also promote the habit of saving and investing money. The subscribers of this scheme can get Rs. 1000 to 5000 every month depending on the plan they have taken. The minimum age in which one can join this Atal Pension Yojana is 18 and the maximum age is 40. As per the survey conducted on May 2015 there are only 11% of the Indian who have any kind of pension scheme so the main objective of the government is to increase this number. Also it will be helpful to the buyer after the age in which they can’t do a lot of work for his family that money will help them to meet their day to day needs.

 

Atal Pension Yojana

Benefits of Atal Pension Yojana

  • After attaining age of 60 the policy buyer will get a certain amount (Pension) as maturity benefit at a fixed interval to support their family and personal expenses.
  • Pension Between Rs.1000-Rs.5000
  • It also provides auto debit facility therefore the buyer will not have to go to the bank regularly and pay the premium.
  • The government of India will also going to contribute 50% of the total user’s contribution towards the scheme.
  • There would be no tax on the amount which is paid to the Atal Pension Yojana. As it is tax free according to Income Tax Act 80C.
  • In case the buyer die the death benefit will be provided to the nominee of the buyer.
  • The minimum age for subscribing Atal Pension Yojana is 18 so the youth can also give their contribution in this Yojana and the maximum entry age is 40.
  • The premium can be paid monthly, quarterly, half yearly or yearly.

Atal Pension Yojana chart

Documents required for Atal Pension Yojana

  • Offline/Online filled application form.
  • Age proof of policy buyer.
  • Address proof.
  • PAN card and Aadhar card for KYC document
  • Accurate medical history. If required.
  • Medical examination report if required.

Essential conditions required for buying policy under Atal Pension Yojna.

  • The subscriber of Atal Pension Yojana should have a bank account
  • The subscriber should have a phone number
  • You should be an Indian citizen
  • The minimum age should be 18 and the maximum should be 40

To enroll in Atal Pension Yojana

  • The subscriber should fill the online/offline Atal Pension Yojana form
  • Fill all the field of the form
  • Mobile number is compulsory , therefore you have to fill that column.
  • If the subscriber have aadhar card then provide the no in the form
  • Provide your nominee details (it is compulsory)
  • Select the pension amount you need in future . It should be between 1000 to 5000 and it should be a multiple of 1000.
LIC Jeevan Umang – New Whole Life Plan

LIC Jeevan Umang – New Whole Life Plan

LIC has launched Jeevan Umang Plan no. 845 on 16th May 2017. It is a non-linked, with-profit, whole life assurance plan. LIC has launched a new plan called as LIC Jeevan Umang (845) on 16th May 2017. This newly introduced plan is a non-linked plan with low risk return options and guaranteed maturity benefits. The policy holder gets benefited from this plan by the annual survival pension without any tax liability starting from the end of the plan terms till maturity and with the provision of payment of lump sum by the time of maturity or death. In short, policyholder gets 8% return every year on basic sum assured after completing Premium Paying Term till he survives and after policyholder’s death, nominee will get the sum assured.

Premium Payment Mode:

  • Yearly, Half Yearly, Quarterly and Monthly

Premium Payment Term (PPT):

  • 15 Years, 20 years, 25 and 30 years

Minimum Entry Age:

  • 90 Days (Completed)

Maximum Entry Age:

  • 55 years for PPT = 15
  • 50 years for PPT = 20
  • 45 years for PPT = 25
  • 40 years for PPT = 30

Maximum Maturity Age:

  • 100 years

Basic Sum Assured:

  • 2,00,000 and above in multiples of 25,000

LIC Jeevan Umang Policy Benefits:

On Survival:

Provided all premium paying terms have been completed without any failure, the following benefits shall be paid:

  • 8% of basic sum assured until an year before maturity. The first survival benefit would be paid immediately after end of the premium paying term and will continue to be paid each year till the policyholder survives or till maturity date whichever is earlier.

On Death:

  • If death happens before the commencement of risk, an amount equals to the total paid premiums shall be payable excluding the interest.
  • If death happens after the commencement of risk, the basic assured sum along with reversionary bonuses and Final Additional Bonuses (FAB) shall be payable.

“Sum Assured on Death” is defined as the highest of

  • 10 times of your annual premium; or
  • Sum Assured on Maturity; or
  • The amount assured to be paid on death, i.e. Basic Sum Assured.This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Commencement of Risk: If age of the policyholder is less than 8 years, then the risk will start either after two years or by the completion of 8 years of age, whichever is earlier. If this is not the case, then the life cover will start immediately.LIC Jeevan Umang

Example:

  • Term of Policy = 20 years
  • Age of Life Assured = 35
  • The Policy Term = 65 years (100-35)
  • Sum Assured: 5,00,000/-

From the above data, it can be concluded that the policyholder has to cover premium payments until he or she attains 55 years (35+20 PPT) of age. After that, payment of 8% of basic sum assured shall be payable to the life assured until one year prior to maturity (until 99 years). Death benefits are given to the mentioned nominee in case of the death of the policyholder.

Points to keep in mind while going for LIC’s Jeevan Umang:

  • The life assured will not get benefited from this plan during the premium terms and if death happens, the assured sum along with bonuses will paid to the mentioned nominee.
  • If your intention is to get sufficient life cover with minimum premium payments, then it is better to look for term insurance plans.
  • If you are more concerned about the returns, then you should stick with buying a term insurance with a simple product like PPF. The returns are usually round 5 or 6% and it is not an ideal for those who expect a decent return.

 

 

New Jeevan Nidhi

New Jeevan Nidhi

LIC New Jeevan Nidhi is a deferred pension plan. Plan no 812 is a conventional plan with deferred annuity. The plan is open for the age between 20 years to 60 years old individual.

New jeevan nidhi

New Jeevan Nidhi Features at glance:

  • Insurance Cover upto Date of Vesting
  • Option To purchase an Immediate Annuity OR
  • Single Premium Deferred Pension Plan
  • Guaranteed Additions for the first 5 years

With Profit:
New Jeevan nidhi (Table no.812) is a with profit pension plan, after 6th policy year Vested Bonus and Final Additional Bonus benefits will be given (if any).

Flexible Premium:
You may opt for single premium option or go for regular premium i.e Yearly, Half-yearly, Quarterly or Monthly (through ECS/SSS).

Accident Benefit Rider
Regular premium policy holders can avail the Accident Benefit Rider.

Eligibility conditions and restriction for New Jeevan Nidhi:

Eligibility conditions 
Description Minimum Maximum
Entry Age  20   60
Vesting Age  35   55
Policy Term  5  35
Sum Assured  Rs.1,50,000 (Single premium)
Rs.1,00,000 (Regular Premium)
 No limit

Death Benefit:

Death within first 5 years: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions.
Death on or after 6th year: Nominee will receive Basic Sum Assured + Accrued Guaranteed Additions + Vested Bonuses & Final Additional Bonus (if any).

The death benefit will be given to the nominee as lump sum OR In the form of Annuity OR Partly in lump sum and balance in the form of Annuity at the then prevailing Immediate annuity rates.

Benefit on Vesting:

  1. Basic Sum Assured
  2. Accrued Guaranteed Additions
  3. Vested Simple Reversionary Bonuses & Final Additional Bonus (if any)

Guaranteed Additions:
Payable for the first five years @ Rs.50/- per thousand Basic Sum Assured for each completed year.

Participation in profits:
Simple Reversionary Bonus will be added from the 6th policy year onward till the end of the deferment period. Bonus will be announced by LIC every year.

Final Additional Bonus will be given either on vesting or on earlier death at the rates announced by LIC.

Accident Benefit Rider:

Death due to Accident: Accident Benefit Sum Assured will be payable as lump sum along with the death benefit under the Basic plan.
Disability due to Accident: All Future Premiums are waived and An amount equal to the Accident Benefit Sum Assured will be paid in monthly installments spread over 10 years.

Eligibility Condition for Accident Benefit Rider:

  • Age at Entry: 20-60 years
  • Sum Assured: 25,000 to max 50 lakh overall limit incl. all policies.

Back dating: allowed within same financial year

Revival: In case, you missed few years premium, you will still have the option to revive the policy within 5 years from the date of First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.

Surrender: Don’t want to continue the policy? No problem. You can surrender the policy at any time on payment of at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable would be the higher of Guaranteed Surrender Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.

Benefit Illustration:

Description Single Premium   Regular Premium  
Age  35  35
Policy Term  25 Years  25 Years
Premium (excl. Service charge  Rs.78,667  Rs.4,121
Premium Mode  Single  Yearly
Sum Assured  Rs.1,50,000/-  Rs.1,00,000/-
Vesting Age  60 Years  60 Years
Guaranteed Vested Benefit  Rs.1,87,500/-  Rs.1,25,000/-
Assuming Investment Return @8%  Rs.3,50,250/-  Rs.2,33,500/-

Refer Old Jeevan nidhi if you are looking for old plan.


Update: LIC New Jeevan Nidhi Plan No.812 Has Been Discontinued.


Jeevan Nidhi – Pension Plan

Jeevan Nidhi – Pension Plan

LIC Jeevan Nidhi Pension plan Summary:

Update: New Jeevan Nidhi Table no.812 launched. Refer to http://www.mylicindia.com/new-jeevan-nidhi-812/

New Jeevan Nidhi

 

If you want to ensure a pleasant life after retirement, then you should consider LIC’s Pension Plan.  In other words,  now you can retire at the age of 40 with Life Insurance Corporation of India’s pension plan.  LIC’s Jeevan Nidhi (Table No.169) 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.

Jeevan Nidhi Features:

a . Guaranteed Additions: LIC’s Jeevan Nidhi provides Guaranteed Additions at the rate of Rs.50/- per thousand Sum Assured during first five years of the policy. The Guaranteed Additions are payable along with the basic Sum Assured on vesting or on earlier death.

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

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.

LIC Jeevan Nidhi plan No.169

d. Annuity Options:
On vesting, the annuity installment, 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 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.

Tax Benefits:
Tax relief under Section 80CCC(1) is available on premiums paid under this policy.

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.

Single Premium
Single Premium option is also available. You can pay single premium for Jeevan Nidhi.

For Basic Benefit:

a) Minimum age at entry: 18 years (completed)
b) Maximum age at entry: 65 years
c) Minimum age at vesting: 40 years
d) Maximum age at vesting 75 years
e) Policy terms: 6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies
f) Modes of premium payment: Yearly, Half-yearly, Quarterly, SSS & Single Premium
g) Sums Assured allowed: Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit.
h) Minimum Annual Premium: Rs.3,000/-
i) Minimum Single premium: Rs.10,000/-

For Term Assurance Rider Option:

a) Minimum age at entry: 18 years (completed)
b) Maximum age at entry: 50 years
c) Maximum age at vesting 60 years
d) Policy terms: 6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode
e) Minimum Sum Assured: Rs.1,00,000/-
f) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.25,00,000/- taking all Term Assurance Rider Sum Assured under all policies of a life assured.
g) Multiples of Sum Assured: Rs.25,000/-

For Critical Illness Rider Option:

a) Minimum age at entry: 20 years (completed)
b) Maximum age at entry: 50 years
c) Maximum age at vesting 60 years
d) Policy terms: 10 to 35 years
e) Minimum Sum Assured: Rs.50,000/-
f) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.5,00,000/- taking all Critical Illness Rider Sum Assured under all policies of a life assured
g) Multiples of Sum Assured: Rs.10,000/-

Accidental Death and Disability Benefit:

In case of death due to accident (within 180 days) an additional amount equal to the Accident Benefit Sum assured will be payable. In case of Total and Permanent disability arising due to accident an amount equal to accident benefit sum assured will be payable over a period of 10 years in monthly installments. However, the payment of accident benefit will be subject to an overall limit of Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.

The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn a living. Following disabilities due to accident are also covered –

a) irrevocable loss of the entire sight of both eyes or
b) amputation of both hands at or above the wrists or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the ankle.

No benefit will be paid in case of accidental death or disability due to accident in case of

a) intentional self-injury, attempted suicide, insanity or immorality or the Life Assured is under the influence of intoxicating liquor, drug or narcotic,
b) engagement in aviation or aeronautics other than that of a passenger in any air craft,
c) injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeple chasing or racing of any kind,
d) accident resulted from committing any breach of law.
e) accident arising from employment in armed forces or military services or police organisation.

Term Assurance Rider Option: Term Assurance as optional rider will be available under this plan. Premiums for this option are payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The maximum cover for this rider will be Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.

Critical Illness Rider Option: An amount equal to the Critical Illness Rider Sum Assured as optional rider will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 lakh under all policies of the Life Assured with the Corporation taken together.

If opted for Premium Waiver Benefit, then in case the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not exceed Rs.5 lakh.

Revival: The policyholder can revive his lapsed policy by paying arrears of premium together with interest within a period of five years from the date of first unpaid premium subject to satisfactory evidence of health. The rate of interest for this purpose will be decided by LIC from time to time.

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to Life Insurance Corporation Of India within 15 days.

The Unique Identification Number (UIN) for LIC’s Jeevan Nidhi is 512N224V01.

Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.


Update:  LIC Jeevan Nidhi Plan No.169 Has Been Discontinued.


 

LIC Jeevan Suraksha 1

LIC Jeevan Suraksha 1

Jeevan Suraksha 1 summary:

New Jeevan Suraksha 1 (Table No.147) is a unique plan designed to provide pension from a chosen retirement date. The plan can be taken by anyone who want pension after retirement.

Mode of Premiums:
You may pay Premiums yearly, half-yearly, quarterly, monthly or through Salary deduction. Alternatively, the premium may be paid in one lump sum (single premium).

lic Jeevan Suraksha 1 table no. 147

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.

Income Tax provisions under New Jeevan Suraksha 1
1. New Jeevan Suraksha-I is a scheme approved by IRDA as envisaged in Section 10(23 AAB) of the Act.
2. The income of the fund maintained under this pension scheme is totally exempt from income tax being a fund maintained under section 10(23 AAB) of the Act.
3. The deduction under Section 80CCC is available up to a sum of Rs.10,000/- to the assessee, who is an individual in respect of any sum deposited by him into the above plan.
4. The deduction under Section 80 CCC is not available to a Hindu Undivided family.

Bonuses:
Jeevan Suraksha 1 is an with-profit plans and participate in the profits of the LIC’s annuity / pension business. Policies get a share of the profits in the form of bonuses. Simple Revisionary 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.

a) On vesting:
The Notional Cash Option together with Revisionary Bonuses and Final additional Bonuses ( if any ) with or without 25% commutation will be compulsorily converted into annuity having following options.

  • Annuity for life.
  • Annuity for life with guaranteed period of 5, 10, 15, 20 years.
  • Joint life and last survivor annuity to the annuitant and his/her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant.
  • Life annuity with return of purchase price.
  • Life annuity with annuities increasing at a simple rate of 3% per year.

T he annuity rates will be that available under the version of the New Jeevan Akshaya Plan current at the date of vesting. A rebate of 3% will be available on the purchase price of the New Jeevan Akshaya Policy. Option for the annuity type is to be exercised at least 6 months before the date of vesting.

b) During Deferment:

A term rider option will be available. On the death of the policyholder who has opted for the term Assurance rider ( provided the policy is in-force), the Term Assurance Sum Assured along with all premiums ( excluding term Assurance premium and extra premium if any ) paid up to the date of death accumulated at the rate of 5% p.a. compounding or at such rates as decided by the Corporation from time to time will be paid to the nominee. When the policy is not in-force, only return of premiums with interest as stated above will be available.

For those not opting for the Term Assurance Rider, in respect of policies which are in-force or in a paid up condition, all premium accumulated at 5% p.a. compounding or at such rates as decided by the Corporation from time to time, will be paid to the nominee. Term Rider Option will be available only on the Annual Premium Plan.

Eligibility Conditions and Restrictions for LIC Jeevan Suraksha 1

Minimum age at entry : 18 years.
Maximum age at entry: 65 years
Minimum vesting age : 50 years
Maximum vesting age : 79 years
Minimum deferment period : 2 years
Maximum deferment period : 35 years
Minimum Notional cash option for regular premium policies :Rs.50,000/-
Minimum premium : Rs.2,500/- p.a for regular premium Rs.10,000/- for single premium policies

How to Apply for Jeevan Suraksha 1?


Update: Jeevan Suraksha 1 Plan no. 147 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.