LIC Jeevan Shagun : Life Insurance Corporation of India on their 58th Anniversary is launched a new plan i.e. Jeevan Shagun single premium plan. It’s very important to all Indian to know about some basic facts of LIC - ` 17.69 lakh crore Worth Assets, 30 crores Policy Holders and 99.6% their claim settlement ratio. Anyone can blindly trust on LIC based on their more than 5 decades journey. LIC launched this plan today for limited period. Jeevan Shagun is a participating, non-linked, savings cum protection single premium plan. This plan launched for a maximum period of 90 days from today.
Who can purchase this plan : Any person having age between 8 years to 45 years can purchase this plan. Minimum maturity sum assured under the plan is Rs. 60000 and there is no limit for maximum sum assured. Policy term is fixed for 12 years. Basic sum assured under the plan is 10 times of single premium paid.
Premium payment options and mode rebate: Only single premium is allowed under this plan. If maturity sum assured is ` 1.5 lakhs to 3.95 lakhs rebate available is ` 15 (Reduction in Tabular premium per 1000/- Maturity Sum Assured) and if maturity sum assured is ` 4 lakhs rebate is ` 20 (Reduction in Tabular premium per 1000/- Maturity Sum Assured).
Service Tax : Service tax will be borne by Policy holder under this plan.
Benefits under the plan: A. Death benefits – if death occur on first five years of policy – 10 times of single premium paid and if death occur after five years of policy – 10 times of single premium paid plus loyalty addition if any is payable. B. Maturity benefits - At the end of 10th policy year - 15% of the Maturity Sum Assured, at the end of 11th policy year: 20% of the Maturity Sum Assured and on maturity - 65% of the Maturity Sum Assured along with Loyalty Addition shall be payable.
Example of the Plan : This example carried out based on the Policy Holder entry age under the plan is – 30 years, Policy term is – 12 years, Premium payment mode – Single and Maturity sum assured – ` 60000 and Premium is ` 31275.
| End of Policy Year | Premium Paid | Maturity Benefits | Guaranteed Death Benefits |
| 1 | 31275 | 0 | 312750 |
| 2 | 31275 | 0 | 312750 |
| 3 | 31275 | 0 | 312750 |
| 4 | 31275 | 0 | 312750 |
| 5 | 31275 | 0 | 312750 |
| 6 | 31275 | 0 | 312750 |
| 7 | 31275 | 0 | 312750 |
| 8 | 31275 | 0 | 312750 |
| 9 | 31275 | 0 | 312750 |
| 10 | 31275 | 9000 | 312750 |
| 11 | 31275 | 12000 | 312750 |
| 12 | 31275 | 39000 | 312750 |
| Total | - | 60000 | - |
* Service tax not included in above given premium. Service tax will be charged from Policy Holder.
Internal Rate of the return (IRR) :
| Policy Term | Premium paid |
| 1 | -31275 |
| 2 | 0 |
| 3 | 0 |
| 4 | 0 |
| 5 | 0 |
| 6 | 0 |
| 7 | 0 |
| 8 | 0 |
| 9 | 0 |
| 10 | 0 |
| 11 | 0 |
| 12 | 0 |
| Maturity | 60000 |
| IRR | 6% |
Conclusion: - from almost one decade many people lost their hard earn amount in ULIP policies due to various reasons. Looking to the entire episode LIC launched this plan to touch the heart of general people to encourage them and they will invest in this plan. If we talking about risk coverage available in the plan i.e. 10 times of single premium paid is also very lucrative and if we saw this plan return that is also approximately 6%. Both the points, Risk coverage and maturity returns this plan is very attractive. Service tax might be reducing your return under the plan. If you want to purchase this plan it is advised to take this plan in the name of your child which age around 8 years to 10 years. High sum assured (4 Lakhs and above) and lower entry age will make you very attractive profit in this plan. Return of this plan also is a reason so LIC launched this plan for only 90 days.
2 Comments
What about 80C benefit under this policy.
ReplyDeleteI have seen most insurance companies website they do not mentioned all those tech detils like 80C 80D 10D etc as applicable on the policy.
Kindly publish the same.
Sir,
ReplyDeleteSince above policy provide 10 times of risk coverage of premium paid, so you can claim premium paid amount, deduction under section 80C and maturity will also not taxable under the section of 10D. Section 80D is related to Mediclaim Policy.
With Regards