LIC Jeevan Sugam

 

Lic Single Premium Jeevan Sugam Policy

Jeevan Sugam

LIC Jeevan Sugam is deferred Pension Plan is a new Single premium policy from LIC. Jeevan Sugam (Plan No. 813) is good option as it provides good return and is available against one time payment.

Jeevan Sugam is  a close ended plan which would be open for sale from 25 February, 2013 for a maximum period of 45 days.

Jeevan Sugam  provides assured return and gives you life cover of 10 times the single premium you pay.

 

Key Features of LIC Jeevan Sugam:

  1. It is good Single Premium Plan from LIC as it offers Risk Cover and assured return in a Single Plan.
  2. Maturity period/ Lock in period is only  10 years
  3. On Maturity life insurer get assured return + loyalty addition
  4. Income tax Benefit under Section 80C is available
  5. Good Plan for Professionals, Self Employed, Businessmen & Employees in unorganised sector.

Benefits Of LIC Jeevan Sugam

Eligibility conditions and other restrictions in LIC Jeevan Sugam Plan

Description Minimum Maximum
Sum Assured (Rs) 60,000 No limit
Policy Term (in years) 10 years 10 years
Entry Age of Policyholder (in years) 8 years 45 years
Premium (in Rs.) 30,000 for Single No Limit
Payment modes Single Premium Only
Death sum assured 10 x single premium (< 5 years from policy date) and 10 x single premium + loyalty additions (if any) after 5 years from policy date

Income Tax Benefit under section 80C :

Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity benefit is tax free under section 10(10)D provided all conditions have been fulfilled.

Death Benefit of Jeevan Sugam:

  • On death within 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged would be payable
  • On death after 5 years from the date of commencement of policy: Sum assured i.e. 10 times the single premium (net of service tax) excluding any extra premium charged + loyalty additions (if any) would be payable.

 

Maturity Benefit / Guaranteed Return of Jeevan Sugam:

Maturity sum assured along with loyalty additions (if any) would be payable on maturity of 10 years.

Loyalty additions would be purely based on LIC’s claim experience

Benefits Illustration of Jeevan Sugam

Amount you will get on maturity of LIC jeevan Sugam.

Jeevan_sugam Maturity Benefit

Jeevan_sugam Maturity Benefit

 

Amount you will get in case of Death in Jeevan Sugam.

jeevan_sugam_death_maturity_benefit

Jeevan Sugam Death Benefit

Flexibility in Premium Payment Jeevan Sugam:

Only one single  premium is payable. You dont have to worry about making payments every year.

Rebate for higher premium:

If the maturity amount exceeds Rs. 150,000. The incentive is computed on maturity amount.

If the maturity sum assured chosen is Rs. 4 lakhs, then the incentive would be 4.5% on Rs. 4 Lakhs = Rs. 18,000. ie The total maturity amount would be Rs. 418,000 + loyalty additions (if any).

Maturity amount  Incentive
150,000 Nil
151,000 to Rs. 399,000 3.50%
Rs. 400,000 4.50%

LOAN against Jeevan Sugam policy

Loan can be availed under this plan any time during the policy term. Loan shall be equal to 60% of the surrender value as on the date of sanction of loan.

Loan will be available on this policy from day 1 @ 10.45% compounded half yearly.

SURRENDER VALUE

Jeevan Sugam policy can be surrendered for cash at any time during the policy term. The minimum Guaranteed Surrender Value allowable shall be as under:

First year: 70% of the Single premium (net of service tax) excluding all extra premiums, if any.
Thereafter: 90% of the Single premium (net of service tax) excluding all extra premiums, if any.
Corporation may however pay Special Surrender value as applicable on the date of surrender provided the same is higher than the Guaranteed Surrender Value.

The Special Surrender Value will be the discounted value of the Maturity Sum Assured as on date of surrender. If the policy is surrendered during the last policy year it shall be eligible for loyalty addition, if any.

SERVICE TAX: Service tax, if any, shall be as per the Service Tax laws and the rate of 3.09% of premium Amount.

The amount of service tax as per the prevailing rates shall be payable by the policyholder on the premium.

Our Conclusion: 

LIC New Jeevan Sugam is a good plan. It offers Assured return with loyalty additions.This traditional plan will offer good return then FD. Since in near future FD rates are expected to fall.

It is advisable to invest in this plan as compared to Fixed deposit.

It will provide  return lower than PPF, Jeevan Sugam  provides additional life cover which is not available in PPF.

 

Do you want to purchase LIC Jeevan Sugam policy.  Contact us now for Investing in Jeevan Sugam

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15 Responses to LIC Jeevan Sugam

  1. SUKUMAR ROZARIO says:

    Dear Sir,

    I am interested to have this policy in my wife’s name and I plan to pay single premium of Rs.5 lack. Simply I want to know how much matured value she will get after 10 years.
    I am an NRI and no need to take loan or premature this.

    Yours sincerely,

    Sukumar Rozario

    • Income Tax Buddy says:

      Sukumar,

      Maturity sum assured on Jeevan Sugam depends on age of your wife. Assuming her age is 25 years, You will be required to pay premium of Rs 5, 73, 077/-(including Service Tax) and on maturity you will get 10.45 lacs Rupees ( plus loyalty addition).

  2. Inderjeet says:

    sir will you tell me minimum single primium isn’t it 30000/- ???

    • Income Tax Buddy says:

      Inderjeet, minimum single premium is Rs 30,000/-. However there is some additional amount payable for service tax also in LIC Jeevan Sugam

  3. Prabhu says:

    Hi Sir, I am interested in this plan and i ready to pay 1 lakh as single premium. At the end of 10 year how much amount i will get.
    NOTE: My age is 33

    Thanks in advance

    • Income Tax Buddy says:

      Prabhu, You need to pay premium of Rs 59101 and at end of 10 year you will get Rs 1 lac in LiC Jeevan Sugam

  4. shikha matta says:

    sir i want to know what is the total premium amount including service tax for maturity amt 151,000

    • Income Tax Buddy says:

      Shikha,

      Maturity amount depends on age of life insured. Assuming a person of 30 years old, has to pay Rs 87005 to get maturity amount of Rs 1.5 lac

  5. Raghu Ram says:

    I would like to invest jointly for this scheme i.e., spouse(Primary) + husband (Secondary). Can i claim this for Income tax exemption.
    Raghu Ram

  6. shahid says:

    if i invest my 8 year doughter for 1 lac how much get after 10 years

  7. siddhu says:

    dear sir i am a salaried employee(take home 25000p.m) let me know the best suitable policy which is eligible u/s 80c and not burden in payment mater premium(monthly payment)

  8. kavita says:

    i want to know about policy which while taking we have to pay of sum amount of rs for example take it 1.lac and afterwards no premium paying, only aftr 10-15 yrs u gt double the amnt or whatever after he complets 18 yrs if d polcy is taken as he or she takes the birth.

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