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:
- It is good Single Premium Plan from LIC as it offers Risk Cover and assured return in a Single Plan.
- Maturity period/ Lock in period is only 10 years
- On Maturity life insurer get assured return + loyalty addition
- Income tax Benefit under Section 80C is available
- 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
|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.
Amount you will get in case of Death in Jeevan Sugam.
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).
|151,000 to Rs. 399,000||3.50%|
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.
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.
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