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
In this plan, the premium is paid till the end of
the policy term, i.e. till the pension starts from the Vesting Date. At the
start of the plan, the policyholder gets to select a Notional Cash Option. The
Notional Cash Option along with accrued Bonuses forms the maturity proceeds.
The policyholder can withdraw 25% of the entire maturity proceeds including
bonus and receive a lumpsum amount on vesting and the remaining 75% amount will
surely be converted into annuity. There are 5 annuity choices at present to
choose from. An additional 3% rebate would be given on the purchase price of
the annuity at the vesting date. At the time of vesting, the annuity rates for
Immediate Pension Plan LIC Jeevan Akshay VI Plan would be considered.
However, if the life insured dies before pension
starts, all premiums paid + interest on the same is returned. If death occurs
after vesting date, it depends entirely upon the pension option whether any
Death Benefit would be payable or not.
Key Features of LIC
New Jeevan Suraksha-1 Plan
§
This plan
is a deferred pension plan with bonus facility
§
Death
Benefit after the Vesting Date depends on the annuity option chosen.
§
Upon
Vesting, there are 2 Vesting Options available to the life insured
o
He may
choose to withdraw 25% of the corpus tax free and avail pension from the
remaining 75% of the corpus
o
He may
choose to avail pension from the entire corpus
§
An
additional 3% rebate would be given on the purchase price of the annuity at the
vesting date.
§
At the
time of vesting, the annuity rates for Immediate Pension Plan LIC Jeevan Akshay
VI Plan would be considered.
§
There are
5 options for Pension- Annuity for Life- where pension is paid
till the life assured is alive and nothing is payable on death, Annuity
Guaranteed for Certain Periods- where pension is paid for 5/10/15 or 20
years as chosen whether the life assured is alive or not, Annuity with
Return of Purchase Price on Death- pension is paid till the life
assured is alive and the remaining amount of the corpus is paid to the nominee
as death benefit , Increasing Annuity- pension is paid till the
life assured is alive at an increasing rate of 3% p.a. and Joint Life
Last Survivor Annuity- pension is paid till the life assured is alive.
On the death of the life insured, 50% of the pension is payable to spouse as
long as the spouse if alive.
§
Optional
higher cover through Term Rider is available for annual premiums only.
§ There is large cash option rebate.
Benefits you get
from LIC New Jeevan Suraksha-1 Plan
Death
Benefit – In case of death of the Life Insured before the
vesting date, the nominee receives all premiums paid till death + Term Rider
Sum Assured(if chosen) together with 5% compounding interest.
In case of death of the Life Insured after the
vesting date, it entirely depends upon pension option chosen.
Maturity Benefit – At the
maturity of the policy, the insured will get some choices
·
To choose
whether to withdraw 25%of the fund tax free and avail pension from the
remaining or take pension from the entire corpus
·
To choose
the type of pension
o
Annuity
for Life- where pension is paid till the life assured is
alive and nothing is payable on death
o
Annuity
Guaranteed for Certain Periods- where pension is paid for
5/10/15 or 20 years as chosen whether the life assured is alive or not
o
Annuity
with Return of Purchase Price on Death- pension is paid till the life
assured is alive and the remaining amount of the corpus is paid to the nominee
as death benefit
o
Increasing
Annuity- pension is paid till the life assured is alive at
an increasing rate of 3% p.a.
o
Joint
Life Last Survivor Annuity- pension is paid till the life
assured is alive. On the death of the life insured, 50% of the pension is
payable to spouse as long as the spouse if alive.
Income Tax Benefit – Premiums
paid under life insurance policy are exempted from tax under Section 80 C and
1/3rd of the maturity proceeds are exempted from tax under Section
10 (10A) but only 25% can be withdrawn on maturity. Pension that is received is
taxable.
Eligibility
conditions and other restrictions in LIC New Jeevan Suraksha-1 Plan
|
|
Minimum
|
Maximum
|
|
Notional
Cash Option (in Rs.)
|
50,000 (for Regular Premium)
|
No Limit
|
|
Deferment
Period (in years)
|
2
|
35
|
|
Premium
Payment Term (in years)
|
2
|
35
|
|
Entry
Age of Policyholder (in years)
|
18
|
70
|
|
Age at
Vesting (in years)
|
50
|
79
|
|
Premium
(in Rs.)
|
10,000 for Single
2500 for Regular
|
No Limit
|
|
Payment
modes
|
Single, Yearly, Half-yearly, Quarterly, Monthly
and SSS
|
Sample illustration
of premium for LIC New Jeevan Suraksha-1 Plan
The below illustration is for a healthy Male of
Age 30 years (non-tobacco user) opting for a
Notional
Cash Option = Rs. 5,00,000.
Additional Features
and Benefits of LIC New Jeevan Suraksha-1 Plan
Riders- There is 1 additional rider
available:
·
Term
Assurance Rider
You stop paying the premium – If you
stop paying the premiums after 3 policy years, the policy lapses and all
benefits cease. The amount of Notional Cash Option shall be reduced by the
payment ratio. However, the policy can be revived if all due premiums and
interest is paid up.
You want to surrender the policy – There is
a Guaranteed Surrender Value after 2 policy years
Guaranteed Surrender Value = 90% of all premiums regular paid–
1st year’s premium or 90% for Single Premium
There is Special Surrender Value
under this plan as well.
You want a loan against your policy – Loan
facility is not available under this policy
