PURPOSE OF INSURANCE
Every human being has fear in his mind.
- The fear whether he will be able to meet the basic needs of the life i.e. Food, clothing and Housing (Roti, Kapda and Makkan).
- He has fear not only for himself but also for his dependents.
- The source of income to meet his basic needs may be through service or business.
- If he was able to meet his basis needs then he acquires the assets i.e. vehicles, property or jewellery.
- Then he gets additional fear of saving the assets from destruction. ( The assets may be destroyed through accident, fire or earthquake etc. and the income may be cut off due to certainty i.e. old age and death or uncertainty i e. accident, illness or disability.)
- As you know, the old age and death is certain for every human being while the accident, illness, disability and destruction of assets may be random.
- A certain number of accidents will take place but with whom, it is uncertain.
Therefore, to overcome these problems, the Insurance plays a very important role.
The principal source of income of an individual comes from the compensation for work performed by him. If this source of income gets cut off then:
Family will make social and economic adjustments like:
- Wife may take employment at the cost of home making responsibilities
- Children may have to go for work at the cost of education.
- Family members might have to accept charity from relatives, friends etc. at the cost of their independence and self-respect.
- Family standard of living might have to be reduced to a level below the essentials for health and happiness.
Should you invest in LIC’s Jeevan Utkarsh single premium policy?
Life Insurance Corporation’s (LIC) Jeevan Utkarsh is a closed-ended single premium insurance plan. It was launched in September and is open for investments till March 31, 2018. It is a non-linked, with-profit, single premium life insurance plan which comes with an option for accidental death and disability benefit riders in its basic plan.
How it works
The amount of single premium will depend on the sum assured chosen called the basic sum assured, which will be paid on maturity of the plan. The minimum basic sum assured is Rs 75,000 and the premium will vary according to age of the policyholder.
If the policyholder dies before the policy matures, the death benefit (10 times the single premium) along with loyalty addition, if any, will be paid to the nominee. On surviving the term, the policyholder gets the sum assured along with loyalty additions, if any, on maturity.
When will the loyalty additions be paid?
Typically, with-profit insurance policies are eligible for bonuses. Jeevan Utkarsh has no provision for bonuses but has the element of loyalty additions. According to LIC, “The policies under this plan shall participate in the profits in the form of loyalty addition which shall be payable at the time of exit after completion of 5 policy years.” It means the policy will be eligible for loyalty additions only after 5 years either on death or on surrendering the policy.
Depending on the insurer’s profitability, and hence not guaranteed, the declared loyalty addition will be added to the sum assured and paid on maturity. It’s a one time-addition to the policy unlike bonuses which are added each year when the insurance company makes a profit.
Returns on the policy
This is a policy with tax benefits under section 80C of the Income-tax Act, 1961. It’s not market-linked nor a guaranteed return plan as the returns will hinge solely on the amount of loyalty additions declared by LIC.
As per the illustration on the LIC website, here are the returns that can be expected:
For a 25-year-old who opts for a sum assured of Rs 75,000, ..
LIC of India has launched its new Single Premium – Jeevan Utkarsh Plan (846)
LIC Jeevan Utkarsh (Table No: 846) is Single Premium Plan with Fixed Term of 12 Years. Enter your details to calculate your single premium including appliable GST as per your age and Sum Assured.
LIC of India has launched its new Single Premium, Closed ended plan Jeevan Utkarsh, Plan No. 846. This plan will be available for sale from 06/09/2017 up too 31/03/2018.
LIC’s Jeevan Utkarsh is a Non-linked, with profits, saving cum protection plan in which risk cover is 10 times the single premium.
Benefits of LIC Jeevan Utkarsh Plan 846
There are two types of benefits in LIC Jeevan Utkarsh Plan 846.
# Maturity benefits of LIC Jeevan Utkarsh Plan 846
If the Life Assured surviving to the end of the policy term, “Sum Assured on Maturity” along with Loyalty Addition (LA), if any, will be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
# Death Benefits of LIC Jeevan Utkarsh Plan 846
a) If death occurs within the first 5 years of policy
If death occurred before the commencement of risk, then LIC will refund the single premium without any interest on it. Also, this refund of single premium will not include any taxes, extra premium chargeable under the policy due to underwriting decision and rider premium, if any.
If death occurred after the commencement of risk, Sum Assured will be payable to nominee without any additional benefits.
b) If death occurs after the 5th years of policy and before maturity
Sum assured which is equal to 10 times of your single premium and Loyalty Addition will be payable to the nominee.
Sum Assured at death will be highest of the below
-125% of the single premium; or
-Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured; or
-10 times of Single Premium
Loyalty Addition of LIC Jeevan Utkarsh Plan 846
Along with Sum Assured, this plan offers you the benefit of Loyalty Addition or LA. You will be eligible for LA after the completion of five policy years in the form of Death during the policy term or Maturity.
Settlement option of LIC Jeevan Utkarsh Plan 846
This feature I think first time introduced by LIC. You can receive the settlement amount (death or maturity) in installments over the chosen periods like 5 Yrs, 10 Yrs or 15 Yrs instead of a lump sum one-time settlement.
The policy holder has to choose this option but not the nominee. You can receive this maturity installment settlement either in monthly (Minimum Rs..5,000), Quarterly (Minimum Rs.15,000), Half-Yearly (Rs.25,000) or yearly (Minimum Rs.50,000).
If your chosen option is below the above-said minimum limits, then you will receive it as a lump sum settlement only.
Rs.47.50 Lakh LIC Policy Just Save Per Day Rs.143 – Call 9998272519
LIC’s Jeevan Umang provides cover till age of 100. should you buy?
Life Insurance Corporation of India recently launched ‘Jeevan Umang’, a plan that offers cover up to the age of 100. The policy offers annual survival benefits from the end of the premium-paying term till the age of 99, and a lumpsum payment at the time of maturity, or on the policyholder’s death.
The product, which covers life up to 100 years, is called a whole-life product. ET digs deep into whole-life products and finds out who should buy it.
How does a whole-life policy work?
A whole-life plan is a life insurance policy that remains throughout the lifetime of the insured. Some companies have launched whole-life policies that offer maturity and death benefit under such a policy. The advantages are fixed costs and low premium payments.
LIC’s product offers maturity benefit after 40 years from the date of commencement of the policy, provided the insured becomes 80.
Who can buy it?
Though different companies have different age limits of buying this policy, LIC’s Jeevan Umang can be bought by anyone between 90 days and 55 years. Though the maturity age is 100 years, companies have launched products with 80 years maturity.
If the insured lives past the maturity age, the policy will become a matured endowment. The insured will get the benefit as maturity benefit in any money back or endowment plan.
What is the return?
Return varies depnding on insurers.
LIC’s product offers survival benefits equal to 8% of basic sum assured and paid-up sum assured, respectively. The policy pays first survival benefit at the end of the premium-paying term and thereafter on completion of each subsequent year till the life assured survives, or till the policy anniversary prior to the date of maturity.
VERY IMP FOR JEEVAN UMANG
* *जीवन उमंग * प्लान -845**
🌷🌷आजीवन मनीबैक योजना को जन्मदिन के अनमोल उपहार स्वरूप प्रचारित कीजिये । अर्थात आपकेे बच्चों और नाती – पोते को उनके जन्मदिन के दिन सुबह ११ बजे जब ₹१६०००/- उनके १०० वर्ष की आयु तक खाते में क्रेडिट होने का SMS आएगा तो जो भावुक पल आँखों के सामने होगा उसे महसूस करने के लिए शायद आप नही होंगें , पर आपकी रूहानी उपस्थिति का अहसास तीन पीढ़ियों तक होगा। ये प्लान मात्र एक निवेश योजना नही है, ये तीन पुश्तों को एक सुनहरे धागे से जोड़ने का मखमली अहसास है जो अन्यत्र दुर्लभ है। ये रिश्तों की जमा पूंजी है अतः इसे तत्काल प्रारंभ करके स्नेह का इज़हार करें।
❗ 15 वर्ष 16000 दीजिये और जीवन भर 16000 पाये
❗ 20 वर्ष 11000 दीजिये और जीवन भर 16000 पाये
❗ 25 वर्ष 8100 दीजिये जीवन भर 16000 पाये
❗ 30 वर्ष 6300 दीजिये जीवन भर 16000 पाये
उसके बाद भी पूर्णावधि *(100वर्ष ) या उसके पूर्व मृत्युु होने पर बीमा राशि 200000+बोनस+ अंतिम अतिरिक्त बोनस परिवार को दुःख की घड़ी में निगम द्वारा दिया जाएगा। ये धनराशि आयकर भार से मुक्त होगी तथा विद्यमानता हितलाभ की रकम भी नही कटेगी।
Jayesh Prajapati, LIC AGENT
M.NO : 9998272519
LIC Jeevan Umang Plan (845) Details
LIC Jeevan Umang (Table No: 845) is a non-linked whole life assurance plan which provides fixed yearly amount (8% of Sum Assured/Year) after completion of premium payment up to 100 year of age and on maturity lump sum amount on maturity (completion of 100 years) or death. This plan is similar to Jeevan Tarang (178) Plan which is closed for sale. Features and benefits of this plan have been explained here with example.
- 8% of SA per year as survival benefits
- Suitable plan for pension
- Whole Life Plan
- Availability of Accidental benefit Rider, Term Rider and Critical Illness riders.
- Paid premiums are exempted from income tax under 80C
- Maturity amount is tax free under 10 (10D)
|Age at Entry||90 Days (Completed)
Calculate your Age
|Premium Paying Term (PPT)||15, 20, 25, & 30 Years|
|Maximum Age at Entry in Years)
(As per Nearest Birthday)
|55 for 15 PPT|
|50 for 20 PPT|
|45 for 25 PPT|
|40 for 30 PPT|
|Age at Maturity||100 Years (Nearest Birthday)|
|Policy Term||100 – Age at Entry|
|Basic Sum Assured||2,00,000 and above in multiples of 25,000|
|Premium Paying Mode||Yearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)|
|Premium Payment Mode rebate||2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly|
Survival and Maturity Benefits
- On successful completion of premium paying term(PPT), 8% of Basic Sum Assured per year will be paid as survival benefits up to a year prior to Maturity, and
- on completion of policy term, Basic Sum Assured + Simple Reversionary Bonus +FAB will paid as maturity claim.
- If death happens before commencement of risk, all premiums paid excluding taxes will be paid to nominee as death claim.
- If death happens after commencement of risk, then Basic Sum Assured + Bonus + FAB will be paid to nominee as death claim.
Commencement of Risk
- In case, the policy holder is less than 8 year old, then, life cover will start 2 year after policy purchase or completion of 8 year of age, whichever is earlier.
Example, if policy holder is 2 year old, then life cover (risk) will start after 2 year i.e. when policy holder will become 4 year old and if policy holder is 5 year old, then, risk will start when policy holder becomes 8 year old.
- If policy holder is 8 year old at the time of buying policy then, risk will start immediately.
LIC Jeevan Umang (845) Policy with an Example:
To Explain the benefits associated with Jeevan Umang Policy, following example has been taken.
|Age (Years)||25 (Completed)|
|Basic Sum Assured||25,00,000|
|Premium Paying Term||30|
|Policy Term||75 (100-25)|
As per above policy details, the policy holder is require to pay premium for 30 years and once this premium paying term of 30 years completed, the policy holder starts receiving 2,00,000 (8% of BSA) per year up to his 99 years of age and on completion of 100 years of age or completion of policy term maturity will be paid.
Following table provides year-wise and age-wise total premium paid, death claim amount, survival benefits and maturity.
|Year No||Year||Age||Deposit Amount||Sum Assured||Bonus (Approx)||Risk Cover (Approx)||Return|
|31||2047||55||0||2500000||Bonus||8802500 + Bonus *||200000|
|32||2048||56||0||2500000||Bonus||8802500 + Bonus *||200000|
|33||2049||57||0||2500000||Bonus||8802500 + Bonus *||200000|
|34||2050||58||0||2500000||Bonus||8802500 + Bonus *||200000|
|35||2051||59||0||2500000||Bonus||8802500 + Bonus *||200000|
|36||2052||60||0||2500000||Bonus||8802500 + Bonus *||200000|
|37||2053||61||0||2500000||Bonus||8802500 + Bonus *||200000|
|38||2054||62||0||2500000||Bonus||8802500 + Bonus *||200000|
|39||2055||63||0||2500000||Bonus||8802500 + Bonus *||200000|
|40||2056||64||0||2500000||Bonus||8802500 + Bonus *||200000|
|41||2057||65||0||2500000||Bonus||8802500 + Bonus *||200000|
|42||2058||66||0||2500000||Bonus||8802500 + Bonus *||200000|
|43||2059||67||0||2500000||Bonus||8802500 + Bonus *||200000|
|44||2060||68||0||2500000||Bonus||8802500 + Bonus *||200000|
|45||2061||69||0||2500000||Bonus||8802500 + Bonus *||200000|
|46||2062||70||0||2500000||Bonus||8802500 + Bonus *||200000|
|47||2063||71||0||2500000||Bonus||8802500 + Bonus *||200000|
|48||2064||72||0||2500000||Bonus||8802500 + Bonus *||200000|
|49||2065||73||0||2500000||Bonus||8802500 + Bonus *||200000|
|50||2066||74||0||2500000||Bonus||8802500 + Bonus *||200000|
|51||2067||75||0||2500000||Bonus||8802500 + Bonus *||200000|
|52||2068||76||0||2500000||Bonus||8802500 + Bonus *||200000|
|53||2069||77||0||2500000||Bonus||8802500 + Bonus *||200000|
|54||2070||78||0||2500000||Bonus||8802500 + Bonus *||200000|
|55||2071||79||0||2500000||Bonus||8802500 + Bonus *||200000|
|56||2072||80||0||2500000||Bonus||8802500 + Bonus *||200000|
|57||2073||81||0||2500000||Bonus||8802500 + Bonus *||200000|
|58||2074||82||0||2500000||Bonus||8802500 + Bonus *||200000|
|59||2075||83||0||2500000||Bonus||8802500 + Bonus *||200000|
|60||2076||84||0||2500000||Bonus||8802500 + Bonus *||200000|
|61||2077||85||0||2500000||Bonus||8802500 + Bonus *||200000|
|62||2078||86||0||2500000||Bonus||8802500 + Bonus *||200000|
|63||2079||87||0||2500000||Bonus||8802500 + Bonus *||200000|
|64||2080||88||0||2500000||Bonus||8802500 + Bonus *||200000|
|65||2081||89||0||2500000||Bonus||8802500 + Bonus *||200000|
|66||2082||90||0||2500000||Bonus||8802500 + Bonus *||200000|
|67||2083||91||0||2500000||Bonus||8802500 + Bonus *||200000|
|68||2084||92||0||2500000||Bonus||8802500 + Bonus *||200000|
|69||2085||93||0||2500000||Bonus||8802500 + Bonus *||200000|
|70||2086||94||0||2500000||Bonus||8802500 + Bonus *||200000|
|71||2087||95||0||2500000||Bonus||8802500 + Bonus *||200000|
|72||2088||96||0||2500000||Bonus||8802500 + Bonus *||200000|
|73||2089||97||0||2500000||Bonus||8802500 + Bonus *||200000|
|74||2090||98||0||2500000||Bonus||8802500 + Bonus *||200000|
|75||2091||99||0||2500000||Bonus||8802500 + Bonus *||200000|
|76||2092||100||0||8982500 + Bonus *|
*The Bonus after premium payment term accumulated differently, that is why it indicted as 8802500 + Bonus.
Above benefit illustration is prepared for the purpose of plan explanation only and the values in this illustration are based on assumptions which may change completely. It is assumed that, this plan is similar to closed LIC Jeevan Tarang (178) plan, so bonus (Rs. 49 per thousand of BSA) of Jeevan Tarang is taken for generating illustration.