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Life Insurance Corporation of India (LIC) is completely owned by the Government of India. LIC has constantly bagged top rank among the Indian insurance companies over the years. The bill was passed in 1956 by the Parliament of India to form a Life Insurance Corporation under which more than 245 private companies were merged. It provided more than 20 plans suitable for each individual and they have kept in mind every individual’s needs.
One such plan is LIC Jeevan Sangam which is a simple endowment plan offering both savings and Protection features.
The policy premium term will be of 12 years for all. Here you need to decide the maturity amount that is nothing but sum assured. After deciding this, the premium will be decided based on the maturity amount chosen and the age of the policyholder and you need to pay the premium for every term without failing. You will be eligible for a life cover called “Maturity Sum Assured” from now on. This plan gives you guaranteed returns. The policy under LIC Jeevan Sangam Plan contributes in profit sharing of LIC hence you will be eligible for additional bonus as well. The life risk covered under this plan will be in multiples of Single premium which you will be paying. The launch date for this plan is 1st March 2015. It was only open for 90 days and has been closed on 1st June 2015. This product does provide the large returns.
There are certain features of this premium policy:
- The premium is payable monthly, quarterly, half-yearly or yearly. The policyholder can choose the appropriate option for them.
- The minimum amount of sum matured with this policy will be 300000, and there is no limit to the maximum amount.
- The minimum amount for accidental death benefit is of 100000 and maximum is 1 crore.
- There is a maximum cover ceasing age of 69 years for the premium policy term of 12 years and 70 years for others.
- The grace period or the extra times are given for delayed premiums are 15 days for monthly payments and 30 days for other available premium payments.
1. Death Benefit: Upon the death of the policyholder, this benefit is provided. All the regular premiums for decided term should be paid with no balance premium, the Death benefit is provided.
Suppose if a policyholder dies within five years of policy opening, then the Sum Assured on death is decided as follows.
- Before the date of commencement of risk: In this case, the single premium is refunded to the nominee without giving any interest on the amount. This final premium amount does not include any extra amount or taxes.
- After the date of Commencement of risk: In this case, Sum Assured on death is decided based on the single tabular premium. It is 10 times of the premium. The premium paid during the decided tenure does not include any extra tax.
Suppose if a policyholder dies after 5 years of policy opening but before the policy maturity date, then the sum assured on death equals to 10 times of the single tabular premium paid along with the Loyalty amount.
2. Maturity Benefit: Upon completing the tenure of the policy, Maturity benefit is provided to the survivor. The key here is all the premiums should be paid for the entire term. The Maturity benefit is calculated as follows:
Maturity Benefit = Sum Assured on maturity + Loyalty Bonus Here the Sum Assured on maturity is nothing but Basic Sum Assured. This lump sum amount is paid on the maturity of the policy.
3. Loyalty Addition: The policy should be eligible and it should incur profit for the Corporation, then the policy is entitled to Simple Reversionary bonus. For this, the policy should be active and in force at least for five years. The Reversionary bonus will be calculated based on the Basic Sum Assured.
You can start the policy premium from the age of 6 years until 50 years. Age of policy maturity is 12 years. So at max, the policyholder will be of 62 years when the policy matures. Coverage provided by the policy plan starts from 75,000 INR till higher it can go. The maturity amount will be in multiples of 10,000.
Suppose a policyholder is 8 years old or more than 8, then the risk calculation starts immediately after the policy is purchased. If the policyholder is less than 8 years, in that case, the risk calculation starts after completion of 1 year of policy or as the policyholder turns 8.
Tax Benefit: Similar to other policy schemes, the LIC Jeevan Sangam Plan provides benefits in income tax. The premiums are tax exempted Under the Section 80 C of Income Tax. The maturity amount provided at the end of Policy tenure is also tax-free. So you need not pay any tax on that amount. The maturity sum decided at the end will be given as it is. It is assured under the section 10 D.
Loan Facility: You can take a loan against your Jeevan Sangam policy in need. But for this the policy should be more than 3 months old, or once the free look period is over for the policy. The amount of loan is decided based on the age of the policyholder when the policy was started.
Rebate on Premium: You can also get the rebate on decided premium. It is applicable for per 1000 INR. You can get a rebate of 15 INR if the maturity assured amount is between 2 lakhs-4.8 lakhs INR. You can get a rebate of 20 INR if the maturity assured amount is between 5lakhs-9.8 lakhs INR. You can get a rebate of 25 INR if the maturity assured amount is more than 10 lakhs INR.
Policy surrender: There is provision to surrender the policy in need. If the policy is surrendered within one year of policy opening then the policyholder will get up to 70% of single premium paid. After completing one year, if the holder surrenders the policy then he will get up to 90% returns on the single premium paid. There are many calculators available online to calculate the estimate of surrender policy. If the policy is surrendered after completing five years, then holder is also eligible for Loyalty Bonus along with the premium returns. This can be calculated using online calculators.
This is the best plan you can buy with the minimum risk taken. It gives you high returns along with additional bonuses.