Notice For Modification of LIC Jeevan Akshay - VI (Plan No.189)

Today LIC has issued a Notification regarding Modification of LIC's Jeevan Akhay - VI (Plan no.189) (UIN:512N234V05). Read Complete Notification here as-

LIFE INSURANCE CORPORATION OF INDIA
CENTRAL OFFICE

Dept: Product Development                 "Yogakshema"
                                        Jeevan Bima Marg.
                                        Mumbai - 4000021
                                       24th November, 2017

Ref: CO/PD/100

To
All HODs of Central Office
All Zonal Offices,
All Divisional Offices
All Branch Offices (Through D.O's)
MDC, ZTCs, STC, NIA and
Audit & Inspection Depts. of Zonal Offices


Re: Modification of LIC's Jeevan Akshay -VI (Plan No. 189)(UIN:512N234V05)

This is to inform that the current annuity rates applicable to individual annuities under LIC's Jeevan Akshay -VI (UIN:512N234V05) will not be available with effect from 01.12.2017

Notice-of-Modification-of-Jeevan-Akshay-VI-(Plan No.189)The existing annuity rates would apply on all proposals with full premium received proposals registered and also completed as on 30.11.2017 or before. The annuity rates of LIC's Jeevan Akhshay-VI (UIN:512N234V05) will be revised with effect from 01.12.2017. The revised annuity rates would apply on all proposals registered and / or completed from 01.12.2017.

Therefore, all our offices are requested to ensure that all the proposals received under this plan LIC's Jeevan Akhshay-VI (UIN:512N234V05) on or before 30.11.2017 are completed as at 30.11.2017. For any incomplete proposal even if registered on or before 30.11.2017 but not completed on a date before or as at 30.11.2017, revised annuity rates would apply.

For the proposals completed before or as at 30.11.2017, in case of cheque dishonour and sbsequent receipt of money and completion of such cases after 30th November 2017, revised annuity rates would apply.

[Signature]
Executive Director (Marketing & Product Develpment)

FAQ
What is LIC's Jeevan Akhshay-VI (Plan No. 189) (UIN:512N234V05) ?
It is an immediate Annuity Plan. It is one time investment with Life Time Return Pension Plan applicable with next Month, Quarterly, Half Yearly or Yearly.

Can we Surrender Jeevan Akshay VI (Plan -189) ?
Yes! You can Surrender Jeevan Akshay -VI after one year and get back your money with OPTION-F

What are the Special Features of Jeevan Akshay VI (Plan -189) ?
There are lots of special feature this plan has. Some of them are listed below :
1> It Does Not Effect Your Pension Amount inspite of regular changing in Bank's FD Rate
2> After Policy Holder All Money Will Be Returnable to Nominee. 
3> Available Pension Option of Monthly, Quarterly, Half-yearly And Yearly
4> Pension Available From Just Next Month 
5> Minimum Entry Age 30 Years, Maximum Entry Age 85 Years
6> Minimum Investment Limit - 1 Lakh, Maximum Investment Limit - No Limit
7> Direct Credit of Pension Into Your Bank Account.
8> After Death of Husband & Wife All Amount Returnable to Next Legal Successor (Option-J)



ACT  NOW. NO TENSION ONLY PENSION

How To Link Aadhar No. With Insurance Policies ?

On 08th November 2017, IRDA (Insurance Regulatory And Development Authority of India) issued a Circular No.IRDAI/SDD/MISC/CIR/248/11/2017  that linking your Aadhar No. and PAN is mandatory with all your insurance policies. Read this Circular is as below :
HOW-TO-LINK-AADHAR-WITH-LIC-POLICIES"Central Government vide gazette notification dated 1st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same.
The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.
These Rules have statutory force and, as such, Life and General Insurers (Including Standalone Health Insurers) have to implement them without awaiting further instructions".
Why it is became so important to all policy holder? It is just to save your investment from any future fraud. We have to understand the importance to link Aadhar to LIC Policies and Linking of PAN to all insurance policies you are having. 
Link-your-Aadhar-With-Insurance-Before-Get-Claim

However the question is, How to link Aadhar No. to LIC Policies? Neither IRDA nor LIC company provided any facility to link their policies with Aadhar. Though there are two ways that you can link your Aadhar no with your insurance policies.
1. Link Aadhar / PAN while buying New Policy:
If you are planning to buy any new insurance policy then there are facility to link your Aadhar No. along with your PAN by providing a self attested copy with new proposal form. 
Therefore who are buying new LIC products should no need to bother now. The process will be completed by LIC itself before issuing a new policy to you.

2. Link Aadhar / PAN to existing LIC Policies:
As I told you, as of now LIC did not came up any online linking facility to existing policies. However you can visit your branch and link Aadhar & PAN to LIC Policies. Do remember to get an acknowledgement of the same.
LIC has the main problem that they don' have any centralized system to manage all policies and customer. It will be little problematic if you have policies from different branch but if it is from same branch then it will be easy.

You can make a list of all your policies with other details like Insured Person Detail, Premium (without tax) along with a letter and self attested Aadhar copy along with PAN/Form 60 (If not provided earlier) and put request to the concerned authority/ LIC agent to do the same.


It is clearly stated in this circular that every person/entities has to link their Aadhar with all kind of insurance policies including Group Policies.

Aadhaar Number has to be captured for both Customer and Proposer.

In case where the Aadhaar number has not been assigned to a client, the client shall furnish proof of application of enrollment for Aadhaar.

The various entities and whose Aadhaar Number has to be captured is clarified as follows,

a.       Individual : The Aadhaar Number of the Individual.

b.      Company / Partnership / Trust :Aadhaar Number issued to the person holding an attorney to transact on the Company’s/Partnership’s/Trust’s behalf.

Click here to link your Aadhaar with LIC Policies

Or  

if you want to link process manually/self by visiting branch, here is the Annexure (Application Format
Application-Format-to-Link-LIC-Policy-with-Aadhaar



What is Form 60? 
Form 60 is a self declaration provided as per requirement & filled by those individuals or person who does not have a PAN ( Permanent Account Number) and who enters into any transaction specified in Rule114B.

Who Require to provide Form 60?
Some person who have insurance policies but they do not earn as per Income Tax threshold limit then they can provide Form 60. 

Before signing the declaration, this declarant should satisfy himself that the information furnished in this form is True, Correct and Complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the income tax act,1961 and on conviction be punishable.

Don't go with any spurious  call to help to link your Aadhaar with Policy. 

Don't Share your personal details with any unknown person.

With Profit And Without Profit Plans

With_Profit_And_Without_Profit_PlansMany people who have their life insurance policy get notice that their plan is may be "With Profit" or "Without Profit". Some time they thought why certain plans are categorized like this. And wiling to ask their agent. Here are the answer.
An Insurance Policy can be "With" or "Without" profit. Life insurance companies from time to time declare bonus (profit share) on their plans. 
An insurance plans in which this bonus/profit share is passed on to the policy holders is called a "with profit" plan. Bonus are allotted after certain periodical valuations to the policy and are payable with the maturity amount.
But  in a "without profit" plan this bonus is not passed on to the policy holders. Therefore, the premium rate charged for a "with profit" plan is little higher than that for a "without profit" plan. 
The percentage of bonus may vary from one policy to another depending on the type, term and the premium of the respective policy, amount other considerations.

Register and Get Facility with LIC eService Portal

LIC has comes up with some new features with Lic’s e-service. You can register your policies at LIC portal with some simple steps and save lots of time.
Lic’s e-service is an initiative is to provide you with on demand service within a few clicks! You can now have many of the functionalities that were available only at branch office, Now it will be online at your fingertips. To avail this facility you have to get register as customer on LIC portal.
How to get Register on LIC Portal:
Register-and-Get-Facility-with-LIC-eService-PortalFirst you have to visit www.licindia.in  , click on the tab “New User “ , select your own USER ID & Password and provide all the other necessary information . Now you are a registered customer portal user.

LIC’s e-services portal for customers has come up with a lot of new facilities. Now if you register you can avail the following benefits: 


1.  Online Payment Facilities:
This facility provided to pay renewal premium dues, payment, repayment and loan interest due of loan through net banking, debit card, credit card, BHIM, UPI
2.   POLICY Schedule:
First page of policy bond which constitutes policy schedule will be displayed.

3.   Policy Status :
Basic detail of policy will be displayed such as plan, term, sum assured, date of commencement, first unpaid premium etc.

4.  Bonus Status :
     Total bonus accumulated under the policy will be displayed.

5.  Loan Status :
Present loan position will be displayed such as total loan outstanding under the policy, due up to which loan interest paid etc.

6.  Claim Status:
This option will display date of survival benefit (if any) or maturity benefit due under the policy during the policy term.

7.  Revival Quotation:
Revival quotation will be provided in case of lapse  policies.

8.  Premium Due Calendar:
Detail of premium due during the year (month wise) will be displayed.

9.  Premium Paid Certificate:
Individual policy – it provides history of premium paid under a single policy during the financial year.
Consolidated – it provides history of premium paid under all the registered own life policies of the user.

10. Claim History:
 This option will provide details of any claim paid under the policy with NEFT/  Cheque details, date of payment and amount of payment.

11.  Policy bond/proposal form image;
 Scanned image of the policy bond as well as proposal form will be displayed for enrolled  policies.
12.  Grievance registration:
Facility to register a complaint /grievance with insurer.

In future the benefits will further be enhanced. If you face any problem in registering, you may contact us/your Agent or to your nearest LIC Branch.


Service Tax Paid on Insurance Premium U/s.80C

Service-Tax-Paid-on-Insurance-Premium-U/s.80C
Many question arise about "can we take benefit of paying service tax paid on Insurance Premium!" If we check insurance premium receipts properly we get that the we pay three cost heads; Net Premium + Service Tax + E. Cess. On this basis final gross premium is calculated.

Now question is "can we take claim under section 80C of service tax paid along with insurance premium?"

The current tax rules states that "any amount paid to keep in force a life insurance policy qualifies for a tax deduction under section 80C." It is a common perception that Premium Paid all Life Insurance Policies are qualifies for deduction under section 80C of Income Tax Act, 1961. 

As per Section 80C(2) of the Income Tax Act, 1961 any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This implies that premium paid for a life insurance policy can be deducted from gross total income before arriving at taxable income subject to certain condition.

Section 80C(2) also clarifies that in order to claim the deduction from gross total income fro a particular year the gross amount of premium must be paid or deposited in that particular financial year itself.

But when you ask insurance provider to provide Total Insurance Premium Paid Statement then they will provide you only statement of net premium paid

Tax experts interpret this to mean that the entire premium inclusive Service Tax and Cess, qualifies for a tax deduction.

Ideally, you need to mention the entire premium or gross premium for the purpose of availing a tax deduction under section 80C.

Which is better Paid-Up or Surrender?

Which-is-Better-Paid-Up-of-Surrender-of-LIC-Policy !!
A life insurance policy in which if all the premium payments are complete till some specified period and insured person is free of all payment obligations and the policy stays intact until insured's death or termination by its maturity or Surrender of the policy is called Paid-Up Policy.

Life Insurance Policies usually last the insured person's lifetime or maturity period, but some some policies can be paid up completely till a specified period. Only Traditional Life Insurance Plans can be a Paid Up Policy. 

It is calculated as the ratio of number of premium paid to the total number of premiums payable multiplied by the Sum Assured value.

 i.e. Paid-Up Value = No. of Premium paid /No. Premiums Payable X Sum Assured.


For Example:  Pradip has one traditional Endowment Policy having Sum Assured Value Rs.2,00,000/- and the policy tenure is 16 years. Unfortunately Pradip did not able to continue his policy after continuing is upto 8 years full premium paid. 
Now from very next year he did not paid any due premium to make it continue, hence very next year this policy become automatically a Paid-Up policy.

Which is better Paid-Up or Surrender of Policy?
Now, Pradip has two option either he can go and surrender his policy by providing all necessary documents to the branch or let it become Paid-Up.

Also Read : How To Surrender An LIC Policy ??

A Policy can be paid-up from next premium due. Suppose I continue my policy up-to 8 years and from next year I fail to pay premium then it become automatically Paid-up to its proportionate to its  premium paid ; Payable And Sum Assured.

Every Insurance Plan has it surrender value which can be known from servicing branch. Its is approx 30% of Sum Assured in regular plan and up-to 90% in single premium plan.

If we calculate in both condition then we can make comparison itself and understand which is better. For Example you have S.A.=2,00,000/-; Tenure - 16 Years; Premium - Rs.13000 (Approx); Premium Paid up-to full 8 years.

Surrender Value : Rs.2,00,000 X 30% = Rs.60,000/-  (Immediate Payment)

Paid-Up Value : Rs.2,00,000 X 8/16 = Rs.1,00,000/- + Vested Bonus  (Payment after death or maturity)

You can decide which is better. On Surrender you will get immediate payment while on letting Paid-Up of Policy you will get after death or maturity which ever is earlier)

Change Of Nomination in LIC Policy

Change-Of-Nomination-in-LIC-Policy
    The Insurance Act allows the holder of a life insurance policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
    
    A policy holder can do nomination at the time of proposal by given the details of nominee in the proposal form. If nomination can not be done at the time of proposal, it can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC and it has to be done on the back of the policy document. A nomination is not required to be stamped.
    
    Remember Cancellation or Change in Nomination in insurance policies now comes at a cost as regulator IRDA has allowed life insurance company to charge upto Rs.100/- for offline issued policies and Rs.50/- Online (Electronic form) issued policies.

PROCESS OF CHANGE THE NOMINATION IN LIC POLICY :-  A Policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination in LIC Policy, the policyholder has to give a notice to LIC of India in a  Form 3750 and nomination has to be endorsed. Further, the policyholder can change nominee without prior inform them. Nomination can be done or changed number of times by paying nominal fee to the insurer.
To process of change of nomination following documents require :- 

  • Relation Proof of Life Assured and the person being nominated
  • Form No. 3750 *
  • Original Policy Bond.
* If you have Joint Life Policy use Form No.3237.
* If you have Minor Nominee use Form No. 3265.

How To Make Claim in Insurance ?

How-To-Make-Claim-in-LIC ?
What is Claim in Insurance?
Let’s talk about claim. Claim is the demand that the insurer (i.e. LIC of India) should redeem the promise made in the contract. Then the insurer settle the claim after satisfying himself that all the conditions and requirements for settlement of claim have been complied with.
Types of claims:-
An insured person can make claim according to condition complied to contract between Insurer & Policyholder. Claim can be made against Maturity; Death or by Surrendering a policy.
In Money Back Policy, LIC or other Insurance company also pays Survival Benefit Payment before the date of maturity.
How to Make Claims and what are the documents required for?
(A)Maturity Claims:-
When Life Insurance Policy is maturing, the insurance company will usually send intimation prior to due date at least two to three months in advance of the date of maturity with maturity amount payable details.
Policy holder should contact his servicing branch to know about claim procedures & sets of documents required. The Insurance Company asks for following documents:
(          1)Maturity Claim Form No. 3825
(          2)Original Policy Bond
(          3)Discharge Voucher with witness sign
(          4)NEFT Details with cancelled Cheques
(B)Death Claims :-
When a person with life insurance policy dies, claim intimation should be sent to the insurance company as early as possible. The Assignee or the Nominee under the policy can do this with the help of his agent or relative.
The claim intimation should contain information like Date, Place and Cause of Death. The Insurance Agent should help the Insured Person Family or Assignee to deal with the Insurance Company. The Insurance company will respond and ask for the following document :
(       1)Maturity Claim Form No. 3825
(       2)Certificate of Death
(       3)Original Policy Bond
(       4)Discharge Voucher with witness signature
(       5)NEFT Details with cancelled Cheques
*If the policy has been assigned in favour of any other person or entity like any Loan provider company – the claim amount will be paid to the assignee who will give discharge.

(C) Surrender of Policy : - Please visit post How to Surrender LIC Policy?


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