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

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

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How Much Insurance Do I Need !!!

Do all of us require life insurance?? My answer is "YES" Because, Health of elderly parents, Education of Children and life of Spouse are put under a big question mark when bread earner dies. Not only losing the loved ones, most of the times families get into serious financial crisis. Now the question is " How Much Life Insurance Do I Need To Secure My Family?" But first you realize that whether you need any life insurance to take. If so, then here are some parameters on calculating how much life insurance you really need.

1. Earning Power: Life insurance amount must cover at-least the earning power of the person. For Example you earn Rs.50 thousand per month then your expenses ratio would around this amount. Now if something happens, interest income from insurance policy claim proceeds must be around or more than Rs.50 thousand, considering the fluctuation in money value due to inflation.

2. Dependents: If you are young and single you do not worry much about this. Mostly liability started arise once you get married. But after marriage this is must. Your Spouse and your children or your parents requires it more in your absence, because they depends on you.  If you are only earner in the family then you need higher insurance coverage.

3. Having Loan: If you have some loan/debt then the policy coverage must be higher to cover your loan/debt amount. Imagine the situation when the person had a bulk house loan to pay and there is no earner. Remember when you have loans or other debts, consider taking a policy with higher coverage after checking your affordability to pay the premium along with EMI.

Life insurance is not necessary if you do not dependents. Having surplus resources to take care of dependents. No debts/Loan, You are single and just started earnings.

There are some basics to check it like Take all your insurance policies and calculate total insurance cover you have. Now analyze and compare it with your earning in your absence and ask yourself "will this amount fulfill / protect family's lifestyle forever in my absence". If your earning does not allow much to take regular insurance cover then go for some Term Insurance.

Calculate and take the right insurance cover for you and protect your family's lifestyle forever. 

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Life After Life With Life Insurance

One of my client asked me "why every alternate day an LIC Agent came to me and asked to buy an insurance policy? How I can buy if not able save to afford premium amount? I ask him just to imagine "you are the head of the family and only earning member. You have a good job, own flat, kids taking education in good school. But suppose unfortunately you are no more or no-more earning as now, then............. " that person silence for some time. Again I asked can you again imagine that your family can live without you as comfortable as now. They need money to fulfill their needs even in your absence... so we people come and tell you to do some for future cash requirement.
Always remember loss of an income always creates a dent in the financial plans of any family, and if that income is the only income, the damages can be very severe.
Nothing can be done to compensate for the emotional loss of the family. But we do something to take care of them financially when we are not there.
Therefore we can secure our family's financial future by buying a life insurance policy. Besides do not overlook benefits of a life insurance during your lifetime, especially if you are young. Here  I am listing some reasons for buying Life Insurance Policy.
1. Life After Life : As I illustrated above there are life after your life who need money to survive and fulfill their requirements. They are your dependent spouse, your child, your mother-father whom you love so much.
2. Supplements for your Retirement Goals: With a life insurance plan, you can ensure you have a regular stream of income every month till you survive. So, invest some money in  Pension Fund scheme.
3. Tax Saving Purpose: The premium you pay on an insurance policy is eligible for maximum tax benefit upto Rs.1.50 Lakh under section 80C. And give you a tax free return at the time of Maturity or death under section 10(D) of IT Act, 1961. So, you can save tax with insurance policies irrespective of what plan you buy. 
4. Peace of Mind: We all knows death is unavoidable. Atleast you can do this for your family to secure their financial future. Even if it is a small policy, you know that you have done all you can.
5. Forced Saving Tools: If you are not able to invest thou this investment forcefully ask you to save some money for future. If you choose a traditional or ULIP policy, you pay a premium each month, means each month savings.
6. Delay Cost More: Life insurance policy run on uncertainties. Now you are healthy so you can buy a life insurance but if you are ill your policy may be rejected. Buying life insurance early is cheaper than buying later. 
7. Helpful in Debt-dealing: If you have any home loan or car loan, you must not want your family to deal with financial liabilities during a crisis. Any outstanding debt either home loan, auto loan, personal loan or credit card outstanding will be taken care of if you have right (amount) insurance policies.
8. Fulfill Long-Term Goal: Life insurance a tool for long-term investment. It may help you to achieve your future goals such as buying home, fund for higher education of your child.

Using life insurance as an investment tool might make sense for some people in some situations - usually high net-worth individuals looking for a way to minimize income taxes. For the average person, it may fulfill their future financial needs.

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Top Investment Idea U/s 80C

Many of us start investment only in February or March, i.e. just before the Financial Year getting over. This could be a big mistake. You may invest your money without proper planning. You may lose interest/appreciation for the whole year. Right time to start planning to invest is start of the financial year. This way you would not only make well informed decisions but also can earn interest for the whole year.

Here we will discuss about investment and tax deduction under section 80C of Income Tax Act. Section 80C replaces Section 88. Section 80C has become effective from 1st April 2006. Section 80CCC on Pension Scheme also merged with this section. Section 80C of IT Act allows certain investment and expenditure to be tax exempt. 

The maximum limit of deduction under section 80 is Rs.1.50 lakh from F Y 2014-15 / A Y 2015-16. Before F Y 2014-15 the limit was Rs.1.00 Lakh.

Most of the Income Tax payer try to save tax by saving under section 80C. Must note that under this section you can not only just save tax on investment bust also save tax on certain Expenditure.

Top Investment idea U/s 80C:-

1. Life Insurance Premium: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in this section deduction.

2. Unit Linked Insurance Plan: ULIP covers life insurance with benefits of equity investments. They have attracted the attention of investors and tax-savers not only because it help us to save tax  but also give decent returns in long-term.

3. Provident Fund: PF is deducted from your salary every month and both you and your employer contribute to it. While employer's contribution is exempt from tax, your contribution will come under section 80C. This deduction is compulsory, so this has to be the first and also apart from tax saving, it builds a long term, tax free retirement corpus for you.

4. Public Provident Fund (PPF): Public Provident Fund  is one of the best investment. Interest is compounded yearly and the normal maturity period is 15 years. You can deposit minimum Rs.500.00 and maximum Rs.1.50 Lakh. Remember rate of interest may vary by govt. notification.

5. Equity Linked Saving Scheme (ELSS): This is a mutual fund (MF) specially designed to save tax. The investments that you make in ELSS are eligible for deduction under section 80C.

6. National Savings Certificate (NSC): It is good investment option with a maturity period of Five years and Ten Years. Compounded Interest accrued Half Yearly. Minimum investment in NSC is Rs.100.00 and No Maximum limit. You can withdraw NSC before maturity period in case of certificate holder. Remember Investment in NSC are eligible for deduction but accrue interest income is chargeable to tax in the same year.

7. Pension Fund: In this Section 80CCC investment limit is clubbed with the limit of Section 80C. It means total deduction limit under section 80C and 80CCC is Rs.1.50 Lakh. This means that your investment in Pension Funds upto Rs.1.50 Lakh can be claimed as deduction under section 80C.

8. Five Year Bank Fixed Deposit (FD): Tax Saving fixed deposits with tenure of 5 years are also entitled for section 80C deduction.

9. Five Year Post Office Time Deposit: This is similar to bank's fixed deposit scheme. Interest is compounded quarterly but paid annually. Interest is totally taxable.

10. Home Loan Principal Repayment : The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components- (i) Principal Amount (ii) Interest Amount. The principal component qualifies for deduction under section 80C. And interest component save your tax under section 24 of IT Act. If you have taken home loan this is an automated EMI deduction cum investment. 

11. Sukanya Samriddhi Account: If you have blessed with girl child then it is for you only. You can open account under this scheme from the birth of a girl child till she attains the age of 10 year with minimum deposit of Rs.1000.00 and maximum deposit of Rs.1.50 lakh per year. Accrued interest under this scheme is fully exempt from tax in that year as well as in the year of receipts. For more you can read details in Notification No. G.S.R.863(E) Dated 02.12.2014.

Decide and Analyze which investment idea suite you to save tax and save your money with good return. Decision is yours. Have a happy investment.

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Tax benefit on Payment and Maturity of Life Insurance Premium

People are using Life insurance policies as tax planning tool as premium paid on Insurance Policies are eligible for tax benefits under Section 80C of the Income Tax Act 1961 (Act) and Maturity Proceeds are also eligible for exemption under section Section 10(10D)  and  Section 10(10A)(iii). 
Life Insurance helps Assessee in saving tax, achieving their long term goals and it also provides Comprehensive financial protection against unforeseen events of their family.

Deduction U/s. 80C in respect of life insurance premium

Maximum Limit – Maximum Deduction allowed under this Section is Rs. 1.50 Lakh and the sum includes payment on other allowable investment option available Under Section 80C of the Income Tax Act,1961. It is to be further noted that combined Maximum limit of deduction under Sec 80C & 80CCC & 80CCD (1) is Rs 1,50,000.

Restriction on Deduction limit: Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. In case of policy issued before March 31, 2012, deduction will be allowed only for premiums upto a maximum of 20% of the sum assured.

Allowable on Payment- Only life insurance premium paid or deposited during the year are allowable as deduction under Section 80C. 

Disallowance: 

The deductions claimed earlier will be taxable as income if the policy is terminated either by notice or by failure to pay any premium in case of,

Single Premium Policy : within 2 years after the commencement date
Regular Premium Policy : before premiums have been paid for 2 years.

Individual and Hindu undivided family (HUF) can take tax deduction's benefit u/s 80C. It can be paid :-

(i) in the case of an individual (Resident or Non Resident)
- On his own life
- On Wife/Husband (Dependent or Not)
- Child
- Major or Minor (Dependent or Not
- Married or Unmarried Daughter / Son (Dependent or Not)

(ii) in the case of a Hindu undivided family (HUF), any member thereof;

Please note that life insurance premium paid by you for your parents (father / mother / both) Brother, Sisters or your in-laws is not eligible for deduction under section 80C.

If you are paying premium for more than one insurance policy, all the premiums can be included.

It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

Tax-ability on Maturity

Section 10(10D)

The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.

Section 10(10A)(iii)

Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax-free.

Goods And Service Tax (Earlier Service Tax) on Life Insurance Premium

All premiums and charges are subject to applicable taxes (i.e. GST) as applicable under the prevailing tax laws.

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Term Insurance Plan - Good or Bad Decision

Term Insurance is a contract between Insurance Company and insured person that primary provides guaranty to pay insurance amount only in case of demise of secondary to their Nominee, If all term & condition full-filed. If demise incident does not happen then company are not liable to pay. So, before taking Term Insurance Plan, person should think and analyze the utility of it. 

Term Insurance takes your risk at very low premium with certain term & condition. Like other insurance and investment alternatives it is also simple and easy. You know the premium amount you have to pay till the policy term and insurance amount your nominee will get if unfortunate demise will happen. 

For taking term insurance to ensure your family's financial future in your absence there are certain things to know before.

First understand the Term Insurance, it is designed for providing a pay-out only in case of demise. It is not an investment option because it would not give you any return. It is not for you, it is for your family member. Only good things about it that it cover high risk amount with very low premium cost. 

Analyze your requirement, in case you have any loan outstanding (like home loan) and don't want to forward this burden on your family member's in your absence then it is the only best option for you. Certainly you do not want your family to compromise on their lifestyle or find difficulty in sustaining a good life in your absence. It will be big favour by getting yourself a Term Insurance Cover.

Also Read : Term Insurance Plan Pure Life Insurance

First choose the Insurance Amount you think should be enough for your family to get normal life in your absence. Now second option comes that what will be premium/installment amount. There are lot online site who will help you to compare the premium instantly. It can be vary from company to company. The best thing about term insurance  plans is that these plans  are designed to charge the same premium throughout the policy term, even though the risks increases when you grow old. So, it is better to have it in early age and reassess it in every 5 years and if fills & can able to pay premium, you can increase the cover amount you require.

Secondly before selecting any insurance company check their Claim Settlement Ratio at IRDA website. The insurance company could have rejected few claims but you should check the causes behind such decisions. Insurance company will not process a claim which is fraudulent. Choose the best one. Read Term and Conditions & understand the Exclusions carefully. It is important to know before purchase it so that you don't leave your dependents with various issues relating to your term plan in your absence.

Selecting Nominee is very important & crucial job while purchasing insurance plans. It should be a person who shall need your money the most after your passing. It can be your spouse, your parents or your child. It is advisable to keep your beneficiary informed about the key features of the policy and any changes that you decide to make about.

If you consider the above mentioned things when you are getting term insurance plan, you certainly will find the right plan for yourself.

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Do You Know Why LIC is Safe !!!

In 1956, when the life insurance industry was nationalized, Parliament directed the LIC to take the message of life insurance to every part of the country. It also directed the Government to guarantee the sums assured (including any bonuses declared) under all policies issued by, as well as those taken over by, the corporation (Sec.37 of the LIC Act).

In the Symbol of LIC Logo, there are two words.."Yogakshemam Vahamyaham" writtern in Sanskrit. This was said by Lord Shri Krishna to Arjun in Kurukshetra. It means" Your Security is My Responsibility."

Here is the proof that investment in LIC is fully secure by Central Government of India. As per Section 37 of LIC Act, "The Sum Assured by all Policies issued by the Corporation including any bonuses declared in respect thereof and, subject to he provisions contained in Section 14 the amount assured by all policies issued by an insurer the liabilities under which have vested in the Corporation under this Act, and all bonuses declared in respect thereof, whether before or after the appointed, day shall be guaranteed as to payment in cash by the Central Government" 

This is the proof why LIC is the king in insurance market. Why people of India trust more on it  than any other insurance company. You can compare here Monthly Business Report of IRDA. 

This is Trust by the People, for the People because in every PUBLIC there is LIC. No other company can guarantee you about your invested money. Can any ??

Can any company guarantee you if they become failure in insurance business that company or any other agency/governement on behalf of that company will return your all investment along with accrued bonuses.

In service of last 61 years LIC has given security to your love one in your absence about taking care by returning all investment along with accrued bonuses and other loyalty addition (if offered) or by insurance amount to the right nominee/heir. 

Over the last 60 years, the corporation has not only carried out this directive in both letter and spirit but also paid to the Government thousands of crores in the form of tax and dividend.

Read also THE INSURANCE LAWS (AMENDMENT) ACT, 2015

So, have trust and go with LIC. Call your trusted LIC Agent Pradip Roy 9958781151 / 8178662909 to book new policies. 

You can Download here LIC Act.

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Funny Investment Tips

On every investment site you will get lots of ideas about investment. Adviser or Planner will come with you some unique ideas and suggestions. 

Today I came with one funny investment idea.... don't take it serious, just have fun.

One smart man gets married  with well educated lady. That person always looking about proper & best investment Plan. After few days his wife come with an intelligent investment idea. She told her husband that after small calculation I can tell you where should invest your valuable savings.

Be honest ......

Just do some calculation step by step as given below...

Step 1:
Choose any number (your Lucky No.) from given below list of numbers...

1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9.

Step 2 :
Now Multiply by 3 to the Selected Number.

Step 3 :
Now Add 3 with the Result.

Step 4 :
Again Multiply it by 3 with the Result.


You will get Two Digit Number. Add both number. 

Now this number will advise you where you should invest your hard earned money from the given below list of best trusted investment option.

1.   Invest in Property
2.   Invest in Gold
3.   Invest in Bank Fixed Deposit
4.   Invest in Business
5.   Invest in Shares
6.   Invest in P. P. F. 
7.   Invest in N. S. C.
8.   Invest in Tax Saving Plans
9.   Handover to your Wife
10. Invest in Mutual Funds
11. Any Other Govt. Deposits 

Hope you have got it. You are wise and willing to invest now then follow above steps and enjoy a happy life. Getting any doubts do it again.  Have Fun....

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Effect of GST on Insurance Premium

With  a hike in GST rates to 18% from the current 15%, the insurance sector are poised to get more expensive after July 1, 2017. The immediate effect will be the increase in premiums especially for families that own Life Insurance, Health Insurance and Car Insurance.

The existing and new insurance buyers would have to bear the updated prices. The Policy holders stand a chance to be benefited if the insurance providers get a green signal on the input tax credit benefit. Unfortunately, as of yet, it is still unclear since he Center/State GST  structure is very complex. It might create confusions and conformity for the insurance buyers and increase the administrative expenses for the insurance providers. If the insurance buyers remain confused about the GST updates, then irrespective of the increase or decrease in the prices the financial strength will adversely affected. The general insurance sector will be equally impacted. The overall outgo for health, car, and various non-life plans would be increased by 3 percent.

The Insurance policies premium represents two components - Savings and Risk Coverage. The service tax is levied specified only on the premium component. 

What GST (Goods And Service Tax) Rules says, the value of service on which the GST is levied regarding the life insurance sector shall be accordingly;

(i) The gross premium would be reduced by the amount allocated for or savings or investment on policyholders behalf.

(ii) When it comes to the single premium annual policies, ten percent of the single premium would be charged from the policy holder.

(iii) In other cases, 25 percent of the premium for the first year and 12.5% of the premium in the upcoming years will be charged.

(iv) In case the total premium paid by the policy holder is towards the life insurance's risk cover, oly the 18% GST would be levied on the total premium.

There are three types of life insurance;

* Term Insurance Plans - Basic life insurance policy

** ULIP Plans - Insurance and investment under a single integrated plan

*** Endowments Plans (including money back plan) - Life insurance policies that pay a lump sum on maturity/death or a fixed sum every month (like pension)

List of new revised rates on all insurance plans are as follows :

GST RATES : NEW RATES UNDER GST FOR INSURANCE POLICIES
INSURANCE PRODUCTS	BEFORE GST	AFTER GST	APPLICABILITY
Endowment Plans – 1st Year	3.75%	4.50%	On 25% of Premium
Endowment Plans – Renewal Premium	1.88%	2.25%	On 12.5% of Premium
Health Insurance Premium	15%	18%	On Entire Premium
Rider Premium	15%	18%	On Entire Premium
Annuity: Single Premium	1.50%	1.80%	On 10% of Premium
Term Insurance Premium	15%	18%	On Entire Premium
ULIP (On Charges)	15%	18%	On Premium minus Investment Amount
Vehicle Insurance	15%	18%	On Entire Premium
Travel Insurance	15%	18%	On Entire Premium

Life and health insurers will not have input tax credit as it is not available for life and health insurances ( as they are for personal purposes). Even corporate policyholders with group life and health insurance for their employees will not enjoy any input tax credit.

Life insurance provided under Government Schemes are exempted from GST;

1) Janashree Bima Yojna (JBY)

2) Aam Aadmi Bima Yojna (AABY)

3) Life Micro-Insurance product (as approved by the IRDA having maximum amount of cover of fifty thousand rupees)

4) Varishtha Pension Bima Yojna (VPBY)

5) Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)

6) Pradhan Mantri Jan Dhan Yojna

7) Pradhan Mantri Vaya Vandan Yojna 

8) Any other insurance schemes of the State Government as may be notified by Government of India on the the recommendation of GST Centre.

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