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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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:

First 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.

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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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Documents Require To File IT Return & Claim Deductions

Financial Year is going to close. All Income tax Assesses are in hurry about their tax assessment. Getting sure about done adequate investment (Limit U/s 80C Rs.1,50,000/-) to  claim & save maximum tax rebate. Arranging documents pertaining to investment and tax return. 

First, all you need to know about Form 26AS. It is a summary of taxed deducted on your behalf and taxed paid by you. This summary is provided by Income Tax Department. It shows all details of deducted on your behalf by deductors, details of tax deposited by taxpayers and tax refund received in the Financial Year. This form can be accessed from Income Tax Department's Website.

Second, All Salaried Tax Assess needs to get Form 16 issued by their employer to get file their Income Tax Return.

Third, Documents Require for Interest Income, 

> Assesses needs to update his bank statement/pass book for interest on 

   saving bank account.

> Interest Income Statement (accrued or credited) on their Fixed Deposits.

> TDS certificate (Form 16A), if any, issued by banks or other financial 

    institution.

> Interest Accrue Certificate on NSC / Kishan Vikas Patra etc.

Fourth, Proof for Investment in Section 80C, Investment made under PPF, NSC, ULIPS, ELSS, RGESS are qualifies for deductions Under Section 80C.

Last Minutes Checklist to File Your IT Returns :

1. Pan Card

2. Bank Statement 

3. TDS Certificates

4. Tax Payment Challans (Advance Tax or Self Assessment Tax)

5. Form 16 / Salary Certificate received from the Employer.

6. Interest Certificates issued on your deposits

7. Rent Receipts copy (If You Are on Rent)

8. Life and Medical insurance payment receipts.

9. Tuition Fees Receipts.

10. Stock statement in case of trading in shares 

11. PPF Passbook for interest

12. Dividend warrants /amount

13. Interest Certificates on bonds

14. Details of interest accrue on NSC during the year.

15. Sale and Purchase deed of the property including Stamp Valuation of the           property (for land/building)

16. Repayment/Interest Certificate for Interest paid on housing loan and                 Principal amount Paid.

17. Donation Receipts for Section 80G (with PAN details of donnee)

18. Details of Expenses incurred on transfer of Re-Investment in property.

19. Any Other Tax Saving Investment receipts/proof.

20. Aadhar Card Copy (Mandatory for e-filing)

Remember all above documents are proof of income require for ITR filling purposes only does not require to attache along with ITR.

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Tax Relief For Agents

LIC agents main earning is commission. So, Income Tax Department allows some relief to favour Insurance agent. But this relief is for small commission earning agent. If commission earned from LIC insurance business is below Rs.60,000/- p.a. and if no separate books of accounts maintained then the entitlement for deduction is as follows:

i) On First Year Commission - deduction is 50%  

ii) On Renewal Commission - deduction is 15%

The LIC Commission after claiming deduction was mentioned above will be included and can be disclose with other source of income for tax purpose.

The benefit of Adhoc deduction will not be available to agents who have earned total commission of income more than Rs.60,000/- during the year.

In case gross commission earned by an Agent from LIC exceeds Rs.60,000/- per annum  then, he will be not entitled for claiming deduction referred above. He has to maintain books of accounts as required under the Income Tax Act. The following books and documents are recommended to be maintained :

1) Cash Book

2) Bank Book

3) Ledger Book

4) Journal Book

5) Vouchers And Bills

6) LIC Commission Statement

7) TDS Certificates Received from LIC

8) Bank Pass Book, Cheques Book, Deposit Voucher

9) All Other Connected Documents 

Also Read : deduction U/S 57 For LIC Agents

LIC Agents are entitled to claim all expenses incurred for generating LIC Commission such as :

a) Salary to Staff

b) Rent for Office Premises, in case own office then maintenance for the same

c) Fuel Expenses and maintenance for maintaining vehicles.

d) Books, Publications, Periodicals expenses connected to business

e) Printing And Stationery

f) Electricity Expenses

g) Travelling / conveyance Expenses

h) Telephone / Mobile / Internet Expenses

i) Postage Expenses

j) Depreciation Expenses on Vehicles, Computers and Other Office Equipment

k) Gifts, Diaries, Calenders Expenses etc.

l) Staff Welfare Expenses

m) Any Other Expenses related to generate commission.

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Health Insurance And Tax Benefit

Health is Wealth or You may say Health is the greatest assets for a human being. Our overall health is severely affected by our lifestyle. Unhealthy Eating Habits, Lack of Adequate Sleep, Stress can affect our health. A Mediclaim policy acts as savior & it protect you from facing a financial crunch in a medical emergency. Since Inflation has made medical bills costlier, having a heath insurance policy is necessary as other necessities.

There are dual benefits of the health insurance. First it ensures your financial stability and give coverage against expensive medical bills and also offer you benefit of Tax Deduction under section 80D upto Rs.25,000/- to Rs.30,000/- (for Senior citizen).

In order to enjoy tax deductions along with health coverage, you need to check which policy suits you & your family and how much premium required for. The premium amount paid by you can be utilize as Tax Rebate Tool. Remember, if the premium paid by your employer, you will not be eligible for tax rebate. Under the IT Act, 1961 medical allowance is not considered as an allowance, which is exempted. 

Generally, medical allowance is confused with medical reimbursement. Medical reimbursement is paid by an employer to their employees when they submit medical bills. 

When it comes to tax planning, people generally don't consider their parent's health insurance as a tax saving tools. If you are paying for your parents health insurance, you can claim upto Rs.30,000/- as tax deduction benefit in your annual income tax return. 

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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 for 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.

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Procedure to Get Duplicate LIC Bonds

LIC Bond is the written contract form between insurer and insured, it is the most important documents from LIC point of view. And it is the main evidence for the policy holder that they are insured from LIC of India. So, keep it safe.

If it is misplaced due to some reason due to Shifting or theft or fire or any other reason you are not able to locate/find it then you can apply for duplicate LIC Insurance Policy bond.      

There are some documents and procedures to arrange and follow to get it from your your LIC Branch.

1. Go to your LIC Home Branch and ask the procedure.
2. Get Form No.3762 get type this details on Non-Judiciary Bond Papers of Rs.100/- as self                      declaration and get it notarize from the notary.

Along with above documents with One Photo ID and Address Proof  Submit these documents to your home branch. LIC may charge you some Stamp Charge require to be pay by applicant. The Stamp Charges may differ from Plan to Plan and value to Sum Assured (Sum Assured is the amount that an insurer agrees to pay on the occurrence of an event). Don't forget to take receipts for the same.

These procedure may take normally 5 to 7 working days. If facing any problem and want to know more about all these kindly contact me.

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Which is better Paid-Up or Surrender?

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)

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