Varishtha Pension Bima Yojana Plan No. 828

Varishtha Pension Beema Yojana is a good new for the senior citizen who are planning to buy the Varishtha Pension Beema Yojana (VPBY), from 01/04/2015 there will not be any service tax charged on this policy as announced by the Finance Minister Mr. Arun Jaitley in Union Budget 2015. Earlier policy holder had to pay service tax at the rate of 3.09% i.e Rs. 20600 on full amount of Rs. 666665 to get the monthly pension of Rs. 5000. This is a big relief for senior citizens and now a good scheme to invest the money and get a handsome returns.

Features of Varishtha Pension Beema Yojana:

80C or 10(10D) tax benefits - Investment under this scheme does not qualify for any tax deduction under section 80C or 80CCD. Moreover, the pension income is taxable as per the tax slab of the pensioner.

Free Look Period - If you are not satisfied with the terms and conditions of this scheme, you may ask for a refund of your investment amount within 15 days from the date of receipt of the policy stating the reason of objections. The amount to be refunded within free look period will be the investment amount deposited by the investor less the stamp duty charges.

Premature Surrender - The policy can be surrendered after completion of 15 years. The investor will get the investment amount in full as the surrender value after 15 years. However, under exceptional circumstances, if the pensioner requires money for the treatment of any critical/terminal illness of self or spouse, then the policy can be surrendered before the completion of 15 years and the surrender value payable will be 98% of the investment amount.

Unfortunate Event - On death of the pensioner, the investment amount will be refunded in full to the nominee of the pensioner. However, as only the invested amount is refunded, there is no special insurance benefit available with this scheme.

During the lifetime of Pensioner, a pension in the form of immediate annuity as per mode chosen by the Pensioner shall be payable.
b. Death Benefit:
On death of the Pensioner the Purchase Price shall be refunded.

Benefits of Varishtha Pension Beema Yojana:

a. Pension Payment :

Eligibility conditions of Varishtha Pension Beema Yojana

Minimum Entry Age: 60 years (completed)

Maximum Entry Age: No limit

Minimum Pension: Rs. 500/- per month, Rs. 1,500/- per quarter, Rs. 3,000/- per half-year, Rs. 6,000/- per year

Maximum Pension: Rs. 5000/- per month, Rs. 15,000/- per quarter, Rs. 30,000/- per half-year, Rs. 60,000/- per year

Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies issued to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.

LIC Jeevan Akshay VI plan no. 189

LIC Jeevan Akshay VI plan no. 189 is a retirement policy plan. LIC Jeevan Akshay VI policy plan is an immediate annuity plan, which can be purchased by paying a lump sum amount as single Premium. In LIC Jeevan Akshay VI Plan after buying the policy, pension will start immediately without delay.

In LIC Jeevan Akshay VI plan annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. Policy receiver may choose any mode of payment of annuity. Once the payment is chosen, the option cannot be changed because the pension starts immediately after buying the LIC Jeevan Akshay VI plan.

In this plan Annuities have the prospective to grow tax deferred, have death cover to secure your named beneficiary and optionally available survival benefits to safeguard your pension income. Annuities are even now among the most confusing but flexible financial solutions out there today.

The immediate annuity plans offer annuity payments of a mentioned guaranteed sum all over the lifetime of the insurance policy holder. There are actually number of alternatives that are offered for the kind and mode of payment of annuities. In this plan the net payable pension for lifetime is at a consistent rate.

Benefits of LIC Jeevan Akshay VI

1. Pension for Whole Life - Pension will be paid till annuitant Alive.
2. Pension for Period - Pensioner has option 5, 10, 15 or 20 years for choose pension, thereafter as long as pensioner is alive.
3. Pension with return of Annuity Price - Pension will continue till annuitant is Alive.
4. Annuity Increase - Annuity will increase 3% per year till Annuitant is Alive.
5. Joint Life Annuity Option with 50% to Spouse- in this option Annuitant will get whole life Pension but after his death spouse will get only 50% of Annuitant Pension.
6. Joint Life Annuity option with 100% to Spouse- in this option Spouse will get 100% pension still alive.
7. Joint Life Annuity option with 100% to Spouse with Return of Purchase Price- in this option, Spouse will get 100% Pension but after her death Purchase price return to Last Survivor.

Additional Information of LIC Jeevan Akshay VI

·         Loan facility: Loan facilities are not available

·         Surrender value: No surrender value shall be payable under this LIC Jeevan Akshay 6 Policy

·         Paid up value: The policy does not acquire any paid up value

·         Riders: Additional riders are not available

·         Special incentives if you buy online: There is a special incentive offered to online buyers is the basic annuity rate is more by 1% when you buy Jeevan Akshay VI plan in online.

·         The people getting 20% or 30% tax are not eligible to buy this LIC Jeevan Akshay 6 Policy.

·         Cooling off period: If you are not satisfied with this policy term you may return the policy within 15 days from the date of receipt of the policy.

·         Assignments/Nominations: No assignees and nominees are possible under this plan.

·         Service tax: 12.09% service tax is applicable.

Types of Annuity available –

1. Annuity payable for life at a uniform rate. Under this plan on death of annuitant annuity ceases.
2. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. Under this plan on death of annuitant during the guaranteed period – annuity is paid to the nominee till the end of the guaranteed period after which the same ceases. But if death occurs after guaranteed period then annuity stops immediately.
3. Annuity for life with return of purchase price on death of the annuitant. Under this plan on death of annuitant, annuity ceases and the purchase price is paid to the nominee.
4. Annuity payable for life increasing at a simple rate of 3% p.a. Under this plan on death of annuitant annuity ceases.
5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. Under this plan on death of annuitant, annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant. Under this plan on the death of annuitant, annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor. Under this plan on death of annuitant, annuity ceases. Full annuity is payable to the surviving named spouse during his/ her life time and purchase price is paid to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price will be paid to the nominee.

Death Benefits from LIC Jeevan Akshay VI

Death Benefit - In case Death of Pensioner Following Benefits available for Nominee.

• Pension for Whole Life- After death of Annuitant Pension Stop. Nominee will get nothing.
• Pension for Period (a) Death during Purchase Period, Nominee will get annuity till purchase period. (b) Death after Purchase Price Annuity Stop, nominee will not get anything.
• Pension with return of Annuity Price after Death of Annuitant, purchase price of Annuity return to Nominee.
• Annuity Increase - After death of annuitant, Annuity stop, Nominee will not get anything.
• Joint Life Annuity Option with 50% to Spouse- in case, Death of Annuitant, 50% pension of Annuitant will provide to Spouse till Whole Life.
• Joint Life Annuity option with 100% to Spouse- in case, Death of Annuitant, 100% Pension of Annuitant will Provide to Spouse till Whole Life.
• Joint Life Annuity option with 100% to Spouse with Return of Purchase Price- in case Death of Annuitant, Spouse will get Pension and after Spouse Death, Annuity Amount Returned to Last Survivor.

Maturity Benefit: Maturity Benefits Option not available with LIC Jeevan Akshay-VI.

Income tax Benefit: Income Tax Benefits available under section 80C on Paid Premium.

New Jeevan Nidhi Plan no. 818

LIC’s New Jeevan Nidhi Plan no. 818 is a deferred annuity plan with bonus. This Plan is a non unit-linked insurance pension plan. Jeevan Nidhi Plan in LIC is purchased to cover the risk of living too long and hence has multiple pension options to cover that risk. This is a regular premium pension plan of LIC. Premium needs to be paid till the end of the accumulation period. In this lic jeevan nidhi plan at the end of the accumulation period, the maturity comprising of the sum assured, increment bonus and the final additional bonus will be converted into pension. After the expiry of the life insured, a lump sum will be paid to the nominee.

Types of Plans in New Jeevan Nidhi

1.  Single Premium: Buying Premium with lump sum amount at once.

2.  Regular Premium: Paying Premium at different intervals such as Yearly, Half-Yearly, quarterly or monthly (through ECS only) or through SSS mode over the term of policy.

LIC's New Jeevan Nidhi

Benefits of New Jeevan Nidhi Plan No. 818:

1.   Guaranteed Additions: The policy provides for Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.

2.   Optional Benefit: Accident Benefit Rider: Accident Benefit Rider is available as an optional rider by payment of additional premium under regular premium policies. In case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the basic plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in monthly instalments spread over 10 years and future premiums shall be waived. If the policy becomes a claim either by way of death or the policy vests before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid in lump sum. The Accident Benefit Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 65 yrs or till the vesting age, whichever is earlier.

3.   Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and 1/3rd of the maturity proceeds are exempted from tax under Section 10 (10A). Annuity that is received is taxable.

4.   Benefit on Vesting: On vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.

5.   Death Benefit :

·         Death during first five policy years: Basic Sum Assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

·         Death after first five years: Basic Sum Assured along with accrued Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if any, shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

·         The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates.

Eligibility conditions of New Jeevan Nidhi Plan No. 818:

1)  Minimum Age at entry for Life Assured   : 20 years (nearest Birth day)

2) Maximum Age at entry for Life Assured   : 58 years (nearest Birthday) in Regular Premium

: 60 years (nearest Bday) in Single Premium

3) Minimum Deferment Period                     : 5 years under Single Premium

:7 years under Regular Premium

4) Maximum Deferment Period                    : 35 years

5) Minimum age at Maturity                          : 55 years (Nearest Birthday)

6) Maximum age at Maturity                         : 65 years (Nearest Birthday)

7) Premium payment mode                         : Yearly, Half-yearly, Quarterly, Monthly (SSS or

ECS ) Or Single Premium

8) Minimum Sum Assured                           : Rs 1,00,000/- for regular Premium

: Rs 1,50,000/- for Single Premium

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-