Pension Plans

Jeevan Dhara Policy Are you worried about your future ? Do you belong to salaried category? Leave your worries in the hands of LIC Life Insurance Corporation are offering different types of pension plans which guarantees your future life peacefully without depending your children. One among them is Jeevan Dhara –This is a plan from LIC  [Plan no.96] which guarantees you lifelong pension and are tax deferred, and that is where their attraction lies. Not only can you plan a pension for life with the help of these annuities but these schemes also help you reduce your tax liability.  Important Features of the plan A regular post-retirement pension. 100% tax relief under Section 80 CCA up to Rs.40,000 premium every year. Guaranteed returns, presently 12.5%. Absolute security. Lump sum payments to the annuitant's heirs. Special Features: Payment of Premium Policies are available either on a single-premium basis or on level premium basis. Level premiums can be paid for any period up to 35 years, and the premium paying period is one year less than the deferment period. The minimum yearly premium must be Rs.100; the minimum half-yearly premium is Rs.50 .A rebate of 1.5% of the premium is allowed if the mode of payment of premium is yearly. Premiums above Rs.5,000 per year will also get a rebate of 1.5% Vesting age  The pension payments start at the vesting age, which you can select, but it cannot be below 50 years. Surrender value  80%-90% of the premiums paid are recoverable in case you surrender the policy after at least 3 years of its date of issue, but before the date on which the annuity vests. However, the policy cannot be surrendered once the annuity has vested. A lump sum benefits for the annuitant's estate  In addition to the payments during the annuitant's lifetime, this plan offers a lump sum payment to the annuitant's estate upon his death called GIVE. As for GIVE, this is built up based on the premium payments made by the annuitant. The point to note is that GIVE represents a return to the annuitant at the rate of 10%-11% per annum on the premium installment paid. No medical examination is required in this policy Benefits: Apart from offering competitive rates, this policy gives you the following benefits. ·                                 Attractive Annuity rates Enhancement in 'GIVE' at the time of vesting by way of bonus which correspondingly increases the annuity. On death after annuity payments commence, enhanced 'GIVE' with an additional lump sum bonus is payable to the heirs by 12 monthly cheques in advance encashable at par.   ·                                 . Survival benefits:  On Survival the guaranteed Maturity Addition will be 1.                               For Single, Premium Policies, at the rate of 0.5 % of the GIVE amount for each year of deferment subject to a maximum of 10 % of the GIVE amount. For annual premium policies, at the rate of 0.2 % of the GIVE amount for each year of Deferment subject to a maximum of 4 % of the GIVE amount.   Death Benefits:  If death were to occur during deferment period, the policy is treated as though it were originally issued for a deferment period equal to the period elapsed since the date of commencement of the policy to the policy anniversary falling due on or immediately after the date of death. A notional GIVE amount is then calculated based on the above term and the actual installment premiums. This amount along with final (Additional) bonus declared, if any, will be payable upon death. Policy Parameters:   Min Max Entry Age 18 60 Sum Assured 20000 70 Term 2 35   Mode of Payment Max Maturity Age Policy loan available Yearly, half yearly - No   Suitable for  This Policy is issued only where the proposer and annuitant is the same person. It is suitable for executives, Businessman's, Shopkeepers, Self- employed or professional- young in the threshold of your career or a middle-aged man in the peak of his career.