Re-incarnation of Jeevan Aastha By Datacomp Training Academy

Basic understanding It is a single premium plan for 10 years term It is a close ended product available for a maximum period of 120 days from 1st Mar.2012 Risk Cover is 5 times of single premium Guaranteed maturity benefit through Maturity Sum Assured (MSA) Additional maturity benefit through Loyalty addition as applicable Admissible for tax savings under section 80CCE Available for age group 8 to 50 years

Simple Benefits example Age at entry: 30 years Premium Rs. 1,00,000 Service Tax Rs. 1,545 Total Rs. 1,01,545 Sum Assured Rs. 5,00,000 Guaranteed Maturity Benefit Rs. 1,99,985 Yield on investments 7.01 %

Enhanced benefits presentation Age at entry: 30 years Premium Rs. 1,00,000 Service Tax Rs. 1,545 Total Rs. 1,01,545 Sum Assured Rs. 5,00,000 Single premium under 164 for this cover Rs. 8,560 Effective investment Rs. 92,985 Guaranteed Maturity Benefit Rs. 1,99,985 Yield on investments 7.96 %

Enhanced benefits with L.A. Age at entry: 30 years Premium Rs. 1,00,000 Service Tax Rs. 1,545 Total Rs. 1,01,545 Sum Assured Rs. 5,00,000 Single premium under 164 for this cover Rs. 8,560 Effective investment Rs. 92,985 Guaranteed Maturity Benefit Rs. 1,99,985 Estimated Loyalty Addition Rs. 24,998 Total Maturity Amount Rs. 2,24,983 Yield on investments 9.24 %

Enhanced benefits with L.A. & Tax Saving Age at entry: 30 years Premium including Serv.Tax 1,01,545 Effective investment 92,985 Tax Saved under Sec.80CCE 10.3% 20.6% 30.9% 10,300 20,600 30,900 Effective Inv. after tax saving 82,685 72,385 62,085 Guaranteed Maturity Benefit 1,99,985 Estimated Loyalty Addition 24,998 Total Maturity Amount 2,24,983 Yield on investments 10.53 % 12.01% 13.74%

Great results even if you have to exit early Age at entry: 30 years Exit after 4 years have elapsed Premium including Serv.Tax 1,01,545 Effective investment 98,121 (3424 – cost of cover for 4 yrs) Tax Saved under Sec.80CCE 10.3% 20.6% 30.9% 10,300 20,600 30,900 Effective Inv. after tax saving 87,821 77,521 67,221 Surrender Value after 4 yrs 1,08,792 Yield on investments 5.50 % 8.84 % 12.79 %

Benefit Illustration as published on www.licindia.in

Why L.A. is as good as guaranteed From the Enhanced Benefits slide it is very clear that L.I.C. has an outlay of around 8 % as guaranteed return to be paid to the policy holder Add to that Agent’s commission of 2% and conservatively let us assume another 2 % as cost towards other marketing & incentives. This means that 12% is the target payout against the single premium received. So naturally L.I.C. has back to back investment plan which can earn atleast 10% on its investment. Hence the L.A. indicated by LIC in its benefits illustration under scenario II HAS TO BE THE MINIMUM PERFORMANCE, otherwise it will be a loss project for the corporation

Jeevan Vriddhi Adv. In TOI dated 12th March 2012 clears the doubt whether this plan qualifies for 10(10) benefit

Source: Economic Times