LIC Jeevan Dhara: A Pension Plan

The Life Insurance market in India is a weak one that be tapped by the state-owned LIC until the entry of private players in the market. Insurance products reached only 19 percent of the 400 million of the insurable population. The state owned Life Insurance Corporation sold insurance only as a tax instrument and not as a product that gave protection. Most customers were under-insured with no transparency in the products. With the coming of the private insurers the rules of the game has changed.

 

LIC’s New invest a Pension plan in your old age. Here are some benefits on this

NEW Jeevan Dhara-1

Premiums are payable yearly, half-yearly, quarterly, monthly Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.

It is a pure pension plan where in one pays single premium or regular premium over
the deferment period to secure a pension starting at a future date.

Annuity rates on the vesting date will be equal to that available under the New
Jeevan Akshaya plan on the date of vesting.

• Bonus is payable under the policy.
• Contributions rank for IT rebate under section 88, though income benefits are
   taxable.

• Premium paying period is between 2 and 35 years.
• Policyholder has the option to pay a single premium or pay regular premium
  annually, half yearly, quarter or monthly (including SSS).

• Minimum age at entry : 18 years.
• Maximum age at entry: 65 years
• Minimum vesting age : 50 years
• Maximum vesting age : 79 years
• Minimum deferment period : 2 years
• Maximum deferment period : 35 years
• Minimum Notional cash option for regular premium policies :Rs.50,000/-
• Minimum premium : Rs.2,500/- p.a for regular premiumRs.10,000/- for single premium policies

Once declared, they form part of the guaranteed benefits of the plan. Final (Additional)
Bonuses may also be payable provided policy has run for a certain minimum period.
The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under
Section 88