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  • Jeevan Chhaya

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    Harish Chand
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    Why Insurance Almost each one of us has bought or plans to buy life insurance. The usual process is contact an insurance agent who helps you estimate the policy value and goes ahead and buys the policy on your behalf. So you feel good that you now have a life policy showing how much you worth! Take a step back before you buy that policy. Have you ever considered buying more then one policy value you desire? There are some great gains in doing so. These are.... During Financial lows If you go through a situation where you are financially constrained to surrender your life policy, you will lose the cover for the entire policy even if you do not need the entire surrender value of the policy. For instance if your policy's surrender value is Rs 10 Lakh and you need Rs 4 Lakh cash, you will have to cancel the entire policy and lose life over completely. had this policy of Rs 10 lakh been taken as 2 policies of Rs 5 lakh each, you could have surrendered just one policy. You would still remain covered for Rs 5 lakh! Distributing your estate Breaking up your life policy help in this count too. Taking the same example, instead of having one Rs 10 lakh policy, having 2 Rs 5 Lakh policies helps allocate your estate among your children ( this is an ideal situiation if you have 2 children - each child gets proceeds from one policy). Taking a loan You can use your life policy as a pledgeable security while taking a loan. Lenders as well as the insurer usually offers loans up to a specified percentage of the surrender value of the policy. If you dont need a loan to the extent of the amount you are eligible for, you will still have to offer the entire policy as security to the lender till the repayment of the loan. During the period the policy remains with the lender, he is eligible for all the rights to the policy. However if you break up your policies, you need to pledge only just that many policies to raise the necessary loan. Tax Benefits Section 88 of the Income Tax Act states that premium paid on a life policy is eligible for tax rebate. The beneficiary may be different from the premium paying person. For instance your wife can pay premium for your policy and claim the tax benefit. Breaking up for life policy helps in this case too. If the premium paid on a consolidated policy is higher than the amount of rebate you need, you can break the policy to claim the entire tax rebate. This can be done by another tax paying family member paying the premium for one policy and claiming the rebate. Meeting your life goals You can divide your life insurance portfolio into a number of policies spread over different tenors to give you a stream of steady income to take care of your life's financial commitments like children's education and marriage, buying property, asving up for your old age etc. Check out specific plans structured by insurers specifically for these purposes. What if you have already taken a consolidated life policy? Dont despair. You can break it to peices! contact your insurance agent to guide you to doing so. By paying a small sum to the insurer, your policy can be broken up into more than one, without any loss to you. It is worth the efforts. Contact Us Harish Chand [Authorised LIC Agent] 9811896425 9212201725 www.delhilicagent.com harishchand@in.com

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    Why Insurance Almost each one of us has bought or plans to buy life insurance. The usual process is contact an insurance agent who helps you estimate the policy value and goes ahead and buys the policy on your behalf. So you feel good that you now have a life policy showing how much you worth! Take a step back before you buy that policy. Have you ever considered buying more then one policy value you desire? There are some great gains in doing so. These are.... During Financial lows If you go through a situation where you are financially constrained to surrender your life policy, you will lose the cover for the entire policy even if you do not need the entire surrender value of the policy. For instance if your policy's surrender value is Rs 10 Lakh and you need Rs 4 Lakh cash, you will have to cancel the entire policy and lose life over completely. had this policy of Rs 10 lakh been taken as 2 policies of Rs 5 lakh each, you could have surrendered just one policy. You would still remain covered for Rs 5 lakh! Distributing your estate Breaking up your life policy help in this count too. Taking the same example, instead of having one Rs 10 lakh policy, having 2 Rs 5 Lakh policies helps allocate your estate among your children ( this is an ideal situiation if you have 2 children - each child gets proceeds from one policy). Taking a loan You can use your life policy as a pledgeable security while taking a loan. Lenders as well as the insurer usually offers loans up to a specified percentage of the surrender value of the policy. If you dont need a loan to the extent of the amount you are eligible for, you will still have to offer the entire policy as security to the lender till the repayment of the loan. During the period the policy remains with the lender, he is eligible for all the rights to the policy. However if you break up your policies, you need to pledge only just that many policies to raise the necessary loan. Tax Benefits Section 88 of the Income Tax Act states that premium paid on a life policy is eligible for tax rebate. The beneficiary may be different from the premium paying person. For instance your wife can pay premium for your policy and claim the tax benefit. Breaking up for life policy helps in this case too. If the premium paid on a consolidated policy is higher than the amount of rebate you need, you can break the policy to claim the entire tax rebate. This can be done by another tax paying family member paying the premium for one policy and claiming the rebate. Meeting your life goals You can divide your life insurance portfolio into a number of policies spread over different tenors to give you a stream of steady income to take care of your life's financial commitments like children's education and marriage, buying property, asving up for your old age etc. Check out specific plans structured by insurers specifically for these purposes. What if you have already taken a consolidated life policy? Dont despair. You can break it to peices! contact your insurance agent to guide you to doing so. By paying a small sum to the insurer, your policy can be broken up into more than one, without any loss to you. It is worth the efforts. Contact Us Harish Chand [Authorised LIC Agent] 9811896425 9212201725 www.delhilicagent.com harishchand@in.com

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    164 views3 pages

    Jeevan Chhaya

    Uploaded by

    Harish Chand
    Why Insurance Almost each one of us has bought or plans to buy life insurance. The usual process is contact an insurance agent who helps you estimate the policy value and goes ahead and buys the policy on your behalf. So you feel good that you now have a life policy showing how much you worth! Take a step back before you buy that policy. Have you ever considered buying more then one policy value you desire? There are some great gains in doing so. These are.... During Financial lows If you go through a situation where you are financially constrained to surrender your life policy, you will lose the cover for the entire policy even if you do not need the entire surrender value of the policy. For instance if your policy's surrender value is Rs 10 Lakh and you need Rs 4 Lakh cash, you will have to cancel the entire policy and lose life over completely. had this policy of Rs 10 lakh been taken as 2 policies of Rs 5 lakh each, you could have surrendered just one policy. You would still remain covered for Rs 5 lakh! Distributing your estate Breaking up your life policy help in this count too. Taking the same example, instead of having one Rs 10 lakh policy, having 2 Rs 5 Lakh policies helps allocate your estate among your children ( this is an ideal situiation if you have 2 children - each child gets proceeds from one policy). Taking a loan You can use your life policy as a pledgeable security while taking a loan. Lenders as well as the insurer usually offers loans up to a specified percentage of the surrender value of the policy. If you dont need a loan to the extent of the amount you are eligible for, you will still have to offer the entire policy as security to the lender till the repayment of the loan. During the period the policy remains with the lender, he is eligible for all the rights to the policy. However if you break up your policies, you need to pledge only just that many policies to raise the necessary loan. Tax Benefits Section 88 of the Income Tax Act states that premium paid on a life policy is eligible for tax rebate. The beneficiary may be different from the premium paying person. For instance your wife can pay premium for your policy and claim the tax benefit. Breaking up for life policy helps in this case too. If the premium paid on a consolidated policy is higher than the amount of rebate you need, you can break the policy to claim the entire tax rebate. This can be done by another tax paying family member paying the premium for one policy and claiming the rebate. Meeting your life goals You can divide your life insurance portfolio into a number of policies spread over different tenors to give you a stream of steady income to take care of your life's financial commitments like children's education and marriage, buying property, asving up for your old age etc. Check out specific plans structured by insurers specifically for these purposes. What if you have already taken a consolidated life policy? Dont despair. You can break it to peices! contact your insurance agent to guide you to doing so. By paying a small sum to the insurer, your policy can be broken up into more than one, without any loss to you. It is worth the efforts. Contact Us Harish Chand [Authorised LIC Agent] 9811896425 9212201725 www.delhilicagent.com harishchand@in.com

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    of 3

    Harish Chand

    LIFE INSURANCE CORPORATION OF INDIA

    Delhi LIC Agent


    PH. 09811896425, 09212201725
    help@delhilicagent.com
    www.delhiLICagent.com

    Jeevan Chhaya For Pragya

    Date : 04/02/2011

    Wonder-Plan Quotation

    Quotation No : Chhayaprav Chart Date : 04/02/2011

    Name : Pragya Chart required upto : 04/02/2032

    Date of Birth : 01/03/1978 Age : 33 I. T. Slab : 33.99%

    Loan Interest Rate : 9.00% Loan Re-Investment Rate : 0.00%

    Maturity/S.B. proceeds Re-invt. Rate : 0.00%

    Sec.80 CCE Inv. Limit : 100000 Sec.80 CCE Tax Rebate : 33.99%

    Interim * Assu # Assu


    Sr. M Bonus Bonus Step Basic Installment Annual Mat
    Plan/Tm/
    No Year Plan Name Sum d Rate Rate Rate A/c Premium Premium Premium Date
    Prem. Tm

    1 2011 103/21/21 Jeevan Chhaya 200000 Y 48 48 0.00 10386 10586 10586 04/02/32

    Total : 200000 10386 10586 10586 p.a.

    Rider Details

    Sr. Plan/Tm/ Rider Name Rider Rider Prem. Installment Annual Total
    No Year Prem. Tm Sum Term Term Premium Premium Premium Pd.

    1 2011 103/21/21 Double Accident Benefit 200000 21 21 200 200 4200


    Total : 200000 200 200 4200

    1. '*' : - Assuming LIC will declare the above mentioned bonus rates for the year ended 31-Mar-2011

    2. '#' : - Assuming that bonus rate declared by LIC will increase/decrease per year by step rate mentioned above.

    3. ** If premiums paid during the year for any policy exceeds 20% of Sum Assured then Maturity proceeds will be taxable and
    eligible amount for section 80 CCE rebate will be restricted to 20% of Sum Assured.

    The above statement is based on certain assumptions which are


    liable to change according to Government/Corporation's policies.
    Harish Chand
    LIFE INSURANCE CORPORATION OF INDIA

    Delhi LIC Agent


    PH. 09811896425, 09212201725
    help@delhilicagent.com
    www.delhiLICagent.com

    Jeevan Chhaya For Pragya

    Insurance Facts

    Quotation No : Chhayaprav Chart Date : 04/02/2011

    Name : Pragya Chart required upto : 04/02/2032

    Date of Birth : 01/03/1978 Age : 33 I. T. Slab : 33.99%

    Risk Cover Annual Tax Net Returns New Loan Total Loan
    Year Age Normal Accident Premium Saved Premium From L.I.C. Available Available

    2011 33 200000 400000 10586 3598 6988 0 0 0


    2012 34 200000 400000 10586 3598 6988 0 0 0
    2013 35 200000 400000 10586 3598 6988 0 7750 7750
    2014 36 200000 400000 10586 3598 6988 0 11250 19000
    2015 37 200000 400000 10586 3598 6988 0 7000 26000
    2016 38 200000 400000 10586 3598 6988 0 7500 33500
    2017 39 200000 400000 10586 3598 6988 0 8500 42000
    2018 40 200000 400000 10586 3598 6988 0 8500 50500
    2019 41 200000 400000 10586 3598 6988 0 11250 61750
    2020 42 200000 400000 10586 3598 6988 0 12250 74000
    2021 43 200000 400000 10586 3598 6988 0 13750 87750
    2022 44 200000 400000 10586 3598 6988 0 16500 104250
    2023 45 200000 400000 10586 3598 6988 0 14750 119000
    2024 46 200000 400000 10586 3598 6988 0 17750 136750
    2025 47 200000 400000 10586 3598 6988 0 19500 156250
    2026 48 200000 400000 10586 3598 6988 0 21250 177500
    2027 49 200000 400000 10586 3598 6988 0 25500 203000
    2028 50 200000 400000 10586 3598 6988 0 30750 233750
    2029 51 200000 400000 10586 3598 6988 50000 81500 265250
    2030 52 200000 400000 10586 3598 6988 50000 83750 299000
    2031 53 200000 400000 10586 3598 6988 50000 85250 334250
    2032 54 0 0 0 0 0 271600 0 0

    Total : 222306 75558 146748 421600

    The above statement is based on certain assumptions which are


    liable to change according to Government/Corporation's policies.
    Harish Chand
    LIFE INSURANCE CORPORATION OF INDIA

    Delhi LIC Agent


    PH. 09811896425, 09212201725
    help@delhilicagent.com
    www.delhiLICagent.com

    Jeevan Chhaya For Pragya

    Summary of Proposed Insurance

    Quotation No : Chhayaprav Chart Date : 04/02/2011

    Name : Pragya Chart required upto : 04/02/2032

    Date of Birth : 01/03/1978 Age : 33 I. T. Slab : 33.99%

    Maximum Risk Cover enjoyed (Normal) Rs. 200000

    Maximum Risk Cover enjoyed (Accidental) Rs. 400000

    Total Premium paid Rs. 222306

    Less : Tax saved on premium Rs. 75558

    Net Premium paid Rs. 146748

    Proceeds from LIC by way of Maturity / Sur. Bens. Rs. 421600


    Tax Payable Rs.
    0

    Net after tax Payable Rs. 421600

    Compounded Value of LIC proceeds @ 0.00 % by 2032 Rs. 421600

    Additional Gain through Loan re-cycling @ 0.00 % Rs. 0

    Net in hand as on 2032 Rs. 421600

    Yield on Investments 9.33 %

    Assumptions
    --> Premium payments will save tax.
    --> Returns will not be Re-invested in Section 80 CCE schemes.
    --> Gains on Returns Re-investments will not be taxed.
    --> Gains on Loans Re-investments will not be taxed.

    The above statement is based on certain assumptions which are


    liable to change according to Government/Corporation's policies.

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