In this article, you are going to learn about Life Benefit (LIC Life Benefit), one of the best selling policies of Life Insurance Corporation. It is a profit policy in which LIC shares its earnings with the policyholder as a bonus. In this, the policyholder gets the benefit of two bonuses. The first simple revisionary bonus and the second file additional bonus. In this plan, you will get a benefit of Rs.5.24 lakh on maturity at a premium of Rs 794.
When it comes to eligibility, this policy can be purchased in the name of the child even after the completion of 8 years. The maximum entry age is 54 years. However, the maximum policy term for this will be 21 years. If the policy term is 25 years, the maximum entry age is 50 years. Thus the maximum maturity age is 75 years. The minimum basic amount is Rs 2 lakh. There is no limit to the maximum sum insured.
Four riders and three policy periods
There are three policy term options available in Life Benefit. The first 16 years, the second 21 years, and the third 25 years. The premium payment terms for this are 10 years, 15 years, and 16 years. The policyholder has to pay the premium till the premium payment period. However, the maturity benefit is given only after the end of the policy term. Apart from this, policyholders also have the option of accidental death and disability, accident benefit, New Term Assurance, and New Critical Illness Rider.
The monthly premium will be around Rs
For example, if A is 30 years old and has taken Sum Assured of Rs. 2 lakhs, with a policy term of 25 years, his monthly premium is Rs. Will be close to 800. The premium payment period here will be 16 years and in the meantime, it will deposit a total of Rs 1.5 lakh as a premium. If A buys this policy in 2020, the premium will have to be paid by 2036 and it will mature in 2045.
Wasted Simple Revisionary Bonus Calculation
A will get many benefits when the policy matures. Talk about the vested simple revisionary bonus, according to data available on LIC's website, for a 30-year-old person, Rs. Is 47. Thus, the total amount of bonus for 25 years will be Rs. 2.35 lakhs (200000/100047 = 940025 = Rs. 235000)
Additional bonus calculation
Talking about the final additional bonus, A will get around 90 thousand rupees here. This is a bonus-based calculation by LIC for 2020-21. ALC has given a bonus of Rs 450 per thousand of the sum insured. Thus a total amount of 90 thousand (200000/1000 = 200 * 450 = 90000) on the amount of 2 lakhs will be given as an additional bonus. In this way A will get Rs. 200000 + 235000 + 90000 = 525000 as maturity. He had deposited only Rs 1.5 lakh as a premium. This maturity is a full tax re.
Death Benefit
Speaking of the death benefit, if A dies during the policy period, the nominee will get the benefit of Rs 2 lakh as well as revisionary bonus and additional bonus. How much bonus you get depends on how long the premium has been deposited.
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Tax benefits and surrender policy
It can be surrendered for up to two years from the commencement of the policy. A loan facility is also available after depositing the premium for 2 consecutive years. Tax benefit on the premium is exempted under section 80C and on maturity, under section 10 (10D).
