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Tuesday, 31 December 2013

LIC’s Single Premium Endowment Plan Plan No. 817 UIN 512N283V01

LIC’s SINGLE PREMIUM ENDOWMENT PLAN –

Highlights

§Single Premium

§With Profit Endowment Plan

§Minimum Age at entry is 90 days

§Loan available after completion of one year

§Back dating is allowed

Maturity Benefit

Sum Assured Plus

Simple Reversionary Bonuses Plus

Final Additional Bonus, if any.

Death Benefit

After Commencement of Risk	Before Commencement of Risk#
Sum Assured plus vested Simple Reversionary bonuses and final additional bonus, if any.	Return of Single Premium excluding taxes and extra premiums, if any.
# In case the age at entry of Life Assured is less than 8 years, risk will commence either 2 years from the DOC OR policy anniversary after completion of 8 years of age whichever is earlier, for others risk shall commence immediately.

Loan

§Available after completion of 1 policy year.

§Amount of loan will depend on year of Policy and Policy Term.

§The maximum loan shall be granted as a percentage of Surrender Value(SV).

Some Examples of Loan as a percentage of Surrender Value are given below -

Policy Year → Term ↓	2	3	6	9	12	13 and above
Upto 15 yrs	55%	60%	80%	90%	90%	90%
16 to 20 yrs	40%	45%	60%	80%	90%	90%
21 yrs and above	30%	30%	45%	60%	80%	90%

Eligibility Conditions and Restrictions

Particulars

Description

Age at entry

90 days (completed) to 65 years (nearest birthday)

Age at Maturity

18 to 75 years

Policy
Term

10 to 25 years

Premium mode

Basic Sum
Assured

Single Premium only

50000 and above ( In multiples of 5000)

– No upper Limit

Rebate for High Sum Assured

Sum Assured	3,00,000 and above	2,00,000 to 2,95,000	1,00,000 to 1,95,000	50,000 to 95,000
Rebate (Rs.)	30‰ SA	25‰SA	18‰SA	Nil

The policy can be surrendered at any time during the policy term.

Higher of Guaranteed Surrender Value or Special Value shall be payable.

Guaranteed Surrender Value(GSV):

1st Year ~ 70% of Single Premium excluding taxes and extra premium, if any.

Thereafter ~ 90% of Single Premium excluding taxes and extra premium, if any.

Plus Surrender Value of vested bonuses.

Special Surrender Value (SSV):

Discounted value of Sum Assured and vested simple reversionary bonuses

Why

LIC’s SINGLE PREMIUM ENDOWMENT PLAN

…………Because it is SPECIAL

S~ Single Premium -One time investment.

P~ Protection -Risk Cover# for full Sum Assured.

E~ Excellent for meeting educational needs of young ones.

C~ Children from the age of 90 days can be covered.

I~ Ideal for investment planning-Wide range of policy term.

A~ Attractive - participates in profits.

L~ Liquidity through Loan.

Thank You !

LIAFI-Singanallur branch

COIMBATORE DIVISION

Happy New year 2014 to all Agents & LIAFI family members

life insurers line up 500 schemes for launch in jan2014

As many as 500 new insurance schemes are all set to hit the market in the next couple of months, following the approval of the Insurance Regulatory and Development Authority (IRDA) as part of its new guidelines applicable from first January 2014.

The IRDA has cleared over 500 products in line with the new design norms which are being introduced by the domestic life insurers. Most insurers have already redesigned their products and also obtained approvals.

The IRDA has issued new guidelines to make policies more customer-friendly. The new guidelines have introduced three broad categories of products –traditional insurance plans, variable insurance plans (VIPs) and Unit-linked insurance plans (ULIPs).

Insurance behemoth, Life Insurance Corporation of India (LIC) has already decided to stop selling as many as 48 insurance plans, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines, and planned to unveil a slew of new insurance schemes.

Private sector insurer Reliance Life Insurance has lined up over two dozen new insurance schemes, which include protection and retirement, for their launch, in the next three months. Reliance Life said that traditional plans will contribute 80% while the ULIPs will contribute around 20% to the top-line in the new product environment.

Aviva Life Insurance has already launched 13 products that are compliant with the new traditional product guidelines.

Another player, Max Life Insurance has plans to launch four new products by the first week of January in line with the revised IRDA guidelines. The company has already launched 13 products.

Bajaj Allianz Life Insurance has received approvals for its individual and group insurance plansunder the new product guidelines and planned to launch three new insurance schemes. These plans will cover the needs of individuals at their different life stages. The company will also be launching a suite of online and channel specific insurance plans by next month.

HDFC Life will make available 21 products to consumers from first January 2014 which will be compliant with new regulations issued by IRDA.

Others life insurers including ICICI Prudential, Birla Sun Life, TATA AIA and SBI Life are also planning to launch their product suit next month.

Service tax rates for the F.Y. 2013-2014

Service tax rates for the F.Y. 2013-2014

CO/F&A/Service tax/102 20.12.2013

Circular No.EDA/ZDB/966

TO ALL THE OFFICES OF THE CORPORATION

RE: Service tax rates for the F.Y. 2013-2014

As per Rule 6(7A) of Service tax Rules, the Insurer has the option to pay service tax on life insurance business on the following basis w.e.f 1.4.2012 which is also applicable for the F.Y. 2013-2014:

(i) @12.36% on the gross premium charges from a policyholder reduced by the amount for investment or savings on behalf of the policyholder, if such amount is intimated to the policyholder at the time of providing service

(ii) @12.36% on the premium where the entire premium paid by the policyholder is only towards risk cover in life insurance

(iii) 3.09% of the premium charged from the policyholder in the first year and 1.545% of the premium charged from the policyholder in the subsequent year (for all the remaining policies which are not covered under (i) and (ii) mentioned above)

Kindly note that the above mentioned service tax rates includes Education Cess and Higher Secondary Education Cess (HSEC)

Type of plans for Service tax rates:

1.ULIP plans and ULIP type plans

For all the ULIP plans, service tax (including Education cess and HSEC) shall be charged @12.36% on the charges. For Non Linked plans (which are ULIP type) service tax (including education cess and HSEC) shall be charged @ 12.36% on the charges.

2.Terms Plans and Health Plans

For Term Assurance plans and Health plans where the entire premium is towards rsik premium, service tax (including Education cess and HSEC)shall be charged @12.36% on the premium (i.e. first year premium, renewal premium and single premium)

3.Other Plans

For Conventional plans, Endowment plans, Annuity and Pension plans service tax (including Education Cess and HSEC) shall be charged @3.09% on new business premium (i.e. first year and single) and 1.545% on the renewal premium.

Kindly note the below mentioned points:

Service tax shall be payable by the policyholder on the additional /top up/extra premium as per the rates defined for type of plans mentioned above.
Service tax collected on premium shall be refunded to the policyholder on cancellation during the cooling off period.
Service tax calculated @12.36% on mortality charges, proportionate risk premium, accident disability rider, cooling off charges, if any shall be recovered from the policyholder on cancellation of the policy during the cooling off period.

Service tax and the rate of service tax is applicable as per the amendments in Service tax laws from time to time.

The above mentioned service tax provisions are applicable whole of India except Jammu and Kashmir.

Yours faithfully,

Executive Director (F&A)

Finance & Accounts Department – Central Office, ‘Yogakshema’, Jeevan Bima Marg, P.B.No.19953, Mumbai

Service tax rates for New Plans

Service tax rates for New Plans

CO/F&A/Service tax/102 20.12.2013

Circular No.EDA/ZDB/967

TO ALL THE OFFICES OF THE CORPORATION

RE: Service tax rates for New Plans

We herewith state below the service tax rates for the below mentioned plans.

LIC’s Money Back Plan -20 years, LIC’s Money Back Plan -25 years, LIC’s New Endowment Plan, LIC’s New Jeevan Anand Plan:

Since these are Endowment plans, the service tax (including Education cess and HSEC) shall be charged @3.09% on the first premium and other first year premium and 1.545% on the renewal premium

LIC’s New Bima Bachat Plan, LIC’s Single Premium Endowment plan:

Since these are Endowment plans, the service tax (including Education cess and HSEC) shall be charged @3.09% on single premium.

LIC’s New Jeevan Nidhi Plan

Since this is a Pension plan, service tax shall be charged @3.09% on the first premium, other first year premium and single premium and 1.545% on the renewal premium.

Kindly note that the provision of Service tax mentioned in our circular ref: ZDB/EDA/966 dated 20.12.2013 shall continue to apply.

Yours faithfully,

Executive Director(F&A)