LIC Jeevan Surabhi Money back plan Review -features, benefits, returns, premium

Life Insurance Corporation (LIC) of India is largest insurance company in India. The company offers Jeevan Surubhi plan which is Money Back Plan, also referred as an anticipated endowment policy. This is a non unit-linked insurance traditional plan where funds are paid in pre-decided intervals. Besides this, the life cover remains till the policy matures where the policyholder would receive the benefit in the form of Bonus. However, in case the policy holder dies within policy tenure, then nominee assigned by insured person would get the Sum Assured, which keeps growing by 50%  of basic sum assured once after every 5 years. Jeevan Surabhi is available in three policy terms 15 years, 20 years and 25 Years.

Features :

Optional higher cover through Riders. 

Death Benefit rises by 50% of Basic Sum Assured once in each 5 years. 

Simple Reversionary Bonus is granted after Policy get matures.

Survival Benefit is provided at the end of every four years as given in table.

The plan is available for investment for all Resident and Non-Resident Indians who are in the age group of 14-55/50/45 years according and the policy term is 15 or 20 or 25 years.

                               

Quick View of Policy Paying Term, Survival Benefits and Risk Cover Benefits for all the three plans of Jeevan Surabhi.

Plan No.	Policy Term	Policy Paying Term	Survival Benefits	% of Basic Sum Assured	Risk Cover Benefits	Risk Cover
106	15 Years	12 Years	At the end of 4 years	30	For 1 to 5 Years	Only SA
			At the end of 8 years	30	For 6 to 10 Years	1.5 times of SA
			At the end of12 years	40	For 11 to 15 Years	2.0 times of SA
			At the end of 15 years	Bonus
107	20 Years	15 Years	At the end of 4 years	25	For 1 to 5 Years	Only SA
			At the end of 8 years	25	For 6 to 10 Years	1.5 times of SA
			At the end of 12 years	25	For 11 to 15 Years	2.0 times of SA
			At the end of 15 years	25	For 16 to 20 Years	2.5 times of SA
			At the end of 20 years	Bonus
108	25 Years	20 Years	At the end of 4 years	20	For 1 to 5 Years	Only SA
			At the end of 8 years	20	For 6 to 10 Years	1.5 times of SA
			At the end of 12 years	20	For 11 to 15 Years	2.0 times of SA
			At the end of 15 years	20	For 16 to 20 Years	2.5 times of SA
			At the end of 18 years	20	For 21 to 25 Years	3.0 times of SA
			At the end of 25 years	Bonus

Tax saving, returns, bonus and other benefits

Accrued bonus is paid if the policy holder dies before maturity.

Already paid survival benefit to policy holder will not be deducted from the death claim amount.

Accident benefit is provided only on basic SA during premium paying term. 

Life insurance cover increases without undergoing special medical exam. You also don't need to pay any extra premium.

Premium paid is eligible for tax exemption under section 80C of the Income Tax Act as per overall cap of Rs 1 Lakh per annum permitted by code for tax savings.

Policy holder can also get tax exemption on the claims received by way of survival benefits or Maturity claims, whatever may be the bonus accumulated in the year is also non-taxable. 

How to Apply for LIC Jeevan Surabhi Policy

One can contact nearest Life Insurance Corporation (LIC) of India Branch/ LIC Agent. Visit LIC site The site also offers online calculator which help customer in calculating correct amount of his premium.

Five Queries you must ask Before Buying Life Insurance Policies

Buying Life insurance is one of the most important decisions of our lives. As a prospect who wants to buy a life insurance policy, you must be clear about the policy details, its features and benefits before you actually decide to buy a life insurance policy.

Here are 5 questions that you MUST ask a life insurance agent before buying a life insurance policy

1. Is the Agent Advisor qualified or authorized to suggest me a life insurance solution?

 As a first step, you should ask your insurance agent to provide his/her Agent License Number, and details pertaining to it such as, when was it issued and when is it expiring. This will give you an idea of how many years of experience he or she has in offering life insurance advice and solutions. You should also check whether he or she is a full-time or part-time agent.

All insurance agents have a reporting manager on the rolls of an insurance company. Write down and keep record of the contact details of the reporting manager and the branch office out of which the agent advisor operates.

2. What are my financial needs – current and future?

 The first thing you should ensure is that the agent advisor is a problem-solver; one who can understand and fulfill your and your family's financial security and long-term wealth creation needs.

If your agent does not ask probing questions and provide you life insurance solutions based on the needs derived from your answers, you may need to look for another agent.

The Agent Advisor, before recommending a life insurance plan, should gauge your needs by carefully assessing the gap between your assets and liabilities, your annual income and standard of living, your spending habits and your long term objectives and goals.

The agent should do a need analysis exercise to understand and suggest what kind of plan suits your need and accordingly recommend you a term, whole life, endowment, health or a Unit Linked Plan.

3. What is the product that will suit my needs the best and what are its benefits?

Once the agent does a need-based analysis for you and suggests suitable life insurance product(s) that will cater to your specific needs, you should ask him/ her 3 key things:

• How much premium do you pay?
• What you get in return in the form of sum assured and cash or fund value at the end of the policy term, depending upon the type of life insurance product chosen?
• What are the various inclusions and exclusions of the life insurance product chosen?

The agent should be able to spell these out very clearly and in writing.

Additional details to be asked for include payment paying tenure, mode of payment, minimum years of lock-in period (as applicable), flexibility in partial cash value withdrawal, etc. In the case of health insurance, the network of hospitals covered under the plan should be shared with by the agent advisor.

4.What are the differentiators of this product?

 Always ask the differentiating factors, comparing the agent's product offering with other similar life insurance products offered in the market. This will support his or her claim of suggesting the best product solution. Doing so will also be a check on his industry knowledge and product awareness.

Moreover, life insurance companies are known to offer a wide range of life insurance products. The agent needs to have a thorough knowledge of all the life insurance products offered by the company. Moreover, he or she should be informed about the competitor's products so as to provide unbiased and meaningful recommendations, regardless of how much he or she stands to gain by way of commissions.

One should also check with the agent advisor on the flexibility offered by the various product riders that may be offered along with a life insurance product, as the riders come at a comparatively low cost while enhancing the life cover component of a life insurance plan.

5. What to do if you think a product has been mis-sold to you?

As stipulated by Insurance Regulatory and Development Authority (IRDA), a life insurance company provides a free look period of 15 days to a policyholder, during which a policyholder can review the policy and upon not being satisfied basis the benefits and features of the product, can choose to return the policy and there is refund of the premium paid post the deduction of applicable charges.

Every Life Insurance Company has  a dedicated Grievance Redressal Cell to examine customer issues and provide an impartial resolution in case the policyholder has a concern.

IRDA has also set-up various Ombudsmen offices across the country, which take up policyholder complaints

LIC NEW JEEVAN NIDHI PLAN 812

LIC NEW JEEVAN NIDHI (Plan no 812) is a deferred pension plan which is launched on 2nd JAN 2013.New Jeevan Nidhi also provides a risk cover during the deferment period. The USP of the New Jeevan Nidhi plan being the pension can commence at 55 years. The premiums paid are exempt under Section 80CCC of Income Tax Act

Features:

1.     Insurance cover upto date of vesting.

2.     Option to purchase immediate annuity or to purchase New Single premium deferred pension plan.

3.     For the First 5 years there is Guaranteed additions. After 6^th policy year, benefit of Vested Bonus and Final Additional Bonus.

4.     Mode: Single premium, Yearly, Half yearly, Quarterly and Monthly (ECS/SSS)

5.     Death Benefit:

1) If Death occurs within first 5 years of starting LIC JEEVAN NIDHI, Sum assured along with guaranteed accrued bonus will be paid

2) If Death occurs after 5 years, Sum assured, guaranteed bonus and vested reversionary bonus and final additional bonus.

Ready Recknor for Vesting age 55 years , Sum Assured of Rs 10,00,000/-

Age	Term	Yearly Mode	Monthly Mode	SSS or        ECS	Sum Assured	Bonus	FAB	Total Amt SA+B+FAB	Monthly Pension	Commuted Value	Pension After Commutation
20	35	28210	14240	2400	1000000	1750000	1850000	4600000	27350	1533330	18230
22	33	30330	14860	2580	1000000	1650000	1550000	4200000	24970	1400000	16650
25	30	34120	16710	2900	1000000	1500000	900000	3400000	20220	1133330	12770