Month: December 2010

Convertible Term Assurance Policy

Convertible Term Assurance Policy

Convertible Term Assurance Policy (Table No. 58) is a plan with an option to convert the policy to whole life limited Payment Assurance or Endowment Assurance at any time during the specified term, without under going fresh medical examination.

Convertible Term Assurance Policy is designed to meet the needs of those who are initially unable to pay the larger premium required for a Whole Life or Endowment Assurance Policy, but hope to be able to pay for such a policy in the near future. This plan is also good if you want to take decision on whole life policy later. May be you can make better decision in future.

Convertible Term Assurance Policy holders get an option of converting an policy into endowment assurance or limited payment whole life assurance.

Two Year Temporary Assurance

Two Year Temporary Assurance

Temporary Assurance policy (Table no. 43) caters to the individuals who specifically need insurance cover against risk for a short period of two years or less, for example, if you are going on tour for a year or two, you may consider a Temporary Term assurance plan.

LIC Temporary Assurance plan is for insuring non-insurance minded class of lives who require risk cover for a short period of 2 years or less. However, this plan is not allowed to pregant women, physically handicapped lives and when occupational extra chargeable.

Income tax benefits

Income tax benefits for Life Insurance Plans

Important Income tax benefits available under various plans of life insurance:
1) Deduction allowable from income for payment of Life Insurance Premium (Sec. 80C).
(a) Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, deduction allowed upto 20% of capital sum assured during any financial year.
(b) Contribution to deferred annuity Plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for education.
(c) Contribution to Pension/Annuity Plans – New Jeevan Dhara-I & Jeevan Akshaya – VI

Read full details here: Income tax benefits for Life Insurance Plans

Income tax benefits

Income tax rates for the assessment year 2011-2012 (The financial year 2010-2011)

Income tax rates for assessment year 2011-2012 (Financial year 2010-2011)

Education Cess: An additional surcharge called “Education cess” at the rate of 2% on the amount of income tax and surcharge (if any) in all cases shall be levied.

Secondary and higher: An additional surcharge, called the “Secondary and Higher education cess on income tax at the rate of 1% of income tax and surcharge ( Not including the education cess on income tax) in all cases shall be levied. Read more about Income tax rates

ULIP Policy

Check the current Cash Value of your ULIP Policy

If you ever asked yourself, How to check current cash value of your ULIP? then then keep reading. Most of us don’t know how to calculate the maturity value or current cash value. You just guess the value, right? or may be calling your LIC agent every month to check the value.

To know the current cash value of your ULIP policy, you need to know the number of units you have.