__Life Insurance Plans for Insurance and savings under section 80C of the Income Tax Act, 1961__

__NEW ENDOWMENT PLAN(Table 814)__

This a plan in which premium is given annually but the maturity proceeds is given to the life insured only after a fixed period of time. Let us take an example:

Name : Mr. A

Age : 30 years

Term : 16 years

Double Accident Benefit : 5,00,000 (If death is caused by accident, 5 lac extra would be received)

Sum Assured : 5,00,000

In the above case, 1^{st} year premium with tax 3.75% would result in yearly premium of Rs. 32,767/- (31585 + 1184). From next year onwards tax would be at lower rate of 1.875% so it would come to Rs. 32,177/- ( 31585 + 592).

Approximate tax saved every year is 9830/-

Total approximate paid premium over the years would be Rs. 5,15,424/-

Approximate return at maturity time:

Sum Assured : 5,00,000/-

Bonus : 3,36,000/-

Final Additional Bonus (FAB) : 12,500/-

Total approximate return at maturity date is Rs. 8,48,500/-

__JEEVAN ANAND (Table 815)__

This is an endowment plan with the tagline…”Jindagai ke sath bhi aur jindagi ke baad bhi”. It means that you would get the full benefits or maturity proceeds on survivorship, i.e, completion of term and later again your family would get the sum assured when the insured dies or reaches the age of 80.

Name : Mr. A

Age : 30 years

Term : 16 years

Death Sum Assured : 6,25,000

Sum Assured : 5,00,000

In the above case, 1^{st} year premium with tax 3.75% would result in yearly premium of Rs. 38,291/- (36907 + 1384). From next year onwards tax would be at lower rate of 1.875% so it would come to Rs. 37,599/- ( 36907 + 692).

Approximate tax saved every year is 11487/-

Total approximate paid premium over the years would be Rs. 6,02,276/-

Approximate return at maturity time:

Sum Assured : 5,00,000/-

Bonus : 3,60,000/-

Final Additional Bonus (FAB) : 12,500/-

Total approximate return at maturity date is Rs. 8,72,500/-, plus life time Rs. 5,00,000/- risk cover.

__JEEVAN TARUN (Table No. 834)__

This is a children policy for child before 12 years of age. The policy matures when the child attains the age of 25 years. If some untoward incident happens with the proposers, then the future premium payments are waived and maturity benefits of the policy are not disturbed. In this policy, we have to make one choice out of the following four:

- No survival, maturity benefit 100% of sum assured
- 5% of Sum Assured for 5 years, Maturity benefit of 75% of sum assured.
- 10% of Sum Assured for 5 years, Maturity benefit of 50% of sum assured
- 15% of Sum Assured for 5 yers, Maturity benefit of 25% of sum assured.

Suppose, we choose the option, 10% of Sum Assured for 5 years, maturity benefit of 50% of sum assured.

Name : Master A

Age : 10 years

Proposer’s Age : 40 (Father or Mother)

Term : 15 years

Death Sum Assured : 6,25,000

Sum Assured : 5,00,000

Premium Waiver Rider : Yes

In the above case, 1^{st} year premium with tax 3.75% would result in yearly premium of Rs. 49,778/- (47979 + 1799). From next year onwards tax would be at lower rate of 1.875% so it would come to Rs. 48,879/- (47979 + 900).

Approximate tax saved every year is 14933/-

Total approximate paid premium over the years would be Rs. 4,89,689/-

Money Back At:

20 to 24^{th} Total 5 year : 50,000 (i.e, 50000 X 5 = 2,50,000)

Bonus : 2,85,000/-

Final Additional Bonus (FAB) : 10,000/-

Approximate Return at Maturity Time : 25^{th} year (50% Sum Assured + Bonus + Final Additional Bonus) 5,45,000-

Total approximate return is Rs. 7,95,000/-

__BIMA BACHAT(Table no. 816)__

This is a single premium plan, when only one premium is paid and maturity is received after certain fixed number of years.

Name : Mr A

Age : 30 years

Term : 9 years

Sum Assured : 5,00,000

The Single Premium With Tax would be Rs. 367363/- (354085 + 13278)

Approximate tax saved is 45000/-

Money Back At:

3^{rd} year : 75,000/-

6^{th} year : 75,000/-

Loyalty Addition (LA) : 55,000/-

Approximate return at maturity time 9^{th} year (single premium paid + Loyalty Addition) Rs. 4,22,363/-

Total approximate maturity Rs. 5,72,363/-

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__JEEVAN AKSHAY VI( Table No. __

This is a pension plan where the annuity starts immediately. Suppose, we choose the option of ‘Annuity for life with return of purchase price.

Age : 40

Sum Assured : 5,00,000/-

Single Premium : 5,07,500/-

Annual annuity is Rs. 34,150/- and on death the sum of Rs. 5,07,500/- shall be given back to the nominee.