Today LIC launched it’s one more revamped plan of old Bima Bachat (No.175). By looking at start of offering to now, it seems that there is not much difference to the old plans. But whether they are cheaper or not is the question, which we will come to know soon. Below is the feature of the plan.
What are the changes?
- Maximum age at entry depends on the term of the policy.
- Minimum Basic Sum Assured depends on the term of the policy.
- Rebate on higher SA depends on term of the policy.
- Change in maturity benefit (excluding the taxes you paid at entry).
- The death benefit slab is introduced.
- Change in loan availability feature.
- Change in GSV and SV.
LIC’s new plans 2014-New Moneyback Plans (No.820 and No.821)
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Chandresh
Hi Basavaraj,
I read your blog post and its quite interesting.
I want your help to invest around of money for my little kid in any one of the good options(LIC, NSC. POST kishan vikas patra etc…) for at around 10 years.
Can you please help me to find out the better options with max return and tax benefits, you can please also suggest plan without tax benefits.
Waiting for your response.
Thanks,
Chandresh
Basavaraj Tonagatti
Chandresh-Stay away from the products you listed for 10 years long term goal.
PC Raguraman
I invested in a few Bima Nivesh policies. One of them matured in March 2015. Single premium was 491038, sum assured was 500000, maturity amount was 673141. LIC deducted a 2% tax on the final proceeds and I am told that I will be taxed for the entire proceeds. So the tax at 30% slab comes to 201942. If I deduct the tax from the final proceeds, I really got back Rs.472199 after 5 years on a premium of Rs.491038. I made overall a loss of Rs. 18839. Is this right? Not sure why I finally ended up like this. Can you explain.
Does Bima Bachat also falls under the same tax treatment?
Basavaraj Tonagatti
Raguraman-Please read my earlier post about taxatin of life insurance “Tax Benefits of Life Insurance“.
srinivas
sir, is it lic new bhima bhachat plan A single premium full amoun is eligeble for income tax saving und 80C
Basavaraj Tonagatti
Srinivas-Yes.
Bhavsar Rajendra Kapurchand
Can you tell me what is the IT rebate (available for AY14-15) for a single premium paid under Bima Bachat,Jeevan Shagun policy of LIC, invested after 2014 Sept ?.
Thanks
Basavaraj Tonagatti
Bhavsar-Sec.80C.
Bhavsar Rajendra Kapurchand
Does bima-bachat-816 provides Tax rebate under 80c? Full amount of single premium or Partly?
Basavaraj Tonagatti
Bhavsar-Yes full amount.
Pradeep B
Dear Basavraj,
This is regarding my LIC Jeevan saral Policy.
Sum Assured: Rs. 5 Lacs
Premium for Annum : 24500/-
Policy Term : 26 Years
I have completed three years for above policy. From past 7-10 years I have invested so much in LIC and other private insurance and now I come to know, all traditional plans not give good returns and decided to surrender above policy. In three years premium paid amount is Rs. 73,500/- If now I surrendered the policy, I will get approximately Rs. 44,000/- I feel if I invest 23 more years I will be in huge loss. To get loyalty additions in Jeevan Saral we have to invest at least for 10 years. Again paying for another 7 years premium is good or now only I can surrender this policy ??
Please advice.
Regards,
PRADEEP
Basavaraj Tonagatti
Pradeep-Better to come out early once it completes 5 years.
TRIVENI
I wish to invest some money, about 50,000,for my son. I am not sure of every year investment in future, so one time investment. I also do not want along lock-in period. Please tell:
1. Is NSC a better choice than New Beema Bachat Plan ?( If I am ready for 9 yr Beema Bacat Plan).
2. Do I get tax rebate on – money invested as well as the amount I receive from NSC and New Beema Bachat Plan ?
My son is eligible for both.
Regards
Triveni
Basavaraj Tonagatti
Triveni-What will be tenure of this investment? Whether you are looking for investment and tax saving or only investment?
Alok
what is your view on table 816 09 01.. I am planning to take one.. What are the benefits of the policy..
Basavaraj Tonagatti
Alok-What is special about this plan? Single plan and expect around 6% return.
Rachna
i am a widow of 47 years of age. i have 2 sons age 19 and 21 yrs. i want to secure the future of my children in case i die early. my income is approx 6 lakh p.a. should i go for LIC or any other private insurance company so that my money is safe.i also want to know should i go for term plan or endowment plan?
kindly advise.
Basavaraj Tonagatti
Rachna-Please stay away from any endowment plans. First you need to buy online term insurance to the tune of around 15-20 times of your yearly income (better to include current values of future education cost of both kids). Then invest or choose a product based on time horizon and risk appetite.
Chandar R
Please compare LIC Bhima Bachat and Jeevan shagun and suggest the best
Basavaraj Tonagatti
Chandra-I feel Jeevan Shagun better.
Harish
Hello, whats your take on ICICI WEALTH BUILDER ULIP Plan, should i go for it or not
Regards
Kaushik
Basavaraj Tonagatti
Harish-Charges…that makes me to advice you to stay away.
Parthiv Shah
Hi Basu,
Can you suggest me good single premium plan (Up to 50k) of LIC & other company for Insurance \ Investing planning ?
Thanks.
Basavaraj Tonagatti
Parthiv-May I know why you are choosing Insurance for your one time INVESTMENT?
Parthiv Shah
Hi,
just to save spare money but not possible for every time to spare money and invest. Also heard about single premium plans but not sure as don’t have much knowledge in it..
But you can suggest me other way or plans where i can invest money..
thanks..
Basavaraj Tonagatti
Parthiv-Saving spare money is good idea. But do you planned like when you need that money? I will suggest you the product. But before that please try to understand your need.
Parthiv Shah
Hi Basu,
I want to invest this money for 10 to 15 years slab which help me out for my child or any other purpose.
I am very confuse after went through many plans and can’t judge which is suitable for me.
Pl guide.
Basavaraj Tonagatti
Parthiv-If your only concern is to earn around 8% to 9% and investing lumpsum then why can’t you opt for any tax free bonds? Also at the same time don’t forget to first buying term insurance of around 15 times of your yearly income first. Then invest. But not in this plan friend.
Parthiv Shah
Basu,
Can you suggest me tax free bonds ?
what about this LIC Bima Bachat ? is it worth to buy ?
Basavaraj Tonagatti
Parthiv-It will fetch you than tax free bonds 🙂
Abraham Chandy
Hi Basu,
Canyou tell me what is the IT rebate(availablefor AY14-15) for a single premium paid under Bima Bachat policy of LIC, invested in 2014 Jan ?.
Thanks
Basavaraj Tonagatti
Abraham-You will get upto Rs.1,00,000 tax relief under Sec 80C. Read article detailed taxation of Life Insurance “Tax Benefits of Life Insurance“
Vishal
Does bima-bachat-816 provides Tax rebate under 80c?
Basavaraj Tonagatti
Vishal-Yes it will.
Sunil soni
tax rebate would be 10% of premium amount, not complete amount as it is one time policy
Basavaraj Tonagatti
Sunil-I think you are getting wrong. It is 10% of Sum Assured but not premium. Also, all current plans will come out with this benefit. For detailed taxation of life insurance you can read my post “Tax Benefits of Life Insurance“.
Achintya Sen
No,it’ll be 10% of premium paid.
Basavaraj Tonagatti
Achintya Sen-Yes you are right and I said the same above 🙂
SANJAY AGRAWAL
PREMIUM CHART PLS…
Basavaraj Tonagatti
Sanjay-As of now I don’t have that chart. Once I get then will share the same.
Shailendra Prasad
I want all the new policy details of LIC with illustration like with some example that if we pay this amount for this many year then how much one will be getting including Sum assured, additional bonus and other bonus. It will help us to give the correct picture
Basavaraj Tonagatti
Shailendra-It will take time to do the same. Because I need data to do that. Please wait.
Dinesh C
Hi Shailendra
All details for this policy are available – http://www.licindia.in/new_bima_bachat.html.
Illustration and examples are included.
Regards
Dinesh
Boobile George
I want to know about LIC branch offices in Bangalore. I stay near to Electronic city and new to Bangalore. help me out
Basavaraj Tonagatti
Boobile-You can visit this page to locate branch http://www.licindia.in/phone_helpline.htm.