The Life Insurance Corporation (LIC) of India has launched Bachat Plus, a non-linked, participating, person life assurance savings program. The applicants may well either spend the premium in lump sum (single premium) or may well avail the 5-year restricted premium paying alternative.
With the taxpayers browsing for choices to save tax, this close ended program – obtainable for sale for a maximum period of 180 days – would not only provide the tax-saving alternative u/s 80C, but would also provide an excellent chance for men and women availing the single premium alternative to avail the LTC Scheme positive aspects.
Premium Payment Options
There are two choices every below the single premium and restricted premium plans. Under the single premium program, Option A gives a Sum Assured on Death of 10 occasions the tabular premium for the selected Basic Sum Assured, though Option B gives a Sum Assured on Death of 1.25 occasions the tabular premium.
Death Benefits
On the other hand below the restricted premium program, Option 1 gives a Sum Assured on Death of 10 occasions the tabular premium for the selected Basic Sum Assured, though Option 2 gives a Sum Assured on Death of 7 occasions the tabular premium.
Survival Benefits
The survival advantage will be the Guaranteed Sum Assured on Maturity, i.e. the Basic Sum Assured. As it is a participating program, Loyalty Addition may well also be there, supplied the policy has completed 5 years and all the premiums are paid.
Age of Entry
The minimum age of entry below the single premium program is 90 days (completed) for each Option A and Option B, though the maximum age of entry is 44 years (nearer birthday) for Option A and 70 years (nearer birthday) for Option B.
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Under the restricted premium program, the minimum age of entry is 90 days (completed) for Option 1 and 40 years (nearer birthday) for Option 2, though the maximum age of entry is 60 years (nearer birthday) for Option 1 and 60 years (nearer birthday) for Option 2.
Age at Maturity
The minimum age at maturity will be 18 years, though below the single premium program, the maximum age at maturity will be 65 years (nearer birthday) for Option A and 80 years (nearer birthday) for Option B. Under the restricted premium alternative, the maximum age at maturity will be 75 years (nearer birthday) for Option 1 and 80 years (nearer birthday) for Option 2.
Policy Term
The minimum policy term may well be opt for is 10 years and maximum 25 years below all the choices, except for the age variety of 41 years to 44 years below the single premium Option A, exactly where the policy term may well be availed is in between 10 years and 16 years.
Maturity & Life Covera
While the price of return on maturity is not incredibly substantial, the major advantage is the life cover up to 10 occasions the premium paid, which would stay intact for the complete policy term devoid of any opportunity of having lapsed.
Tax Benefits
Moreover, by availing the single premium alternative, men and women up to 44 years of age may well avail either the 80C advantage or the LTC Scheme advantage.