1. Re-incarnation of Jeevan AasthaBy
Datacomp Training Academy

2. Basic understanding It is a single premium plan for 10 years term
It is a close ended product available for a maximum period of 120 days from 1st Mar.2012
Risk Cover is 5 times of single premium
Guaranteed maturity benefit through Maturity Sum Assured (MSA)
Additional maturity benefit through Loyalty addition as applicable
Admissible for tax savings under section 80CCE
Available for age group 8 to 50 years

3. Simple Benefits example
Age at entry: 30 years
Premium
Rs. 1,00,000
Service Tax
Rs. 1,545
Total
Rs. 1,01,545
Sum Assured
Rs. 5,00,000
Guaranteed Maturity Benefit
Rs. 1,99,985
Yield on investments
7.01 %

4. Enhanced benefits presentation
Age at entry: 30 years
Premium
Rs. 1,00,000
Service Tax
Rs. 1,545
Total
Rs. 1,01,545
Sum Assured
Rs. 5,00,000
Single premium under 164 for this cover
Rs. 8,560
Effective investment
Rs. 92,985
Guaranteed Maturity Benefit
Rs. 1,99,985
Yield on investments
7.96 %

5. Enhanced benefits with L.A.
Age at entry: 30 years
Premium
Rs. 1,00,000
Service Tax
Rs. 1,545
Total
Rs. 1,01,545
Sum Assured
Rs. 5,00,000
Single premium under 164 for this cover
Rs. 8,560
Effective investment
Rs. 92,985
Guaranteed Maturity Benefit
Rs. 1,99,985
Estimated Loyalty Addition
Rs. 24,998
Total Maturity Amount
Rs. 2,24,983
Yield on investments
9.24 %

6. Enhanced benefits with L.A. & Tax Saving
Age at entry: 30 years
Premium including Serv.Tax
1,01,545
Effective investment
92,985
Tax Saved under Sec.80CCE
10.3%
20.6%
30.9%
10,300
20,600
30,900
Effective Inv. after tax saving
82,685
72,385
62,085
Guaranteed Maturity Benefit
1,99,985
Estimated Loyalty Addition
24,998
Total Maturity Amount
2,24,983
Yield on investments
10.53 %
12.01%
13.74%

7. Great results even if you have to exit early
Age at entry: 30 years
Exit after 4 years have elapsed
Premium including Serv.Tax
1,01,545
Effective investment
98,121 (3424 – cost of cover for 4 yrs)
Tax Saved under Sec.80CCE
10.3%
20.6%
30.9%
10,300
20,600
30,900
Effective Inv. after tax saving
87,821
77,521
67,221
Surrender Value after 4 yrs
1,08,792
Yield on investments
5.50 %
8.84 %
12.79 %

8. Benefit Illustration as published on www.licindia.in

9. Why L.A. is as good as guaranteed
From the Enhanced Benefits slide it is very clear that L.I.C. has an outlay of around 8 % as guaranteed return to be paid to the policy holder
Add to that Agent’s commission of 2% and conservatively let us assume another 2 % as cost towards other marketing & incentives.
This means that 12% is the target payout against the single premium received.
So naturally L.I.C. has back to back investment plan which can earn atleast 10% on its investment.
Hence the L.A. indicated by LIC in its benefits illustration under scenario II HAS TO BE THE MINIMUM PERFORMANCE, otherwise it will be a loss project for the corporation

10. Jeevan Vriddhi Adv. In TOI dated 12th March 2012 clears the doubt whether this plan qualifies for 10(10) benefit

11. Source: Economic Times