Jeevan Lakshya example

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In above shown example person ABC took jeevan lakshya policy whose age is 28. he took policy for 25 years (i.e till age 53)

At age 28 : He will pay yearly premium of rupees 21459. In that year he will get income tax benefit max of rupees 6391. 

If any thing unfortunately happens to him by nature then his family is eligible to get 25.87lak rupees. No need to pay further premiums. 

If anything unfortunately happens to him by accident then his family eligible to get 30.87lak rupees.No need to pay further premium.

This policy will help a persons family in his absence.

Same way chart explains till age 53. If person survive at age 53 then the return from LIC will be 13.37lak rupees.

Thumb Rule of Financial Planning

Thumb Rule of Financial Planning


1. 30% of your income must be used for monthly living expenses.


2. 30% of your income must be used for Liabilities repayment, if any..


3. 30% of your income must be SAVED and INVESTED for your future LIVING


4. 10% of your income must be spared for entertainments, vacations


5. 6 months expenses must be available for emergency fund (Should be invested in LIQUID FUND , FD, etc )


6.Home Loan must be registered and apply on both husband and wife name (Both can get Tax benefit on home loan tax benefits)


7. Buying second house for investment is not advisable (Survey reports - it will fetch you only around 3% return)


8. After 45years of age , not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same )


9. Having joint account @ Bank saving account.


10. Property must be registered on both Husband and wife name. (As per legal act - after husband first legal heir is wife, after wife it will go to childrens only )


11. Regular check on Nominations at all financial instruments. If not nominated, do it now..


12. Only in insurance policy, Claims payable to nominee. In other financial instruments legal heirs certificate is must to getbact the settlements.


13. Must have Term Insurance to financially secure future of your dependants...


14.  Don't take any financial investment decisions EMOTIONALLY, and also Avoid last minute tax saving investment decisions, plan well in advance..


15.  MEDICLAIM is must (In spit of Group mediclaim coverage given at office ) (After retirement there is no mediclaim coverage after 50-55 years of age, it's very tough and costly to enter into mediclaim )


16.  For your Jewelry LOCKER, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance is done


17. Like same way government guaranteed only one lakh for your FD also.( Fixed deposits with banks upto 1lak only are backed by deposit insurance )


18. Must know all TAX implications. You can not avoid paying tax. but you can minimize by way of tax planning and investments.


19. All Financial documents must be kept safely and keep family members informed of the same.


20. Review your portfolio at every regular Intervals.


These are general Suggestions, Personal Finance and investment decisions depends upto case to case..


Thanking You,
-Raj

Jeevan lakshya

LIC’s Jeevan Lakshya is a participating non-linked plan which offers a combination of protection and savings. This plan provides for Annual Income benefit that may help to fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate death of Policyholder any time before maturity and a lump sum amount at the time of maturity irrespective of survival of the Policyholder. This plan also takes care of liquidity needs through its loan facility. It is available for sale from 12/03/2015.

Example:

Person Name: Mr.XYZ

Sum Assured : Rs 5,00,000 ( i.e 5lak)

Person Age : 30

Policy Name : Jeevan Lakshya

Policy Term : 25 Years

Premium paying Term (PPT) : 22 Years

Pay Frequency : Yearly

What is Sum Assured ?

The sum assured is the amount of money an insurance policy guarantees to pay up before any bonuses are added. In other words, sum assured is the guaranteed amount the policyholder will receive. This is also known as the cover or the coverage amount and is the total amount for which an individual is insured

Policy Term : Policy term is the duration for which the policy provides you cover.

Premium Paying Term : Policy paying term is the duration for which you have to pay the premium.

Jeevan Lakshya policy Term : In this policy Min term period is 13Years and Max is 25 years.

PPT : In this policy premium paying term is (Policy period minus 3 years)

Pay Frequency: Monthly auto payment from bank, Quarterly payment, half yearly payment, yearly payment options are available in this policy.

In above example Mr.XYZ took Jeevan lakshya policy for 25 years term period where sum assured he opted is 5lak rupees (Min Sum assured to be opted in this policy is 1lak )

He need to pay premium for 22 years and policy will mature on 25^th year. He no need to pay premium for last 3 years (I.e 23^rd year, 24^th Year and 25^th Year )

Here for Mr.XYZ yearly premium amount will be approx rs21272

Mr.XYZ can save tax approx rs6498 every year (Calculated for 30% tax slab )

Total approx paid premium : rs4,68,375

Approximate Return at Maturity Time:

Sum assured : 5lak

Bonus : 6.12 Lak

Final additional Bonus : 2.25lak

Total Approx Return:13.38Lak rupees

Survival Benefit:-

If Mr.XYZ survive at end of 25^th year then he will receive 13.38lak rupees from LIC and policy will get closed at this point.

Normal Death Benifit:-

If Mr.XYZ dies unfortunately at 8^th year(No need to pay further premiums) of policy term then his family will receive 10% of sum assured each year till policy end date. On policy end date 13.38lak rupees will be handed over to his family.

I.e here his family will receive 50,000rs per year from 9^th year till 25^th year. In addition to this his family will receive 13.38lak at end of 25^th year.

Accident death benefit :-

If Mr.XYZ dies unfortunately at 8^th year (No need to pay further premiums ) of policy term, then his family will receive 5lak rupees sum assured on 8^th year, then from 9^th year to 25^th year his family will receive 50,000 rs each year and at end of 25^th year his family will receive 13.38 lak rupees.