LIC Jeevan Tarun Plan Complete Details & Features

Life Insurance Corporation of India’s Jeevan Tarun Plan is a participating Endowment Plan with a limited pay option that can be an option for a child of up to 12 years of age.

The maturity benefit comes with four options of maturity in this child plan and can be opted for money back options as well. This plan is a life insurance plan that is endowed for a child’s higher education.

The Jeevan Tarun plan is one in which the premium needs to be paid until the child reaches 20 years of age even after which the policy continues till the child is 25 old. Hence, the last five years, wherein the payout can be taken; the premium does not need to be paid, rather, the policy continues until its maturity, that is, until the child is 25 years of age. Therefore, this is a Limited Payment Policy.

LIC Jeevan Tarun Plan Features:

The features of this plan are:

·         Jeevan Tarun plan is a participating limited pay plan which is traditional in nature.

·         The premium for this plan needs to be deposited until the child is 20 years of age after which the policy continues until the child reaches 25 years of age.

·         After the child completes eight years of age, or 2 years from the date of policy commencement, whichever falls earlier, the risk cover on him starts.

·         If there is any remaining sum assurance along with vested bonus payable to the child on the maturity of the policy as a Maturity Benefit, the policy would lead to its termination.

·         The sum assured on death has been grossed as higher than ten times of the annualized premium, or 125% of the total sum assured whichever seems higher, which is subject to a minimum of 105% of total premium paid till date.

Why Jeevan Tarun Policy?

The Jeevan Tarun Plan of the Life Insurance Corporation of India provides a lot of benefits to its consumers. Since this is a participating policy, the policyholder gets a final additional bonus and several simple revisionary bonuses from time to time. The customer also receives a certain percentage of the sum assured (if he survives) as a benefit for survival, in the previous five years and the policy stays active according to the schedule. The policyholder acquires a maturity benefit if he survives the complete tenure of the policy, the amount of the leftover sum assured along with the bonuses are compensated to the policyholder as thus, the policy is concluded.

In a case where there is a sudden death of the policyholder during the tenure of the policy, the sum assured along with the acquired bonuses at the time of the death is paid to the nominee of the policyholder. 

Along with this, there is LIC’s Premium Waiver Benefit Rider available to the customers to get leverage on the mode of payment for yearly and half-yearly premium payments. The sum assured is a higher of 125% of the original sum assured at the time of taking the policy, it is ten times the annualized premium which is being paid and is subject to at least a hundred and five percent of the total premiums paid as on the date of the death.

Jeevan Tarun Policy- Details

Life Insurance Corporation of India offers a grace period of about 30 days to pay the premium. Policyholders get a leverage of about 30 days to pay their premiums and if they fail to do so within the allotted time, the policy lapses. This plan also enables the policyholder with a period of 15 days to consider whether or not they wish to continue this plan. There is an option of cancelling the policy within this given time frame if the policyholder has made no claim.

In a condition in which the policyholder commits suicide, within twelve months of having taken up the policy, the nominee chosen by the policyholder receives around eighty percent of the original premium. And, if the policyholder commits suicide within 12 months of the revival period, the surrender value which is 80% of the premiums which have already been paid by the policyholder is received by the nominee.

Documents Required for a Proper Submission

To opt for the Jeevan Tarun policy, one needs to submit proper documents which are in favour of the application form. One needs to produce a medical history, address proof, customer documents, medical examination which depends on the age of the policyholder and the sum assured.

All in all, the policyholder of the Jeevan Tarun plan shares the profits of the LIC of India as this is a contributing plan and also gets reversionary simple bonuses which are stated in accordance with the experience of LIC.

What SIP Investment Plans Are Best from Fixed Plans?

You have been advised by your brokers to start investing in a SIP, and you are also clear on the benefits that SIP offers over a lump sum investment in the mutual fund. However, you will need to know a few things like how to invest in SIP before you start putting your hard earned money into one.

The mutual fund industry has promoted their SIP plans in a big way making investors believe that it is the best financial instrument to put their money into. However, there are a few things that you should be sure of before you know how to invest in SIP.

SIP And Lump Sum Investment

SIP and lump sum investment in mutual funds are the same. They let you buy the units that are equivalent to the value per unit of the amount that you have purchased with your money. The purchase amount is the product of the units allocated and the NAV that is there on the date of purchase. In a lump sum investment into a mutual fund, you invest once, and you thus buy the units at one go. In a SIP plan, you keep investing continuously and thus keep buying units into the mutual fund plan over and over again using the same formula.

Redemption

The ways to redeem a SIP and lump sum amount and the benefits on redemption may not be the same. The SIP investment does not become tax-free after a year. If you have chosen an equity fund to invest in then the first-month instalment will become tax-free after a year, the second month’s instalment one month later and so on. The SIP can be started for your recurring goals, but it is not true that all your gains are tax-free one year after you started your SIP. Exit load of the scheme will also be applicable to each unit separately.

3-Year ELSS SIP

In case you have started a 3-year ELSS SIP it does not mean that it can be redeemed three years after you have paid the first instalment. Remember that every instalment that you have paid will be locked for three years.

Mutual Funds Are Not Insurance Policies

Before you know 

how to invest in SIP, understand that mutual funds are not a kind of an insurance policy. Most people will ask that they want to start a SIP for say 30 years and will ask for some best funds to invest into. Understand that mutual funds are not like an insurance policy where you keep paying a set premium amount for a set number of years to get the maturity value at the end of the term. If you continue to invest in the same fund for 30 years, then there is a high chance that your returns will be very low. So when you start a SIP also know when you should stop it.

Money Back Policies. Are They?

How to invest in SIP will let you know that when you buy a mutual fund, you buy the units in the fund. When you plan to exit the investment you sell the units you hold at whatever the current NAV is. The value that you get is the product of the current NAV and the units. The value that you receive may not necessarily be more than the amount that you had invested in the fund. The mutual fund does not guarantee you that you will receive back all the money that you had invested in the fund. In other words, they do not guarantee you the return.

No Guaranteed Returns

Most mutual fund investors will give you the answer that they plan to invest for decades in the market and thus the market getting below their purchase price is something that cannot happen. However, a long-term goal may also become a short-term financial goal. The Indian economy should grow and all of us are bullish about it but your fund will give you returns when you want is something that cannot be guaranteed. It is important that you actively manage risk when investing in equities.

Minimize Risk With SIP

SIPs only average put your investment; they do not minimize the risk. They buy the units sometimes at a lower NAV and sometimes at a higher NAV. The total amount that you have invested in the market is only subjected to the full volatility in the market.


Before you find out how to invest in SIP, it is important to first know and research the pros and cons of investing in mutual fund SIPs. Just by opening a SIP and starting to put regular money into it does not guarantee you a long-term profitable return.

HDFC Click to Protect Plus, How does it Varies from different term Insurance Plan?

HDFC click to protect plus is a pure term plan that provides a large amount of life coverage as compared to the other term plan in a very affordable premium rates. HDFC Click to protect plus is a comprehensive plan that offers numerous benefits to the insurance seekers and fulfills their requirements. As compared to the other term insurance plans HDFC click to protect plus offers some extra features like: -

1.     It provides an option to the policy holder under which they can increase the coverage on major events of life such as marriage and child birth.

2.     It provides add-on benefit as accidental death benefit.

3.     The plan offers payout as lumpsum plus monthly claim settlement.

Further in this article we have describes some of the key features and benefits offered by the policy.

Some of the Salient features of the Policy are: -

1.     The tenure of the policy ranges from 10 years to 40 years.

2.     The plan provides an option to take death benefit as lumpsum amount or as monthly income over the period of 15 years.

3.     The insured can also choose add-on benefit as accidental death benefit rider by paying some extra amount along with the premium amount.

4.     The maturity age of the policy rages from 28 years to 75 years

5.     The insured can pay premiums in yearly, half- yearly, quarterly and monthly mode.

6.     The policy provides three options of premium payment regular, limited and single.

7.     The minimum sum assured amount of the policy is Rs25,00,000 and the maximum sum assured of the policy has no upper limit.

8.      

HDFC click to protec is very different as compared to other term insurance plan as it provides the insured to choose from 4 options of coverage.

1.     Life option- This is the basic coverage offered by the policy. Under this option a lumpsum amount is paid to the nominee as death benefit.

2.     Extra Life Option comes with inbuilt accidental death benefit. Under this option the sum assured as death benefit along with extra sum assured amount in case of accidental death of the insured person.

3.     Income Option- under this option a certain part of sum assured is paid as death benefit and the remaining amount is paid as monthly income for the tenure of 15 years.

4.     Income Plus option- in this option along with the sum assured as death benefit and monthly income for the tenure of 10 years. At 10% per annum the monthly income chosen can be as level or increase.

Benefits offered by HDFC Click to Protect Plus

Maturity benefit-  As this is a pure term plan it does not include any maturity benefit.

Death benefit- depending upon the option chosen by the policy holder a death benefit is payable to the beneficiary of the policy in case of unfortunate demise of the insured person.

 Income Tax Benefit- up to Rs 1,50,000 amount of premium paid is allowed for tax rebate each year under section 80C of income tax act. Under section 10(10D) the maturity amount received from the plan is also tax exempted according to the Income Tax Act.

Additional Benefit-  An accidental death benefit rider is provides under the policy which offers an extra sum assured along with the basic sum assured amount in case of accidental death of the insured.

Life Stage Protection feature- under this feature the insurance holder have an option to increase the life cover on the certain milestones of life like marriage, buying home and child birth.

With so many extra features offered under same plan HDFC Click to Protect Plus excels as a term plan as compared to the other term insurance plans. 

To know more about HDFC term insurance plan.

Things to Know About Term Insurance Plans Premium Calculators

The Premium Calculator is a useful tool which is specially designed to help users to compare, analyze and plan their insurance policy coverage by choosing the most beneficial plan according to their own suitability. Thus, premium calculator helps the insurance buyer to get an exact picture of their insurance requirement.

As different insurance providers provide their own premium calculator, you can make use of HDFC term insurance premium calculator, if you are planning to buy HDFC term insurance plan.

How to use term insurance premium calculator?

The usage of HDFC Term Insurance premium calculator is quite simple and one can easily get the desired quotes just by following 3 simple steps. These steps are:-

 1. Primarily the insured requires to fill all the personal details like Life coverage, date of birth, gender, marital status, the number of children one has, annual income, etc.

2. Once you are done with all the personal details, you will need to mention the tenure of the policy you want and the desired sum assured amount. Moreover, the insured person will also need explain that how they would like to receive the money. Whether, the policy holder would like their nominee to receive the amount as monthly income or one time as a lump-sum amount.

3. After you are done with providing all the information, click on the enter button and the HDFC term insurance premium calculator will recommend some advantageous term insurance plans with details to you. You can compare the plans and move forward to buy.

By comparing the quotes of various policies online you can save yourself from unwanted expenses of agents and can save ample time. Moreover, the premium calculator helps you to choose the most economical plan that provides all coverages to the insured. Apart from this, the term insurance calculator has many more benefits too.

Every life insurance company has a premium calculator that helps them to calculate the premium for an insurance policy with maximum ease. The best part is that you can use the calculator to assess your premium rates online without any hassle.

Benefits of Premium Calculator are:-

Coverage- With the help of premium calculator the insured can calculate the exact amount of coverage required to secure the future of their loved ones.

User-Friendly- HDFC Term Insurance premium calculators are the simplest and customer friendly financial tool. One just needs to fill the required details to seek the information.   

     

Analysis- By providing all the required details of the term insurance plan the customer can analyze the benefits of the plan versus the cost of the plan.

Comparison- The customers can compare the quotes of various term insurance plans and choose the most beneficial plan according to their own suitability.

Simplifies Complex Data- Many insurance seekers find the financial data related to the insurance policy and tax computation bit difficult to understand. A premium calculator provides the data instantly without any hassle.

Better Knowledge of Product- With the help of premium calculator the insured gets the better understanding of the insurance products.

Customization- The insurance buyer can choose the tenure of the policy and the desired sum assured amount.

Hassle Free-  The usage of premium calculator is not only hassle free but also save lot of money and time. Moreover, there are numerous companies that like to deal with their customers online. The insured can get mind blowing discounts while purchasing the policy online. So, with the help of premium calculators, you can save bundles on your income by comparing and choosing the best plan for yourself. 

What are the Benefits of Investing in Reliance Mutual Fund?

As one of the fastest growing mutual fund company in India, Reliance Mutual Fund has been providing impressive returns to the customers from the long run. With the presence over more than 160 cities across the country, Reliance Mutual fund offers wide range of fund options to the customers. In order to meet the requirements of the investors, the company strive to launch innovative products and provide best customer support services. 

The investors can choose from the 5 fund classes offered by Reliance Mutual Fund i.e. debt fund, equity fund, gold fund, liquid fund and the retirement fund (both debt and equity). According to the suitability of the investors the funds are offered for investment in 20 different categories. These categories include Gilt, Ultra Short Term, short term, long term, Monthly Income Plan, dynamic, ETF, liquid, etc. Reliance Mutual Fund provides more than 200 different schemes from which the investors can choose the most beneficial that suits their requirements.

In order to help our customers, know more Reliance Mutual Fund here we have briefly discussed some of the features and benefits offered by the RMF

Types of funds offered by Reliance MF

Debt Funds:

These funds are one of the best saving instrument that offers an average return along with a high level of reliability and safety as compared to equity funds. Debt funds provide 6 different fund options to the investors.

·         Ultra-short term: This fund option provides short term maturity and is a fixed income instrument.

·         Gilt: This is known to be a secured bond as the money is invested in government securities.

·         Short term: In short term the money is invested for short term. Short Term fund option provides high risk bond along with low risk.

·         Long term:  Long term funds are best to achieve long term financial goals. This fund generally matures in a period of 10 years.

·         MIP: This is a Monthly Income Plan, which provides a stable and regular monthly income, mainly meant for the retiring class.

·         Dynamic: According to the market performance of dynamic funds provides flexibility to move between long and short term instruments and the fund manager’s outlook.

Equity funds: In equity fund the money is invested in equities and funds related to it. This fund provides dynamic return and has medium to high risk appetite. Equity fund provides 10 fund options to invest in.

·     Diversified large cap: In order to mitigate the risk involved the overall investments are scattered across different securities.

·       ETF:  In Exchange-Traded Fund, the money is investing in various securities, while being traded throughout the day unlike a mutual fund.

·   Diversified multi cap: These funds invest in different securities regardless of their market capitalization, for example investing in small and large cap instruments together.

·         Sector: These are sector-specific funds investing in diverse sectors like infrastructure, oil etc.

·       Diversified mid cap and small cap: Similar to diversified multi cap, with investments done in mid and small cap instruments.

·       Tax saver: Tax saver funds, also called ELSS (equity-linked savings scheme), provide tax benefits under section 88 of the Income Tax Act.

Liquid funds: In this fund the money is invested with low risk and the supplements is chosen for short term. This fund provides no lock-in period.

Retirement funds: This fund is the combination of debt and equity instruments; retirement funds offer a continuous source of income for retirees.

Why Choose Reliance Mutual Fund?

There a various reason to invest in Reliance Mutual fund apart from its great performance and returns.

·         Forceful distribution of networks spread across various parts of the country.

·         Reliance Mutual Fund has over 20 years of experience.

·         Forerunner in their field.

·         It provides 24X7 customer support services.       

·         Tax benefits on various products.

All About Section 80C, 80E, 80G - Income Tax Deduction

Let’s face it: almost everyone is in a lookout for different ways to save a sizeable amount of their hard-earned money eaten up by the tax monster. But sadly, a large part of tax payers are really unaware of the income tax deductions allowed for their income. It is important for one to properly plan their taxes in order to save a sizeable amount of their hard-earned money eaten up by the tax monster. If you too have been looking out for ways to save taxes, read on to know how Section 80C of the Indian Income Tax Act can help you save income tax.

Section 80C, 80CCD and 80CCC

Under the Section 80C, 80CCD and 80CCC of the Indian Income Tax Act, you are entitled to save up to Rs. 1.5 lakhs from your taxable income. Unfortunately, a lot of people do not really know about how to make tax savings under these sections. But be advised, no matter how much savings you are doing, you are allowed to save only Rs. 1.5 lakhs under the Section 80C of the Indian Income Tax Act.

If you are looking to make savings of Rs. 1.5 lakhs under the Section 80C of the Indian Income Tax, you will be pleased to know that the government offers a wide range of tax saving instruments to save taxes under the Section 80C. Here are just some of the many tax saving instruments that you can utilize to save taxes under the section 80C of the Indian Income Tax Act.

§     ELSS

§     ULIP

§     NPS

§     VPF and PPF

§     Sukanya samriddhhi yojana

§     Senior savings scheme

§     FDs and NSCs

§     Pension plans

§     Insurance policies

Section 80CCG

If you are looking to invest in tax saving investment schemes, you may opt for Rajiv Gandhi Equity scheme. This can help you save taxes under the Section 80CCG of the Indian Income Tax Act. Though this equity scheme is a little complicated for a non-financial expert to understand, it can help you save a sizable amount of taxes. If you are actually looking forward to take the full benefit of this scheme, do seek the help of a financial expert to help you invest wisely in the government sponsored equity scheme.

Section 80E

If you are a salaried professional, you can save taxes on any education loans that you may have undertaken. Your Education Loans are covered under Section 80E of the Indian Income Tax Act. You can avail tax deductions for education loans taken for your higher education, or the education of your spouse or your kids of whom you are the legal guardian. However, the tax deduction is allowed only on the interest repayment and not the principal amount.

 

Section 80G

If you are the one who believes in charity, then you can rest assured of saving a sizable amount of money in taxes under the section 80G of the Indian Income Tax Act. You can choose to donate money in the National Relief Fund to avail tax exemptions under the section 80G of the Indian Income Tax Act. But if you actually plan to donate in a Government authorized charity, be very careful of getting acquainted to the concerned rules of the income tax saving.

Wrapping it Up!

So there you have it – how to make sizable income tax savings. Now, go ahead put this learning into practice and use these great tax saving knowledge to ensure that your hard earned money isn’t eaten up by the tax monster. In addition to the aforementioned ways, there are a plenty of other ways to ensure huge income tax saving. Some of easiest ways are home loans, life insurance and term insurance premiums. 

Right Way to Pay Your Tax as Per Your Income Tax Slab

Paying income tax is your utmost obligation as a responsible citizen. Income Tax is an annually payable tax on income which every individual, corporate firm, an entrepreneur, a freelancer has to pay if he/she falls under the tax slab. Hereby, it is very important to understand your ‘Income Tax Slab’.

The tax is calculated on an annual income of a person where the cycle starts from April 1^st to March 31st for a given assessment year. The Income Tax Department of India has set a slab on basis of which a part of your income is deducted annually and it is obvious that more the income, more the tax is charged. There are a few factors, which attract the income tax slab:

·         Income of an assessee

·         Residential status of the assessee

·         Assessment year

·         Rate of tax

·         Charge of income tax

·         Maximum amount/threshold limit till income is not chargeable/taxable.

·         Gross income

Income Tax Slab for FY 2017-18

The income tax is calculated according to the income tax slab announced by our Finance Minister every year in the union budget. Let’s have a glance at Income Tax Slab for FY 2017-18 for various groups-

Income Tax Slab for FY 2017-18 for Individual Taxpayers and HUF (less than 60 yrs old, Men/Women)

Income Slab	Tax Rate for 2017-18
Income up to INR 2,50, 000	No Tax
Income from INR 2,50,000-5,00,000	5%
Income from INR 5,00,000-10,00,000	20%
Income more than INR 10,00,000	30%
Surcharge: 10% of income tax, in case of total income exceeds INR 50 lakh up to INR 1 Cr. Surcharge: 15% of income tax, in case of total income exceeds INR 1 Cr Cess: 3% on total of income tax +surcharge

Income Tax Slab FY 2017-18 for Senior Citizen (60 years or more but less than 80 years, Men/Women)

Income Slab	Tax Rate
Income up to INR 3,00,000	No tax
Income from INR 3,00,000-5,00,000	5%
Income from INR 5,00,000-10,00,000	20%
Income more than 10,00,000	30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh upto Rs.1 crore. Surcharge: 15% of income tax, where total income exceeds INR 1 Crore Cess: 3% on total of income tax +surcharge

Income Tax Slab FY 2017-18 for Senior Citizen (80 years ole or more, MEN/Women)

Income Slab	Tax Rate
Income up to INR 2,5,00,000	No tax
Income up to INR 5,00,000	No tax
Income from INR 5,00,000-10,00,000	20%
Income more than 10,00,000	30%
Surcharge: 15% of income tax, where total income exceeds INR 1 Crore Cess: 3% on total of income tax +surcharge

Income Tax Slab FY 2017-18: Analysis

This year Finance Minister Arun Jaitely had somehow tried to put your money in the pocket. Stuck to his promise, he halved income tax rates for individual’s earnings 2.5-5 lakhs to 5%. Even, those who have income above 5 lakhs will benefit a bit.

With the onset of the new financial year, some tax-related rules were proposed to be changed. The Lok Sabha in its recent Finance Bill declared these proposals as tax law.

·       The foremost change is a reduction in tax rate which dropped by 5% for the individual assesses income between INR 2.5 to 5 lakh.

·        Secondly, in the new budget, Mr. Jaitely proposed to reduce the benefit of tax rebate from existing 5000 to 2500 for those whose total income is up to INR 3.5 lakh. This leads to the zero liability of tax for an individual with income up to 3 lakh per annum, while tax liability for those whose income lies between 3 to 3.5 lakh will be INR 2500.

·       Change in surcharges is also visible. 10% tax will be levied as a surcharge for an individual whose annual taxable income is between INR 50 lakh to 1 crore. People earning more than 1 crore will be count under the existing slab, which is 15%.

·       A simple one-page form has been introduced for the taxpayer to file the ITR to make the process hassle free.

·         As per the new financial year, no deduction will be charged through any new investment made by an individual under Rajiv Gandhi Equity Saving Schemes (RGESS).

Paying the right amount of tax is a social responsibility. Sometimes being audited by the Income Tax department may cause highly stressful phrase for taxpayers who intentionally reduce their tax liabilities. Which further may lead to sleepless nights or anxieties in the worst cases. By paying the actual amount of tax, you can eliminate this stress. So, it is mandatory to know your tax slab and make yourself up-to-date as per the current financial amendments.