Lic Jeevan Chhaya Policy Review

Plan No 103

Introduction about Lic Jeevan Chhaya Policy plan no -103 – with profit

LIC Jeevan Chhaya Policy was Introduced on – 01/03/1991 and Withdrawn on- Jeevan Chhaya policy is a Money Back Endowment plan mainly beneficial for child. It meets the requirements of the child either the parent is alive or not.

The main feature of this plan is, sufficient financial provisions could be made when the child reaches the age of majority and money required for higher education of the child irrespective of whether life assured is alive or not.

Lic Jeevan Chhaya policy Conditions 

AGE AT ENTRY:                     Minimum:    18 years complete

                                             Maximum:  45 years

                                                              40 years with non-standard age proof

POLICY TERM:                     18 years to 25 years

MODE OF PAYMENTS:          All mode of payments are allowed

                                                (Yearly, Half yearly, Quarterly, Monthly and SSS)

MAXIMUM MATURITY AGE:  65 years

SUM ASSURED:

Sum assured will be paid as a immediate death benefit to the nominee on the death of the life insured within the policy tenure. 25% of Sum assured will be paid back on the last 4 years of the policy term to the life insured if remains alive or to the nominee on his death.  

                                                  Minimum:    50,000

                                                  Maximum:   No limit

Lic Jeevan Chhaya Policy Rebates

The Rebates are of 2 types,

1. Sum assured rebate
2. Mode rebate

Sum assured rebate:   

Sum assured	Rebate
25,000 to 49999	RS 1/- per 1000 Sum assured
50,000 and Above	RS 2/- per 1000 Sum assured

Mode rebate:

Mode	Percentage
Yearly mode	3% of tabular premium
Half-yearly mode	1.5% of tabular premium
Quarterly, Monthly and SSS	Nil

Lic Jeevan Chhaya Policy Survival benefit

On the survival of the life insured he receives 25% of the sum assured on each of the last four policy years.

 Lic Jeevan Chhaya Policy Maturity Benefits

25% of Sum assured and the Bonus will be paid back to the life insured or his nominee on the maturity.

            Maturity Benefit = 25% of Sum assured + Bonus.

 Lic Jeevan Chhaya Policy Death Claims

If premiums are fully paid till the time of death then

Death Benefit = Sum assured on the death

If premium are due at the time of death then

Death Benefit =sum assured – outstanding dues.

fixed benefits are paid as usual.

1. On the death of the life insured, Sum assured will be paid back immediately to the nominee.
2. Further premiums would be waived and the policy continues.
3. 25% of Basic Sum assured will be paid on the last 4 policy years.
4. All Bonuses will be paid at the end of the policy term.

Riders Available in Lic Jeevan Chhaya Policy

Double Accident Benefit:

If in case, cause of death is due to accident then immediately additional sum similar to the basic sum assured is paid along with sum assured to the nominee under basic plan.

 Lic Jeevan Chhaya Policy Guaranteed Surrender Value

If Premiums for 3 years are paid and further premiums were discontinued, then 30% of the basic premiums paid excluding premium for the first year and all extra and/or additional premium for accident benefit.

PAID UP VALUE:

After paying at least 3 full years premiums, Paid Up value will be calculated as,

Paid Up Value = sum assured x  no. of years premiums paid

1. of years premiums payable           

Additional Information about Lic Jeevan Chhaya Policy

LOAN:

• loan is available under Lic Jeevan Chhaya plan.
• Minimum 3 years premiums needed to pay to avail the loan.
• Maximum loan amount granted will be, 90% or 85% of surrender value in case of inforce and Paid Up policy respectively.

BONUS:

Bonus will be paid on maturity. Under Jeevan Chhaya policy Bonus is Applicable at Endowment rate. If death claim is declared, then future premiums are waived. Still, policy will continue to get involved in profits and same will be payable on the date of the maturity only.

REVIVAL OF POLICY:

           Revival of policy is available under Lic Jeevan Chhaya plan.

 Lic Jeevan Chhaya Policy Additional Benefits

Income tax Benefit:

Premiums paid up to Rs 1,00,000/- are allowed as a withdrawal from the taxable income each year under section 80C. For information about Tax on Life Insurance Policies www.taxqueries.in

Lic Jeevan Chhaya Policy Benefit illustration

Example:

At the age of 30 years Mr. Baek seung jo has chosen Jeevan Chhaya Policy with Sum assured amount 2 lakhs with the term of 18 years with DAB. Nominee is his 5 years old son Baek eun jo.

If Mr. Baek seung jo met with an accident, his wife will get Rs. 2 lakhs on behalf of her son.

Followed to this after 15 years Mr. Baek seung jo’s son Baek eun jo will get Rs. 50,000 i.e, 1/4th of the sum assured and he will get Rs. 50,000 more at the end of 16th and 17th years.

Now at the end of policy term i.e, at the final agreement on the 18th year on maturi Mr. Baek eun jo will get the sum of Rs. 50,000 and Rs. 1,62,000.

TABULAR ANNUAL  PREMIUM RATES UNDER JEEVAN CHHAYA WITH PROFIT  PLAN – 103, PREMIUM IS PER 1000 SUM ASSURED