LIC Tax Saving Plan: Investing in these plans of LIC will save tax, know details

LIC Tax Saving Plan: Life Insurance Corporation of India (LIC) has launched a new savings insurance policy named Dhan Rekha with effect from 13th December 2021. According to a press release issued by LIC on 13th December, it is an individual savings life insurance plan. It has some special features. There are special premium rates for female life, the release said. Planning is allowed for third gender. All benefits under the plan are fully guaranteed. Dhanrekha plan pays a percentage of the Basic Sum Assured as a benefit at regular intervals of the premium paying term.

lic dhan rekha plan details

Under this scheme, the minimum sum assured is Rs 2 lakh with no upper restriction on the maximum sum assured.

  • The minimum entry age ranges from 90 days to 8 years, depending on the policy term. Depending on the policy term, the maximum age at entry can range from 35 to 55 years.

-This plan can be purchased both offline and online through agents/intermediaries like POSPLI/Common Public Service Centers (CPSC-SPV) and website http://www.licindia.in.

The scheme also includes loan facility to meet the liquidity requirements.

Death Sum Assured for limited paid premiums is 125 percent of the Basic Sum Assured or 7 times the annualized premium, whichever is higher, but not less than 105 percent of all premiums paid till the date of death.

Instead of receiving a lump sum payment, the maturity and death benefit can be availed in installments over a period of 5 years. Single premium or limited premium payment options are available for 10 years, 15 years or 20 years.

  • If the policy is in force, Guaranteed Additions will accrue at the end of each policy year from the 6th policy year till the end of the policy term.

There are many schemes currently available for senior citizens. There are either fixed deposits, post office savings schemes, tax-exempt bonds, or other capital market instruments. Nowadays, senior citizens can shop through their savings schemes that offer attractive rates and ensure maximum protection. Unlike these deposit scheme, there is a special scheme which provides pension after a lump sum amount is invested for a certain period. This will be the LIC-led Pradhan Mantri Vaya Vandana Yojana (PMVVY) – which provides a fixed monthly pension for 10 years.

Know what is this plan

PMVVY is a pension scheme for senior citizens with a minimum age of 60 years. There is no maximum age limit. The policy term of this plan is 10 years with a minimum pension of ₹1,000 to a maximum of ₹9,250 per month for the entire term. This scheme is available for investment till March 31, 2023. However, LIC is offering a guarantee of 7.4% p.a. for 10 years on this plan for the financial year FY22 if purchased before March 31, 2022.

On its website, LIC states, “For FY 2021-22, the plan will provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension is payable for the complete policy term of 10 years for all policies purchased The largest insurer in India, LIC is the sole authority to operate the scheme.

This plan can be purchased with the payment of a lump sum amount. However, the pensioner will have the option to choose either the amount of pension or the purchase price. Maximum ₹15 lakh can be invested in this scheme. This means that if an elderly spouse is planning to opt for this scheme then both can invest up to ₹30 lakh in a family and earn a fixed monthly pension of around ₹18500 for 10 years.

 

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