New Plan Introduced

LIC has recently introduced a new plan “Jeevan Lakshya” .

It is a Non-Linked Plan offering combination of protection and savings. The main feature of this plan is that it offers Annual Income Benefit primarily for the benefit of children in case of unfortunate death of the policyholder any time before maturity.



Features of Jeevan Lakshya-
1) Age 18 years to 50 years
2) Policy Term 13 years to 25 years
3) Premium Paying Term –Policy Term Less 3 years (if 25 years, then 25-3=22 years)
4) Minimum Sum Assured is Rs.1 Lac
5) Loan Facility – Available after 3 years



Benefits of Jeevan Lakshya-
1) Maturity benefit – Sum Assured + Bonus + final bonus
For example – 833-25 ---Sum Assured Rs. 10 Lacs Policy Term = 25 years
Premium Term = 25-3=22 years-------(Premium for 30 year person will be Rs.43048 yearly)
Sum Assured = Rs.10 Lacs
Bonus (48 x1000 x25) = Rs.12 Lacs
Final Bonus (330 x1000) = Rs.3.30 Lacs
Total Maturity payable = Rs.25,30,000



2) Death Benefit – Annual Income Benefit + On maturity, Final Payment of Sum Assured +Bonus

For example- 833-25 --- Sum Assured = Rs.10 Lacs Policy Term = 25 years
In case of death after 10th year

Annual Income Benefit is payable from 11th year to 24th year(10%) – Rs.1 Lacs every year
1 Lac x 14 = Rs.14 Lacs
Sum Assured i.e. 110% of SA = Rs.11 Lacs
Bonus @48 (48 x1000 x10) = Rs.4.80 Lacs
Final Bonus (payable only after 15 years of completion of policy) --- NIL
Total Death Benefit – Rs.29,80,000

Power of Saving Early

Power of saving early: ------------

The earlier you save, the more money will be accumulated.

This works on the compounding factor as savings for a longer period will earn the equivalent compounding advantage.

Thus, Rs. 2,000 saved today will fetch more returns at the time of retirement, than Rs. 3,000 saved 10 years later.

Obviously, time too holds value, which should be unlocked at the earliest.

It is proved that a three years delay could mean 7% lower returns to the portfolio.

Retirement Planning

Retirement is for everyone. We need to plan it out at an early stage.

Mostly in private organizations, we don't get pension. So you need to have a good savings and invest somewhere wherein you will get a regular flow of income like pension.

Moreover, as age progresses, our health slowly starts giving lots of problem. So dthere is medical cost which needs to be taken care of as age progresses.

Taking all these factors, I personally feel we need to be financially secured in the old age and moreover there is life-longevity.

I personally feel this is a good retirement planning provided you start planning today itself.

For a person of around 32 years, you need to pay a premium of Rs.61,139 every year for 25 years and risk cover starts from Rs.20 Lacs increasing to Rs.48 Lacs,.

From the age of 57 years, you will be getting an amount of Rs.3 Lacs every year thereby increasing by 5% every year till the age of 75 years. You will have insurance cover + you can take loan against your policy after the age of 60 years.

Do I Require Life Insurance or What

There are many people who wonder if they require life insurance.

At the same time, there are people who feel they have sufficient insurance to take care.

But life insurance is a must for every people.

Along with life insurance, you can go for other savings also like Mutual Funds/Trading (provided you are ready to take little risks), PPF Accounts, Bank Fixed Deposits or Recurring Deposits or Company FD’s (good company offering fixed deposits).

Savings can act as a security for your family.

For everything you require money.

Savings can help in meeting daily expenses, housing as well as education expenses.

What will happen if one of the earning member pass away all of a sudden? Losing income can have lot of impact on the daily lifestyle. However in such a case, life insurance can minimize the impact.

For short term of 5 years or 10 years or 15 years, you can go for Recurring Deposits/Fixed Deposits/ Systematic Investment Planning (SIP’s), STP’s of Mutual Funds and also invest in Public Provident Funds (wherein you get tax benefit also)/NSC.

For long term say 15 years or 20 years or 25 years, you can go for life insurance. When you choose higher term, the premium is also on the lower side and returns are higher.

Power of Savings

There are many people who wonder if they require life insurance.

At the same time, there are people who feel they have sufficient insurance to take care.

But life insurance is a must for every people. It can act as a savings as well as security for your family.

I can cite an example.

I am a South Indian residing in Mumbai. For conducting religious functions, we have priests. The priest had 2 children i.e. 2 daughters. When he was around 28-30 years, he used to earn very well and had the habit of taking insurance + saving a certain amount of money every month. Time went by and after 10 years, he started getting lots of health problems like blood sugar & blood pressure. Ultimately a stage reached when he was finding it hard to attend to his normal duties. Then he got one of his daughter married and thereafter survival became very difficult for him. A stage came when he had to spend a lot on hospitalization. Ultimately he passed away. Today his family (wife + other daughter who is yet to get married) are able to survive on the money the priest had saved through life insurance + little savings in hand.

This is the power of savings.

If you do it, if not you, your family will at least enjoy the fruits.

Validity of Cheques upto a Period of 3 Months

The Reserve Bank of India (RBI) has mandated that with effect from 01 April 2012, banks should not make payment of cheques/drafts/pay orders/banker's cheques if they are presented beyond the period of three months from the date of such instrument. 

Accordingly, any such instrument issued on or after 01 April 2012 will be valid for payment only up to a period of three months. Kindly make note of this regulatory change in banking practice.

Start Planning for Retirement

Start saving early should be the first plan for retirement.

Because if you don't start early, it will be very difficult after 20-25 years to save.

You will have major challenges like family expenses, children education or education abroad, child's marriage etc.

First and foremost for planning your retirement, you need to estimate your lifestyle expenses. Depending on this factor will be your savings.

Start savings at an early age. Assuming you get a job at an early age of 25 with a monthly salary of Rs.30,000 (+) per month, you need to set aside atleast 20% of your monthly income for your savings and the balance can be utilized for other expenses.

With this type of savings, slowly you can create a passive sort of income.

Give Your Child the Best Education

(Plan Closed on 31 December 2013)

Every Child has his or her dreams.

So would that not be surprising if your child could make his dreams fulfilled by attending his or her dream college and get highly professionalized education.

It is the wish of every parent to give his or her child the best education. But financial constraints could hamper the dreams.

The cost of living as well as education is rising very fast and it is much higher than the income rise.

But to counteract all these, there is a solution.

Provided if you start saving from today onwards and invest your money in the right plan and thereby affording higher fees for courses like Engineering, Medicine, Management etc

LIC is offering Children Plans and many other plans that are worth taking.

Give Your Child the Best Education.

Understanding the concept of inflation

Inflation is a term that is generally used when the price of goods/services goes up. 

On account of this, the buying power reduces. 

At one time you could go and watch a movie for only Rs.2. But that same movie ticket today is costing around Rs. 100 to Rs.200. 

Rice at one time was costing around Rs 5 to Rs. 10 and today the price for Rice for 1 kilo is around Rs 20 to Rs.30 per kilo.

This shows the value of money is coming down on account of inflation.

Endowment Policy from LIC Buy Life Insurance

(Plan Closed on 31 December 2013)

Endowment is one of the most popular plan and this plan is quite popular for fulfilling short term or long term financial needs.

Premium has to be paid for the full term of the policy or till death of the policy holder.

On maturity, policy holder will get Sum Assured Amount + Bonus + Final Addition Bonus.

Death Benefits: Sum Assured Amount + Bonus is given and Final Addition Bonus is given if premium is paid for 15 years or more.

Age at entry : 12 years and Maximum Age: 65 years
Policy Term : 5 to 55 years.

Buy Life Insurance Today and Provide Protection to Your Family.

Inflation and Retirement

With increasing cost, care needs to be taken of inflation. 

Inflation will tend to drain away all your savings. 

Rising prices and rising cost of living will reduce our standard living conditions. 

So savings is very important and it should take care of inflation during our retirement period. When you retire, there is no regular income or any salary income. 

All passive sources of income like retirement funds should give us higher rates of return.

Start Savings at a very Young Age, Decide your lifestyle costs and try creating a passive source of income.

Start Planning for Retirement

I personally feel that it is better to start early or plan early for retirement. It can be very challenging if we do not start early. 

As we age, our savings will slowly start depleting. So when we are in service, we need to actively save the most. 

Atleast 50% of our income should go to savings during our prime age. So start saving from 25 onwards or atleast from 30 years. 

This will help in having enough capital in hand by you reach 60 years of age.

Save and invest wisely. 

What is Retirement

Retirement means that you will not be working or no longer working with the organization with whom who have worked for quite a long time.

On account of retirement, you have to put up with whatever savings you have in hand. The interest earned on your savings will be your income for your retirement period, say from the day when you retire till your existence.

During service, you can accumulate wealth but during retirement, you tend to decumulate this capital.

Today with rapid improvements in medical science, life span is increasing. An average person retires around the age of 55-60 years, they could have another 15-20 years to live. 

This means that their savings should exist till this time. So you need to have funds to manage for another say for atleast 15-20 years post retirement assuming a life span of 75-80 years. 

Start Planning today itself.