Jeevan Suraksha is a deferred annuity/pension plan, which allows policyholder to make provision for regular income after the selected term or after the age of retirement.
Risk cover under LIC’s Jeevan Suraksha
On death of the Life Assured during the term of the policy the basic premiums paid, excluding any rider premiums or extra premiums, up to the date of death accumulated with interest at such rates as decided by LIC of India will be payable to the nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the first 10 years, 20 years or thereafter respectively.
Tax Benefits under Jeevan Suraksha:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax relief under Section 88.
At maturity the policyholder can encash upto a maximum 25% of the maturity proceeds as a tax-free lump sum. The balance should be compulsorily converted to an annuity at the rates applicable at the time of maturity of the policy. The policyholder has the choice of opting for any one of 5 annuity options.
The annuity options available under LIC’s Jeevan Suraksha pension plan are
- Annuity payable for remainder of life
- Annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
- Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant
- Life annuity with a return of purchase price on death of the annuitant
- Life annuity increasing at a simple rate of 3% per annum
Benefit Illustration of LIC of India’s pension plan Jeevan Suraksha:
LIC of India has withdrawn Jeevan Suraksha plan for fresh sales. If you are already bought this plan, it will continue as it is and you will get the pension as per the plan you have opt for.