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PENSION LIFE INSURANCE

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Pension Life Insurance

What is Pension/ Retirement Planning

This is a single premium arrangement wherein the Policyholder has an alternative to pick an Immediate or Deferred annuity.
The annuity rates are ensured at the origin of the arrangement for both Immediate and Deferred Annuity and annuities are payable for the duration of the existence time of Annuitant(s).
- Benefits of Annuity
  - Make a one-time venture and get guaranteed long-lasting pay.
  - 9 distinctive annuity alternatives to look over to suit each need and condition.
  - An alternative to pick either Immediate Annuity or delay it to a future date as Deferred Annuity.
  - Annuity rates are ensured from the beginning of the arrangement.
  - Ensured increments during postponement period.
  - This approach can be taken on possess life or as a joint existence with grandparent, parent, youngsters, grandkids, life partner or kin.
  - Advance Available: Loan office will be accessible after the fruition of 1 arrangement year.
  - 1. Give up Allowed:
    - The approach can be given up at whenever following three months from the fruition of strategy when Annuity Option is with the return of price tag
  - 2. Free look Period:
    - If the Policyholder isn't happy with the "Terms and Conditions" of the approach, the arrangement might become back to the Corporation inside 15days.

What is annuity?

An annuity is an agreement among you and an insurance agency to cover explicit objectives, for example, head assurance, lifetime salary, inheritance arranging or long haul care costs.
Despite the fact that they might be showcased as speculations, "annuities are not ventures," . "They're contracts." They lock you and the insurance agency into legally binding commitments, and breaking them – if that is even conceivable – can come at a lofty expense.
Past these nuts and bolts, there's little about annuities that is basic. Annuities and the standards under which they work can be muddled, so it may assist with perceiving that a typical wellspring of retirement pay – Social Security – is an annuity of sorts.

How does an annuity work?

An annuity works by moving danger from the proprietor, called the annuitant, to the insurance agency
Like different sorts of protection, you pay the annuity organization premiums to shoulder this hazard
Premiums can be a solitary single amount or a progression of instalments, contingent upon the sort of annuity. The premium-paying period is known as the amassing stage.
In contrast to different kinds of protection, you don't pay annuity premiums inconclusively. In the end, you quit paying the annuity and the annuity begins paying you. At the point when this occurs, your agreement is said to enter the payout stage.
There's incredible adaptability in how annuity installments are dealt with. Annuities can be organized to trigger installments for a fixed number of years to you or your beneficiaries, for your lifetime, until you and your life partner have died, or a blend of both lifetime salary with an ensured "period certain" payout. An "existence with period certain annuity" pays you pay forever, yet in the event that you bite the dust during a predefined time span (the period certain years), the annuity will pay your recipient the rest of your instalments for the legally binding time frame you picked at the hour of utilization.
Similarly as with Social Security, annuity lifetime pay streams depend on the beneficiary's future, with littler instalments got over longer periods. So the more youthful you are the point at which you begin accepting salary, the more drawn out your future is, or the more drawn out the period certain term is, the littler your instalments will be.
Instalments can be month to month, quarterly, yearly, or even a single amount. They can begin quickly or they can be deferred for quite a long time, even decades.
"Annuities are profoundly customization," . Finding an annuity to address your issues boils down to two inquiries, he says: First, "what do you need the cash to authoritatively do? Also, second, when do you need those authoritative certifications to begin?"

Does this plan have waiver of premium?

Yes, In case of permanent disability thanks to an accident, the corporate waives all future premiums and your policy continues uninterrupted.

Does this plan provide tax benefits?

Yes, it gives two sorts of tax benefits.
Premiums paid are tax-free under section 80 C.
When you choose Critical Illness benefit you'll get additional tax break under section 80D.
Claim amount received by you or your nominee is tax free under section 10 (10D).
Tax benefits under the policy are subject to conditions under Sec. 80C , 10(10D) and other provisions of the Income tax Act, 1961.

Income Tax Exemption on payment of Life Insurance Premium (Sec. 80C)

Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof under an insurance policy, (other than a contract for a deferred annuity,) issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.
Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, under an insurance policy, (other than a contract for a deferred annuity,) issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured or actual premium paid whichever is less.. Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person,
who is—
I. a person with disability or a person with severe disability as referred to in section 80U, or
II. suffering from disease or ailment as specified in the rules made under section 80DDB, deduction under this section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.
Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

Income Tax Deduction under section 80D

Deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e. Spouse & dependent children) or any contribution made to the central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or on account of Preventive health check –up of the assessee or his family .
Additional deduction upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of parents or on account of Preventive health check –up of the parent of the assessee, whether dependent or not .
In case of HUF, deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of any member of that HUF.
If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the health of any person specified therein who is a senior citizen, then the deduction available will be up to Rs.30,000/-. Here senior citizen means the person who is of sixty year or more during the previous year.
In Case the amounts are paid in (a) or (b) or (c) on account of preventive health check up , the deduction for such amounts shall be allowed to the extent it does not exceed in aggregate Rs. 5,000 /-.
For the purpose of deduction, the payment shall be made by
Any mode, including cash, in respect of any sum paid on account of preventive health check up .
Any mode other than cash in all other cases.
The insurance as mentioned above shall be in accordance with the scheme framed by
The General Insurance Corporation of India as approved by the Central Government in this behalf or;
Any other insurer and approved by the Insurance Regulatory and Development Authority.

Income Tax Exemption on Maturity / Death Claims proceeds under Section 10 (10 D)

As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempt from tax where the sum is received as a death benefit.
To get exemption under above section for sum received other than death benefit following conditions to be satisfied:
I . Policy shall not be issued under Section 80DD(3), or
II . Policy shall not be issued as a Key man Insurance Policy, or
III . Policy which has been issued on or after April 1, 2003 and the premium paid in any of the years during the term of the policy not exceeding 20% of the Actual Capital Sum Assured.
IV . Policy which has been issued on or after April 1, 2012 and the premium paid in any of the years during the term of the policy not exceeding 10% of the Actual Capital Sum Assured.
Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—
a person with disability or a person with severe disability as referred to in section 80U, or
suffering from disease or ailment as specified in the rules made under section 80DDB, exemption under this section shall be available only if the premium payable in any of the years is not more than 15% of the actual Capital Sum assured.

CLAIM PROCESS FOR LIFE INSURANCE POLICY

Step by step instructions to make a Claim – Life Insurance

I . At the point when an individual with a disaster protection strategy – called a real existence guaranteed – passes on, a case insinuation ought to be sent to the insurance agent as ahead of schedule as could reasonably be expected.
The chosen one or candidate under the arrangement can do this.
So can any close family member or the operator who handles the strategy.
The case suggestion ought to contain data like the date, spot and reason for death.
The protection specialist has the obligation to help the existence guarantee’s family/trustee to manage the insurance agent to satisfy the conventions for a case.
II . The insurance agent will react to this insinuation and will request the accompanying archives:
Topped off case structure (gave by the insurance agent)
Endorsement of death
Arrangement report
Deeds of assignments/re-assignments assuming any
Legitimate proof of title, if the strategy isn't doled out or designated
III. Type of release executed and saw
Different archives, for example, restorative chaperon's testament, emergency clinic authentication, boss' endorsement, police examination report, after death report and so on could be called for, as relevant.

Maturity Claim Process of Life Insurance Policy

Where an extra security strategy is developing, the insurance agent will normally send implication to the policyholder alongside a release voucher in any event a few months ahead of time of the date of development giving subtleties like the development sum payable.
The policyholder needs to sign the release voucher – which resembles a receipt – have his mark saw and send it back to the insurance agent alongside the first approach attach to empower it to make the instalment.
On the off chance that the approach has been allotted for some other individual or substance – like a lodging credit organization – the case sum will be paid distinctly to the trustee who will give the release.