{"id":8716,"date":"2017-12-23T08:05:08","date_gmt":"2017-12-23T02:35:08","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=8716"},"modified":"2018-04-21T23:44:54","modified_gmt":"2018-04-21T18:14:54","slug":"lic-plans-tax-saving-2017","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/lic-plans-tax-saving-2017\/","title":{"rendered":"Should you Invest in New LIC Plans for Tax Saving?"},"content":{"rendered":"

LIC Plans are one of the most popular investment options in the name of saving tax. Every year LIC comes out with NEW insurance plans especially in the month of December to March for tax savers. But have you ever evaluated if these LIC plans are worthy investment especially for tax saving?<\/strong> We evaluate these plans for you and tell you if you should invest in them and if there are better alternatives.<\/p>\n

In 2017 LIC has launched following tax saving plans:<\/strong><\/p>\n

    \n
  1. LIC Jeevan Shiromani<\/li>\n
  2. LIC Jeevan Umang<\/li>\n
  3. LIC Jeevan Utkarsh<\/li>\n
  4. LIC Aadhaar Shila<\/li>\n
  5. LIC Aadhaar Stambh<\/li>\n<\/ol>\n

    These plans can be classified as Endowment plans, Single Premium Traditional plan or Whole-life plan. We discuss the plans one by one.<\/p>\n

    LIC Jeevan Shiromani:<\/h2>\n

    Launched in December 2017 LIC Jeevan Shiromani is Non-linked, Money back, Limited premium payment with guaranteed additions plan targeted for HNIs (High Net-worth Individuals)<\/p>\n

    Minimum Sum Assured:<\/strong><\/span> Rs 1 Crore<\/p>\n

    Age for Entry:<\/strong><\/span> 18 to 55 Years<\/p>\n

    Maturity Benefit:<\/strong><\/span> Sum Assured on Maturity + Guaranteed Additions + Loyalty Addition if any<\/p>\n

    Death Benefit:<\/strong><\/span> Sum Assured on Death + Guaranteed Additions + Loyalty Addition if any. In case death occurs before 5 years only Sum Assured on Death + Guaranteed Additions are paid to the nominees<\/p>\n

    Expected Returns:<\/strong><\/span> The returns could vary from 5% to 7% depending on loyalty bonus rates and your age at entry and premium paying term<\/p>\n

    Should you Invest?<\/strong><\/span>\u00a0For 1 crore sum assured the annual premium would be more than Rs 7 lakhs depending on the age and term. So this is clearly for HNIs. The expected returns are may vary from 5% to 7% which is low as HNIs can take more risk in their investments. Also from tax saving angle investors would be much better-off with investment in ELSS funds and buying separate term insurance.\u00a0Our recommendation is to stay away from\u00a0LIC Jeevan Shiromani.<\/strong><\/em><\/p>\n

    Also Read:<\/strong>\u00a0How are ULIP & Life Insurance Policies Taxed on Surrender & Maturity?<\/a><\/p><\/blockquote>\n

    LIC Jeevan Utkarsh:<\/h2>\n
    \"LIC
    LIC Jeevan Utkarsh Review<\/strong><\/figcaption><\/figure>\n

    Launched in September 2017, LIC Jeevan Utkarsh is single-premium traditional, non-linked, with-profits, savings cum protection plan.\u00a0This plan would close for investment on March 31, 2018.<\/p>\n

    Minimum Sum Assured:<\/strong><\/span> Rs 75,000<\/p>\n

    Age for Entry:<\/strong><\/span> 6 to 47 Years<\/p>\n

    Maturity Benefit:<\/strong><\/span> Sum Assured on Maturity + Loyalty Addition if any<\/p>\n

    Death Benefit:<\/strong><\/span> Sum Assured on Death + Loyalty Addition if any. In case death occurs before 5 years only Sum Assured on Death is paid to the nominees<\/p>\n

    Expected Returns:<\/strong><\/span> The returns could vary from 5% to 7% depending on loyalty bonus rates and your age at entry<\/p>\n

    Should you Invest?<\/strong><\/span>\u00a0Single premium life insurance plans are expensive form of insurance. As can be seen the expected returns are may vary from 5% to 7%. If buying for tax saving you would get better returns by investing in PPF<\/a> and buying term insurance separately.\u00a0Our recommendation is to stay away from LIC Jeevan Utkarsh.<\/strong><\/em><\/p>\n

    Also Read:\u00a0Single Premium or Yearly Premium for Life Insurance \u2013 Which is better?<\/a><\/p><\/blockquote>\n

    LIC Jeevan Umang:<\/h2>\n
    \"LIC
    LIC Jeevan Umang – Review<\/strong><\/figcaption><\/figure>\n

    Launched in May 2017, LIC Jeevan Umang is a whole life insurance with limited premium payment option plan.\u00a0It provides annual Survival Benefits after the premium paying term till maturity\/death and also lump-sum amount at the time of maturity\/death.<\/p>\n

    Minimum Sum Assured:<\/strong><\/span> Rs 2,00,000<\/p>\n

    Age for Entry:<\/strong><\/span> 90 days to 55 Years<\/p>\n

    Maturity Benefit:<\/strong><\/span> Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus (if any)<\/p>\n

    Death Benefit:<\/strong><\/span> Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus (if any) is paid to the nominees<\/p>\n

    Expected Returns:<\/strong><\/span> The returns could vary from 5% to 7% depending on bonus rates and your age at entry<\/p>\n

    Should you Invest?<\/strong><\/span>\u00a0As can be seen the expected returns are may vary from 5% to 7%. If buying for tax saving you would get better returns by investing in PPF<\/a> and buying term insurance separately.\u00a0Our recommendation is to stay away from LIC Jeevan Umang.<\/strong><\/em><\/p>\n

    Also Read:<\/strong>\u00a09 Tips to Buy the Right Life Insurance<\/a><\/p><\/blockquote>\n

    LIC Aadhaar Stambh Plan:<\/h2>\n
    \"LIC
    LIC Aadhaar Stambh and LIC Aadhaar Shila Plan<\/strong><\/figcaption><\/figure>\n

    Launched in April 2017, LIC Aadhaar Stambh is with profit, non-linked regular premium paying Endowment insurance plan\u00a0for males<\/strong> with Aadhaar number.<\/p>\n

    Minimum Sum Assured:<\/strong><\/span> Rs 75,000<\/p>\n

    Age for Entry:<\/strong><\/span> 8 to 55 Years<\/p>\n

    Maturity Benefit:<\/strong><\/span> Sum Assured on Maturity + Loyalty Addition if any (if any)<\/p>\n

    Death Benefit:<\/strong><\/span> Sum Assured on Death + Loyalty Addition if any. In case death occurs before 5 years only Sum Assured on Death is paid to the nominees<\/p>\n

    Expected Returns:<\/strong><\/span> The returns could vary from 4% to 5% depending on bonus rates and your age at entry<\/p>\n

    Should you Invest?<\/strong><\/span>\u00a0This is a regular endowment plan with no other USP. The plan is just riding on the Aadhaar popularity. The returns are may vary from 4% to 5%. If buying for tax saving you would get better returns by investing in PPF and buying term insurance separately.\u00a0Our recommendation is to stay away from LIC Aadhaar Stambh Plan.<\/strong><\/em><\/p>\n

    Also Read:\u00a0<\/strong>15 Investments to Save Tax u\/s 80C \u2013 Which is the Best?<\/a><\/p><\/blockquote>\n

    LIC Aadhaar Shila Plan:<\/h2>\n

    Launched in April 2017, LIC Aadhaar Shila is with profit, non-linked regular premium paying Endowment insurance plan\u00a0for females<\/strong> with Aadhaar number.<\/p>\n

    Minimum Sum Assured:<\/strong><\/span> Rs 75,000<\/p>\n

    Age for Entry:<\/strong> <\/span>8 to 55 Years<\/p>\n

    Maturity Benefit:<\/strong><\/span> Sum Assured on Maturity + Loyalty Addition if any (if any)<\/p>\n

    Death Benefit:<\/strong><\/span> Sum Assured on Death + Loyalty Addition if any. In case death occurs before 5 years only Sum Assured on Death is paid to the nominees<\/p>\n

    Expected Returns:<\/strong><\/span> The returns could vary from 4% to 5% depending on bonus rates and your age at entry<\/p>\n

    Should you Invest?<\/strong><\/span>\u00a0This is a regular endowment plan with no other USP. The plan is just riding on the Aadhaar popularity. The returns are may vary from 4% to 5%. If buying for tax saving you would get better returns by investing in PPF and buying term insurance separately.\u00a0Our recommendation is to stay away from LIC Aadhaar Stambh Plan<\/strong><\/em>.<\/p>\n

    Also Read<\/strong>:\u00a0How to Save Income Tax for FY 2017-18 \u2013 Download Complete Tax Planning Guide<\/a><\/p><\/blockquote>\n

    \"Should
    Should you Invest in New LIC Plans for Tax Saving?<\/strong><\/figcaption><\/figure>\n

    LIC Plans for Tax Saving? My recommendations:<\/h2>\n

    LIC stands for Life Insurance Corporation \u2013 which means it primarily is in insurance business and NOT investment.<\/p>\n

    Most insurance plans with investment component (like endowment plan, Money back plan, etc) offer low returns<\/strong> in the range of 4% to 7%.<\/p>\n

    Due to high premium, investors neither get adequate insurance nor good returns.<\/strong> Its good idea to buy pure term life insurance and invest rest in PPF (if you are conservative) or ELSS (if you are aggressive) to save tax.<\/strong><\/p>\n

    Also Read:<\/strong>\u00a0Best ELSS (Tax Saving Mutual Fund) to Invest in 2018<\/a><\/p><\/blockquote>\n

    Generally December to March is the time when LIC and other insurance companies launch new tax saving investment plans and insurance agents are out in full force to sell these as tax saving investments. Be cautious and select the right investment or you may regret later!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    LIC Plans are one of the most popular investment options in the name of saving tax. Every year LIC comes out with NEW insurance plans especially in the month of December to March for tax savers. But have you ever evaluated if these LIC plans are worthy investment especially for tax saving? We evaluate these […]<\/p>\n","protected":false},"author":1,"featured_media":8721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[5,16,63,6],"tags":[3625,3624,3629,3623,3622,3628,3626,3627],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving.png",1015,551,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving-300x163.png",300,163,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving-768x417.png",768,417,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving.png",1015,551,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving.png",1015,551,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving.png",1015,551,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/12\/Should-you-Invest-in-New-LIC-Plans-for-Tax-Saving.png",120,65,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":1,"uagb_excerpt":"LIC Plans are one of the most popular investment options in the name of saving tax. Every year LIC comes out with NEW insurance plans especially in the month of December to March for tax savers. But have you ever evaluated if these LIC plans are worthy investment especially for tax saving? We evaluate these…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/8716"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=8716"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/8716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/8721"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=8716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=8716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=8716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}