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Life Insurance Plan No. 149 – Best Plan Covering risk of death throughout the life

General Policy Conditions:

Min age at entry 18 (completed)

Max age at entry 65

Min Premium Paying term 5 years

Max Premium Paying term 57 years

Min Sum Assured 1 lac

Max Sum Assured Any amount

Premium Payment mode Yearly/Half yearly/quarterly/monthly

Accidental benefits Already included in this plan, you don’t need to pay extra premium for that (this is the special thing this plan has, no other plan has accidental benefit included implicitly)



Maturity Benefit:

SA + Bonus + Final Additional bonus

Death Benefit:

1. If Death before Premium Paying Term

SA + accumulated bonus

2. If Death after Premium Paying Term


Accidentail benefit:

During Premium Paying Term and After that till 70 years of Age


Tax benefit:

You can deduct Premium amount of that year from your total income and then apply and calculate income tax on remaining income.

Sample Example:

Age: 24 years

SA: 2.5 lacs

Premium Paying Term: 25 years

Premium: Yearly – Rs. 10,440 , Half yearly – Rs. 5,301 , Quarterly – Rs. 2,691 , Monthly – Rs. 942


Maturity benefit:

At the end of 25 years, you will get 7 lacs which includes SA i.e. 2.5 lacs + bonus + final bonus

Death benefit:

1. If you die before 25 years, your nominee gets 2.5 lacs + bonus accumulated till you die

2. If you die after 25 years, your nominee will get 2.5 lacs (remember in this case you have already gt 7 lacs at maturity)

Accidental benefit:

If you die because of accident or become disabled during 25 years or there after till age 70 Age your nominee / you will get 2.5 lacs. (This is a plus point as its included in the premium it self)

Tax benefit:

You can deduct Premium amount of that year from your total income and then apply and calculate income tax on remaining income.


Income Tax Slabs for Year 2008-2009

Income Tax Slab for Men (for resident men below 65 years age):

Upto Rs. 1,50,000 – NIL

From Rs. 1,50,000 to Rs. 3,00,000 – 10%

From Rs. 3,00,001 to Rs. 5,00,000 – 20%

Above Rs 5,00,001 – 30%

Income Tax for Women (for resident women below 65 years age):

Upto Rs. 1,80,000 – NIL

From Rs. 1,80,001 to Rs. 3,00,000 – 10%

From Rs. 3,00,001 to Rs. 5,00,000 – 20%

Above Rs 5,00,001 – 30%

Income Tax for Senior Citizen (for resident individual of 65 years or above):

Upto Rs. 2,25,000 – NIL

From Rs. 2,25,001 to Rs. 3,00,000 – 10%

From Rs. 3,00,001 to Rs. 5,00,000 – 20%

Above Rs 5,00,001 – 30%

Life Insurance Vs. Other Savings

Contract Of Insurance:

A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.


Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages ‘thrift’. It allows long-term savings since payments can be made effortlessly because of the ‘easy instalment’ facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly).

For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one’s salary.

In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.


In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force.

Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time.

Children’s education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one’s retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

What is Life Insurance

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

  • The date of maturity, or
  • Specified dates at periodic intervals, or
  • Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilisation’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

1. That of dying prematurely leaving a dependent family to fend for itself.

2. That of living till old age without visible means of support.