How Early LTC Acquisition Affects Ohio Long Term Care Costs

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Services Provided In Nebraska Long Term Care Facilities
by leona hughes

Owning LTC plans would be useless or pointless if there are no nursing homes or other adult day care facilities that could provide the insurance owner's needed LTC services. And in a state where the LTC and medical costs are quite high, it is good to know that there are sufficient Nebraska long term care facilities that the publ...

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Life Insurance Over 50 Is it worth it
by john douglas

As we grow older, we start worrying about things that are out of our control. We don't realize the change is exciting and always bring with it the new experience. How can you experience new thoughts and ideas if you don't let go old thinking? Try and let go the parts of yesterday that are holding you back.

With the new d...

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Make Your Future Smoother By Houston Life Insurance

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Perks Of Buying Florida Long Term Care Early
by leona hughes

Since the government is pushing the public to avail their own long term care plan that could help them with their LTC expenses in the future, the residents of Florida should take this into consideration particularly because the costs of Florida long term care expenses is ...

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Make Your Future Smoother By Houston Life Insurance
by Allen hany

Houston Life insurance underwriting is not understood clearly by many people and they have no clue regarding it when they request for a life insurance policy. Underwriting is to measure the facts furnished by the owner and he has to undergo a paramedical test, so that the company can assess the health jeopardy in his life. The u...

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The Right Travel Insurance Coverage for Your Overseas Trip

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Helpful Tips for Long Term Care Planning
by leona hughes

It is important to maximize everything nowadays. And with the case of long term care plan, it is but necessary that an individual undergo proper long term care planning phases so that the amount that he would pay for his monthly premiums will all be worth it in the end. N...

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Funeral benefits are an essential part of life insurance cover
by Annah Fisher

Funeral customs differ from country to country and from culture to culture. Consider the Vikings who buried their dead with their most treasured possessions as well as food and water so that they would not go hungry on their journey to the afterlife. The ancient Romans, on the other hand, not only cremated their dead but buried ...

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2 wheeler insurance: factors to consider
by Pranav V Sharma

Buying a 2 wheeler insurance policy is a mandatory expense for the owner of the 2 wheeler. The 2 wheeler usually is a motorcycle, bike, scooty etc. Even government has made is compulsory that the person owning a two wheeler must get a 2 wheeler insurance done. Various options or plans are available for 2 wheeler insurance. It is...

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The Hospital Policy Clientele Presents To Their Customers
by Samson Muric

There are many benefits to choosing the Hospital Plan Clientele offers to its clients. It is one of the most cost effective as well as convenient ways to manage your risk. Clientele has built a solid reputation over the past two decades for offering quality insurance coverage products and outstanding customer support. If you cho...

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The Right Travel Insurance Coverage for Your Overseas Trip
by Annika Sharma

All excited for your overseas trip? As the trip date is approaching, your joy knows no bounds. This is the destination that you have been planning to visit since your college days. Now you are a family of four and you are only happy that you are also fulfilling your family's vacationing dreams. Have you bought overseas travel in...

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Collection of Toy Soldier Developing as a Hobby among Little Children

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How to find the best critical illness cover
by taylor lautner

Critical illness can bring a tragic end to our life. The million dollar question is how to choose a critical illness cover. Before diving further, you need to understand that critical illness insurance is relatively affordable and cheap provided you get insuranc...

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Factors to Consider When Buying Miami Beach Luxury Homes
by Randy James

Planning to buy a luxury home or bungalow in Miami beach? Then the first thing that you should do is get in touch with a real estate agent to buy one of the Miami beach luxury homes. In this regard, let me tell you that not all agents are skilled enough to help you buy the type of home that you are looking for. Hence, getting in...

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Accident Claims- Easigo helps both insured & uninsured drivers win their accident claim.
by Nikless simith

For all accident claims, call Easigo Carclaim2day, which is the best accident claims company in the UK. When you have accidents in which you were not at fault, Easigo carclaim2day dept. will handle all aspects of your accident claims; all at no cost to you. This article gives you a guide to making successful accident claims, & ...

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Vehicle insurance for teenagers: tips to reduce the cost of vehicle insurance for teenagers

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LIC hike stake in Reliance Industries
by Ashima Gupta

State-run insurance giant LIC and Government of Singapore have hiked their stakes in Reliance Industries with the purchase of shares worth over Rs 1,550 crore during the last quarter.

Life Insurance Corp of India (LIC) increased its stake in Mukesh Ambani-led Reliance Industries ltd (RIL) from 7.09 per cent t...

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Short Sale Investing Tips For Beginners in Real Estate
by Lincy Stewart

Real estate industry is one such industry where a lot of returns can be reaped when there is a strategical approach. However, the main theme that works here is the tactics that is framed out to deal with the market conditions of the business. Here in this article you will be able to find in some short sale investing tips which w...

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Offshore Merchant Account Services are Flexible and Advantageous
by Randy James

Everyone desires their business to reach the maximum potential. But if you are not getting the right assistance from your native bank or facing problem regarding credit card processing, then you must go for offshore merchant account services. Though these account practices are quite similar to the domestic ones, but it differs i...

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Income Drawdown of QROPS
by Peter Parker

QROPS is one of those rare organizations which are going offering solutions for the people who are willing to opt for the income and pension plans. The company is also famous for possessing the clients in UK and abroad. Apart than that they are suggesting the shortcut methods for paying income and managing world wealth. They hav...

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Vehicle insurance for teenagers: tips to reduce the cost of vehicle insurance for teenagers
by Pranav V Sharma

Teenagers and vehicles are not a good combination. Statistics say that teens represent only 14% of the driving population but account for 30% of the accidents. Thus teens are more at risk of accident than adults. Also the teenage drivers are having the highest reported cases of traffic accidents. This results in vehicle insuranc...

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Surrender Value

Surrender Value

Most of the people who buy any Traditional Policies from LIC or any pvt companies’ don’t think a bit about terms and conditions on exiting the policy much before maturity. A general assumption is that they will at least get their paid premiums back with sum interest. I have seen so many cases like that where people are literally shocked to hear that they will get peanuts or nothing from their policy if they choose not to continue the policy. Surrendering of the policy works this way -

You will not get anything back if you stop your policy without paying for 3 years. Almost every traditional policy attains minimum surrender value after the policy has run for 3 yrs.

After 3 yrs, if you surrender your LIC policy, still you will only get a small fraction of your total paid premiums that too excluding first year premiums. So suppose you have a policy which has Sum assured of 10,00,000 for 20 yrs term with Rs 50,000 premium per year. If you have decided to surrender your policy after paying 5 premiums (you paid 2,50,000 in 5 yrs i.e. Rs 50,000 each year), then you will get around 30%-40% of 4 premiums paid (first year premiums are excluded), hence the total would work out to be only Rs 60,000 – Rs 80,000 only + proportionately reduced amount of accrued bonus if any (only because you completed 5 yrs, else you will not get this also).

Loyalty additions and guaranteed additions

Loyalty Additions
This is again a bonus which is declared for being loyal to the LIC and completing a longer tenure. Generally it’s declared at the end of the policy, but for some policies it might be applicable after completion of 5 or 10 yrs. For example – In Jeevan Saral, the policy holders will earn such additions after a minimum of ten policy years have been completed.  This is usually an amount declared per thousand of sum assured depending on the corporation’s performance. Loyalty additions are totally non-guaranteed.

Guaranteed Additions
For a lot of LIC policies there is a term mentioned like “Guaranteed Additions”. These are assured sums which are given to policyholders for a specific period at start or end of some event along with the sum assured at the end of the term. Like for example, , Jeevan Shree-1 policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Basic Sum Assured at the time of claim.

LIC Bonus & Additions to your Policy

LIC Bonus & Additions to your Policy

LIC Bonus & Additions to your Policy

The biggest confusion I see is generally in Bonus by LIC. One thing which investors in these policies don’t know and don’t care for to find out is that there are different kinds of bonuses in LIC policies and they are calculated differently. Let’s see them one by one.

1. Simple Reversionary Bonuses

Generally when we say “Bonus”, it is this “Simple Reversionary Bonus”, which is declared per thousand of the Sum Assured on annual basis at the end of each financial year. This bonus is declared today, but is paid at the end of maturity period only or on death, whichever is earlier. So for example if you hold a policy of Rs 10,00,000 Sum assured and the bonus for this year is Rs 60 per thousand sum assured, then your bonus amount is Rs 60,000 for this year, but you will only get it at maturity (after many many years) or on death, but by then it’s worth would be much lesser than today (this 60,000 today and 60,000 after 20 yrs).

A very important point to note here is that, if you surrender the policy, you don’t get the actual accrued bonus because it’s the future value, you will only get its reduced amount in today’s term and its very less. Also note that you are eligible to get reduced Accrued Bonus only if your policy has completed 5 premium paying terms. (This thread on our forum discusses Jeevan Anand in good detail)

How Lic Policy works

There are many policies:-

             For example :  – LIC Jeevan Saral , Jeevan Anand , Jeevan Tarang and many more LIC policies. So almost every person in India holds a LIC policy, but majority of them do not know how these LIC policies works ?

How LIC Policies Work ?

Most of the investors just take things for granted and keep dragging the policies assuming it would be the best thing in their financial life. In this article I will show you how Life Insurance Corporation (LIC) policies work and talk about few aspects like LIC bonus, LIC premiums and different other aspects which will help you in understanding how these policies work.

Moneyback Plans or Non-Moneyback Plans

A lot of LIC policies pay you on a periodic basis like at the end of 4th, 8th and 12th year, and then finally at the end of the maturity period. These policies are Money back policies, the example can beLIC Jeevan Surabhi or LIC Komal Jeevan. A lot people get attracted to these moneyback plans because they get money “many” times in between and it looks attractive to them, but the premiums are generally higher for these policies.