LIC Jeevan Saral Maturity Calculator

The Life Insurance Corporation of India (LIC) offers a range of life insurance plans which promise attractive benefits. Both traditional, as well as market-linked insurance plans, are offered by LIC. One such policy is LIC’s Jeevan Saral policy which was quite popular among individuals when it was offered. The policy, however, has been withdrawn by the company. However, the company offers several life insurance plans, some of them combined with attractive investment options that make for a great overall package. The list of plans along with their briefly explained features can be found here. We at Turtlemint also offer a number of life insurance plans combined with investment options suited to your personal needs. Click the link below to browse the most relevant plans at attractive premiums

LIC Jeevan Saral is a traditional life insurance plan promising guaranteed death and maturity benefits. The plan promised a secured corpus which was why many individuals invested in it. Let’s understand how –

What is LIC’s Jeevan Saral Plan?

LIC’s Jeevan Saral Plan is a traditional endowment plan which has a guaranteed death or maturity benefit. The plan requires you to pay a premium depending on which the death and maturity benefits are calculated.

Salient features of LIC’s Jeevan Saral Plan

  • You could choose the amount of premium that you wanted to pay and the premium payment mode
  • This is a participating endowment plan wherein you get loyalty additions when the plan matures or in case of death
  • The death benefit is 250 times the monthly premium that you pay along with the loyalty additions
  • There are riders under the plan which you could choose as per your coverage requirements

Benefits of LIC’s Jeevan Saral Plan

LIC’s Jeevan Saral Plan gives you the following benefits –

  • You can get the guarantee of death benefit throughout the policy tenure. Thus, the plan provides financial security
  • Loyalty additions enhance the corpus and give you additional returns
  • Since you can choose the premium you have the flexibility of choosing the amount that you want to invest under the plan
  • The plan can be surrendered if you have paid at least three full years’ premium. The surrender benefit is guaranteed and depends on the number of premiums that you have paid

Being the largest life insurer in India, LIC has a variety of plans that combine the unique benefits of the Jeevan Saral Plan and other important features of life insurance that can easily be compared for their pros and cons here.

LIC Jeevan Saral Calculator

LIC’s Jeevan Saral is a beneficial plan which gives a lot of benefits to policyholders. Let’s understand how the death and maturity benefits of the plan are calculated.

Jeevan Saral calculator – death benefit

The death benefit under the plan is calculated using the following formula-

Death benefit = (250 * monthly premium paid) + Loyalty Additions paid on death

Jeevan Saral calculator – maturity benefit

The maturity sum assured is calculated based on your entry age and the premium that you have paid. It also depends on the policy tenure. On maturity, the benefit paid would be calculated as follows –

Maturity benefit = maturity sum assured + loyalty additions

Let’s understand the working of the plan with the help of an illustration –

Illustration 

Suppose a 35-year-old male buys the plan for a term of 25 years. The premium is paid yearly and the amount of annual premium is INR 4704. Given these details, let’s check the maturity and death benefit promised by the plan –

Jeevan Saral Calculator

Policy year Annual premium Cumulative premium Loyalty Additions* Guaranteed Death Benefit
Case 1 Case 2 Case 1 Case 2
Year 1 INR 4704 INR 4704 NA NA INR 100,000 INR 100,000
Year 5 INR 4704 INR 23,520 NA NA INR 119,200 INR 119,200
Year 10 INR 4704 INR 47,040 INR 7000 INR 18,000 INR 150,200 INR 161,200
Year 15 INR 4704 INR 70,560 INR 13,000 INR 41,000 INR 180,200 INR 208,200
Year 20 INR 4704 INR 94,080 INR 30,000 INR 100,000 INR 221,200 INR 291,200
Year 25 INR 4704 INR 117,600 INR 65,000 INR 211,000 INR 280,200 INR 426,200

(*Loyalty additions are not guaranteed. That is why they have been calculated at an assumed rate for calculation purposes.)

When the policy matures after 25 years, you get the guaranteed benefit of INR 280,200 or INR 426,200 depending on the loyalty addition added under the policy.

Since the policy has been withdrawn, you cannot apply for a fresh plan. However, if you have already invested in the plan when it was sold, you can check your maturity value and death benefit using the Jeevan Saral Calculator. Moreover, you have two options for managing your policy. You can either continue the coverage by paying the premium or you can surrender the plan and apply for a new endowment policy offered by LIC as well as other leading life insurance companies. When you surrender the Jeevan Saral plan, you get a surrender value if you have paid at least the first three years’ premiums. Do you know how the surrender value is calculated?

Jeevan Saral calculator – surrender benefit

If you have paid three full years’ premiums, you can surrender the plan. On surrender, the policy pays the surrender benefit. This benefit is calculated to be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). Special Surrender Value is applicable when premiums for more than three years have been paid. The values are calculated as follows –

GSV = 30% of total premiums paid – first-year premium

SSV depends on the number of premiums paid and is calculated as follows –

  • 80% of the maturity sum assured if premiums for more than 3 years but less than 4 years have been paid
  • 90% of the maturity sum assured if premiums for more than 4 years but less than 5 years have been paid
  • 100% of the maturity sum assured if premiums for more than 5 years have been paid

So, if the above illustration is considered, here are the surrender values which you can expect from the policy –

LIC Jeevan Saral Calculator – calculation of surrender benefit

Policy year Annual premium Cumulative premium Loyalty Additions* Guaranteed Surrender Value
Case 1 Case 2 Case 1 Case 2
Year 3 INR 4704 INR 14,112 NA NA INR 8099 INR 8099
Year 5 INR 4704 INR 23,520 NA NA INR 18,660 INR 18,660
Year 10 INR 4704 INR 47,040 INR 7000 INR 18,000 INR 50,360 INR 61,360
Year 15 INR 4704 INR 70,560 INR 13,000 INR 41,000 INR 88,200 INR 116,200
Year 20 INR 4704 INR 94,080 INR 30,000 INR 100,000 INR 136,124 INR 206,124
Year 25 INR 4704 INR 117,600 INR 65,000 INR 211,000 INR 200,296 INR 346,296

(*Loyalty additions are not guaranteed. That is why they have been calculated at an assumed rate for calculation purposes.)

Claiming the maturity benefits of LIC Jeevan Saral Plan 

If you do not surrender but continue the plan to term, you get the maturity benefit when the term comes to an end. To avail the maturity benefit you would have to fill up a Maturity Discharge Form and submit the same to LIC. You would also have to submit the original policy document for the claim process to be properly completed. In case you have lost the original policy bond you would have to file a police FIR and fill up an indemnity bond. Your claim would then be processed based on the FIR and the indemnity bond and the maturity amount would be credited to your bank account.

LIC’s Jeevan Saral Policy pays guaranteed benefits and lets you decide on the premium that you want to invest. So, understand the policy benefits before you invest in the plan. Use LIC Jeevan Saral calculator to calculate the plan benefits so that you know the benefits which you can receive in case of death, early surrender or maturity. LIC Jeevan Saral calculator helps you to quantify the benefits giving you an estimate of the funds which you can create with the plan. However, the plan has been withdrawn and so if you are looking for other endowment plans which give a guaranteed benefit, here are some of the best options –

LIC’s Jeevan Labh

  • It is a participating endowment plan which offers simple reversionary bonuses throughout the policy tenure
  • There are two optional riders if you want to increase the scope of coverage under the plan
  • You get premium discounts if you pay premiums yearly or half-yearly and also if the chosen sum assured is INR 5 lakhs and above

Plan parameters 

Entry age 8 years to 59 years
Sum assured INR 2 lakh onwards
Premium Depends on the coverage, age and term selected
Policy term 16, 21 or 25 years
Premium payment mode Limited pay

HDFC Life Sanchay Plus 

  • There are four coverage options to choose from
  • Two additional riders are available under the plan
  • The plan promises guaranteed incomes till 99 years of age if you choose Lifelong income coverage option

Plan parameters 

Entry age 5 years to 60 years
Sum assured Depends on age, term, premium amount and the coverage option selected
Premium Minimum – INR 30,000/year

Maximum – no limit

Policy term 6 years to 20 years
Premium payment mode Limited pay

HDFC Life offers a number of plans that closely compete with LICs insurance plans. These plans seek to provide the assurance of a secure financial future to the customers. It offers plans with multiple benefits and flexible modes of payments, which can be found here.

ICICI Pru Life Cash Advantage Plan 

  • The plan offers guaranteed incomes every year for 10 years during the term of the plan
  • Premiums are payable for a limited tenure after which the guaranteed incomes start
  • A guaranteed maturity benefit is paid when the plan matures

Plan parameters 

Entry age 0 years to 60 years
Sum assured 7 or 10 times the annual premium depending on the age
Premium Minimum – INR 12,000/year

Maximum – no limit

Policy term 15, 17 or 20 years
Premium payment mode Limited pay

Bajaj Allianz POS Goal Suraksha

  • The policy offers guaranteed additions which help in enhancing the corpus
  • On maturity, the benefit payable is guaranteed
  • You can avail a policy loan for financial needs
  • You can choose to change the premium payment mode during the policy tenure

Plan parameters

Entry age 18 years to 55 years
Sum assured Minimum – INR 30,000

Maximum – INR 10 lakhs

Premium Minimum – INR 3000/year

Maximum – depends on the maximum sum assured, age and term

Policy term 10 or 15 years
Premium payment mode Limited pay

Bajaj Allianz is counted among India’s leading insurance companies. Its POS Goal Suraksha plan has additional features to benefit the customer. Along with it, the company offers other diverse variety of plans for life insurance which can be found here.

Still confused about which life insurance linked investment option to choose from? Choose the best investment plan from a wide variety of insurance providers & compare them for the best features suitable to you at Turtlemint’s investment comparison portal.

You can choose from these top endowment plans and create a good maturity corpus. To buy any of these plans you can choose Turtlemint which allows you to buy the policy online through some simple steps. Visit Turtlemint and compare the available endowment plans. Choose the best plan as per your coverage requirements and you can buy the plan with some simple clicks of the mouse. It’s as simple as that!

LIC Plans for 10 Years with Returns & Alternatives

The Life Insurance Corporation of India (LIC) is a leading insurance company which enjoys the unparalleled trust of its policyholders. The company is the oldest life insurance company which has been around since the year 1956. Over the course of its existence, LIC has issued different types of life insurance plans to fulfil the different insurance needs of customers. Many of the older plans have been withdrawn and in their place, the company has introduced new plans in the market.

Among the different plans offered by LIC, single premium policies are popular among those individuals who are looking to invest a lump sum amount of money at once and enjoy coverage for a longer duration. LIC offers various types of single premium policies which have a term of 10 years and above. Let’s have a look at the available LIC 10-year plans with the facility of single premium payments.

  1. LIC’s Single Premium Endowment Plan
    LIC’s Single Premium Endowment Plan is a traditional endowment assurance plan where the premium is required to be paid only when you buy the policy. The plan has the following features and benefits –

      • Bonuses are added to the corpus of the policy throughout the plan duration
      • Sum assured and accrued bonuses are paid either on death or on the maturity of the plan
      • If you choose a sum assured of INR 1 lakh and above, you get a premium discount. The discount ranges from 18% to 30% of the sum assured depending on the sum assured level selected
      • You can avail a policy loan from the second policy year

    Plan parameters of LIC’s Single Premium Endowment Plan:

    Age at entry 90 days to 65 years
    Term of the plan 10 years to 25 years
    Sum assured INR 50,000 onwards
    Single premium Depends on the age, term and sum assured selected
  2. LIC’s New Bima Bachat Plan
    Bima Bachat is another plan which requires a single premium for the policy. Though the minimum term of the plan is 9 years, it also offers you the option to choose a term of 12 or 15 years. The salient features of the plan are as follows

      • Loyalty additions are added to the policy after the completion of the first five years of the plan
      • This is a money-back plan where 15% of the sum assured is paid every three policy years. These money-back benefits give you easy liquidity
      • The single premium paid and loyalty additions added are returned on the maturity of the plan
      • You can enjoy premium discounts if you choose higher levels of sum assured
      • A policy loan is available for your financial needs

    Plan parameters of LIC’s New Bima Bachat Plan

    Age at entry 15 years to 66 years
    Term of the plan 9, 12 or 15 years
    Sum assured INR 35,000 onwards
    Single premium Depends on the age, term and sum assured selected

Other policies available in the market

Besides the above named LIC 10 year plans which require a single premium, there are other single premium policies in the market too which offer coverage for 10 years and above. Here are some of the best plans for you to choose from –

  1. HDFC Life Classic One Plan
    This is a unit-linked policy offered by HDFC Life, a leading life insurance company. The policy has the following benefits –

      • You can choose coverage for joint life under the plan
      • There are 10 investment funds to choose from
      • The insurance cover can be chosen for up to 10 times the single premium that you have paid
      • The plan provides attractive market-linked returns which are inflation-proof
      • Loyalty additions are also added to the fund value for better returns
      • You can choose a Systematic Transfer Plan to invest your funds in a disciplined manner and to get the benefit of rupee-cost averaging
      • Coverage can be taken for up to 90 years under joint life coverage option

    Plan parameters of HDFC Life Classic One Plan

    Age at entry For single life – 0 years to 40 years

    For joint life – 18 years to 80 years

    Term of the plan Minimum – 10 years

    Maximum – 50-entry age for single life cover or 90-entry age for joint life cover

    Sum assured 1.25 times to 10 times the single premium
    Single premium INR 2 lakhs onwards
  2. ICICI Pru 1 Wealth Plan
    This is also a unit-linked plan which requires a single premium. The features of the plan are as follows:

      • There are seven investment funds to invest your premiums
      • 100% of the premium is invested into the chosen funds without any premium allocation charge
      • Wealth boosters are added to the fund value for higher returns
      • Life cover of up to 10 times the single premium can be availed
      • Unlimited switching is allowed under the plan free of cost

    Plan parameters of ICICI Pru 1 Wealth Plan:

    Age at entry 8 years to 60 years
    Term of the plan 5 or 10 years
    Sum assured 1.10 times to 10 times the single premium
    Single premium INR 50,000 onwards
  3. AEGON Life iMaximize Single-Premium Insurance Plan
    As is evident from the name itself, iMaximize is a single premium unit-linked plan which can be bought easily online. The features of the plan include the following –

      • There is no premium allocation charge and your entire premium is invested in the chosen fund
      • There are six funds for your investment preferences
      • You get tax benefits on the premium paid as well as on the benefits earned from the plan

    Plan parameters 

    Age at entry 8 years to 65 years
    Term of the plan 5 years or 10 years
    Sum assured 1.10 times to 10 times the single premium
    Single premium INR 1 lakh onwards

The death benefit payable under LIC 10 year plans

In LIC 10 year plans as well as the other single premium life insurance plans mentioned above, the death benefit is payable if the insured dies during the term of the plan. The death benefit is as follows –

  • In the case of traditional endowment plans, the sum assured and any bonus or loyalty addition is paid
  • In the case of unit-linked insurance plans, the higher of the sum assured or the fund value is paid

How to buy LIC 10 year plans?

You can buy LIC 10 year plans online through LIC’s website or offline through LIC agents or from the nearest LIC branch. To buy, you would have to fill up an application form stating your details. You would also have to submit your documents to complete the application process. The documents include your photo identity proof, photographs, address proof, age proof, income proof, Aadhar card, PAN card, etc. You would also have to pay the premiums at the time of application so that the company can issue the plan after the proposal form has been verified and assessed.

However, you can purchase other 10 year life insurance plans can be bought online through Turtlemint. Turtlemint gives you a platform to compare other 10-year single premium plans and then buy the best policy as per your coverage needs.

With Turtlemint, you get the following benefits –

  • You get to compare between the best 10-year single premium plans as LIC is tied up with the leading life insurance companies of India
  • You get complete one-on-one assistance in buying the most suitable insurance policy for your needs
  • You get a dedicated claims handling team which handles your claims on your behalf and gets your claims settled at the earliest
  • You get the solutions to your insurance related queries through Turtlemint’s dedicated customer assistance team

To buy the plan through Turtlemint, use the following steps –

  • Visit Turtlemint at https://www.turtlemint.com/life-insurance
  • Choose the financial goal for which you need a policy. There are four goal options to choose from –
    1. Term life plans
    2. Investment and tax planning
    3. Savings for child
    4. Pension/retirement
  • After choosing the coverage need, provide your details which would include the following g –
    • Gender
    • Date of birth
    • Annual income
    • Smoking preference
    • Investment tenure
    • Investment frequency
    • Your name, number and email ID
  • Once all the details are provided you would be able to check the available plans suiting the details that you entered
  • Compare the plans on their coverage and premium and then choose the best policy
  • Pay the premium online, fill up an online proposal form and submit it to get the policy at the earliest

Documents need to buy LIC’s 10 Year Single Premium Plan:

These simple steps would let you buy LIC 10 year plans or any other single premium plan of your choice. You would also have to submit some relevant documents to buy the policy which includes the following:

  • Your identity proof
  • Age proof
  • Address proof
  • PAN Card
  • Aadhar card
  • Photographs
  • Bank details

Once the documents are submitted and the insurance company successfully verifies them, the policy would be issued.

So, buy the most suitable single premium policy for your needs which has coverage duration of 10 years or more. LIC 10 year plans can be the solution but there are also other plans for you to check. Single premium plans would give you the benefit of continued coverage without the hassles of paying the premiums regularly. So, if you have a lump sum fund to invest, invest in single premium traditional or unit-linked plans and build your corpus.

Frequently Asked Questions:

  1. What is the tax benefit on the single premium paid for buying a life insurance policy?
    The single premium that you pay for the policy is allowed as a deduction under Section 80C of the Income Tax Act. The deduction is allowed up to INR 1.5 lakhs on the premium which is up to 10% of the sum assured. If the premium is more than 10% of the sum assured, the deduction is allowed only up to 10% of the premium and the extra is chargeable to tax.
  2. Are maturity benefits tax-free?
    Yes, the maturity benefit or the death benefit that you receive from your single premium policy is tax-free under Section 10 (10D) of the Income Tax Act.
  3. What to do if my LIC policy has been withdrawn by the company?
    If you hold a LIC policy which has been withdrawn, you have two options. You can either continue with the policy or surrender it and buy a new one. If you continue with the policy, you would get a death or a maturity benefit as when they fall due. If, however, you surrender the policy, you get the surrender value.
  4. What documents are required for making a death claim?
    For a death claim, the following documents would be required –

    • Claim form which should be filled and signed by the nominee
    • Death certificate
    • Police FIR in case of accidental deaths
    • Medical reports, post mortem reports, coroner’s reports, etc. if applicable
    • Nominee’s cancelled cheque so that the claim can be transferred directly to the nominee’s bank account

National Pension Scheme Calculator, Tax Benefits, How to Invest & More (2021)

Retirement is called the golden phase of your life as you are free from financial responsibilities and you can live out your life doing whatever you want. However, to make your retirement a golden phase you need to prepare for it in advance. When you retire, your income flow stops. However, the expenses continue and so it is essential that you have a retirement corpus at your disposal to meet such expenses. That is why many of you invest in retirement oriented avenues with a view to creating a substantial retirement corpus for your older ages. One such avenue is the National Pension Scheme (NPS) which was launched by the Government to offer investors a tax saving investment avenue. Ever since its launch, NPS has become quite popular. If you too are thinking of putting your money in NPS investment scheme, here’s a complete guide to the scheme and the best way to invest in it.

What is the National Pension Scheme?

National Pension Scheme is a retirement oriented investment scheme launched by the Indian Government. You can invest in the scheme when you are working and have a regular source of investment. Then, when you retire, the scheme would offer you a corpus to meet your retirement-related expenses. The corpus can be availed partly in a lump sum and partly in annuity pay-outs which give you a regular source of income even after retirement.

Types of NPS investments

When you choose to do NPS investment, there would be two accounts to choose from. One is a mandatory account which you have to choose and the other one is optional. You can invest only in the mandatory account or in both. The accounts are as follows –

  1. Tier I Account
    Tier I Account is the compulsory account into which you would have to invest. When you register for NPS investment, the minimum investment into Tier I Account is INR 500. Moreover, in a financial year, you would have to contribute at least INR 1000 in the account. Investments are done in Tier I account are not permitted for partial withdrawals till you reach 60 years of age. However, to allow liquidity in times of need, there are instances in which withdrawals are allowed. Such instances are as follows:

    1. If you remain continuously unemployed for 60 days or above
    2. If you have to bear marriage related expenses
    3. In case of medical emergencies
    4. If you want to buy a house, etc.
  2. Tier II Account
    As mentioned earlier, the Tier II account is a voluntary account which you might or might not choose for NPS investment. This account gives you the flexibility of easy withdrawals any time that you want. However, you can open this account only when you already have a Tier I account in your name. The minimum investment for Tier II Account is INR 250. You can open these investment accounts only once. Multiple accounts are not allowed. Moreover, if the specified minimum investment is not done in any account, the account is frozen. To unfreeze the account you would have to visit a POP and make a contribution towards the scheme along with a penalty of INR 100.

How do NPS investments work?

NPS allows you to earn market-linked returns since the accounts invest your money in securities of the capital market. When you invest, you would be given a choice of two investment options. Each option has a particular investment strategy and you can choose to invest as per either of the available options. The options are as follows –

  1. Active choice
    As the name suggests, Active choice is when you want to manage your investments yourself. There are four types of investment funds to choose from. Each fund has different types of portfolio and risk profile. You can choose to invest in one fund or multiple funds. The available funds include the following –

    1. Asset Class E where 50% of the portfolio consists of stocks
    2. Asset class C where the portfolio has fixed interest instruments. However, these instruments do not include Government securities
    3. Asset class G where the portfolio only contains Government securities
    4. Asset Class A – where the portfolio contains alternate investment funds like REITS, MBS, AIFs, etc.

    You cannot invest 100% of your investment in Asset Class E. The maximum NPS investment into Asset Class E is restricted to 75% while the remaining can be invested in Asset Classes C and G. Asset Class A is optional and if you choose it the investment is limited to 5%. The investment also depends on your age. After reaching 50 years of age the equity exposure reduces by 2.5% every year till it reaches 50% after 10 years. Thereafter, equity exposure in Asset Class E is restricted to 50%. Investments in Asset Class C or Asset Class G, on the other hand, can be done without any limitations.

  2. Auto choice
    If you don’t know how to handle your investments yourself for maximum returns and minimum risk, you can choose Auto Choice. Under this choice, the investments are managed pre-defined manner which has been specified by the PFRDA. Your investment is split into three different asset classes depending on your age and the risk profile that you select. There are three risk profiles which are Aggressive, Moderate and Conservative. Based on the profile that you choose and your age, here’s how your NPS investment is split –

    1. LC75 – Aggressive Life Cycle Fund
      Age Asset Class E Asset Class C Asset Class G
      Up to 35 years 75% 10% 15%
    2. LC50 – Moderate Life Cycle Fund
      Age Asset Class E Asset Class C Asset Class G
      Up to 35 years 50% 30% 20%
    3. LC25 – Conservative Life Cycle Fund
      Age Asset Class E Asset Class C Asset Class G
      Up to 35 years 25% 45% 30%

    Thereafter, with increasing age, investment in Asset Class E is reduced and investments in the other two classes are increased every year. You can also change your investment strategy from Active Choice to Auto Choice and vice-versa. Changes in Asset Class are also allowed. However, any change that you do is allowed only once a year.

How to invest in NPS?

NPS investment can be done online as well as offline. Let’s understand both the processes in details –

  1. Investing offline
    To invest offline, you would have to locate a Point of Presence (POP). A POP is a financial institution which is registered to open an NPS scheme. Most banks and other non-banking financial institutions have registered themselves as POPs for NPS investments and you can choose to invest through them. Each POP has an authorized branch from where you can invest in the scheme. These branches are called Point of Presence Service Providers or POP-SPs. You can approach any POP-SP, deposit your investment and your NPS investment account would be opened. To find the list of POP-SP you can check the website of the Pension Fund Regulatory and Development Authority (PFRDA) https://www.npscra.nsdl.co.in/pop-sp.php. PFRDA is the body which regulates and governs the NPS scheme
  2. Investing online
    Locating a POP-SP can prove to be time-consuming and so the online mode of NPS investment is also available. To invest online, you can follow the below-mentioned steps –

    1. Log onto the website of the scheme which is: https://enps.nsdl.com/eNPS/NationalPensionSystem.html
    2. On the home page, choose the ‘National Pension Scheme’
    3. You would then be asked to register yourself before you can contribute towards the scheme
    4. To register, provide the details asked in the online registration form. These details include the type of investor, citizenship, bank account through which you want to contribute and your PAN card number
    5. Then you would have to provide your personal and family details like name, age, address, etc.
    6. An acknowledgement number would be generated
    7. You would be able to register yourself and generate your Permanent Retirement Account Number (PRAN) which would be the number of your NPS account
    8. You would have to e-sign the registration form to complete registration
    9. Once you are registered, you can contribute towards the NPS scheme by providing the PRAN number, the account to which the contribution is to be made and the amount that you would like to contribute

Once these steps are taken, you would be able to do NPS investments online.

Documents required to apply for NPS investment

Whether you apply online or offline, the following documents would be required to be submitted to open your NPS account –

  1. The filled Registration Form
  2. Proof of identity
  3. Proof of age
  4. Proof of address
  5. PAN Card
  6. Aadhar Card
  7. Passport-size photographs

Eligibility parameters for NPS investment

To be able to invest in the National Pension Scheme, you should fulfil the following eligibility parameters:

  1. You should be an Indian citizen
  2. If you are an NRI you can also invest in the scheme. However, if your citizenship status changes after you have invested, the scheme would be closed for you
  3. You should be aged between 18 years and 60 years

Benefits of NPS investments

NPS investments are favoured by many because of the benefits that these investments provide. Let’s assess what these benefits are –

  1. NPS investments give you additional tax-saving benefits. 10% of your salary or annual income can be contributed towards the NPS scheme to claim a tax deduction under Section 80CCD (1). You can claim a maximum deduction of up to INR 1.5 lakhs under this Section. Moreover, you can invest an additional amount of up to INR 50,000 to claim an additional deduction under Section 80 CCD (1B). This deduction is available over and above Section 80C and Section 80 CCD (1) limit of INR 1.5 lakhs. If you are a salaried employee and your employer also contributes towards NPS investments, the employer’s contributions would also be allowed as an additional deduction under Section 80 CCD (2) up to 10% of your salary. This tax advantage of NPS investments makes them popular among individuals looking to lower their tax liability.
  2. You can withdraw 60% of your corpus in a lump sum when the scheme matures. This lump sum withdrawal is also tax-free
  3. NPS investment promises you annuity payments which create a series of regular income after you retire
  4. The scheme’s minimum contribution requirement is low and affordable making it suitable for all types of investors
  5. The scheme invests in the market which gives you inflation-adjusted returns to fulfil your financial goals

NPS investments vis-à-vis other investment avenues

NPS is often compared with other popular investment avenues which are available for retirement planning. So, here’s a comparative analysis between NPS investments and other popular avenues –

Points of analysis National Pension Scheme Equity Linked Saving Scheme Public Provident Fund Fixed Deposits Pension Unit Linked Insurance Plans
Type of investment Market linked Market linked Non-market linked Non-market linked Market linked
Risk Low to high depending on the fund selected High Very low Very low Low to high depending on the fund selected
Returns Moderate to high High Low Low Moderate to high
Tax on investments Tax-free up to INR 2 lakhs under Sections 80C, 80CCD (1), 80CCD (2) and 80 CCD (1B) Tax-free up to INR 1.5 lakhs under Section 80C Tax-free up to INR 1.5 lakhs under Section 80C Tax-free up to INR 1.5 lakhs under Section 80C if five years FDs are selected Tax-free up to INR 1.5 lakhs under Section 80C
Tax on returns The lump-sum amount is tax-free. Annuities are taxable Returns are taxed at 10% if they exceed INR 1 lakh Returns are tax-free Returns are taxable. However, for senior citizens, returns up to INR 50,000 are tax-free under Section 80 TTB 1/3rd of the fund can be commuted and withdrawn in cash. This is tax-free. Annuities are taxable
Payment of returns Partly in a lump sum and partly in annuities Can be withdrawn in a lump sum or in instalments Paid in a lump sum Paid in a lump sum 2/3rd of the corpus is payable in annuities
Deposit tenure Till maturity, i.e. up to 60 years Minimum of 3 years 15 years Can range from 7 days to up to 10 years. Tax-free deposits are, however, for 5 years Can range from 10 years to up to 30 years or above

So, understand how to invest in NPS and the way the investment works before you invest so that you know exactly what to expect from the scheme.

Top 3 SBI Life Insurance Plans in 2021

SBI Life Insurance is a leading life insurance company which is formed as a joint venture between the State Bank of India Group and BNP Paribas. The company offers a range of life insurance products to customers ranging from term insurance to unit linked plans to pension plans. The plans help you to take care of all your financial needs and requirements. Moreover, you also get the assurance of a company backed by leading promoters.

At Turtlemint, we offer a range of the best life insurance plans in India compared on various parameters to your personal needs. Click the link below to browse the most relevant plans at attractive premiums.

SBI Life has carved a name for itself in the life insurance industry with the achievements that it has tucked under its belt. Some of the milestones of the company are as follows –

SBI Life has carved a name for itself in the life insurance industry with the achievements that it has tucked under its belt. Some of the milestones of the company are as follows –

  • It has serviced more than INR 79,000 crore worth of claims
  • The company enjoys the trust of more than 2.5 crore policyholders
  • In the year 2017, the company’s Assets Under Management crossed INR 100,000 crores
  • The company has received the Brand of the Year Award in the financial year 2016-17

SBI Life Insurance is a popular insurance company in India trusted by many. It offers a variety of plans for life insurance. You can choose the best plan for yourself by following simple instructions after clicking here .

The life insurance plans of the company are, therefore, good and they also offer you a range of benefits. Among the various plans sold by SBI Life, here are the top 3 plans which you can buy in 2020-

 

  1. SBI Life e-Shield
    term life insurance plan is the most important product which you should add to your financial portfolio. The plan gives you and your family financial security and should not be avoided. When it comes to term insurance, SBI Life’s e-Shield is one policy which you cannot miss. The major highlights of the policy, which make it a must, include the following –

    • You can choose from two coverage options. One option offers you a level sum assured throughout the policy tenure while under the other you get the benefit of increasing sum assured after every five policy years
    • There is an inbuilt accelerated terminal illness benefit under the plan which covers terminal illnesses
    • Two optional riders are also available which enable you to enhance the scope of coverage of the plan
    • A free medical second opinion facility is allowed under the plan in case of major illnesses
    • The premiums are low and affordable and if you don’t smoke, the premiums are reduced further.
  2. SBI Life Smart Money Planner
    This is a traditional money back life insurance plan for those of you who don’t like taking on market risks. The plan is not an average money back plan as it has some unique features. The term of the policy is calculated taking into consideration three distinct periods – Premium Payment period, Growth period and Benefit Payment premium. You have to pay premiums during the premium payment period after which the growth period would start. During the growth period, your corpus would grow. Thereafter, as the benefit payment period starts, the policy would pay you regular incomes throughout the growth period. Here are other features of SBI Life Smart Money Planner plan –

    • You can pay premiums for a limited time or at once
    • There are four plan options and each option has a different combination of premium payment period, growth period and benefit payment period
    • The plan also earns bonuses which enhance the corpus
    • You can take a loan under the plan against the surrender value
    • You also get premium discounts if you choose a higher level of sum assured

    Read more Are traditional life insurance plans good?

  3. SBI Life Smart Wealth Builder
    How can we forget the popular unit linked plans when discussing the top life insurance plans? SBI Life’s Smart Wealth Builder plan is a unit linked plan which invests your premiums in the capital markets to give you attractive returns. The USP of the plan includes the following –

    • No policy administration charges are deducted from the fund value un the first five years which gives you better returns
    • No premium allocation charges are charged from the 11th year
    • There are seven diversified investment funds to invest your premium into
    • Guaranteed additions are also added to the fund value, besides the market linked returns, which further enhance the fund value

With a range of life insurance plans out there, it can be intimidating to select the best policy. However, having clarity of your needs and preferences can help you select the best life insurance plan. You can choose a life insurance plan based on your needs here.

So, these are the three best plans offered by SBI Life. All these plans are fundamentally different from one another and you can buy all three for suiting different financial needs. Also, the premiums paid and the benefits earned from these plans would also give you tax benefits. So, what are you waiting for? Choose these plans and get the best insurance coverage that money can buy.