Sidharth Hampanavar, Author at Turtlemint

LIC Jeevan Saral Plan: Features, Benefits & More

September 20, 2019May 12, 2021 Sidharth Hampanavar

The Life Insurance Corporation of India offers a range of life insurance plans right from term insurance to unit-linked plans. The plans can be traditional insurance plans or market-linked ones. While traditional plans promise a guaranteed benefit on maturity or death, unit-linked plans do not guarantee the benefits since returns depend on market performance.

Jeevan Saral is a traditional endowment assurance plan which is offered by LIC. The plan, being traditional in nature, pays guaranteed benefits on maturity or death. However, this plan has been discontinued by the LIC of India.

Let’s understand the plan in details –

Features of LIC’s Jeevan Saral Plan:

This is a regular premium policy where premiums are paid throughout the term of the plan.
This is a participating policy which promises loyalty additions. Loyalty additions, in the form of a terminal bonus, are paid either on early death or maturity of the plan. The rate of loyalty additions depends on the performance of the insurance company.
You can enhance the coverage of the plan by choosing the available riders.
You can surrender the policy and terminate the coverage if the plan was active for the first three policy years.

Benefits offered under the plan:

The following benefits are promised under LIC’s Jeevan Saral Policy –

Benefits payable	Amount of benefit
Death Benefit of LIC Jeevan Saral Policy	If the insured dies during the chosen term of the policy, a death benefit is paid. The death benefit is equal to the following – 250 times the monthly premium paid + refund of premiums paid from the second policy year + loyalty additions
Maturity Benefit of LIC Jeevan Saral Policy	If the insured survives till the end of the selected tenure, a maturity benefit is paid. This benefit is equal to the maturity sum assured and loyalty additions. The maturity sum assured is calculated depending on the age of the insured and the amount of premium paid.
Surrender Value of LIC Jeevan Saral Policy	If you choose to surrender the policy, higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) would be paid. The calculations of these values would be done using the following formulas – GSV – 30% of total premiums paid from the second policy year SSV – 80% of the maturity sum assured if premiums are paid for more than 3 years but less than 4 years 90% of the maturity sum assured if premiums are paid for more than 4 years but less than 5 years 100% of the maturity sum assured if premiums are paid for more than 5 years

Premium payable for LIC’s Jeevan Saral:

You can decide on the amount of premium that you want to pay for LIC’s Jeevan Saral policy. Based on the premium amount selected, the maturity benefit and death benefit of the plan are calculated. Moreover, you can also choose to pay the premiums annually, quarterly, half-yearly or monthly. Monthly payments are allowed only through salary deductions. Premiums are payable for the entire duration of the policy.

Loyalty Additions under LIC’s Jeevan Saral Plan:

The rate of loyalty additions is not fixed. It is determined by LIC depending on the profits earned by it in a financial year.
Loyalty additions are added if the plan completes 10 policy years. Death or maturity after 10 years would give you additional loyalty additions.

Tax benefits of LIC’s Jeevan Saral:

LIC’s Jeevan Saral policy offers the following types of tax benefits –

Premium payment U/S 80C:
The premiums paid for the plan are allowed as a deduction from your taxable income up to INR 1.5 lakhs under Section 80C.
Maturity benefit U/S 10(10)D:
1. The surrender benefit received would be tax-free in your hands under Section 10 (10D).
2. The maturity or death benefit received under the plan would also be tax-free under Section 10 (10D).

Summing up:

LIC’s Jeevan Saral Plan is a simple endowment plan which helps you create a savings corpus which is guaranteed in nature. The loyalty additions add to the plan benefits and make it more attractive. There are easy options of surrendering the policy too and the surrender value promised is also high. Currently, LIC does not offer this policy. However, if you have invested in Jeevan Saral at an earlier date, you can still reap the benefits promised by the plan.

All you need to know about zero depreciation rider in a bike insurance plan: A complete guide

September 20, 2019May 12, 2021 Sidharth Hampanavar

The Motor Vehicles Act, 1988 lays down the rules and regulations for motor vehicles running in India. One such rule which is mandatory under the Act is the requirement of a valid bike insurance policy if you own a bike. The Act states that every bike on Indian roads should be insured under a valid third party liability cover. The policy would cover the financial liability incurred if the bike causes injury, death or property damage to another individual.

Though third party policies are mandatory by law, they do not cover the damages suffered by the bike itself. That is why there are comprehensive package policies. Comprehensive bike insurance plans cover the mandatory third-party liability as well as the damages suffered by the bike itself. If your bike is stolen, damaged in an accident or damaged due to any natural or man-made causes, the comprehensive policy would pay the financial loss that you suffer.

Bike insurance policies are indemnity oriented plans. They pay for the actual financial loss that you suffer. That is why, in a comprehensive policy, when there is a claim for the parts of the bikes which have been repaired or replaced, the insurance company does not pay the actual cost incurred. The depreciation of the parts is taken into consideration to find the actual value of the parts which have been replaced or repaired.

The Rate of Depreciation:

The rate of depreciation in different parts is as follows –

Bike parts	The applicable rate of depreciation
Rubber, plastic or nylon parts	50%
Fibreglass parts	30%
Tyres and tubes	50%
Metal parts	As per the depreciation of the Insured Declared Value of the bike

This depreciation reduces the total amount of claim payable under the bike insurance policy.

For instance, suppose your bike meets with an accident and the following costs are incurred in repairs –

Repairs of the plastic parts of the bike	INR 7500
Change of tyre	INR 5000
Repair of fibreglass parts	INR 5000
Labour charge	INR 5500
The total cost of repairs	INR 23,000

However, at the time of claim, depreciation would be taken into consideration and the amount of claim payable would be determined as follows –

Particulars	Amount	Applicable depreciation	Admissible claim amount
Repairs of the plastic parts of the bike	INR 7500	50%	INR 3750
Change of tyre	INR 5000	50%	INR 2500
Repair of fibreglass parts	INR 5000	30%	INR 3500
Labour charge	INR 5500	Nil	INR 5500
Total claim payable			INR 15,250

Though the repair costs incurred were INR 23,000, the insurance company would pay a claim of INR 15,250 only. The remaining INR 7750 would have to be paid by you from your own pocket.

Zero depreciation add-on – the solution:

Since depreciation eats into the claim amount, insurance companies offer a zero depreciation add-on cover. If you choose this add-on, the effect of depreciation would be ignored at the time of calculating the claim amount. The insurance company would pay the total amount incurred in replacing or repairing the parts of the bike.

Zero depreciation bike insurance policy – the inclusions and exclusions:

A zero depreciation bike insurance policy is nothing but a comprehensive bike insurance policy with a zero depreciation add-on. The policy, therefore, covers the following instances of claims –

Third-party liability incurred for death or physical injury suffered by a third party
Third-party liability for property damage
Damage to the bike due to natural or man-made causes
Theft or robbery of the bike
Personal accident cover for accidental deaths or disablements

Moreover, there are instances when the policy would not cover the losses suffered. These instances are called exclusions and they include the following –

Damages suffered when driving under the influence or without a valid driving license
Damages suffered outside the boundaries of India
Consequential losses
Damages suffered when the bike is being used against the limitations of its use
Mechanical or electrical breakdowns

#4 Important things to remember about Zero Depreciation rider in a Motor Insurance Policy

If you opt for a zero depreciation bike insurance policy, here are some points which you should keep in mind –

The zero depreciation cover is an add-on which is voluntary in nature. You can choose the cover if you want by paying an additional premium for the same.
The add-on cover is available for bikes which are up to 5 years old. If your bike is older than five years, the cover would not be available.
There are limits on the zero depreciation claims which you can make over the entire duration of your bike insurance policy. Usually, the benefit of zero depreciation add-on is allowed for up to 2 claims. These claims can be within the tenure of one policy or multiple policies. For instance, suppose you buy an annual zero depreciation policy on 1st January 2016 and make a claim in August. Thereafter, you make another claim in the year 2018. Once two claims have been made, albeit, in different policies, the coverage of zero depreciation add-on would stop. If in future years, any more claims are made, depreciation would be applied to the claim amount.
Zero depreciation add-on is available only in comprehensive bike insurance policies. Third-party liability only plans do not have this cover.

Benefits of zero depreciation add-on:

A zero depreciation add-on is a very beneficial coverage to avail simply because the cover enhances the amount of claim. In the above example, if there is no zero depreciation cover, the insurance company pays only INR 15,250 towards a claim. However, if a zero depreciation cover is added, the claim amount would become INR 23,000. You, therefore, would not have to bear the cost of depreciation of your bike’s parts. Your out-of-pocket expenses would reduce and you would be able to save on the repair costs.

A comprehensive bike insurance policy is a must if you want an all-round protection for your bike. Moreover, when you add the zero depreciation add-on to the cover, it is like icing on the cake. You get an enhanced coverage which saves thousands on claims. So, opt for a zero depreciation cover and make your bike insurance policy more inclusive.

6 Best LIC Policies to Invest (Complete List) | Turtlemint

September 20, 2019February 25, 2022 Sidharth Hampanavar

The Life Insurance Corporation of India was formed in 1956 as the sole life insurance company in India. Since then, till the year 2000, the company has enjoyed a monopoly position in the life insurance segment and has created a customer base of more than 250 million individuals. Every individual has an inherent trust in LIC’s brand name which has resulted in the company having the largest market share in the life insurance business.

LIC offers a range of life insurance policies that help in fulfilling the varied insurance needs of individuals. Among the various LIC plans issued by the company, there are some plans which are the best-selling plans as they have the most comprehensive coverage benefits. But before we dive into the best LIC policy to buy, let’s first understand the different types of LIC plans that are available:

Top LIC policy in Different Categories in India:

Among the variety of life insurance plans offered by LIC in all the above-mentioned categories, let’s discuss some of the best LIC plans that the company offers for the various types:

Term Insurance Plans
Term plans are the most basic life insurance plans which cover the risk of premature death and offer financial security. The salient features of term plans are as follows –

High sum assured levels can be selected as premiums are very low and affordable
These plans usually don’t have a maturity benefit
There might be inbuilt riders that help in enhancing the coverage under the plan
Term insurance helps in financially securing the policyholder’s family in case of their early death. Additionally, survival benefits might be provided by some insurers. Choosing the right term insurance policy is a crucial decision for individuals as well as their dependents, which is why comparing their features and benefits becomes a critical decision. Visitthis page & enter the relevant details to help us showcase the best term insurance plans available in the market & the best available prices.

LIC’s most popular term insurance plans:

LIC’s Tech Term Plan:

This is an online term plan which can be bought at the click of a mouse. The plan’s USPs include the following:

■ Differential premium rates are applicable for smokers and non-smokers as well as women

■ Premium discounts help in lowering the premium charged. You can avail of a premium discount through high sum assured rebates

■ The accident death benefit rider can be added for enhanced coverage

■ You can opt for the increasing sum assured coverage option wherein the sum assured would increase @10% from the 6th policy year till the 15th policy year.

Name of the LIC Plan	LIC’s Tech Term Plan
Type of Plan	Term Insurance Plan
Whom does the plan suit?	Suitable for all as the plan creates financial security for the policyholder as well as for his family.
Entry Age	18-65 years
Maximum Maturity Age	80 years
Policy Tenure	10-40 years
Sum Assured	INR 50 lakhs onwards
Death Benefit	Sum assured on death’ which is higher of the following – 7 times the annualized premium 105% of the aggregate premium paid till death The basic sum assured (level or increased as per the coverage option you have selected)
Maturity Benefit	NIL

LIC’s Jeevan Amar Plan:

This term plan offers you the benefit of choosing the coverage as per your needs. The salient features and benefits of the plan are as follows –

You can opt for uniform coverage throughout the policy tenure or an increasing sum assured
Under the increasing sum assured option, the sum assured would increase by 10% every year from the 6th policy year till the 15th policy year thereby doubling the coverage level
You have the flexibility to choose the premium payment tenure, policy tenure as well as premium payment mode and frequency
Premium discounts are allowed for women as well as for choosing higher sum assured levels
The accidental death benefit rider can be added to the policy for higher coverage against accidental deaths
You have the option to avail of the death benefit in instalments rather than in one lump sum

Name of the LIC Plan	LIC’s Jeevan Amar Plan
Type of Plan	Term Insurance Plan
Whom does the plan suit?	Suitable for everyone as the plan offers financial security and allows you to opt for high coverage at low premiums
Entry Age	18-65 years
Maximum Maturity Age	80 years
Policy Tenure	10-40 years
Sum Assured	INR 25 lakhs onwards
Death Benefit	‘Sum assured on death’ which is higher than the following 7 times the annualized premium 105% of the aggregate premium paid till death The basic sum assured (level or increased as per the coverage option you have selected)
Maturity Benefit	NIL

Endowment Plans
Endowment plans are those which provide both insurance coverage as well as savings. The features of endowment plans include the following –

A death benefit is paid on death during the policy term. If the plan matures, however, a maturity benefit is paid
The endowment plans provide guaranteed benefits
The bonus might be added if the plan is offered as a participating plan

LIC’s most popular endowment plan: LIC’s Jeevan Lakshya Plan

The plan is an endowment plan which has an enhanced death benefit. The USP of the plan is as follows –

Death benefit consists of annual incomes as well as lump sum payment on completion of the policy term
Two optional riders are available with the plan
Bonus additions help in enhancing the plan benefits
Attractive premium discounts lower the premium payable

Name of the LIC Plan	LIC’s Jeevan Lakshya Plan
Type of Plan	Endowment Plan
Whom does the plan suit?	Risk-averse individuals who are looking to create savings along with insurance.
Entry Age	18-50 years
Maximum Maturity Age	65 years
Policy Tenure	13-25 years
Sum Assured	INR 1 lakh onwards
Death Benefit	10% of sum assured paid as annual incomes till second last policy year + 110% of basic sum assured on maturity + Accrued bonuses
Maturity Benefit	Basic sum assured + accrued bonuses

Would you like to check benefits & features offered by other Life Insurance companies? VisitTurtlemint’s endowment policy comparison page & enter the relevant details to browse through the most attractive endowment plans in the market.

Money-back plans
Money-back plans are like endowment plans. However, they pay the sum assured in instalments during the policy tenure rather than in a lump sum on maturity. The features of money back plans include the following –

Sum assured is paid in predetermined instalments at predefined intervals during the term of the policy
When the policy matures, the rest of the sum assured is paid along with a bonus
In case of death of the insured within the policy tenure, the entire sum assured is paid to the nominee irrespective of the amount of money back benefits already paid.

LIC’s most popular money-back plans:

LIC Jeevan Shiromani Plan

This is a money-back plan for High Net worth Individuals as the plan offers higher levels of sum assured. The USPs include the following –

Loyalty additions and guaranteed additions are added to the plan benefits which enhances them
Money-back benefits provide easy liquidity
There is an inbuilt critical illness benefit that covers 15 critical illnesses.
Four additional riders are available for customization
The maturity and death benefits can be taken in instalments

Name of the LIC Plan	LIC’s Jeevan Shiromani Plan
Type of Plan	Money-back plan
Whom does the plan suit?	Risk-averse individuals who want to create savings with insurance and also need liquidity during the policy tenure.
Entry Age	18-55 years
Maximum Maturity Age	65-69 years depending on the policy term
Policy Tenure	14,16,18,20 years
Sum Assured	INR 1 crore onwards
Death Benefit	Sum Assured on death + Guaranteed additions + loyalty additions (if any)
Maturity Benefit	10% to 40% of the sum assured left after paying the money back benefit + Guaranteed additions + Loyalty additions

LIC’s Jeevan Umang Plan

This is also a money-back policy but with an added benefit of whole life coverage. Here are some of the salient features and benefits of LIC’s Jeevan Umang –

This is a with-profit policy that gives bonuses that help in enhancing the plan benefits
Limited premiums are payable for the plan
After the completion of the premium paying tenure, 8% of the sum insured is paid every year till maturity. This gives you the desired liquidity without compromising the lifelong coverage
Four optional riders are available for customizing the policy
You can enjoy premium discounts if you choose a sum assured of INR 5 lakhs and above or if you pay the premium in the annual or semi-annual mode.

Name of the LIC Plan	LIC’s Jeevan Umang Plan
Type of Plan	Whole Life Endowment Plan
Whom does the plan suit?	Investors looking for lifelong protection while creating a corpus for their financial goals.
Entry Age	90 days-55 years
Maximum Maturity Age	100 years
Policy Tenure	100 years – entry age
Sum Assured	INR 2 lakhs onwards
Death Benefit	Death within the first 5 years – Sum assured on death Death after the first 5 years – the sum assured on death + loyalty additions Where, Sum assured on death is highest of the following – 10 times the annualized premium Sum assured on maturity 110% of the Basic sum assured 105% of aggregate premiums paid A simple reversionary bonus would be added to the death benefit
Survival benefit	8% of the sum assured payable after the end of the premium paying term till death or maturity
Maturity Benefit	Sum assured on maturity which is equal to the Basic sum assured A simple reversionary bonus would also be paid with the maturity benefit

Unit linked insurance plans

Unit linked insurance plans, or ULIPs are what they are popularly called, are investment-oriented life insurance plans which promise market-linked returns as well as insurance coverage. Their features are as follows –

The premium paid is invested in market-linked investment funds chosen by the policyholder
There is the flexibility of switching between the available funds and partial withdrawals
There are different funds with different risk profiles so that investors can plan their investments according to their risk appetites
The returns are not guaranteed and depend on the market movements.
ULIPs provide the benefit of investment returns along with insurance and the premium grows along with the market trends. These provide the options of different funds to the policyholder and they can choose according to their risk-capability. However, ULIPs are different from other investment options such as mutual funds and conventional life insurance policies, the best ULIP plans along with their salient features are listed here.

LIC’s most popular Unit Linked Insurance Plans:

LIC’s New Endowment Plus Plan

This is the standalone unit-linked insurance plan offered by LIC which has the following salient features –

LIC’s Linked Accidental Death Benefit Rider can be chosen as an optional coverage benefit
Four funds are available for investing the premium
Four free switches are allowed in a policy year for changing between funds

Name of the LIC Plan	LIC’s New Endowment Plus Plan
Type of Plan	Unit Linked Insurance Plan
Whom does the plan suit?	Suitable for risk-taking individuals who want to avail market-linked returns along with insurance
Entry Age	90 days – 50 years
Maximum Maturity Age	60 years
Policy Tenure	10-20 years
Sum Assured	Higher of 10 times the annualised premium or 105% of total premiums paid
Death Benefit	Higher of the available fund value or the basic sum assured
Maturity Benefit	Fund value

LIC’s SIIP

An attractive unit-linked plan, SIIP provides coverage against the risk of premature death and also allows you to earn attractive returns through market-linked investments. The salient features of the plan include the following –

The mortality charges are refunded on the maturity of the policy
Guaranteed additions, ranging from 5% to up to 25% of the annual premium are added to the fund value at specific intervals
Four types of fund options are allowed to diversify your portfolio

Name of the LIC Plan	LIC’s SIIP
Type of Plan	Unit Linked Insurance Plan
Whom does the plan suit?	Suitable for investors looking for a dual benefit of market-linked returns and insurance protection
Entry Age	90 days – 65 years
Maximum Maturity Age	85 years
Policy Tenure	10-25 years
Sum Assured	If age is below 55 years – 10 times the annualized premium If age is 55 years and above – 7 times the annualized premium
Annualized premium	Minimum – INR 40,000 Maximum – no limit
Death Benefit	Higher of the available fund value or the basic sum assured subject to a minimum of 105% of the total premiums paid. Guaranteed additions, if added, would also be paid with the death benefit
Maturity Benefit	Fund value + guaranteed additions

Child plans
Child plans are insurance plans which specifically cater to the financial security of a child. The plan can be issued as an endowment, money back or unit-linked plan. The salient features include the following –
- The plan can be bought by parents of minor children
- The parent or the child can be the life insured
- There is an inbuilt premium waiver benefit. This benefit waives off the premium if the parent dies. The plan continues till maturity and gives the promised benefits to provide the child with the required funds

Child plans assure a financial corpus that can be utilised in the future. There are several versions of these plans which are inflation-proof, adding to the security of the child’s future. More information on different child plans available in India and their comparison can be foundhere.

LIC’s most popular child plan: LIC’s Jeevan Tarun Plan

This is a child plan which pays the money back benefits between the ages 20 to 24 years of the child and when the child attains 25 years of age, the plan matures and pays the maturity benefit. The USP of the plan includes the following benefits –

There are four money back benefits to choose from
Bonuses help increase the plan benefits
There is an optional premium waiver benefit rider for an enhanced coverage
There are two types of premium rebates which help in lowering the premium amount.

Name of the LIC Plan	LIC’s Jeevan Tarun Plan
Type of Plan	Traditional Child Plan
Whom does the plan suit?	Suitable for parents who want to create a secured corpus for their child’s future.
Entry Age	90 days – 12 years
Maximum Maturity Age	25 years
Policy Tenure	25 minus entry age
Sum Assured	INR 75,000 onwards
Death Benefit	Sum assured on death + Accrued bonuses
Maturity Benefit	25% to 100% of the sum assured depending on the survival benefit option selected

Pension plans

Pension plans are retirement oriented plans which help individuals create a retirement corpus. The features of pension plans are as follows –

Pension plans can be offered in two variants – deferred annuity and immediate annuity plans
The maturity benefit of a pension plan is used to create annuities that continue till the lifetime of the policyholder
Under immediate annuity plans, annuities can be received on joint lives too.

One of LIC’s popular pension plans: LIC’s Jeevan Shanti Plan

This is a pension plan for senior citizens. The plan offers you the choice of choosing a deferred annuity option or an immediate annuity option. Each option further offers a range of annuity payment options that can be selected as per requirement. The USPs of the plan is as follows –

The annuity payment options can be availed on a single life or on a joint life basis
Under the deferred annuity option, monthly guaranteed additions are added to the policy corpus till the deferment period
The death benefit can be taken in annuity payments, in instalments or in a lump sum as selected by the annuitant
A policy loan is also available under some annuity options

Name of the LIC Plan	LIC’s Jeevan Shanti Plan
Type of Plan	Pension Plan
Whom does the plan suit?	Suitable for individuals looking to create a retirement corpus as well as lifetime income after retirement.
Entry Age	60 years and above
Maximum Maturity Age	Depends on the annuity option selected
Policy Tenure	Depends on the annuity option selected
Sum Assured	NA
Death Benefit	Depends on the plan option selected.
Maturity Benefit	Nil. Annuity payments are made from the vesting date till the annuitant’s lifetime.

LIC’s Jeevan Shanti plan not suiting your exact requirements for a pension plan?

Help us recommend ULIP plans based on your requirement & choose the best policy according to your needs. Simply click onthis link & follow the instructions!

Comparative analysis of the best LIC policies

	LIC’s Tech Term Plan	LIC’s Jeevan Amar	LIC’s Jeevan Lakshya	LIC’s Jeevan Shiromani	LIC’s Jeevan Umang	LIC’s New Endowment Plus	LIC’s SIIP	LIC’s Jeevan Tarun	LIC’s Jeevan Shanti
Type of policy	Term	Term	Endowment	Money back	Money back	ULIP	ULIP	Child plan	Pension plan
Need	Financial protection	Financial protection	Savings + insurance coverage	Savings + liquidity + insurance coverage	Savings + liquidity + insurance coverage	Insurance protection + wealth creation	Insurance protection + wealth creation	Child planning	Retirement planning
Product USP	Increasing or level coverage	Increasing or level coverage	Bonus additions	Loyalty and guaranteed additions	Coverage till 100 years	Four investment fund options	Refund of mortality charges	Option to choose the plan as endowment or money back	Monthly guaranteed additions under the deferred annuity option
	High coverage levels	The death benefit in instalments	The death benefit payable as incomes as well as in lump sum	Inbuilt critical illness cover	Steady income after the premium payment term	Four free switches	Guaranteed additions at specific intervals	Bonus additions enhance the corpus	Range of annuity choices under the immediate annuity option

Top #9 Points to consider while identifying the best LIC plan:

So, these are some of the best plans offered by LIC which you can consider. You can select the plans depending on your insurance needs. Before selecting the plans, however, keep the following things in mind –

Purpose
Make sure that the plan fulfils your financial needs. If you want to fulfil the need for income replacement, a term insurance plan is a must. Similarly, if you want to plan for your retirement, choose a pension plan. So, the choice of the plan should match your financial goals.
Type of plan –
The choice of the plan should be based on your risk appetite as well. If you don’t mind taking risks, ULIPs are a good choice. However, if you are risk-averse, choose traditional endowment and money-back plans for guaranteed returns.
Sum Assured –
The sum assured of the plan should be sufficient enough to cover the financial goal for which you are buying the policy.
Policy term –
The term of the policy should be selected depending on the need for funds. Match your investment horizon with that of the policy tenure and then select the term. For instance, if you would be needing funds after 15 years, choose a policy term of 15 years so that you get the policy benefit just when you need it.
Tax benefits –
Life insurance policies give you tax benefits. The premiums paid are allowed as a deduction under Section 80C up to INR 1.5 lakhs. Similarly, the death or maturity benefit received is also a tax-free income under Section 10 (10D). So, don’t forget to maximise the tax advantage offered by the plan that you buy.
Rider benefits –
If you want additional coverage benefits, look for optional riders offered by the plan which would help you increase the scope of coverage.
Exclusions
Almost all LIC plans have suicide exclusion wherein suicides within 12 months of policy inception or revival are not covered. In such cases, the premium paid is refunded or the surrender value is paid. So, check the exclusion of the plan before buying to know the exact coverage details.
Annuity options in pension plans –
LIC’s pension plans have multiple annuity options. If you are buying the pension plan, ensure that you choose the most suitable annuity pay-out option for earning the maximum benefits.
Loyalty additions and bonuses –
Traditional LIC plans offer you the benefit of extra additions like loyalty additions, guaranteed additions or reversionary bonuses. Look for these extra additions in the plan’s benefits structure to get a higher payout under the policy.
So, plan your financial goals and then find the best LIC policy which best suits your financial goals. Invest in any of the above-mentioned policies and enjoy the benefits which the policy promises.
To buy LIC’s policies you can choose Turtlemint. Turtlemint is an online platform that lets you buy the best LIC policy for your coverage requirements. The benefits of buying through Turtlemint are as follows –

You can simply provide your personal information and buy the policy with the click of a few buttons
Turtlemint also recommends the ideal coverage level based on the income that you enter
You can compare similar plans on Turtlemint before you buy the actual policy. When you compare you can find the plan which has the best coverage benefits at the most reasonable premium rates.
Turtlemint not only helps you buy the most suitable LIC policy online, but you can also get help at the time of claims too. Turtlemint has a dedicated claim handling department that coordinates with the insurance company to ensure a quick claim settlement.

So, choose the most relevant LIC policy based on your needs and buy the policy easily from Turtlemint.

Know The Coverage of Your Two-Wheeler Insurance Policy

August 19, 2019May 12, 2021 Sidharth Hampanavar

What do you do when you buy a new bike? You check its features, fuel efficiency, mileage, power, colour, price and other aspects ensuring that you select the best. Do you pay so much attention to the bike insurance policy which is also bought along with your bike?

As per the provisions of the Motor Vehicles Act, 1988, your bike should have a valid two wheeler insurance cover on it if you want to drive it around. While the requirement of two wheeler insurance is common knowledge, the coverage that is available under the plan is not so commonly known. Many bike owners are clueless about the instances which would be covered by their bike insurance policies. This lack of knowledge is largely because of the technical concepts of insurance which escapes people’s understanding. So, let’s simplify the coverage aspects of two wheeler insurance policies.

Coverage under two wheeler insurance plans depends on the type of policy that you buy. There are, essentially two types of policies, third party liability only plans and comprehensive plans. Moreover, there are also additional riders, called add-ons, which are available with comprehensive policies. Let’s, therefore, understand these policy types and the available add-ons –

What is a third party liability only policy?

A third party policy is the policy which fulfils the legal mandate of owning bike insurance. It covers third party liabilities which you face in case of accidents due to your bike.

Coverage

Third party plans cover the following instances –

Death or physical injury caused to a third party (any individual other than yourself)
Damage caused to third party property

In case of either of these instances, the financial loss caused to the third party is paid by the two wheeler insurance policy. Moreover, third party plans also have a personal accident cover wherein if you suffer accidental death or permanent disablement, a lump sum benefit is paid to you.

What is a comprehensive plan?

Under a comprehensive plan, there are two coverage aspects. The policy covers the mandatory third party liability as described earlier. Moreover, it also covers the damages which your bike suffers which are not covered under third party plans.

Coverage

Under comprehensive plans, therefore, coverage is allowed for third party injury, death and property damage as well as for the damages suffered by your bike due to the following instances –

Natural calamities like earthquakes, lightning, storm, tempest, hailstorm, floods, typhoon, hurricane, storm, tempest, inundation, cyclone, frost, landslide, rockslide, etc.
Man-made calamities like fire, theft, burglary, housebreaking, explosion, collision, malicious acts, self-ignition, terrorist activities, riots, strikes, accidental external means, etc.
Damages suffered when the bike is being transported by air, water, elevator, lift, road or rail

Furthermore, just like in a third party liability policy, personal accident cover is also available in comprehensive plans. Under the cover, accidental death or accidental permanent disablement of the owner/driver of the bike is covered.

What are add-ons?

As the name suggests, add-ons are additional coverage options which are available with comprehensive two-wheeler insurance plans. You can choose one or more add-ons by paying an additional premium for each add-on selected. Add-ons increase the scope of coverage and are, therefore, advised. Some commonly available add-ons include the following –

Roadside assistance which ensures 24*7 assistance by the insurance company in case your bike breaks down in the middle of the road
Zero depreciation wherein depreciation on the bike’s parts is ignored and a higher claim amount is paid
Consumables cover wherein the cost of consumables like engine oil, lubricants, nuts, bolts, etc. is covered
NCB protect wherein the no claim bonus is kept intact even if you make a claim
Personal accident cover for passenger which extends personal accident cover to the pillion rider as well
Medical cover wherein the hospitalisation costs are covered in case of accidental injuries

So, the basic coverage under two wheeler insurance policies can be listed under four main heads –

Understand the coverage details of each of these coverage heads when you buy or go for two wheeler insurance renewal online. An insurance policy for bike is necessary and it’s wise to know exactly what the policy promises to cover so that when you suffer an accident, you can make a claim for the coverage promised under the policy.

10 ways to secure your family in 2021

January 23, 2019May 12, 2021 Sidharth Hampanavar

New Year comes with the New Year resolutions. With the onset of 2019, we will talk about the Top 10 Financial Resolutions that one must-have. How much do you score in this? Have you covered all 10, or there is still some of the Financial Resolutions that you must list in your to-do list for 2019?

Whatever plans you might have made for this year, ensure that you tick off these 10 financial resolutions as well.

Give yourself a score of 1 for each resolution and then check your score for the same.

1. Protect your family: Opt for a Term Plan

The first step in securing your family should be investing in a good term insurance plan. Term plans allow you to avail high coverage levels at the lowest premiums ensuring that you can create a substantial corpus for your family in case of your premature death. Nothing can be better than knowing that even if you are not around your family would be taken care of financially. So, invest in a term plan which has long coverage tenure and a high sum assured.

Tip: Ideal Term Insurance coverage: Minimum of 20 times your Annual Income

2. Secure their health issues with a health insurance plan

After you have secured your life with a term plan, it’s time to add another layer of security through a health insurance plan. Health plans provide financial security to you ensuring that the staggering medical expenses faced in a contingency would be taken care of.

Tip: Buy a family floater health plan covering all your family members and have a coverage level sufficient enough to pay for medical contingencies.

3. Create an emergency fund

Premature death and illness are not the only two contingencies which you might face in your life. There are other contingencies too which require financial assistance. For instance, in case of loss of your job where would you get the funds to take care of your family’s expenses till another job comes along? For this and any other contingency, you should create an emergency fund.

Tip: At least six months’ worth of your income in the fund to help you sail through difficult financial times.

4. Invest and create a financial portfolio

After the first three steps are taken care of, you should invest your savings into different avenues. You should create a financial plan which would highlight your goals and their time horizon. Then you should choose the investment avenues which would meet your goals. The avenues should fit your risk appetite, give the maximum possible returns and also should be tax efficient.

Tip: Create different buckets for different investment goals. That would make your accounting easy as well.

5. Make a Will

A Will is a legal document which states your wishes on the division of your property after your death. To avoid unnecessary hassles between your family members and a possible cause of family feud, you should make a Will designating the distribution of your property after your demise. The document should contain clear instructions so that there would be no misunderstandings between your family members.

Tip: Remember to get probate of the will as well, for the same to be valid in the court of law.

6. Educate your family about your financial holdings

Most often than not, even when you have invested in insurance products, your family fails to get the benefits. The reason is ignorance on their part. While you create a financial portfolio and buy insurance products, you don’t inform your family about them. As a result, when you are not around or are otherwise indisposed, your family members don’t know how to utilize your investments.

Tip: Inform your family members of the insurance policies you own and their claim process. Also, let them know about your investments so that they can use them when you can’t. Do not forget to add nominee details as well.

7. Invest in a house

Nothing gives your family security than having a house which they can call their own. After taking care of your short-term financial goals, invest towards a house. Your house would prove to be an asset not only for you but for your family as well.

Remember that home loans give you an additional tax benefit as well!

Tip: Remember to protect your home loan, in case you opt for one, with a Loan Protect Plan as well.

8. Plan for your child’s future

While you dream of providing your child with the best education, your dream can turn into reality only if you have sufficient funds at your disposal. Education has become very expensive and if you want the best, the costs multiply. That is why you should start planning for your child’s future from an early age.

Tip: Invest small amounts regularly to accumulate a substantial corpus which would provide for your child’s future and make it secure. The keyword here is PLANNING.

Find out how to plan your child’s future.

9. Try paying off your debts

Your debts can prove to be a burden for your family if they have to pay it off in case of your sudden demise. All the financial security which you would have created for your family would be eaten away by your debt repayments leaving your family with nothing. So, try clearing off your debts as soon as possible. Debts are liabilities and the lower debts you have the better secured your family would be.

Tip: Clear off your bad loans before the good ones, i.e. the loans where there is no additional tax benefit and is compounding in nature to give a very high rate of interest, like personal loans and credit card loans before the good loans like home loans and education loans.

10. Plan for retirement

Do you know that after retirement you need a sizeable corpus to take care of your lifestyle expenses? Given the rate of inflation decreases the value of money over time, lifestyle expenses would be double or more than they are today. So, you need a sufficient amount after retirement to take care of your expenses.

Tip: To build the retirement corpus you need to start saving early. When you start early you can save a considerable amount. Moreover, if you have a retirement fund, your spouse would be taken care of if you predecease them.

Read more about investing for requirement

So, now that you know the Top 10 Financial Resolutions that you must-have, what is your score? Are far are you from your score of Perfect 10? This new year, do something completely different and ensure your loved ones feel safe and financially secure.

Retirement and annuity pay-outs – what you should know?

January 8, 2019May 12, 2021 Sidharth Hampanavar

Retirement is that phase of your life when you stop earning actively. Though your income dries up, your expenses don’t. To fund these expenses you need a regular source of income. This regular source of income can be provided by annuities that are regular pay-outs paid for as long as you live. Usually, annuity pay-outs happen after you retire but that is not all there is to it. There are various things to know about retirement and annuity pay-outs. Let’s find out what these are –

What is annuity?

Annuity, in simple terms, means a fixed regular income which is paid to an individual throughout his/her life.

Which investment avenues promise annuity pay-outs?

Annuity pay-outs are promised under two types of investments –

Life insurance pension plans and
National Pension Scheme offered by the Government of India

What are the different types of annuities?

Annuities can be of two types –

1. Deferred annuities

Under these types of annuities, you get an accumulation phase during which you can invest to create a corpus. You can choose the accumulation tenure and pay an amount over the duration. Once the accumulation phase comes to an end, the plan vests or matures. Vesting of the plan means that the annuity phase is starting. In the annuity phase, fixed annuity pay-outs are paid from the accumulated corpus.

1. Immediate annuities

Under immediate annuity plans, there is no waiting period before annuity payments start. You pay a lump sum amount to purchase the plan. Immediately after the plan is purchased, annuity pay-outs start from the next month.

Life insurance pension plans come in both variants of deferred and immediate annuities. National Pension Schemes, however, are deferred annuity schemes where you first invest and then get annuities.

Which annuity is suitable for you?

The suitability of the annuity depends on your life stage. If you are young and retirement is 10 to 20 years away, deferred annuity plans are better. You can save affordable amounts every year to build up a sizeable corpus for your retirement. Later on, when you retire, you can avail annuity pay-outs.

Immediate annuity plans, on the other hand, are suitable for individuals who have already retired. They can invest their lump sum savings in an immediate annuity plan and get regular incomes every month, quarter, half-year or year as is suitable. The annuity pay-outs would continue throughout their life providing them with a steady source of income after retirement. Moreover, immediate annuity plans also have different pay-out options. They can be taken on a joint life basis too where annuities are paid till the lifetime of the surviving spouse even if the primary annuitant passes away.

Why is annuity beneficial?

Annuities are beneficial because they promise a source of regular income even when you retire. They are promised for your lifetime and take care of your expenses even in your golden years.

So, understand the concept of annuities, their types, suitability and benefits and then invest in an annuity plan to financial secure your life after retirement.

How to choose the best bike insurance policy

December 28, 2018May 12, 2021 Sidharth Hampanavar

How do you buy or renew your bike insurance policy? Do you buy a plan which your friend has? Or do you renew your existing policy blindly?

There are more than twenty bike insurance companies that are offering you a cover for your bike. Do you stop and consider other policies before buying a bike insurance plan?

Comparing is essential when you are buying a bike insurance policy. Each insurance company and its insurance policy promises to give you some benefit which its competitor might not. If you want to choose a policy which gives you the best bike insurance cover available in the market, you should compare multiple plans before selecting one. Though comparing is essential, do you know how you should do so?

You might get confused when comparing different bike insurance plans. So, here are some tips which will tell you what you should exactly look out for –

Look at the coverage features

Always compare the coverage features in different bike insurance plans. Though the primary coverage benefits would be the same, it would the inbuilt add-ons which would help you in differentiating the plans. See if the policy allows inbuilt roadside assistance, towing facilities, etc. The wider the scope of coverage of the plan, the better would be the policy.

Consider the Insured Declared Value too

IDV is the value of your bike after deducting depreciation based on the bike’s age. A high IDV represents a higher claim settlement if the bike is completely damaged or if it is stolen. So, it is always advised to buy a policy which offers high IDV values. Compare the IDVs offered by different bike insurance plans. Try and choose a plan whose IDV is the highest so that the value of your bike is preserved over a longer period.

The premium rate

The premium is, obviously, another important parameter on which you should judge bike insurance plans. However, premiums should not be compared alone. Always compare premiums together with the plan’s IDV and coverage features. If a plan promises high IDV and comprehensive coverage benefits, higher premiums is not a bad thing. Always compare premiums, IDV and coverage benefits and then choose a plan which promises high IDV, inclusive coverage and competitive premiums.

Discounts allowed

Look for the different discounts offered by the plan. Choose a plan which promises you the highest discount rate so that your premium is reduced considerably. Some common discounts which you can claim in your bike insurance policy includes discount for no claim bonus, discount for choosing voluntary deductible, discount for modifying the vehicle for the disabled, etc. Though the types of discounts would be similar, compare their rates. A plan with the highest rates would be the best.

Ease of claim settlement

Nowadays, many insurance companies have introduced easy and quick claim settlements through video and image uploads. These policies would be best as they would ensure quick claim settlements. Moreover, understand the claim turn-around-time (TAT) of the company and choose a policy which has the lowest TAT and the most convenient claim settlement process.

Add-ons allowed

Add-ons help in increasing the scope of coverage of your bike insurance plan. So, comparing the add-ons available in different policies is also a good practice. Find out if the add-ons you require are offered by the policy or not. Moreover, the additional premium payable for the add-on should also be compared. The lower the premium the better the policy would be.

Claim settlement record of the insurance company

Lastly, after comparing different plans on the above parameters, check the claim settlement record of the insurance company. A company having a high rate of claim settlement means that the company settles maximum number of claims presented upon it. Such an insurance company would be a better choice as you would be assured of your claim settlement. So, choose a plan offered by a company which has a high claim settlement ratio.

If you keep these points in mind, comparing bike insurance policies would become easy and you would be able to buy the best policy for your bike. Isn’t the best bike insurance policy what you desire?

Read more about Top tips for cheap bike insurance

Want to buy or renew your bike insurance without inspection or paperwork visit Turtlemint to choose the best bike insurance company.

Pledge to secure your child’s future this Children’s Day

November 14, 2018May 12, 2021 Sidharth Hampanavar

Children’s Day is around the corner and most of you might be planning to surprise your child with gifts or a fun day out. While you are making sure that your child enjoys this Children’s Day, have you ensured that your child enjoys his future too?

Contingencies come unannounced and when they do they cause a heavy financial strain. This financial strain wipes out your finances and threatens the fulfillment of your financial goals. A secured future for one’s child is one such financial goal which all parents have. But are they able to fulfill this goal? What about you? Can you guarantee that your child would have a secured financial future?

Securing your child’s future is not a difficult job if you know how. There are two important products which should feature in your financial portfolio for securing your child’s future. These are as follows –

Health insurance plan

A health insurance plan helps meet the medical expenses which incur if you face any medical emergency. Since your children are highly prone to accidental injuries and infectious ailments, having a health insurance plan in place is recommended. The plan would pay for the hospitalisation cost and other associated medical expenses if your child faces a medical emergency. Since the medical costs would be covered, you wouldn’t have to worry about your savings being drained. You can, therefore, ensure the best healthcare facilities for your child if you have a good health plan.

Tips for buying health plans

1. Choose a family floater plan to cover your dependent children at affordable premiums

2. Choose a plan which has good and comprehensive coverage features

3. Opt for a high sum insured as medical costs are quite considerable

4. Critical illness plans are also recommended for an enhanced scope of coverage

Child insurance plans

Child insurance plans are life insurance plans which promise to create a corpus for your child even if you are not around to do so yourself. These plans are savings-oriented plans which have an inbuilt premium waiver rider. In case of death of the parent, the premiums payable are waived off. The policy continues and the insurance company pays the premium on the parent’s behalf. When the plan’s term comes to an end, the promised maturity benefit is paid so that the child can use the benefit for his financial needs. The USP of child plans is the premium waiver benefit. This benefit makes the plan most suitable for securing your child’s future. You can choose a term depending on when your child would require a financial corpus. Thereafter you can relax knowing that even in case of your premature death the child plan would create the promised corpus when the plan matures giving your child the financial help he/she requires. No other insurance or investment plan offers this security.

Tips for buying child plans

1. The plan should be bought when your child is young. The term should then be selected to match the milestones in your child’s life when funds would be required. For instance, if your child is 5 years old, you can buy a plan with a term of 15 years knowing that when your child turns 20 funds might be required for higher education

2. The sum assured should be sufficient to pay for the child’s financial needs. You should work out your child’s future financial needs keeping inflation in mind and then choose the sum assured.

3. Child plans are also offered as unit linked plans. These plans are better than traditional savings oriented plans. So, ULIPs should be chosen as you get the benefit of market-linked returns which would help you in creating a good corpus for your child.

Make this Children’s Day fun for your children and don’t forget to secure their future too. Your child is your bundle of joy and you wouldn’t want any misfortune to fall on them, would you? Plan in advance so that your child remains financially unaffected even when life throws challenges. Invest in health insurance and child life insurance plans and fulfil your duty of a responsible parent.

Read more about life insurance in your 30s

Top 10 bikes which are not only fun to ride but also cheap to insure

November 2, 2018May 11, 2021 Sidharth Hampanavar

Motorbikes are a very popular mode of conveyance for young and old alike. While youngsters prefer bikes for their speed and style, adults depend on bikes to be the most economical mode of conveyance. Whatever be the reason, the fact cannot be ignored that two-wheelers are very popular. If numbers are to be believed, two-wheeler sales have grown by leaps and bounds in 2018. Take a look –

(Source: https://www.team-bhp.com/forum/motorbikes/200392-june-2018-two-wheeler-sales-figures-analysis.html )

If you too are looking to buy a bike soon, you can take your pick from some of the top-selling models. But before you do, consider the bike insurance policy too which is required when you buy a bike. As per the Motor Vehicles Act, 1988, a bike insurance policy is a mandatory requirement if you plan on using your bike. As such, when you buy a bike, you also pay for the associated bike insurance policy. So, your choice of bike should also factor in the insurance costs.

Here are top 10 bikes which are not only the best in their segment, but they are also cheap to insure –

(Source for on-road price and bike specifications – https://www.bikedekho.com/best-bikes )

(Source for premium calculation – https://turtlemint-stage.dreamhosters.com/two-wheeler-insurance )

With third party policies now being offered for a continuous period of 5 years, the premiums are quite affordable and the IDV is also high. You can choose any of the above-mentioned bikes and enjoy a good performance. The bikes suit all pockets and their insurance cover is affordable too. So, what are you waiting for? Make your choice!

Also, check the video below to know the Top 10 bikes which are cheap to insure in 2019