Go ahead, let LIC sponsor your Singapore Trip !

Presentation by: Bhushan H Sheth

Why LIC?
Investment in LIC policies is often compared to those of Fixed deposits, PPF and such other avenues. It is important to note the trend of PPF in Indian history: 1995 12% 2007 8% 2027 ? Could be as low as 4% Fixed Deposit: Current interest rate for 10Years are about 8% - which is taxable. Tax net rate is below 6%. No guarantee for rates beyond 10Yrs. Whereas, the valuation surplus of LIC has only grown since inception. Since LIC has no other stakeholders, all such surplus is distributed among the Policyholders.

Company Profile
Awarded The Most Trusted Consumer Brand for 5 consecutive years
LIC has a valuation surplus of Rs. 15,127 Crore. (This surplus is more than the paid up capital of ICICI Prudential, HDFC Standard Life, Reliance Life and Bajaj Allianz Life put together!!) - The Economic Times, 15th Sept, 2007 LIC tops claims settlement chart with 96.94% of reported claims being settled. While private insurers settled only 72.7% of claims. The Economic Times, 29th April, 2008

LIC holds more than 10% of the equity in various excellent companies including Corporation Bank, Cipla, M&M, Maruti, MTNL, Tata Motors, HPCL, Ranbaxy Labs, Tata Steel, Reliance Infra, ITC, ACC and L&T.
The Economic Times, 28th August, 2008

LIC has a life fund of 7 Lakh Crore with 23 Crore policies in force and is the only company that enjoys Sovereign Guarantee of Govt. of India.

Section 80c of Income Tax Act

This section deals with investment avenues that an individual investor has. The invested amount in the specified areas shall be deducted from gross income, thus saving tax outgo on the same. The total investible limit has been set to Rs.1Lac The permissible investment includes Life Insurance premium among others Medical insurance premium is NOT included in this section. It is under a separate section 80d Thus a person who is in the 30% tax slab, can effectively save Rs. 30,000 of income tax outgo, simply by investing Rs.1Lac in the optional avenues

Whats so unique?

Key Features
This is a 20 year scheme with 8 years of INVESTMENT HOLIDAY and 4 years of reduced burden. Continuous payment only for first 4 years.
While your tax saving is automatically done for the entire period of 20 years. Thus, total tax saved under sec 80c as a % of investment can be up to 77%. You can deposit Monthly, Qly, Hly or Yly. Maturity amount in LIC Scheme has a guaranteed portion and is Tax Free. Further, it is NOT unit/equity linked.

Get FREE INSURANCE plus accident benefit with LIC scheme for 30 years!!
Pay for 12, Save Tax for 20, Maturity after 20 and Covered for 30.

WHAT MORE CAN YOU NEED??

Comparison with a standard LIC plan

Standard Plan
A 20-year plan requires premium

Tax Saver Plan

A 20-year plan requires premium

payment in all 20 years Same premium applicable for all 20Yrs Continuous premium for 20Yrs Insurance cover is for 20Yrs Max tax saving possible is as per your tax slab At age 35, a 10Lac policy will have annual premium of Rs.50,000; thus total investment will be 50000 x 20 = 10Lac

payment for only 12 years 4yrs out of these 12yrs have much lower premium Regular breaks to ease liquidity Insurance cover is for 30Yrs Tax saving will be more than twice your tax slab At age 35, a 10Lac policy will have premium of Rs. 40,000 for 8 years. Total investment will be less than Rs. 4Lac

Find out how...

Not just Singapore, but Hong Kong, Maldives and Bali too!!
The cost of a luxurious trip for a COUPLE to Singapore and all such other places is Rs. 2 Lacs
To take best advantage of tax saving, you will have to invest Rs. 1 Lac anyway in Life Insurance policy or any such other instrument every year regularly to save tax. In all other alternatives, you will invest Rs. 1Lac every year for 20 years, to save your tax outgo. Never will you be left with surplus to enjoy Four separate visits to Singapore. But in the Super Tax Saver, we give you four such trips for FREE. You get 8 Years of Investment Holiday in this scheme. That is, for those 8 years, you need not invest Rs. 1Lac, but your tax saving is still done. There will be Four such 2-Year holiday blocks. The 2-year investment should have been Rs. 2Lacs, but in our scheme it will be ZERO. And you can easily use this amount for your foreign tour.

Exiting? Here are the details

for a 35-year old person, who has to invest Rs. 1Lac to save tax
Year 1 2 3 Investment 1,00,000 1,00,000 1,00,000 Tax Saved 30,000 30,000 30,000 Year 12 13 14 15 Investment 1,00,000 27,500
No Investment: Maldives Trip No. 3

Tax Saved 30,000 30,000 30,000 30,000

4
5 6 7 8 9

1,00,000
27,500
No Investment: Singapore Trip No. 1

30,000
30,000 30,000 30,000 30,000 30,000

16
17 18 19 20 Total

1,00,000
27,500
No Investment: Bali Trip No. 4

30,000
30,000 30,000 30,000 30,000 6,00,000

1,00,000 27,500
No Investment: Hong Kong Trip No. 2

1,00,000 9,10,000

10
11

30,000
30,000

65.93

Other Key Benefits

Insurance Cover:
Year 1 to 20: Rs. 25 Lacs Year 21 to 30: Rs. 12.5 Lacs (FREE COVER)

Additional Accidental Death Benefit of Rs.25Lacs for initial 20 Years Disability Benefit included Maturity Benefit: Guaranteed + Bonus = 10,00,000 + 10,00,000 = Rs. 20,00,000 The only plan in which LIC and Income Tax Department seem to come together to sponsor your foreign tours, that too four times !

Ready Reckoner
LICs Tax Saving Scheme
Age Investment Level
50000 100000 50000 100000 50000 100000 50000 100000

Total Investment
3,91,500 7,83,000 3,94,250 7,88,750 4,53,250 9,10,000 5,26,750 10,53,250

Total Tax Saved

3,02,000 6,04,500 2,84,000 5,68,500 3,00,000 6,00,000 3,07,000 614,250

Total Tax Saved

77% 77% 72% 72% 65% 65% 58% 58%

Free Insurance
14,00,000 28,00,000 12,50,000 25,00,000 12,50,000 25,00,000 11,00,000 22,00,000

Returns

25 25 30 30 35 35 40 40

10,00,000 20,00,000 10,00,000 20,00,000 10,00,000 20,00,000 10,00,000 20,00,000

Health wise premium may vary. Premium figures have been rounded off to the nearest thousand.

The blue shaded row is the one used in earlier charts and examples.

Presentation Prepared by: Bhushan H Sheth MBA, MS, AIII Licensed LIC Agent Contact: 9967280006 E-mail: bhushansheth@gmail.com bhushansheth@hotmail.com
This is a customized endowment plan from LIC of India. Tabular details will be revealed only after finalization.