LIC Jeevan Aadhar Plan 114 Calculator

LIC Jeevan Aadhar Plan 114 is a now withdrawn plan aimed at providing life insurance coverage for individuals with handicapped dependents and has benefits partly as a lump sum and partly as an annuity.

The plan was withdrawn on 01.01.2014. It offers premium tax relief under Section 80DDA of the Income Tax Act and guaranteed plus terminal additions. Accurate details about its calculator and premium calculation are limited, as the plan is no longer sold.

Introduction to LIC Jeevan Aadhar Plan 114

Life Insurance Corporation of India (LIC) has introduced various insurance plans aimed at securing the future of policyholders and their loved ones. One such unique plan is the LIC Jeevan Aadhar Plan 114. This plan was specifically designed to provide life insurance coverage for individuals who have a handicapped dependent as defined under Section 80DDA of the Income Tax Act.

The purpose of this article is to provide a detailed understanding of LIC Jeevan Aadhar Plan 114, including its features, benefits, premium structure, tax advantages, and how the LIC Jeevan Aadhar Plan Calculator would work for policyholders interested in estimating their benefits.

Launch and Withdrawal Dates

LIC Jeevan Aadhar Plan 114 was launched long before its withdrawal but was officially withdrawn from sale on January 1, 2014. Although one cannot buy this policy now, existing policyholders can still manage their plans until maturity or earlier death.

The withdrawal of this plan means no new policies are issued, but information related to its benefits and premiums is still relevant for those with active policies or for historical reference.

Who Can Buy LIC Jeevan Aadhar Plan 114?

The Jeevan Aadhar Plan was targeted at persons having a handicapped dependant who qualifies under Section 80DDA of the Income Tax Act, 1961. This section provides for specific income tax benefits to individuals supporting differently-abled dependents.

Hence, this plan was ideal for:

• Individuals wanting lifelong life insurance coverage.
• Persons needing to provide financial security for their handicapped dependents.
• Taxpayers looking for legal tax relief under Section 80DDA.
• Those interested in both lump sum and annuity benefits to dependants after the policyholder’s demise.

Key Features of the LIC Jeevan Aadhar Plan 114

The LIC Jeevan Aadhar Plan had some distinct and beneficial features aimed at providing comprehensive insurance and financial support:

Life Cover for Entire Lifetime

The plan ensured life insurance coverage throughout the life of the policyholder, making it a non-terminating life risk coverage until death, providing peace of mind for the family.

Benefits for Handicapped Dependant

On the demise of the policyholder, financial benefits were paid partly as a lump sum and partly in the form of an annuity to the handicapped dependant. This helped in regular income support along with immediate funds.

Premium Payment Terms and Modes

Flexibility was provided in premium payment, which could be made yearly, half-yearly, quarterly, monthly, or through salary deductions. The premium payment terms ranged from 10 years up to 35 years or could continue until the earlier death of the policyholder.

Additionally, it offered a single premium option, where the entire premium amount could be paid as a lump sum initially without periodic payments thereafter.

Guaranteed Additions

The policy included guaranteed additions credited every policy year at the rate of Rs.100 per Rs.1000 of Sum Assured. These additions accrued until the policyholder attained 65 years of age or until death if earlier.

Terminal Additions (Bonuses)

As a with-profits participating plan, Jeevan Aadhar was entitled to receive a share in the corporation’s profits in the form of terminal additions, provided at least 10 years of premiums were paid.

Tax Benefits

Premiums paid under this plan were eligible for tax deduction under Section 80DDA of the Income Tax Act. This was an attractive aspect for taxpayers supporting differently-abled dependants as it allowed legitimate tax savings.

How Does LIC Jeevan Aadhar Plan 114 Work?

The annual or periodic premiums contribute towards life cover protection and the building up of guaranteed plus terminal additions over the policy tenure. The key working elements can be summarized as:

• Policyholder pays premium for the selected premium payment term or till death.
• Guaranteed additions accumulate every year based on the sum assured.
• If premiums are paid for 10 or more years, the policy becomes eligible for terminal additions.
• On death of the policyholder during the term, benefits are paid to the handicapped dependant partly as lump sum and partly as an annuity.
• On maturity (if applicable), the accumulated amounts are paid in a specific ratio benefiting the dependant.

Understanding LIC Jeevan Aadhar Plan 114 Calculator

A LIC Jeevan Aadhar Plan calculator is a tool designed to help prospective or existing policyholders estimate their premium amounts, maturity benefits, and death benefits under this plan. Though the plan is withdrawn, understanding the calculator’s working helps in assessing the benefits:

What Inputs Are Needed?

The calculator requires details such as:

• Age of the policyholder at entry
• Sum assured (the insured amount)
• Premium payment term (10 to 35 years or single premium)
• Premium frequency (yearly, half-yearly, quarterly, monthly)
• Policy term or life expectancy assumptions

How the Calculation is Done

1. Premium Calculation: Based on the sum assured, age, premium payment term, and mode, the calculator estimates the amount to be paid periodically.
2. Guaranteed Additions: The calculator adds Rs.100 per Rs.1000 of sum assured for each policy year, till the age limit or death.
3. Terminal Additions: Based on assumed bonus rates (which vary yearly), the calculator estimates terminal bonuses for policies where 10+ years of premium are paid.
4. Death Benefit Estimation: The tool estimates the total payable benefits to the handicapped dependant, combining lump sum and annuity parts.
5. Maturity Benefit Estimation: For policies surviving the term, it calculates the total maturity amount including guaranteed and terminal additions.

Benefits of Using the Calculator

• Helps in financial planning by estimating premiums required.
• Allows policyholders to forecast their benefits.
• Assists in comparing plans based on expected returns.
• Easy to understand potential payouts and tax benefits.

Tax Benefits Under Section 80DDA

Section 80DDA of the Income Tax Act allows deduction of premiums paid towards insurance plans for handicapped dependents. LIC Jeevan Aadhar Plan premium payments qualified for this deduction, decreasing taxable income and overall tax liability.

The exemption under this section aims to encourage taxpayers to provide financial security to differently-abled family members.

Important Considerations

• The plan was withdrawn on January 1, 2014, so no new policies are available.
• Existing policyholders must continue paying premiums till maturity or earlier death.
• The guaranteed additions are fixed, while terminal bonuses depend on LIC’s profits and are not guaranteed.
• Annuity benefits provide a steady income for the handicapped dependent, which is valuable for long-term care.
• Premium amounts may vary based on age, policy term, payment mode, and sum assured.

Frequently Asked Questions

Summary

LIC Jeevan Aadhar Plan 114 was a unique insurance plan specially designed for persons having handicapped dependents under Section 80DDA of the Income Tax Act. It offered lifelong insurance coverage with a combination of lump sum and annuity benefits to the dependant, along with guaranteed and terminal additions.

Though withdrawn in 2014, it remains an important plan in LIC’s history, especially valued for its tax benefits and tailored support for handicapped dependents. Understanding the LIC Jeevan Aadhar Plan 114 calculator helps existing policyholders estimate their premiums and benefits for better financial planning.