Page 45 - IC23 life insurance application

Jeevan Suraksha plan occupies a unique position in providing pension to the old

people. In fact Government of India has provided in the Income Tax Act that the

premium under Jeevan Suraksha to the extent of Rs.10,000/- annually is deductible

from income for the purpose of tax. May be in course of time, this benefit shall be

enhanced.

The endowment type of Jeevan Suraksha plan has the unique flexibility to start the

insurance as an endowment plan and to exercise the option of annuity only at the

time of maturity. With additional benefit of guaranteed addition and loyalty addition,

the final cash option shall be quite substantial to decide as to how to use this.

This takes care of the dual problem of life - dying too early or living too long. I

strongly believe that insurance agent would do well to put due emphasis on this plan

while analyzing the insurance need of a customer.

We have compared above different plans taking the cost factor. It is also possible to

compare the plans on the basis of maturity value.

We have not made any comparison on the basis of maturity value for two reasons -

one such estimation of the maturity values is speculative in nature, for one never

knows for sure the future bonus rates. Comparison can of course, be made between

two plans, both with guaranteed bonus.

Secondly the income tax rebate availed with different slabs of income, shall vary the

estimation of the final benefit.

After all life insurance is not an investment. Therefore considering the rate of return

on different plans is decreasing its integral value. This will also encourage

comparison with other instruments of investment available in the market. It is wise

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