What is LIC SIIP Plan 852? Eligibility Criteria of LIC’s SIIP Benefits Offered by LIC SIIP Plan Features of LIC’s SIIP Plan The Investment Options Available in LIC’s SIIP Plan Tax Benefits Offered by LIC’s SIIP How to Calculate the Returns on Your Investment with LIC’
Are you looking for a smart investment plan that can ensure financial security and stability? Look no further than the LIC SIIP Plan! This innovative plan offered by LIC comes with multiple benefits that make it an ideal choice for investors of all ages. From tax savings to market-linked returns, this plan offers something for everyone. In this blog post, we’ll explore why the LIC SIIP Plan is a smart investment choice and what benefits it offers to investors. So, sit back and read on to discover how this plan can help you achieve your financial goals!
LIC’s SIIP Plan 852 is a unit-linked insurance plan that offers you the dual benefit of life insurance and investment. This makes it a smart investment choice, as it provides you with financial security in case of an unfortunate event, while also helping you grow your wealth over the long term.
Some of the key benefits offered by LIC SIIP Plan 852 include:
1. Life Insurance Cover: The plan provides you with a life insurance cover of up to Rs. 1 crore, which ensures that your family is financially protected in case of your untimely demise.
2. Flexible Investment Options: The plan offers you the flexibility to choose from three different investment options – Aggressive, Moderate, and Conservative – depending on your risk appetite and financial goals.
3. Tax Benefits: The plan offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. This helps you save money on taxes and allows you to grow your wealth faster.
4. Wide range of funds to choose from: The plan gives you the option to invest in a wide range of funds, including equity funds, debt funds, and balanced funds. This gives you the opportunity to create a diversified portfolio that can maximize your returns while minimizing your risks.
Eligibility Criteria of LIC’s SIIP
Individuals between the ages of 18 and 55 are eligible to invest in LIC SIIP. The minimum investment amount is Rs. 250 and there is no maximum limit. LIC SIIP offers both lump sum and systematic investment options.
LIC SIIP has a lock-in period of 5 years and offers guaranteed returns. On maturity, investors will receive their investment plus accrued returns. LIC SIIP is a tax-saving investment option under Section 80C of the Income Tax Act.
Benefits Offered by LIC SIIP Plan
LIC’s SIIP plan is a great investment choice for several reasons. First, the plan offers a very attractive interest rate. For example, if you were to invest Rs. 1 lakh in this plan, you would earn an interest rate of 9.35% per year. This is significantly higher than what you would earn from a traditional savings account or fixed deposit.
Second, the LIC SIIP plan offers partial withdrawal and loan facilities. This means that you can access your money before the maturity of the plan, in case of an emergency.
Third, the LIC SIIP plan comes with a death benefit. In the event of your untimely demise, your nominees will receive the sum assured plus a bonus, regardless of whether or not you have made any withdrawals from the plan.
Fourth, the LIC SIIP plan has a very low-risk profile. This is because your investment is spread across a number of different asset classes, including government securities, corporate bonds, and stocks.
The LIC SIIP plan offers tax benefits. The interest earned on this investment is exempt from income tax up to Rs 1 lakh per annum. Also, the maturity proceeds are tax-free in your hands.
Features of LIC’s SIIP Plan
There are many features of LIC’s SIIP plan that make it a smart investment choice. Some of the key features and benefits offered by this plan include:
1. Guaranteed returns: This is one of the most important features of LIC’s SIIP plan. The policy guarantees minimum returns of 7% per annum, irrespective of the market conditions. This ensures that you get positive returns on your investment, even if the stock markets are volatile.
2. Death benefit: In case of death during the policy term, the nominee will receive the sum assured + accrued bonuses. This ensures that your family is financially protected in case of an untimely death.
3. Maturity benefit: On completion of the policy term, you will receive the sum assured + accrued bonuses as a maturity benefit. This gives you a lump sum amount that can be used for meeting your financial goals or for other purposes as you see fit.
4. Flexibility: LIC’s SIIP plan offers great flexibility in terms of premium payment and withdrawal options. You can choose to pay premiums annually, semi-annually or monthly at your convenience. In addition, you can also avail of partial withdrawals from the policy after completing 5 years from the inception date subject to certain conditions being met..
5. Tax benefits: LIC’s SIIP plan qualifies for tax benefits under sections 80C and 10(10D) of the Income Tax Act,
The Investment Options Available in LIC’s SIIP Plan
LIC’s SIIP plan offers a wide range of investment options to choose from. You can invest in government bonds, corporate bonds, mutual funds, and more. Each option has its own set of benefits and risks.
Government Bonds: Government bonds are one of the safest investment options available. They are backed by the full faith and credit of the government and offer a fixed rate of interest. However, they also tend to offer lower returns than other options.
Corporate Bonds: Corporate bonds are issued by companies instead of governments. They tend to offer higher returns than government bonds but are also riskier. Make sure to research a company thoroughly before investing in its bonds.
Mutual Funds: Mutual funds are a type of investment that pools money from many investors and invests it in a variety of securities. They offer diversification and professional management but also come with fees and expenses.
These are just a few of the investment options available through LIC’s SIIP plan. Talk to a financial advisor to learn more about which option is right for you.
Tax Benefits Offered by LIC’s SIIP
When it comes to taxation, the LIC SIIP offers a number of benefits that make it a smart investment choice. One of the main benefits is that the maturity proceeds are exempt from income tax. This means that you will not have to pay any taxes on the money you receive when the policy matures.
Another benefit is that the premium paid towards the policy is eligible for tax deductions under Section 80C of the Income Tax Act. This deduction can be claimed up to a maximum of Rs. 1.5 lakhs in a financial year. This deduction can be claimed by both individuals and Hindu Undivided Families (HUFs).
The death benefit received by the nominee is also exempt from income tax. This means that your loved ones will not have to pay any taxes on the money they receive from the policy in case of your untimely demise.
In addition to these benefits, the LIC SIIP also offers other features that make it an attractive investment option. Some of these features include:
1) Death Benefit: The death benefit under this policy is payable as follows:
– If death occurs during the policy term: Sum Assured + Accrued Bonuses
– If death occurs after policy maturity: Maturity Proceeds
How to Calculate the Returns on Your Investment with LIC’
Assuming that you have already decided to invest in the LIC SIIP plan, let’s look at how you can calculate the returns on your investment.
The first thing you need to do is find out the NAV (Net Asset Value) of the plan. The NAV is the market value of all the assets in the plan minus any liabilities. You can find the NAV of the LIC SIIP plan on the LIC website or on any financial news website.
Once you have the NAV, you need to calculate your total investment amount. This is simply the number of units you have multiplied by the price per unit. For example, if you have invested Rs. 1 lakh and there are 10 units in a single fund, then your total investment amount would be Rs. 10 lakh.
Now, we need to calculate the return on your investment. This is done by dividing your total investment amount by the NAV of the plan. So, if our previous example had an NAV of Rs. 9 lakhs, then your return on investment would be 11.1%.
It is important to remember that these are only estimates and actual returns may differ slightly from these numbers. However, this should give you a good idea of how much you can expect to earn from investing in this plan.