Compensation & Benefits

• Sunil Karan – 14• Deepali Magdum – 27• Vani Mangalur – 28• Anju Yadav - 60

SuperannuationThe act of discharging someone because of age (especially to cause someone to retire from service on a pension)

a monthly payment made to someone who is retired from work

Superannuation FundSuperannuation fund is a contribution made by the

employer each year(usually it is 10-15% of the basic salary of the employee) on the behalf of the employee towards the Group Superannuation policy held by the employer.

& in case of Individual Superannuation funds, the employee contributes based on the superannuation premium decided thereafter.

• It is a voluntary scheme best suited for tax planning. • Company contributes upto 15% of basic wages (maximum cont.)• Applicable law is income tax act, 1961 and rules thereunder. • We can invest funds / in house or can invest with lic. • Lic acts on the advice of board of trustees and the trust rules

framed by the company given to them while taking policy.• Fund is created under an irrevocable trust recognised under the

income tax act, 1961. • Different employers put different clauses of mandatory service

from 1 to 10 years. mandatory service in a model case it is • Upto 1 year - nil• Upto 2 years - 50%• More than 2 years - 100%

• Contribution by employer upto 15% is an allowable expense in the hands of employer and tax free receipt in the hands of the employees.

• Investment is done by board of trustees and the money is given to lic. lic pays interest from 11.00% approx. depending on the corpus of the fund.

• Two types of benefits - advance fixation of benefits and money purchase scheme. every company is subscribing to money purchase scheme (with the fixed percentage of contributions per month).

• Commutation in cash can be as per income tax act, 1961 :-

1/3rd in case gratuity is also paid. ( subject to tax )

1/2 in case no gratuity is paid ( subject to tax )

• Member is entitled to get eight options of annuities from LIC. we recommend options where capital sum is also refunded. in all other cases lic eats away the capital sum.

• Member can get his superannuation benefits balance transferred to his new employers' scheme.

• Member can elect to start pension immediately or at a later stage ie at the age of 58 years.

• Commuted value as well as pension paid is subject to tax

• Trust accounts are subject to audit.

• Income tax return is to be filed at the end of the year by 31st october.

• Transfer from previous employer can also be received (tax free).• transfer to other's trust can also be paid (tax free). • New employer can have minimum mandatory service clauses for their

own contribution but they cannot touch previous transferred funds.

• 15% contribution tax free is the biggest tool of tax planning. • Employees in the highest brackets are most benefited. not only

contribution is tax free but the interest @ 12% is tax free. • Trust cannot be revoked once started before the closure of the

company ( subject to the approval of income tax commissioner ).

Features :

• Premiums

• Tax Benefits

• Bonuses

• Death Benefit

• Benefits:• Maturity Benefit:

The annuity options available are (i) annuity payable for remainder of life

(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant(iv) Life annuity with a return of purchase price on death of the annuitant(v) Life annuity increasing at a simple rate of 3% per annum.

• Supplementary/Extra Benefits:

• Surrender Value:Corporation’s policy on surrenders:

The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.

For the purpose of calculationProduct Number : 169

Product Name: New jeevan dhara1

Date of birth:

(dd/mm/yyyy)

Notional Cash Option:(in Rs.)

(Range: 50000 and above) 

Accident benefit:

For the purpose of calculationProduct

Number : 189

Product Name : Jeevan Akshay - VI

 Date of birth:

(dd/mm/yyyy)

Purchase price:(in Rs.)

(Range: Rs.50000 and

above) 

Annuity Type:

Annuity Mode:

ANNUITY PAYABLE FOR LIFE , WITH 100% OF ANNUITY TO SPOUSE ON DEATH Yearly

Salient features: • Premium is to be paid in a lump sum.

• No medical examination is required under the plan.

• No maximum limits for purchase price, annuity etc.

• Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday.

• Age proof necessary.

• Minimum purchase price : Rs.50,000/= or such amount which may secure as under:

• Annuity is the income from capital investment paid in a series of regular payments.

• Mode: Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.

Introduction:It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.

Options Available:The following options are available under the plan

Type of Annuity: i. Annuity payable for life at a uniform rate.ii. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the

annuitant is alive.iii. Annuity for life with return of purchase price on death of the annuitant.iv. Annuity payable for life increasing at a simple rate of 3% p.a.v. Annuity for life with a provision of 50% of the annuity payable to spouse during

his/her lifetime on death of the annuitant.vi. Annuity for life with a provision of 100% of the annuity payable to spouse during

his/her lifetime on death of the annuitant.You may choose any one. Once chosen, the option cannot be altered.

Annuity Rate:Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:

• Benefits:• The amount of annuity is assured throughout life of the annuitant.

What happens if the annuitant dies? If the annuitant dies :

• Under option (i) annuity ceases.

• Under option (ii) On death during the guaranteed period - annuity is paid to the nominee till the end  of the guaranteed period after which the same ceases.

• On death after the guaranteed period - annuity ceases.

• Under option (iii) annuity ceases and the purchase price is paid to the nominee.

• Under option (iv) annuity ceases.

• Under option (v) annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.

• Under option (vi) annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.

• When first instalment of annuity payable: First instalment of annuity is payable after one month, three months, six months or one year from the date of purchase of annuity depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.

For the purpose of calculationProduct Number : 169 Product Name: Jeevan Nidhi

Date of birth: (dd/mm/yyyy)

Defent Period:

Notional Cash Option:(in Rs.)

(Range: 50000 and above)

Accident benefit:

• LIC's JEEVAN NIDHI is a with profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The plan also provides a risk cover during the deferment period. The USP of the plan being the pension can commence at 40 years. The premiums paid are exempt under Section 80CCC of Income Tax Act.

• Salient Features: a . Guaranteed Additions: Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.b. Participation in profits: The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.c. Benefit On Vesting:

1. Option to commute up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any.2 . Annuity as per the option selected: Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.

d. Annuity Options:On vesting, the annuity instalment, mode of annuity payment and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions.

• Currently the following options are available under LIC’s immediate annuities:1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.

2. Annuity Guaranteed for certain periods: The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.

3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.

4. Increasing annuity: The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.

5. Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.

e. Death Benefit on death before annuity vests: On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee will also have the option to purchase an annuity with this amount.

Eligibility Conditions And Other Restrictions Under This Plan:

a)Minimum age at entry:18 years (completed)

a) Minimum age at entry:18 years (completed)b) Maximum age at entry:65 yearsc) Minimum age at vesting:40 yearsd) Maximum age at vesting75 yearse) Policy terms:6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policiesf) Modes of premium payment:Yearly, Half-yearly, Quarterly, SSS & Single Premiumg) Sums Assured allowed:Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit.h) Minimum Annual Premium:Rs.3,000/-i) Minimum Single premium:Rs.10,000/-

For Basic Benefit:

For Term Assurance Rider Option:a)Minimum age at entry:18 years (completed)

b)Maximum age at entry:50 years

c)Maximum age at vesting60 years

d)Policy terms:6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode

e)Minimum Sum Assured: Rs.1,00,000/-

f)Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.25,00,000/- taking all Term Assurance Rider Sum Assured under all policies of a life assured

g)Multiples of Sum Assured:  Rs.25,000/-

For Critical Illness Rider Option:

a) Minimum age at entry:20 years (completed)

b) Maximum age at entry:50 years

c) Maximum age at vesting60 years

d) Policy terms:10 to 35 years

e) Minimum Sum Assured: Rs.50,000/-

f) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.5,00,000/- taking all Critical Illness Rider Sum Assured under all policies of a life assured

g) Multiples of Sum Assured:  Rs.10,000/-

• Rebate for Mode of Premium Payment:

Large Sum Assured Rebates:

f. Grace Period:A grace period of 30 days will be available for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.

g. 15 – days Cooling-off period:If policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to us within 15 days.

h. Paid-up Value:The policy will acquire paid-up value after at least 3 full year’s premiums have been paid.

Thank you