Jeevan Aadhar (Table No – 114)
Making financial arrangement for disabled dependents is the main aim of this plan. This plan is allowed for all the categories of sub-standard lives. Permanent Disability Benefit, Accident Benefit and E.P.D.B are standard rates for the person of class-A with loss of one leg. Maturity Benefit is not allowed in this plan, hence, the claim amount will be paid only after the death of insured life. Premiums are paid till the specified term only. either disabled dependent or the trustee is nominee in this plan. This is a limited payment whole life kind of policy.
Maturity Benefit -: Not allowed
Death Benefit -: If Life Assured dies after paying the premium at least for 10 yrs, the nominee will get SA + GA. (at the rate of Rs. 100/- per thousand)+ Terminal Bonus (if any). This amount is called assumed SA. 20% of the assumed SA will be paid to the nominee and rest 80% will be utilised to pay in the form of Guaranteed Annuities for 15 yrs and making arrangement for his living after that. If the disabled dependent dies before the Life Assured, the contract will be ended. The Life Assured may get the amount paid for Premiums excluding the extra premiums paid for Accident Benefit or he can continue his policy for reduced paid up SA as he wishes. This reduced paid up SA (with GA + Terminal Bonus) will be paid to Life Assured’s legal heirs after his death.
Income Tax Rebate -: Under sec. 80 DD of Income Tax Act, the premium amount will be 100% tax free.
other Ralaxations -: Rs. 50,000 if the disability is of normal category and Rs. 75,000, if the disability is 80% or more. If the disabled dependent dies before the Life Assured, the amount of all the reductions will be considered taxable.
Note -: ‘Disabled Dependent’ is a permanent Physically or Mentally handicapped person related to the Life Assured (Premium Payer)