What is LIC maturity?

Asked by: Giovanny Aufderhar V  |  Last update: March 7, 2023
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Q: What is the Maturity Date mentioned in LIC policies? Ans: The maturity date is the date on which the policy or bond matures. On this day, the insured or investor receives the principal amount in lump sum along with any residual returns and benefits.

What happens when LIC is matured?

Maturity Claims:

The policyholder is requested to return the Discharge Form duly completed along with the Policy Document, NEFT Mandate Form (Bank A/c Particulars with supporting proof), KYC requirements etc. .

What is LIC maturity amount?

Maturity amount is the final amount received on the maturity of the plan by the life insured or his nominee/dependent in case of the policyholder's demise in the form of the death benefit.

What is LIC maturity benefit?

Maturity Benefit: In case of Life Assured surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

How can I get money from my LIC policy after maturity?

Maturity Claims:

The servicing Branch usually sends maturity claim intimations two months in advance. Please submit your Discharged Receipt in Form No.3825 with original policy document atleast one month before the due date so that the payment is received before the due date of maturity claim.

LIC Maturity Claim Process I How to Fill LIC Maturity Form 3825 I I Details in Hindi

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How can I check my LIC policy maturity?

Step-1: Go to the official website of LIC —https://www.licindia.in/.
For this, you just need to call 022 6827 6827.
  1. In addition, you can also send a message to 9222492224 by writing LICHELP <PolicyNumber>. ...
  2. You can also get information about the status of the policy by sending an SMS from your mobile to 56677.

How much money will I get from LIC?

Maturity Benefit: If the policyholder survives till the period of maturity of the policy, he/she will receive 40% of the basic sum assured coupled with reversionary bonuses and the additional bonus amount.

Which LIC plan has highest return?

They can opt the following LIC highest return plans to maximize their investment.
  • LIC Jeevan Akshay VI.
  • LIC New Children's Money Back Plan.
  • LIC New Endowment Plan.
  • LIC's Accidental Death and Disability Rider:

Is LIC maturity tax free?

No exemption from income tax on the maturity of policies

Taxation, where the premium paid, is more than 10% of the sum assured – Any money received from a life insurance policy, where the premium is more than 10% or 20% of the sum assured as the case may be, is fully taxable.

Is LIC matured taxable?

The maturity proceeds of a life insurance policy enjoy exemption under section 10(10d) of income tax act provided the premium paid in respect of the life insurance policy does not exceed 10% of the sum assured for any year during the premium paying term for the policies issued after 01-04-2012.

Can I withdraw LIC before maturity?

When you opt out of a policy before its maturity, it is called surrendering the policy. The amount that you receive at the time is the LIC policy surrender value. The life cover stops immediately and you won't be able to revive it in the future.

Is LIC policy worth buying?

Benefits of purchasing LIC Policy

Government-owned - LIC comes with the sovereign guarantee of the Indian government, which makes its offerings a safe and reliable investment. Tax Benefits - Policyholders can enjoy tax deductions on the premium amount under Section 80C of the Income Tax Act, 1961.

Is TDS applicable on LIC maturity?

TDS shall be deductible on any sum (maturity proceeds/ surrender value/ allocated bonus) as is payable against a life insurance policy. TDS shall not be deducted on such policies which are covered by the exemption under section 10(10D) of the Income Tax Act. There is a threshold limit of Rs.

What is sum assured in LIC?

A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder's demise. The insurance company pays this money as per the sum chosen by you at the time of purchasing the policy.

Is LIC return guaranteed?

Mumbai: Life insurance giant Life Insurance Corporation (LIC) on Tuesday launched a long-term endowment policy Jeevan Umang, that covers up to 100 years and offering a combination of income and protection including an assured 8% annual return.

How much commission does a LIC agent get?

There isn't any fix salary from the LIC for the agents. Though, Agents earn the commission for the policies they sale. LIC offers 25% to 35% commission on the policy premium for the first year, then 7.5% for 2nd & 3rd Year + 5% till the policy maturity.

Is LIC better than FD?

Fixed deposits are best for both short- and medium-term investments whereas life insurance plans are designed for long term investments. You can invest for a period of as low as 7 days in fixed deposits unlike a life insurance plan wherein you need to invest for at least 10 years.

Do we get interest on LIC?

The interest charged is calculated based on the total amount and the frequency with which the premium amount is paid. The higher the frequency and premium amount paid, the lower the interest rate. LIC offers around 10-12% interest rate for a loan against their policy.

Which documents are required for LIC maturity claim?

Documents Required for Maturity Claim Discharge
  • Original LIC Policy Document.
  • Identity Proof.
  • Age Proof (if not submitted previously)
  • Cancelled Cheque leaf or a copy of the Policy holder's Bank Passbook.
  • NEFT Mandate Form (to transfer the maturity proceeds directly to the policyholder's account)

Where is LIC maturity amount in ITR?

As per Section 10(10D) of the Income Tax Act, the sum assured received on maturity or surrender of a policy or upon the policyholder's death is completely tax-free. Bonuses received with such an amount are also exempt under Section 10(10D).

Is LIC refund taxable?

Amit Maheshwari Partner, Ashok Maheshwary and Associates replies: Ordinarily, the money received under such policies is not taxable, except in the following cases: If the policy was issued between 1 April 2003 and 31 March 2012 and the premium payable for any of the years during the term of the policy exceeded 20% of ...

Is Jeevan Anand maturity amount taxable?

Key Features of LIC New Jeevan Anand

The LIC New Jeevan Anand Plan offers tax exemption on the amount of premium paid under Section 80C and the claim amounts i.e. Death or Maturity Benefit under Section 10(10D) of the Income Tax Act, 1961.

Is LIC policy a waste?

Basic life insurance policies are designed to provide replacement funds that can approximately match what the policy owner was making or a percentage of it. A life insurance policy on someone with no earnings or someone with no dependent beneficiaries can be a waste of money.