Sage-Tips

What is rebate on LIC policy?

This rebate is not claimed separately; rather it is subtracted from the final premium to be paid. For example, LIC provides premium payment mode rebate of 2\% on yearly & 1\% on half yearly, and 0\% on Quarterly & monthly premium payment to its policy holders.

How can I get LIC premium rebate?

(A) The taxpayer can claim deduction under section 80C in respect of premium on life insurance policy paid by him during the year. Deduction is available in respect of policy taken in the name of taxpayer, his spouse and his children.

What is sum assured rebate in LIC?

In insurance jargon these discounts are called rebates. Rebate for sum assured. Typically most companies offer rebates for higher SA (higher than a certain amount). This is because the cost of servicing of all policies of the same type being almost the same, a higher SA means lower servicing cost per unit of SA.

What is insurance rebate?

In insurance terminology, a rebate is a discount offered to the policyholder upon their insurance premium. A higher sum assured could get you a rebate, as the cost of servicing the policy reduces for the insurer. Hence, a lot of companies provide rebates on online payment.

Is bonus received from LIC taxable?

When the premium paid on the policy does not exceed 10\% of the sum assured for policies issued after 1 April 2012 and 20\% of sum assured for policies issued before 1 April 2012– any amount received on maturity of a life insurance policy or amount received as bonus is fully exempt from Income Tax under Section 10(10D).

What is mail and rebate?

The mail-in rebate (MIR) is the most common. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to receive a check for a particular amount, depending on the particular product, time, and often place of purchase. Rebates are offered by either the retailer or the product manufacturer.

What is high sum assured rebate?

Usually the companies offer rebates on policies with higher sum assured. As the cost of servicing policies remains the same for all kind of policies, a higher sum assured means that the cost of servicing per unit of the sum assured is lower. This in turn translates into higher profits for each unit of the premium paid.

What is an example of rebate?

A simple example of a rebate is a volume incentive, where a customer could receive a rebate for buying a certain volume of a certain product over the life of the deal. For example, if you purchase 1,000 units, you may earn a 5\% rebate, but if you purchase 2,000 units you could earn a 10\% rebate and so on.

What is a rebate check?

rebate check. noun [ C ] TAX, GOVERNMENT. in the US, a cheque that is sent by the US government to people who have paid too much tax or too much money for their medical treatment: Most of this year’s share of the new tax cut will come in the form of rebate checks that are to be mailed out beginning in August.

Can husband claim wife’s LIC premium?

Yes, in a family husband or wife any one can pay the life insurance premium and claim the tax benefits under section 80 C of income tax act. Children till the age of 23, their insurance premiums can also be paid and claimed for tax deductions.

Is Jeevan Anand maturity amount taxable?

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.

What is the premium payment mode rebate in LIC policies?

For example, LIC provides premium payment mode rebate of 2\% on yearly & 1\% on half yearly, and 0\% on Quarterly & monthly premium payment to its policy holders. This rebate is available on various LIC’s plans like Jeevan Anand, Jeevan Labh, Endowment Plan, Jeevan Lakshya Plans etc.

What is the benefit of the LIC rebate on a receipt?

The logic behind this rebate is to encourage the customer to pay in yearly mode as LIC prints only one receipt in a year and there are less administrative expenses. The current rebate as of now is 2\% on yearly mode and 1\% on half yearly mode.

What is the Jeevan Anand rebate in LIC policies?

This rebate is available on various LIC’s plans like Jeevan Anand, Jeevan Labh, Endowment Plan, Jeevan Lakshya Plans etc. To put it simply, for premium calculation, insurance companies fix monthly premium for an individual according to his age and policy term for a particular sum assured.

What is mode rebate in life insurance policy?

In life insurance policies, especially in endowment and money back plans; insurance companies provide mode rebate on insurance premium to policy holders. This rebate is not claimed separately; rather it is subtracted from the final premium to be paid.