lic
This query is : Resolved
13 September 2017
I got a message that accrued bonus that i will get on final settalement means
policy name jivan anand
13 September 2017
Cant understand your question.
15 September 2017
Means you are receiving bonus on your lic plan
02 August 2024
For a policy like LIC’s Jivan Anand, receiving a message about an accrued bonus on final settlement means that your policy has accumulated a bonus amount, which will be added to the maturity proceeds when you receive the final payment. Here’s a breakdown of what this typically involves:
### **1. Understanding Accrued Bonus**
- **Accrued Bonus:** This is the bonus amount that has accumulated over the life of the policy. It is declared by LIC and usually forms a part of the policy's maturity benefits or can be paid as a supplementary amount on death or surrender of the policy.
- **Types of Bonuses:** For policies like Jivan Anand, bonuses can be of different types, such as:
- **Reversionary Bonus:** Declared annually and is added to the sum assured.
- **Final Additional Bonus (FAB):** Added at the time of policy maturity or death.
### **2. Impact on Final Settlement**
- **Maturity Amount:** When the policy matures, the final settlement will include:
- **Sum Assured:** The guaranteed amount payable on maturity.
- **Accrued Bonus:** The total bonus accumulated over the years, including any final additional bonus.
- **Taxation:** The maturity proceeds, including the bonus, are typically tax-exempt under Section 10(10D) of the Income Tax Act, provided certain conditions are met (e.g., premiums not exceeding 20% of the sum assured for single premium policies or 10% for regular policies).
### **3. Example of Final Settlement**
Let’s say you have a Jivan Anand policy with the following details:
- **Sum Assured:** ₹5,00,000
- **Accrued Bonus:** ₹1,00,000
- **Final Additional Bonus:** ₹50,000
When the policy matures, you would receive:
- **Total Maturity Amount:** ₹5,00,000 (sum assured) + ₹1,00,000 (accrued bonus) + ₹50,000 (final additional bonus) = ₹6,50,000
### **4. Next Steps**
1. **Verify the Message:** Ensure the message you received is from a legitimate source (LIC). It’s advisable to check your policy details on LIC’s official website or contact your LIC agent.
2. **Policy Settlement:** Keep track of the settlement process. LIC will typically send a formal intimation about the final settlement amount, including the accrued bonus.
3. **Documentation:** Ensure you have all the necessary documentation ready for the final settlement process, such as the policy document, identity proof, and bank details for the transfer.
4. **Tax Implications:** If the maturity amount includes an accrued bonus, ensure that you comply with the tax regulations. Generally, the maturity amount, including the bonus, is exempt from tax if the conditions under Section 10(10D) are met.
If you need further assistance or have specific questions about your policy, contacting LIC directly or speaking with your LIC agent would be a good approach.
### **1. Understanding Accrued Bonus**
- **Accrued Bonus:** This is the bonus amount that has accumulated over the life of the policy. It is declared by LIC and usually forms a part of the policy's maturity benefits or can be paid as a supplementary amount on death or surrender of the policy.
- **Types of Bonuses:** For policies like Jivan Anand, bonuses can be of different types, such as:
- **Reversionary Bonus:** Declared annually and is added to the sum assured.
- **Final Additional Bonus (FAB):** Added at the time of policy maturity or death.
### **2. Impact on Final Settlement**
- **Maturity Amount:** When the policy matures, the final settlement will include:
- **Sum Assured:** The guaranteed amount payable on maturity.
- **Accrued Bonus:** The total bonus accumulated over the years, including any final additional bonus.
- **Taxation:** The maturity proceeds, including the bonus, are typically tax-exempt under Section 10(10D) of the Income Tax Act, provided certain conditions are met (e.g., premiums not exceeding 20% of the sum assured for single premium policies or 10% for regular policies).
### **3. Example of Final Settlement**
Let’s say you have a Jivan Anand policy with the following details:
- **Sum Assured:** ₹5,00,000
- **Accrued Bonus:** ₹1,00,000
- **Final Additional Bonus:** ₹50,000
When the policy matures, you would receive:
- **Total Maturity Amount:** ₹5,00,000 (sum assured) + ₹1,00,000 (accrued bonus) + ₹50,000 (final additional bonus) = ₹6,50,000
### **4. Next Steps**
1. **Verify the Message:** Ensure the message you received is from a legitimate source (LIC). It’s advisable to check your policy details on LIC’s official website or contact your LIC agent.
2. **Policy Settlement:** Keep track of the settlement process. LIC will typically send a formal intimation about the final settlement amount, including the accrued bonus.
3. **Documentation:** Ensure you have all the necessary documentation ready for the final settlement process, such as the policy document, identity proof, and bank details for the transfer.
4. **Tax Implications:** If the maturity amount includes an accrued bonus, ensure that you comply with the tax regulations. Generally, the maturity amount, including the bonus, is exempt from tax if the conditions under Section 10(10D) are met.
If you need further assistance or have specific questions about your policy, contacting LIC directly or speaking with your LIC agent would be a good approach.
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