30,000 Bonus Rs. 35,298 Interim Bonus Rs. 2,430 Addnl Bonus Rs. 4,200 Total Rs. The risk continues to be covered for the full sum even after the payment of these instalments.
Bonus also is payable for the full sum assured.
An insurance premium attracts rebate under Section 88 of the Income Tax Act, 1961. Thus a person paying a premium of Rs 60,000 saves Rs 12,000 on income tax in a year. Contributions under Jeevan Suraksha plan of LIC upto Rs. Thus a person in 30 per cent income tax bracket saves upto Rs. Value of this saving at 10 per cent rate of interest works out to Rs.