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Best LIC Policies for Investment in 2021
The needs of every potential customer are different and unique. That is why LIC of India has some of the most beneficial and diverse insurance plans to carter to the ever-changing needs of the customers. Each policy is carefully formulated to ensure that potential policyholders receive the maximum benefit and have the widest cover protection form any unfortunate events. These life insurance policies also help support families and nominees of the policyholder in the event of their untimely death and provide them with financial stability.
Life insurance policies are contracts that offer financial stability and coverage to the beneficiaries of the policyholder as mentioned in the contract. Life Insurance Plans offer a lump-sum pay-out to the beneficiary or the death benefit if the policyholder dies before the end of the policy tenure. If the policyholder survives, then, the insurance provider pays out a minimum amount to him/her which is the Minimum Sum Assured.
LIC insurance plans are mostly of the following types:
Potential policyholders can choose from different types of plans under these categories that fulfil their needs in the best possible way.
Let us discuss the endowment plans offered by Life Insurance Corporation of India:
This plan is a non- linked participating plan that offers the policyholder, the benefit of both a protection plan as well as a savings plan. This combination allows this policy to provide financial and monetary protection against sudden death for the entire lifetime of the policyholder. At the same, it provides the provision of a lump-sum payment at the end of the policy term in the event of the survival of the policyholder. Additionally, this plan assists the policyholder in taking care of his or her liquid needs via its loan facility.
Jeevan Labh is a with-profits, non- linked plan with limited premium paying option. This plan offers a combined benefit of protection and a saving plan. LIC Jeevan Labh offers monetary support to the entire family of the policyholder in the event of his or her death before the completion of the policy term. Upon survival till the end of the policy term, this plan rewards the policyholder with a lump-sum payment.
This is a participating, non- linked protection, and savings plan. The premium for the LIC insurance policy has to be paid in a lump-sum on the onset of the policy term. This means that the policyholder will have to make only a single premium payment at the beginning of the policy term.
This LIC insurance plan takes care of all the liquid needs by using its loan facility. Being a protection sum savings plan, the LIC New Endowment plan offers protection to the family of the deceased policyholder at any time before the time of maturity. If the policyholder(s) live on past the policy term period, they receive a lump-sum amount.
With the benefit of having the premium being paid in a lump-sum at the beginning of the policy, this plan is a money-back plan that assures financial stability and support in the event of death during the policy term and provides survival benefit payments at certain intervals throughout the term of the policy. The LIC’ New Bima Bachat plan also has the added benefit of returning the single premium payment along with Loyalty Additions upon maturity of the policy.
This LIC insurance plan provides an annual income benefit along with a lump-sum amount at the time if maturity regardless of the survival of the policyholder. This is highly beneficial in aiding the family of the policyholder, especially by providing the children with benefits upon the untimely death of the policyholder before the end of the policy term.
This non- linked insurance plan has the benefits of a regular premium paying endowment plan with profits. This plan is specifically for women with a valid Aadhaar card and provides financial protection to the family of the policyholder in the event of her death during the maturity period.
This insurance plan provides both protection and saving opportunities and is focused specifically on men who are having a valid Aadhaar card and provides financial aid to the policyholder’s family upon his death before the completion of the policy term.
LIC of India offers the following whole life plans:
LIC’s Jeevan Umang plan offers both income and protection to the family of the policyholder. This LIC insurance plan offers annual survival benefits to the family of the policyholder from the time of the end of premium payment to the date of maturity. This is also followed by a lump-sum payment given on the date of maturity or the event of the death of the policyholder before completion of the policy term.
Money-back plans offered by Life Insurance Corporation of India are as follows:
With the benefit of periodic payments on survival and protection against death throughout the term, this policy provides financial security to the family of the policyholder even before maturity and offers a lump-sum upon survival past maturity.
This insurance plan is similar to that of LIC’s New Money Back Plan with the only difference being the policy term. While the previous plan had a policy term of 20 years, this insurance plan has a policy term of an additional 5 years resulting in a total policy term of 25 years.
The Jeevan Tarun LIC insurance plan offers both protection and saving benefits for children. The focus of this plan is to provide an annual survival benefit that can be used for meeting their growing needs of raising children for financing their education. This plan provides an annual survival benefit from ages 20 to 24 and a maturity benefit at 25 years of age.
Death Benefit payable in case of death of the life assured before the stipulated Date of Maturity provided the policy is in force shall be as under:
The death benefit offered by this policy is 125% of the Basic Sum Assured or 7 times the annualized premiums. At no point will the death benefit be 105 % less than the total premiums that have been paid. Upon survival for 14 years of the policy term, a survival benefit of 30 % of the Sum Assured is payable on 10th and 12tjh policy anniversary. For 16 years of term survival, 35% of sum assured is payable on 12th and 14th policy anniversary. For 18 and 20 years of policy term survival, 40% and 45 % of the Sum Assured is payable to the policyholder on the 14th and 16th; and 16th and 18th policy anniversary respectively.
Term Assurance Plans offered by LIC are as follows:
This LIC insurance plan is an online, non- linked, pure profit plan which gives financial security to the family of the insured in the event of the policyholder's demise. This plan is purely available through online means and no intermediaries are involved.
This is a pure profit plan with the option of choosing between increased sum assured and level sum assured. This plan has two different rates for smokers and non-smokers and has lower rates for female policyholders.
Out of all the insurance plans and policies offered by LIC, the following are the best plans to consider.
These plans offer some of the best returns and sum assured. Additionally, these plans have the benefit of additional optional riders and flexible premium payment opportunities.
When applying for LIC insurance policy, the following steps have to be followed:
Step 1: Visit the LIC official website and select the “Click to buy here option”.
Step 2: Select the desired plan.
Step 3: Check the details and terms of the plan and select the “Click to buy” option.
Step 4: Enter the required details and information and select “calculate premium”.
Step 5: Enter the OTP that is sent to your registered mobile number.
Step 6: Enter the sum assured desired and premium term.
Step 7: Attach required documents by scanning them and uploading them as images.
Step 8: Make the payments and fees and click submit.
The core benefits and salient features of LIC Plans are discussed below:
Key features and benefits of endowment plans are:
Death Benefit - Upon the death of the policyholder before the end of the policy term, the Sum Assured on Death payable is 125 % more than the basic sum assured. The Sum Assured on Death will be a minimum of 105 % of all the premiums that have been paid until the date of death of the policyholder.
End of Policy Benefit - Upon survival of the policy term and complete payment of all premiums, the Basic Sum Assured along with the Final Additional Bonus and vested Simple Reversionary Bonuses as stated in the terms will be paid to the policyholder.
Participation in Profits - With the insurance policy in full effect, the policy shall be able to take part in the gains of the Corporation thus making it eligible to attain Simple Reversionary Bonuses as per the Corporation during the term of the policy.
LIC Accidental Death and Disability benefit Rider - This is an optional rider available to the policyholder upon additional payment of premium. In case of death by accident before the end of the policy term, the Accidental Benefit Sum Assured will be paid in a lump sum in addition to the death benefit of the original plan. In case of disability within 180 days of the accident, a payment that will be equal to the Accidental Benefit Sum Assured will be made in installments over 10 years and all other future premiums that would have been otherwise paid to the Corporation will be waived.
Death Benefit - Upon the death of the policyholder before the end of the policy term and provided all premium payments have been made, a Sum Assured on Death along with any applicable Final Additional Bonus and/ or Simple Reversionary Bonus will be paid. Here, the Sum Assured on Death is 10 times more than the basic sum assured and that the death benefit will be at least 105 % more than all the total of all premiums that have been paid.
Maturity Benefit - Maturity benefits are payable to the policyholder upon his or her survival past the end of the policy term. The Sum Assured on maturity is the same as the Basic Sum Assured along with any Final Additional Bonus or vested Simple Reversionary Bonuses that may or may not be applicable.
Rider Benefits - Those opting for the Jeevan Labh policy, they can add riders like the LIC Accidental Death and Disability Benefit Rider and the LIC New Term Assurance Rider.
Death Benefit - Upon the death of the policyholder before the term period ends, the benefactors receive a Sum Assured on Death which is 10 times more than the basic sum assured and a minimum of 105 % more than all premium paid till the date of death.
Maturity Benefit - Upon survival till past the policy term, the policyholder is paid a lump-sum given that all pending premiums have been cleared.
Rider Benefit - On additional payment of premiums, the policyholder can add the optional rider of LIC’s Accidental Death and Disability Benefit Rider, to further increase the gains.
Death Benefit - Upon the unfortunate demise of the policyholder within the first 5 years of the policy term, the benefactors will receive the Basic Sum Assured. If the death occurs post five years of the policy term, then the pay- out includes the Sum Assured alongside any Loyalty Additions.
Survival Benefit - A survival benefit is payable of % of the Sum Assured at the end of the 3rd and 6th policy year for a term of 9 years. The same is applicable for the 3rd, 6th, and 9th policy year for a term of 12 years and similarly, 15% of the Sum Assured is payable to the policyholder upon survival for the 3rd, 6th, 9th and 12th years for a policy term of 15 years.
Maturity Benefit - Upon survival of the policyholder past the policy term, the maturity amount is inclusive of the Single premium Payment and Additional Loyalties.
Death Benefit - Upon the death of the policyholder before the maturity date, an amount of the Sum Assured on Death will be made provided the policy is in full force by paying up to date premiums. The Death benefit is defined as the Annual income benefit equal to 10 % of the Basic Sum and the Assured Absolute Amount which is equal to 110% of the Basic Sum.
Maturity Benefit - Upon survival of the policyholder beyond the policy term, a lump-sum amount is payable which is the Sum Assured on Maturity (Basic Sum Assured with vested Simple Reversionary bonuses and Final Additional bonus is applicable).
Rider Benefit - Optional Riders can be added to this insurance plan like the LIC’s Accidental Death and Disability Rider Benefit or the LIC’s New Term Assurance Rider.
Death Benefit - For this plan, upon the death of the policyholder during the first 5 years of the policy term, the Sum Assured on Death is equal to the Basic Sum Assured. If the death of the policyholder occurs post 5 years but still before the date of maturity, then the Sum Assured on Death is equal to the Basic Sum Assured along with and Additional Loyalty if applicable where the death benefits are 10 times the annualized premiums.
Maturity Benefit - Upon survival post completion of the policy term, the policyholder is paid a Sum Assured on Maturity which is equal to the Basic Sum Assured along with any Loyalty Additions, if any.
Death Benefit - For this plan, upon the death of the policyholder during the first 5 years of the policy term, the Sum Assured on Death is equal to the Basic Sum Assured. If the death of the policyholder occurs post 5 years but still before the date of maturity, then the Sum Assured on Death is equal to the Basic Sum Assured along with and Additional Loyalty if applicable where the death benefits are 10 times the annualized premiums.
Maturity Benefit - Upon survival post completion of the policy term, the policyholder is paid a Sum Assured on Maturity which is equal to the Basic Sum Assured along with any Loyalty Additions, if any.
When choosing the best LIC insurance plans, it is always important to compare all available policies and see how they stack up against each other. On this basis potential policyholders can make better judgments as to which plan and the policy will benefit them in the long run.
|
POLICY |
MAX AGE AT MATURITY |
MINIMUM BASIC SUM ASSURED |
TERM (Years) |
|
New Jeevan Anand |
75 years |
Rs. 10 Lakh |
Min. 15 Max. 35 |
|
Jeevan Labh |
75 years |
Rs. 2 Lakh |
16, 21 and 25 years |
|
New Endowment plan |
75 years |
Rs. 1 Lakh |
Min. 12 Max. 35 |
|
Single-Premium Endowment Plan |
|
Rs. 50 thousand |
Min. 10 Max. 25 |
|
New Bima Bachat |
75 years |
Rs. 20 thousand |
9, 12, 15 years |
|
Jeevan Lakshya |
65 years |
Rs. 1 Lakh |
13 to 25 years |
|
Aadhaar Stambh |
70 years |
Rs. 75 thousand (Max. Rs. 3 lakh) |
10to 20 years |
|
Jeevan Umang |
100 years with the nearest birthday |
Rs. 2 Lakh |
100 years at the entry age |
|
Jeevan Tarun |
25 years |
Rs. 75 thousand |
25 minus entry age |
|
Tech term |
Min. 28 years Max. 80 years |
Rs. 50 Lakh |
Min 10 Max. 40 |
|
Jeevan Amar |
80 years. |
Rs. 25 Lakh |
10 to 40 years |
When buying a LIC insurance plan, it is vital to choose the most beneficial one. There are certain things and aspects that need to be considered when choosing the best LIC insurance plan so that it may generate maximum benefits without becoming a financial liability.
When choosing the LIC insurance plan, one of the most important aspects to be considered is the premium. Depending on the budget and financial stability of policyholders, the premiums can be paid on a monthly, bi-monthly, or annual basis (depending on the policy). Choosing the right premium amount and payment frequency will help in pushing the overall advantage of the insurance policy.
Different policies can have different rates of interest on the premium. Depending on the rate, one can choose the most suitable policy for them.
The biggest deciding factor of any insurance policy is the Sum Assured. Different policies have different themes and agendas and thus their Sum Assured varies. Choosing the policy with the highest Sum Assured is always desirable keeping in mind that the other benefits are in alignment with the requirements of the policyholder.
LIC insurance policies have a multitude of benefits and optional rider that can be added to them. When choosing a policy, it is important to consider all this information so that maximum benefits can be extracted from the terms of the policy.
When choosing the Best LIC insurance plan, one should always take the advice and seek the opinion of a LIC agent. By doing this the LIC agent will be able to help guide the potential customer through the pros and cons of each plan and aid them in making smarter and better decisions.
Each insurance plan offered by LIC has its terms and conditions. These plans have different coverage and additional benefits plans that can be used to enhance the base policy. When choosing an insurance plan, it is important to carefully go through what each insurance policy shall cover when the time comes and what are the things that are excluded from its coverage. By comparing the inclusions and exclusions of each probable policy, the best and optimum life insurance policy can be picked.
Different insurance plans have different rider benefits that can be added on to them in order to enhance the overall coverage and the benefits. When selecting a policy, finding a rider that can complement it will help in providing better monetary and financial support in the event of a mishap to the Life Assured.
Different plans can have different frequencies and modes of premium payment. Choosing the right premium payment option according got the chosen insurance policy is vital to keep the policy active and avoid and late premiums or dues. This will also help to maintain the premium cost within budget.
Ans. Using net banking for payment of LIC premiums allows policyholders to get 24*7 payment authorization. Net banking makes the payment process considerably much faster and convenient. The policyholder can also opt for an auto-debit option.
Ans. Those who are policyholders of LIC and/or customers can avail of their net banking services free of charge.
Ans. Policyholders can pay their LIC insurance premiums from other authorized organizations like HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, CitiBank, Federal Bank, and Corporation Bank. Other service providers that can be used (in select cities) are BillDesk.com, BillJunction.com, and Timesofmoney.com.
Ans. After the confirmation of the LIC insurance plan registration, LIC will start sending the bills and invoices which mention all the necessary information like the due dates, premium amounts, late fees to the service provider, or bank of the policyholder. As the time for the premium to be paid nears, LIC shall send the necessary bills and invoices to the bank or service provider, and the information will be reflected on the policyholder's account page for net banking.
Ans. Policies that offer premium payment option via net banking:
Ans. The banks that are authorized for LIC premium collection are:
Online services that can be used to make LIC insurance premium payments are:
Ans. No. for each new policy, a separate mandate must be used by the policyholder.
Ans. The premium amount for the plan is deducted on fixed dates from the policyholder’s registered bank account. The premium amount is deducted on the 7th, 15th 22nd and 28th of each month.
Ans. Yes, ATMs can be used to pay LIC insurance plan premiums. The banks that offer this service are AXIS Bank and Corporation Bank.
