LIC is the most trusted brand when it comes to insurance. LIC has a huge range of products to offer and it often becomes difficult to choose the right fit. So, we thought of easing this for you and bring the best 5 LIC policies that are sure to trend this year and will be the popular choice. You can pick your cues from here J
1. LIC Jeevan Akshay VI
LIC Jeevan Akshay VI Plan is a Single Premium Immediate Annuity Plan which can be purchased by paying a lumpsum amount. It is a non unit-linked pension plan. This plan provides for annuity payment of a fixed amount extending for a life time.
- Immediate Annuity Plan – Annuity starts as early as the next month
- Single Premium Plan – “Pay Once, Enjoy Forever”
- Minimum purchase price is Rs.1, 00,000 for offline and Rs.1, 50,000 for online purchase. There is no maximum limit on purchase or annuity.
- More Annuity Options – 7 Options of Annuities to choose from
- Annuity payable for life at a uniform rate till the life assured is alive.
- Annuity payable for 5, 10, 15 or 20 years no matter if the insured person is alive or not, and thereafter as long as the annuitant is alive.
- Annuity for life with return of purchase price on death of the annuitant.
- Increasing Annuityin which the pension is paid till the life assured is alive at an increasing rate of 3% p.a.
- Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life time on death of annuitant. The purchase price will be returned on the death of last survivor.
- Annuity for life with a provision for 100% of the annuity payable to the spouse of the annuitant for life on death of the annuitant, with return of purchase price on the death of last survivor
- Covers broad range of age group – From 30 years to 85 years
- Maturity Benefit – No maturity benefits are available in this policy.
- No medical examination is required.
- Income Tax Benefit – Although, premiums paid under this policy are exempted from tax under section 80C, but the pension received will be taxable.
- No surrender value shall be payable under this policy.
- No loan available under this plan.
- Incentive for online – Rebate of 1% by way of increase in the basic annuity rate will be available.
2. LIC e-Term Plan
LIC’s e-Term policy is a pure life cover policy that provides financial protection to the insured’s family in case of any unfortunate event. In other words, you can say that it is a regular premium non-participating (without bonus), “on-line term assurance policy”. This plan will be available through on-line application process only and no agents are required.
Under the LIC’s e-Term policy, the insurer agrees to pay an agreed sum assured in the event of his/her premature death during the policy term. Nevertheless, if the insured survives till the end of the policy term, nothing is payable.
- Available on the official website of the LIC
- Differential premium rates for Smoker/Non-Smoker lives
- Application of own life ONLY will be considered
- Minimum Basic Sum Assured should be Rs. 25, 00,000 for Aggregate category and for Non-smoker category it should be Rs. 50, 00,000. There is no upper limit for Maximum Basic Sum Assured.
- Covers broad range of age group – Form 18 years to 60 years
- Loan is not available in this plan; Premiums have to be paid yearly.
- Minimum Policy Term for this plan is 10 years and Maximum Policy Term is 35 years.
Death and Maturity Benefits
Death Benefit: During the policy term if the unfortunate death of the life assured happens then the sum assured will be payable.
Maturity Benefit: If the individual survives the policy term, nothing shall be payable.
3. LIC New Children’s Money Back Plan
Launched on 4th March, 2015, New Children’s Money BackPlanis a non-linked, with-profit regular premium payment policy particularly intended to meet educational, marriage and other needs of a growing children. Moreover, this plan also provides risk cover to the insured child during the policy term. That’s why, it can be considered as a saving cum protection plan.
- Minimum Basic Sum Assured should be Rs. 100,000 and Maximum Basic Sum Assured has No Limit. It should be noted that the Basic Sum Assured shall be in multiples of Rs. 10,000/-.
- Premiums can be paid regularly at monthly, quarterly, half-yearly or yearly mode (through ECS only) or through SSS mode over the term of policy.
- Loan facility is available under this plan after the payment of premiums for at least three full years.
- Age limit at entry for Life Assured: 0-12 years. The maturity age for the life assured is 25 years i.e. policy term or premium paying term can be calculated by subtracting the age at entry by 25. For example, if the child’s age is 7 at the time of entry then the policy term will be 25-7= 18 years.
- Surrender Value: If the premium has been paid for full three years then the policy can be surrendered at any time during the policy term.
Death & Survival Benefits
- If death of insured occurs before the commencement of risk, an amount equivalent to the premium payments will be paid.
- If death of the insured occurs after the commencement of risk, death benefit amount including “Sum Assured on death + Final Additional Bonus + Accrued Bonuses” will be paid.
Survival Benefits (Money-Back payments):
- 20% of Sum Assured is paid after the child completes 18 years.
- 20% of Sum Assured is paid after the child completes 20 years.
- 20% of Sum Assured is paid after the child completes 22 years.
- After the child completes 25 years, the policy gets matured and the maturity amount which includes 40% of sum assured + Accrued Bonuses + Final Additional Bonus (FAB – if any) will be paid.
4. LIC Jeevan Sangam
Launched on 4th March, 2015, along with Children’s money back plan, LIC’s Jeevan Sangam is a single premium, non-linked, guaranteed-return plan and it participates in the profits of LIC. The single premium payable shall depend on two factors:
- Chosen amount of Maturity Sum Assured
- Age of the life assured
- Entry Age of the Policy Holder – 6 to 50 years
- Minimum Maturity Sum Assured (MSA) with this plan is Rs. 75,000 and there is no upper limit for MSA.
- Basic Sum Assured will be 10 times the tabular single premium.
- Premium Payment Mode – Single Premium Mode
- Policy or Plan term – 12 years
- Loyalty Addition shall be payable on surrender of the policy or on the death of the policy holder. However, the insured will get the loyalty addition only if the policy has completed its 5 year tenure, or if the policyholder survives till maturity of the policy.
- Loan can be availed under this plan only if the policy completes its 3 months.
Maturity and Death Benefits
On maturity of the policy, the Maturity Sum Assured (MSA) along with loyalty addition, if any, shall be payable.
- Death of insured during the first five policy years:
Before the date of commencement of risk: Refund of single premium excluding service tax and extra premium, if any, without interest.
After the date of commencement of risk: Basic Sum assured i.e. 10 times the tabular single premium shall be payable.
- Death of the insured after completion of five policy years but before the stipulated Date of Maturity:
v Basic Sum assured i.e. 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.
5. LIC Jeevan Saral
Categorized under Special Plans, LIC Jeevan Saral is, in fact, an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans (ULIPs). With excellent features of the traditional plans and the flexibility of ULIP plans, Jeevan Saral insurance plan gives double death benefit of um assured plus return of premium.
- Flexible Monthly Premium payments and the Sum Assured is 250 times the Monthly Premium amount.
- Minimum Sum Assured in this plan is Rs. 62,500 and has no upper limits.
- Policy Term – Minimum: 10 Years and Maximum: 35 Years
- Entry Age of Policy Holder – 12 to 60 Years
- Payment Mode can be monthly, quarterly, half yearly and yearly.
- Optional higher cover through Term Rider, Accidental Death and Disability Benefit.
- Loyalty Additions are provided after the policy completes 10 years.
- Partial surrender of the policy can be done after the 3rd policy year.
- Loan on this plan is available.
- Income Tax Benefit – Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns.
Death and Maturity Benefits
Death Benefit – In case of death of the Life Insured, the nominee receives
- Sum Assured (i.e. 250 times the Monthly Premium)
- Return of premiums excluding extra/rider premium and first year premium
- Loyalty Addition, if any
Curated from Best 5 LIC Policies To Invest in 2015