List Of The 6 Best LIC Policies To Invest In 2024
LIC policies provide a one-stop solution for all the insurance requirements of a buyer. Life Insurance Corporation of India (LIC) offers an extensive range of insurance products that cater to various needs of the insurance buyer. As per the policyholder's needs and choice, the policyholder can select from the varied LIC plans that range from pure protection to whole life, endowment, and money-back plan. Some of the best plans which offer comprehensive coverage are LIC Tech Term Plan, LIC New Jeevan Anand, LIC Jeevan Umang, LIC Jeevan Shanti, LIC Money Back 25 Years, and LIC Jeevan Amar.
A life insurance policy is an agreement or a contract between an insurance firm and the policyholder. The insurance firm assures to provide financial coverage under which it guarantees to pay a lump sum amount of funds to the nominated beneficiary in the unfortunate event of the policyholder’s demise during the term of life insurance plans. In exchange, the policyholder agrees to pay a predefined amount of funds as a premium as a single premium or on a regular basis.
LIC offers various sorts of Insurance Plans where each one has unique benefits and features to fulfil the variant needs and requirements of the people- They can pick one as per their choice. In this blog, Fintra will highlight the best LIC plans to invest:
- LIC Tech Term Plan
- LIC New Jeevan Anand
- LIC Jeevan Umang
- LIC Jeevan Shanti
- LIC Money Back 25 Years
- LIC Jeevan Amar
When choosing the best LIC policy, one needs to first compare all the LIC plans and read them in detail. Here below Fintra will briefly describe the top LIC plans along with their features and benefits:
LIC Tech Term Plan
The LIC Tech Term Plan is a profit, non-linked pure protection plan. Since this LIC plan is available only via the online application process with no intermediaries involved, it is known to be cheaper than other offline plans. LIC Tech Term Plan provides financial security to the insured's family in the unfortunate event of his/her demise.
Features and Benefits of LIC Tech Term Plan
- This plan offers the flexibility of choosing from two death benefit options such as level sum assured and increasing sum assured
- The policyholder has the option of choosing different options of premium payment to pay the policy's premium
- LIC Tech Term Plan offers special rates for women
- It offers accidental benefit rider
- Get the benefit of an attractive rebate for a higher sum assured amount
- During the policy tenure, if the demise of the insured transpires then death benefit is payable by the insurer to the policy's beneficiary
- No maturity benefits are offered to the life assured if he/she survives the policy's entire tenure
LIC New Jeevan Anand
LIC New Jeevan Anand is an endowment plan that's a participating non-linked plan offering a combination of protection and savings. This plan provides financial protection to the insured's family in case of the unfortunate demise of the insured person. Besides being known as one of the best life plans, the LIC New Jeevan Anand plan even offers maturity benefit to the insured in case he/she survives the entire policy's tenure. This plan takes care of the liquidity needs of the family through the loan facility.
Features and Benefits of LIC New Jeevan Anand
- Avail the option of receiving death benefit in instalments
- Avail the option of paying the policy's premium through regular premium payment or by salary deductions during the PPT of the policy
- This plan also provides the benefit of rebates for the higher sum assured amount
- Avail tax benefits U/S 80C and 10(10D) of the Income Tax Act
- Get the benefit of the loan facility
- At any time, the policy may be surrendered provided the policy's premiums are duly paid for two entire years
- There's a free lock period of 15 days offered by the policy from the LIC plan's date of initiation. The policyholder can cancel the policy if it is dissatisfied with the policy's terms and conditions
- The death benefit is payable by the insurer to the policy's beneficiary if the life assured passes away during the tenure of the LIC policy
- Maturity benefit is also available if the life of the insured survives the entire policy's tenure. The maturity benefit involves the basic sum along with the vested bonuses and additional bonus if any at the end of the policy's term
- One can even get other benefits such as accidental death and disability benefit rider, accidental benefit rider, new term assurance rider, and new critical illness benefit rider
LIC Jeevan Umang
Termed as one of the best LIC plans, the LIC Jeevan Umang is a non-linked, participating individual whole-life insurance plan that provides both the benefits of income and protection to the family. This plan offers annual survival benefits to the insured from the end of the premium paying term until maturity. Moreover, the plan even offers a lump sum payment at the maturity time or a death benefit that is paid to the nominee of the LIC policy if the demise of the insured during the policy term. LIC Jeevan Umang is claimed to be among those very few plans in the sector that offers life coverage of nearly 100 years. This plan is a perfect pick for those seeking a pension facility after retirement.
Features and Benefits of LIC Jeevan Umang
- One acquires the option of receiving a death benefit in instalments
- To increase the coverage of the policy, there are different rider options available to select from
- Avail the option of paying the policy's premium through regular premium payment or by salary deductions during the PPT of the policy
- Avail tax benefits U/S 80C and 10(10D) of the Income Tax Act
- Get the benefit of attractive rebates for higher sum assured amount
- Death benefit is paid to the policy's beneficiary if the demise of the life insured occurs during the policy's tenure. If the demise of the insured occurs before the commencement of risk, then the return of premium is given to the policy's beneficiary without the interest. Moreover, if the demise of the insured occurs after the commencement of risk, then death benefit is defined as the sum assured on death along with the vested bonuses and additional bonus if any is paid to the beneficiary of the policy
- If the life insured survives the premium paying tenure of the policy, then survival benefit as 8% of the basic sum assured amount is paid annually on completing each subsequent year till the policy anniversary before the policy maturity date
- Maturity benefit is also available if the life of the insured survives the entire policy's tenure. The maturity benefit involves the basic sum along with the vested bonuses and additional bonus if any. This is paid to the life insured
LIC Jeevan Shanti
LIC Jeevan Shanti is a single premium plan offering the policyholders the flexibility to choose between Immediate and Deferred Annuity.
Features and Benefits of LIC Jeevan Shanti
- In LIC Jeevan Shanti the annuity rates are guaranteed at the beginning of the policy for both the annuity plans which are payable throughout the lifetime of annuitant(s)
- As per one’s investment objectives, this policy offers nine various annuity options to choose from
- At the beginning of the policy term the annuity rates are fixed
- One can also avail loan facility after the completion of one policy year, this ensures liquidity
- When opting for an annuity option with the return of purchase price after three months from the completion of policy, one can surrender this policy
- LIC Jeevan Shanti is suitable for those policyholders with handicapped dependant (Divyangjan) life
- It is available online and offline
LIC Money Back 25 Years
LIC Money Back 25 Years is a non-participating, individual life insurance plan, and is also a limited premium payment plan. It offers an attractive combined benefit of insurance coverage and money-back in the form of periodic payment on survival at the specific duration during the tenure of the policy. This combined benefit acts as a financial backup for the family when the insured one passes away and also provides a lump sum amount at the time of maturity of the policy if the insured one survives the entire policy's tenure. This plan even takes care of liquidity needs through the loan facility.
Features and Benefits of LIC Money Back 25 Years
- This LIC plan offers a settlement option to receive maturity benefit, which means the insured can get the maturity benefits in instalments over the chosen period of 5 years, 10 years, or 15 years
- Get the option of taking death benefits in instalments
- Loan facility is available as well
- For higher sum assured amount, rebates are applicable
- Avail tax benefits U/S 80C and 10(10D) of the Income Tax Act
- Avail the option of paying the policy's premium through regular premium payment or by salary deductions during the PPT of the policy
- During the policy tenure, if the life assured passes away then the death benefit is payable by the insurer to the policy's beneficiary. The death benefit will be payable as the sum assured on the death along with the vested simple reversionary bonus and final additional bonus if any will be paid to the policy's beneficiary
- The survival benefits are effective when the life insured survives the policy duration and all the premiums of the policy has been dully paid; 15% of the basic sum assured amount will be given to the insured at the end of each 5th, 10th, 15th, and 20th policy year
- Maturity benefit is also available if the life of the insured survives the entire policy's tenure. The maturity benefit involves the basic sum along with the vested bonuses and additional bonus if any. This is paid to the life assured
LIC Jeevan Amar
Being one of the best LIC policies, the LIC Jeevan Amar is with profit, it's a non-linked pure protection plan offering flexibility to the policyholder to select from two different options of the death benefit. This plan provides comprehensive insurance coverage to the family of the insured in case of any eventuality.
Features and Benefits of LIC Jeevan Amar
- This plan provides the flexibility to select from two different options of death benefits such as level sum assured and increasing sum assured
- Get the flexibility of choosing different options for the premium payments, it can be single, regular, or limited (premium term)
- The life insured can choose to avail death benefits in instalments
- To the female policy buyers, special discount rates on premium amounts are offered
- Get attractive rebates on the higher sum assured amount
- To enhance the coverage of the policy, one can opt for add-on benefit of riders
- During the policy tenure, if the demise of the insured occurs then the death benefit is paid by the insurer to the beneficiary of the policy
- No maturity benefit is offered to the life assured if it survives the entire tenure of the policy
Conclusion
LIC offers a broad range of insurance plans that enables you to easily choose the right one that best suits your financial needs, liquidity needs, retirement needs, etc. As described above, various LIC policies have low premiums, enabling you to pay them easily without any financial burden. Hence, Fintra advises before purchasing a LIC plan, first analyze your needs and requirements before making an informed decision.
