LIfe Insurance Corporation of India (LIC) has been a very synonym for trustworthiness in peoples’ minds. It is one among the top rated super brands in India. Needless to say for more than six decades people bound their savings and family’s future with LIC’s products.
5 most popular plans from Life Insurance Corporation of India
Even though a wide range of LIC policies are available in the market, it is a bit difficult for a common man to pick the right plan. Here is a list of five golden plans from Life Insurance Corporation, that we can not go unnoticed, for their emotional content and purposefulness.
LIC’s New Jeevan Anand Plan
Zindagi ke saath bhi zindagi ke baad bhi! (meaning: With Life, Beyond Life!)
Plan highlights include
- Policy term is minimim 15 years to maximum 30 years, with same Premium Paying Term.
- This Plan offers two maturities. One at the end of the policy term as survival benefit, another on death there after.
- Participating, but not market linked plan.
- Loan facility available for immediate money requirements.
- Premium can be paid in Yearly/Half-Yearly/Quarterly/Monthly modes.
- Online Payment is accepted at LIC’s poratal.
- Policy Surrender allowed.
Pros:
- LIC’s flagship plan. No competition until today!
- Provides a wide policy tenure to choose from.
- Age group of 18-50 is supported, to cover family breadwinners
Who should buy this plan: People who
- want to enjoy life and leave a legacy to their childern in Cash.
- do not like their assets being sold off after their death.
- need to fund a charitable organization.
LIC’s Jeevan Labh Plan
LIC’s multipurpose plan with limited premium payment period offer
Plan highlights include
- Policy tenure is 25,21,16 years, with Premium Paying Term of 16,15,10 years respectively
- NOT market linked.
- A must have for tax saving and regular savings.
- Partial withdrawals are possible as LOAN for money needs.
- All premium payment modes are allowed except single term.
- Online Payment can be done through LIC’s official website.
- Surrender facility available.
Pros:
- Limited premium payment.
- Protection continues, when regular premium payment is stopped.
- Provides wide policy tenures to cater for mutiple needs.
- Provides good tax free returns.
Who should buy this plan: People heading to
- finish premium payments at an early age.
- Tax savings.
- plan for children’s education and settlement.
- more coverage at a low premium.
LIC’s Jeevan Lakshya Plan
Ever worried about “how the finances of your family will be, in your absense?“
Plan highlights include
- Premium paying term is 3 years less Policy tenure. For eg if one is taking plan for 18 years, their Premium Paying Term is 15 years only!
- Not share market linked plan.
- This policy is also a real boon in case of premature death of the policy holder, because of the following benefits to the family
- All future premiums are waived.
- An Annual Income Benefit equal to 10% of SA/year shall be payable to the spouse of the deceased, until maturity.
- Additionally upon maturity; an Assured Absolute Sum equal to 110% of Basic Sum Assured + Final Additional Bonus (if any) shall be payable.
- This policy offers maturity as survival benefit.
- Partial withdrawals are allowed.
- Premium can be paid as Yearly/Half-Yearly/Quarterly/Monthly modes based on our cash inflow.
- Online Payment facility through LicIndia.in or LIC Pay Direct Mobile App.
- Premature closure is possible.
Pros:
- Limited premium payment.
- Protection continues, when regular premium payment is stopped.
- Provides Family Income Benefit, Premium Waiver options.
- Multiple riders to opt for. eg. critical illness, accidental death etc.
Who should buy this plan: People who are longing for
- a Term insurance plan like coverage; but with returns!
- children’s education and settlement
- an emotional policy to hold on
LIC’s Jeevan Umang Plan
Save for a while. Enjoy Life Long guaranteed Pension + Free Life Cover + Maturity!
Plan highlights include
- This is a whole life plan. Meaning policy is valid till death or 100 years.
- Policy can be paid up in just 3 years.
- Guaranteed Pension @8% that too NON-TAXABLE is payable until death after policy’s original PPT.
- This policy offers maturity as survival benefit.
- Conventional, not share market linked plan.
- A product which offers 3 levels of Tax exemptions.
- Entry: premium paying period is exempted under 80C.
- Growth: pension receiving period is Tax Exempted.
- Exit: maturity is exempted under 10(10(D)).
- LOAN, when money is in need.
- Choose between Yearly/Half-Yearly/Quarterly/Monthly modes of premium payment.
- Pay online.
- Pre-closure of Policy can be done anytime.
Pros:
- Promise of 8% Guaranteed Pension is a real advantage, when interest rates are fast falling!
- Life long TAX FREE income post Premium Paying Period.
- Life long Free insurance cover (upto the age of 100 if survives!)
Who should buy this plan: Persons who
- want to retire early!
- want to retire rich!
- want to leave a legacy for next generation in CASH.
- want to settle their kid’s future.
LIC’s Jeevan Shanthi Plan
Lump sum investment when young, Life long pension when Old!
Plan highlights include
- LIC’s Single Premium Deferred Annuity plan. Pension starts at a later period as per customer’s convenience.
- Immediate and deferement options to choose from.
- The annuity rates are guaranteed at the inception of the policy.
- Guaranteed additions during deferment period.
- No health checks.
- No TDS deduction by LIC.
Pros:
- Make one time investment and get Guaranteed life long income.
- Deferement option is a blessing in this fluctuating bank interest rate era.
- No medical test is required.
- Minimum age is 30.
- This policy can be taken on own life or as joint life with grandparent, parent, children, grandchildren, spouse or siblings.
- Option to take the plan for the benefit of handicapped dependent (Divyangjan) life.
Who should buy this plan: Persons, who
- wants to start a pension for self/parents.
- A better option for those planning to buy real estate for regular income.
Good luck.