Life insurance or life assurance is basically an agreement between a life insurance company and policyholder wherein the insurance company promises to pay a defined amount to the beneficiary or nominee in return of premium in case of insured’s death. Other cases or events such as critical illness, terminal illness will also be liable for the coverage, depending upon the contract. Under the same, a policyholder pays a definite amount to the insurer which is known as premium, regularly or in a lump sum. Few other expenses such as funeral expense can also get the coverage, but that totally depends upon the insurer and the policy.
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Life insurance policies are basically legal contracts and the terms of the contract explain the limitations and related important terms. Some exclusions will be there in terms of liability. The insurer will describe everything related to the policy in the documents.
In India, life insurance policies fall into two categories, namely Protection policies and Investment policies.
- Protection policies: These policies are designed to provide a benefit, usually a lump sum payment, in the case of a specified event. A regular form of a protection policy design is term insurance.
- Investment Policies: The main objective of these policies is to facilitate the growth of capital by regular or single premiums.
On the whole, when it comes to types of life insurance policies, we categorize it as:
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- Whole Life Insurance: Under this plan, the consumer or the policyholder will get lifelong coverage. He/she has to pay the premium on a yearly basis.
- Endowment Plans: This plan provides a lump sum amount to the insured when he dies or at the maturity time. Some policies also offers coverage in case of critical illnesses.
- Money Back Plans: This plan is a form of investment that offers good returns in the future for multiple purposes.
- Term Life Insurance(Protection Policy): This plan provides a fixed amount to the nominee or beneficiary as per stated in the document after the death of the insured so that his/her family can maintain their lifestyle as it used to be.
- ULIPs: Ulips or Unit Linked Insurance Plans offers the dual benefits of investment and insurance coverage as well. It allows consumers to select the investment option on its own.
There are around 24 life insurance companies in India that are providing the same type of policies. But when it comes to the largest and state owned life insurer then there is only one and that is Life Insurance Corporation.
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Life Insurance Corporation Of India
Life Insurance Corporation (India) (LIC) is an state-owned insurance group and investment company which has its headquarter in Mumbai. It is the largest insurance company in India with an expected asset value of ₹1560482 crore (US$230 billion). As of 2013 it had a total life fund of Rs.1433103.14 crore with the total value of policies sold of 367.82 lakh that year.
The Life Insurance Corporation of India was established in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the private insurance business in India.
The mission of the organization is to improve the quality of life of people through financial security by offering helpful products and services with competitive returns, and by rendering resources for economic development.
The organization has its corporate office in Mumbai. Apart from this, eight zonal offices, 113 divisional offices and 2048 branches in all over the country.
When it comes to best life insurance plans, LIC is one of the most trusted brands. It offers a wide range of products and often it becomes difficult to select the appropriate one. So, we are making it easier for you by providing the list of LIC’s policies into which you should invest for a secure and healthy future
LIC Jeevan Akshay VI
LIC Jeevan Akshay VI policy is basically a single premium immediate annuity scheme that you can buy easily by paying a lump sum amount. It is a non unit-linked pension plan. It offers annuity payment of a fixed amount extending for a life time.
- It is an immediate annuity plan that allows the annuity to start as early as the next month.
- A single premium plan under which you have to pay once and can enjoy forever.
- The minimum purchase price is Rs.1, 00,000 for offline and Rs.1, 50,000 for online purchase. There is no higher limit on the buy or annuity.
- Around seven annuity options are available under the same.
- An Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- It covers a wide range of age group that is from 30 years to 85 years
- Premiums paid under this policy are exempted from tax under section 80C. However the received pension will be taxable.
- Incentive for online – repayment of 1% by way of increment in the basic annuity rate will be available.
LIC e-Term Plan
LIC’s e-Term is a form of pure life cover policy which offers financial protection to the policyholder’s family in case of any regrettable event. You can also call it a regular premium non-participating (without bonus) plan. This insurance policy will be available through on-line application process only hence there are no mediators.
Under the LIC’s e-Term policy, the insurance company agrees to pay a sum assured in the case of his/her premature death during the policy term. Nevertheless, if the policyholder survives till the end of the policy term, nothing is payable.
- You can buy it on online platform
- Discounts for non smokers
- Covers broad range of age group – From 18 years to 60 years
- Loan is not available in this plan; Premiums have to be paid yearly.
- The minimum policy term for this plan is 10 years and maximum policy term is 35 years.
- Death and maturity benefits are available
- During the policy term if the unfortunate death of the life assured take place, then the sum assured will be payable which is also known as the death benefit.
- There will be no refund if the insured survives.
LIC New Children’s Money Back Plan
This plan was launched on 4th March, 2015. It is basically a non-linked, with-profit regular premium payment policy which mainly aims to meet education, marriage and other financial requirements of growing children. In addition, this insurance policy also offers risk coverage to the insured child during the policy term. That’s why, it can be measured as a saving cum protection plan.
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- Minimum basic sum assured should be Rs. 100,000 and highest basic sum assured has no limit. Premiums can be paid regularly at monthly, quarterly, half-yearly or yearly mode.
- Under this plan, loan facility is also available after the payment of premiums for the first three years.
- A person can surrender at any time during the policy term period in case where the premium has been paid for a full three years time period .
- Death benefits are also there. In case of death of the insured after the commencement of risk, death benefit amount counting “Sum Assured on death + Final Additional Bonus + Accrued Bonuses” will be paid.
- After completing 25 years the child would be liable for receiving maturity or survival benefits.
LIC Jeevan Sangam
LIC Jeevan Sangam was introduced on 4th March, 2015 with Children’s money back plan. It is a single premium, non linked and guaranteed-return plan. The premium depends upon two things- age of the insured and maturity sum assured.
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Minimum maturity sum assured (MSA) in this plan is Rs. 75,000 and there is no maximum limit.
- Under this insurance policy, the basic Sum Assured would be 10 times the tabular single premiums.
- It is a single premium payment policy.
- Policy or scheme term – 12 years
- The beneficiary will get the loyalty addition at the time of surrender of the policy or in case of insured’s death. However, this will take place with some conditions.
- After completion of three successful years of policy, loan can be availed.
- On maturity of the plan, the Maturity Sum Assured (MSA) along with loyalty addition would be payable.
- Death benefits are also available as per the policy documents.
Also Read – Best LIC Policy 2017
LIC Jeevan Saral
It is basically an endowment policy that comes out with several flexibilities that normally a person gets with unit linked insurance plans (ULIPs). Along with outstanding features of the traditional plans and the flexibility of ULIP plans, this plan also offers double death benefits of sum assured plus return of premium.
- Under this plan, the minimum sum assured is Rs. 62,500 and has no higher limits.
- The policy term period is of minimum 10 years and maximum 35 Years
- A person of age group 12 to 60 years can buy this policy
- The payment mode under this insurance policy would be monthly, quarterly, half yearly and yearly.
- The policyholder can get the extra cover with the help of available term rider, accidental death and disability benefit.
- After completion of 10 years, the loyalty additions will be provided.
- Under this plan, loan is available.
- This insurance policy is liable for tax benefits. Death and Maturity Benefits
- Death Benefit and maturity benefits are available depending upon the norms of the policy.
- All the policies mentioned above are the latest and best performing policies by LIC in which you can invest this year for a secure future.
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