One thing that every individual is uncertain of is the future. We don’t know what tomorrow will bring. But we can always plan for it. Life Insurance is one of the ways, a person invest in, to secure the future for yourself, your family and loved ones.
When it comes to choosing a reliable and trusted insurance policy, Life Insurance Corporation (LIC) is the answer without a doubt. Founded in 1956, LIC commands a monopoly with a huge range of products to offer in India. As it often becomes difficult to choose the right fit for oneself, here are the best 5 policies offered by Life Insurance Corporation of India that one can go for without a doubt in 2017. These policies range for all types and categories of people.
- LIC Jeevan Akshay VI
This Plan is a Single Premium Immediate Annuity Plan with seven annuity options. You can purchase it by paying a lump sum amount at the beginning and it starts as early as the next month of the purchase. It is a non unit-linked pension plan providing for annuity payments of a stated amount throughout the lifetime of the annuitant. Various options are available for the type and mode of payment of annuities.
Following are the salient features of the LIC Jeevan Akshay VI plan:
- Annuity may be paid monthly, quarterly, half yearly or yearly intervals depending on how you choose initially
- Different annuity payment options may either be chosen for a single policyholder or jointly for policyholder and spouse
- Annuity will be calculated at higher rates for plan purchased online and lump sum premium (or purchase price) of Rs 250,000 or higher
- No medical examination is required
- No upper limit for purchase price or annuity under the plan
- 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
- 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.
- LIC e-Term Plan
LIC’s e-Term policy is a life cover policy that provides financial protection in case of any unfortunate event to the insured’s family. In other words, it is a regular premium non-participating (without bonus), “online term assurance policy” which is available through online application process only and no agents are required, and hence the name e-Term.
Under the LIC’s e-Term policy, the insurer, who should be at least 18 years of age, agrees to pay an agreed sum assured in the event of his/her premature death during the policy term. However, if the insured survives till the end of the policy term, nothing is payable. The policy can be taken at maximum age of 60 years but the policy period should be of minimum 10 years. The premiums for this plan needs to be paid annually by the insurer.
Following are the salient features of the LIC e-Term Plan
- The maximum age till which cover will be provided is 75 years
- The cover is for individuals and for their own lives
- If the policy has lapsed, it can be renewed within 2 years
- Medicals cost is borne by the policyholder
- If the policy is returned within the free look /cooling-off period then the premiums will be returned minus any costs for stamp duty, cover for period that the policy was active, etc.
- 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.
- Loan is not available in this plan
- Minimum Policy Term for this plan is 10 years and Maximum Policy Term is 35 years.
- 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.
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- LIC New Children’s Money Back Plan
Launched on 4th March 2015, New Children’s Money Back Plan is a traditional plan designed to secure a child’s future even if the parents are not there. It is a non-linked,-profit regular premium payment policy. Particularly intended to meet educational, marriage and other needs of a growing children, it provides risk cover to the insured child during the policy term.
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.
Following are the salient features of the LIC New Children’s Money Back Plan:
- Minimum Basic Sum Assured should be Rs. 100,000 and no limit on Maximum Basic Sum Assured.
- 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 after the payment of premiums for at least three full years.
- Age limit: 0-12 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 Benefit: 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.
- LIC Jeevan Sangam
LIC Jeevan Sangam is a single premium and non linked, guaranteed-return plan. It is a close ended plan open for a maximum period of 90 days only. The premium to be paid for the plan depends upon two things: age of the insured and maturity sum assured. The beneficiary under this plan gets the loyalty addition at the time of surrender of the policy or in case of insured’s death.
Following are the salient features of the LIC Jeevan Sangam:
- Minimum maturity sum assured (MSA) in this plan is Rs. 75,000 and there is no maximum limit.
- Policy or scheme term – 12 years
- 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 available as per the policy documents.
- LIC Jeevan Saral
This plan is categorised under Special Plans. It is 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, it gives double death benefit of um assured plus return of premium.
Following are the salient features of the LIC Jeevan Saral:
- 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 no upper limits.
- Policy Term – Minimum: 10 Years and Maximum: 35 Years
- Entry Age – 12 to 60 Years
- Payment Modes: 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 Benefit – In case of death of the Life Insured, the nominee receives
So, the above 5 plans largely cover all types of life insurance policies one can opt for in order to secure their tomorrow. However, one should always choose the one that fits the bill. LIC being the largest insurance offering company in the country, one should not worry about the security and guarantee of your returns. So, invest your time and money for the best use.
Also Read – Best LIC Plans 2016
Also Check – LIC of India home page for more details.