Best LIC Plans to invest in 2020
Best LIC Plans to invest in 2020
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Best LIC Plans In India 2020

Life insurance is definitely worth adding to your investment portfolio. It is essential to living a happy and secure life. No one can overstate the importance of having life insurance. It offers the required financial security to your family or loved ones in the case of your demise. In India, many individuals might think of it as just another expense. But they should ask themselves two questions: what will their families and loved ones do in case of their demise? How will they manage their lives if there is a single breadwinner in the family?

If you are getting confused, the answer is a life insurance policy. Moreover, in India, whenever it comes to life insurance, the first company that comes to mind is none other than the Life Insurance Corporation of India (LIC) with the tagline “Zindagi ke saath bhi, zindagi ke baad bhi” (meaning LIC is always with you ‘in life’ and ‘after life’ as well). It is the most trusted brand that deals in a wider range of life insurance products. Among all the available options, it becomes quite hard to pick the best one.To provide ease and detailed information, we have provided the table below, i.e. the list of 6 best LIC plans.

Top 6 LIC Plans In India 2020

LIC PlansType of PlanAge at Entry (in years)Policy Term (in years)Maturity Age (Maximum) (in years)Sum Assured (Minimum - Maximum)
LIC Jeevan AmarPure Term Insurance plan18 - 6510 - 4080 yearsRs. 25 lakhs - No limit
LIC Tech Term PlanPure Term Insurance plan18 - 6510 - 4080 yearsRs. 50 lakhs - No limit
LIC New Children’s money-back PlanTraditional money-back Child Plan0 - 1225 years - Age at Entry25 yearsRs. 1 lakh - No Limit
LIC New Jeevan AnandEndowment Plan18 - 5015 - 3575 yearsRs. 1 lakh - No Limit
LIC Jeevan UmangWhole Life + Endowment Plan90 days-55 years100 - Age at Entr100 yearsRs. 2 lakh - No Limit
LIC Jeevan PragatiEndowment Plan12 - 45 years12 - 2065 yearsRs. 1.5 lakhs - No Limit

Expert Advice: To choose the best LIC plan among all available options, it is advisable to first understand the cause of purchasing the policy which includes key reasons i.e. to offer financial support to family and regular earnings after the demise.

1. LIC Jeevan Amar

LIC Jeevan Amar was launched in August 2019 by the Life Insurance Corporation of India. It is a pure term plan. It does not offer any type of returns to the insured. However, it provides the required financial assistance to the family in case of the insured’s demise. It will help them in living a stable and secure life. The plan is non-participating & non-linked life insurance term plan that provides a variety of options to the customers compared to other insurance companies.

LIC Jeevan AmarPure Term Insurance plan
Entry Age18-65 years
Policy TermThe minimum policy term for the policy is 10 years while the maximum is 40 years
Mode of paymentPremiums are to be paid on a regular, limited or single basis.
Sum AssuredMinimum— Rs. 25 lakhs (multiples of Rs. 1 lakh when the amount is in between Rs. 25 lakhs to Rs. 40 lakhs) and (multiples of Rs. 10 lakhs when the amount is above Rs. 40 lakhs) Maximum— No Limit
Medical ExaminationUrine cotinine is required for the non-smoker category (compulsory)

Primary Features:

  • LIC Jeevan Amar is a non-market linked plan.
  • Sum Assured can be increased & level Sum Assured option is also available.
  • No maturity amount is applicable under the plan.
  • Premium rates are classified into 2 types: i)Smoker, ii)Non-Smoker.
  • The death claim amount is payable to the beneficiary if the policyholder dies during the policy tenure.
  • Death benefits can be paid in a fixed amount or as installments for (5, 10, and 15) years.
  • Policyholders can select the premium paying term and the policy term.
  • Payment of premiums can be done on a regular basis or in a lump sum amount or limited as well.
  • Medical Cotinine Test for Urine is a mandate for the non-smoker category.

Benefits Of The Plan:

  • Two death benefit covers are available such as Increasing Sum Assured(*), and Level Sum Assured*.
  • Coverage for a higher risk and the maximum maturity age is 80 years.
  • The plan has considerably lower rates of premium for women and non-smokers.
  • Smoker and non-smoker categories are available.
  • Handsome higher rebates on Sum Assured.
  • Accidental benefit riders can be chosen as an additional cover by paying an extra premium.
  • No limit for maximum Sum Assured.

*Level Sum Assured: The beneficiary will get the absolute Basic Sum Assured chosen at the time of purchasing the policy and cannot be changed throughout the policy.

Increasing Sum Assured(*): For the first five years, the death benefit amount will be the same as the Basic Sum Assured opted at the beginning by the insured. Afterward, it shall increase in an in-force policy by the rate of 10% for 15 years starting from the 6th year of the policy till the end of the policy tenure or till death unless it turns twice the Basic Sum Assured, the one which will be earlier.

2. LIC Tech Term Plan

LIC Tech-Term is basically non-linked & pure protection "Online Term Assurance Policy" which offers the required financial assistance to the insured's family in case of his/her unfortunate demise. This plan will be available through an online application process and no intermediaries will be involved.

LIC Tech TermPure Term Insurance
Entry Age18-65 years
Policy TermThe minimum policy term for the plan is 10 years whereas the maximum is 40 years
Mode of paymentPremiums are to be paid annually
Sum AssuredMinimum— Rs. 50 lakhs Maximum— No Limit
Medical ExaminationRequired

Primary Features:

  • The plan can be purchased via online mode only without the involvement of any middleman.
  • Concession on the premiums is available for women and non-smoker category.
  • The plan is conventional and a non-participating plan.
  • No maturity benefit will be paid & coverage is only provided for risk as it is a pure term plan.
  • High Sum Assured is offered under this plan.
  • The death benefit and income tax benefits are available under the plan.

Benefits Of The Plan:

  • The policyholder can opt for the plan for a policy term of up to 40 years.
  • High Sum Assured is offered under the plan.
  • In case of the unfortunate demise of the policyholder during the policy term, Sum Assured shall be paid as a death benefit.
  • Income tax benefits are applicable on the amount for premiums paid.

3. LIC New Children’s Money-Back Plan

LIC New Children’s money-back plan is a participating non-linked money-back plan. It is specially designed to meet the marriage, educational, and other requirements of raising children through Survival Benefits. Additionally, you will get a life risk cover for your child and several survival benefits until the end of the specified duration. You can pay regular premiums at yearly, half-yearly, quarterly or monthly through ECS or through SSS modes. If you have paid the premium amount for the initial three years, the policy can be surrendered at any time during the policy tenure.

LIC New Children’s money-back PlanTraditional & Money-Back Child Plan
Entry Age 0-12 years
Premium ModeYearly, Half-Yearly, Quarterly or Monthly through ECS or through SSS mode only
Policy Term25 years - Age at Entry
Medical ExaminationNot required
Minimum Sum AssuredRs. 100,000/-

Primary Features:

  • There is no limitation for the maximum Sum Assured amount.
  • Loan facility is available after the initial 3 consecutive years of full premium payment.
  • As a survival benefit, this plan is responsible for paying money-back after fixed intervals of time.

Benefits Of The Plan:

Death Benefit: If the policyholder dies before the commencement of risk, the Death Benefit amount should be payable. If the policyholder dies after the commencement of risk, the Death Benefit in the form of Sum Assured + Accrued bonus + Final Additional Bonus shall be payable.

Survival Benefit: 20% of the Sum Assured shall be payable as a Money-back payment for an interval of every 2 years after completing 18 years of age.

4. LIC New Jeevan Anand Plan

LIC Jeevan Anand Plan is a non-linked & participating policy that provides an exclusive mixture of savings and financial protection. If you go through the statistics, you will come to know that this policy is the highest-selling LIC insurance policy. Because of its numerous advantages (inclusive of coverage for risk even after maturity), it highlights this plan as the most unique one. LIC Jeevan Anand is a complete endowment cum whole life insurance policy that comes along with a bonus facility.

LIC Jeevan Anand PlanParticipating Traditional Endowment Plan
Entry Age18-50 years
Sum Assured (Min-Max)Rs. 1 lakh-No Limit
Loan FacilityAvailable
Optional BenefitsLIC accidental death benefit or disability benefit.
LIC's New Term Assurance Rider
Tax BenefitAvailable under the Section 80C of the Income Tax Act, 1961

Primary Features:

  • The plan offers financial coverage for the family.
  • The plan fulfills the liquidity needs by offering the loan facility.
  • Premium payment discounts are there for customers.
  • Rebates on payment of premiums are also applicable.
  • Accidental death and disability benefit riders are available under the plan by paying an extra premium amount.
  • The insured can enjoy the Income tax benefit on the premiums paid.

Benefits Of The Plan:

  • Double Death Benefit in case of survival is provided under the plan.
  • This plan has an average premium, high bonus rate, and great liquidity feature.
  • The policyholder will be privileged with a lump sum payment during maturity.
  • Sum Assured on Death + Final Additional Bonus + Simple Reversionary Bonus shall be payable if the policyholder dies before the policy term is completed.
  • As a survival benefit Basic Sum Assured + Final Additional Bonus + Simple Reversionary Bonus should be payable if the policyholder survives the policy tenure.

The best thing about this policy is that even when the maturity is paid and the policyholder is alive, the insurance coverage continues with the payment of premium amounts. This plan is ideal for women who are never off their responsibilities in life as it will continue to pay the benefits, even after the maturity period of the plan.

5. LIC Jeevan Umang

LIC Jeevan Umang comes with the dual benefit of earnings as well as savings for the secure future of your family. It is one of the best LIC plans with-profit & non-linked whole life insurance plans. The plan offers a 100 years cover which is quite an exceptional feature of the insurance policy. A fixed Sum Assured is paid to the policyholder at the end of the policy tenure.

LIC Jeevan Umang PlanEndowment and Whole Life Insurance Plan
Entry Age90 days
Sum Assured(Min-Max) Rs. 2 lakh-No Limit
LoanFacility Available
Premium Paying ModeYearly, Half-Yearly, Quarterly & Monthly (SSS and NACH Only)
Tax BenefitAvailable under the Section 80C of the Income Tax Act, 1961

Primary Features:

  • On surviving the policy tenure, the plan will pay 8% of the Sum Assured amount every year in the form of survival benefit.
  • Comprehensive coverage as the plan comes with a protection of 100 years.
  • Accidental death, term and disability riders are applicable to an extra premium payment under the plan.
  • Take care of the liquidity needs as it offers the loan facility.
  • Serves as a pension plan after retirement.
  • Numerous options of premium paying terms are available under the plan.

Benefits Of The Plan:

Death Benefit: Before commencement of risk if the policyholder dies, the whole premium paid till the time will be payable under the plan excluding any interests. After the commencement of risk, if the policyholder dies, the final additional bonus along with Accrued bonus and the Sum Assured is paid to the nominee(s) of the policy.

Maturity Benefit: On maturity of the policy, the ‘Sum Assured on Maturity’ inclusive of vested reversionary bonuses in addition to the final bonus is given as a maturity benefit.

Survival Benefit: It ensures the survival benefit of 8% of the Basic Sum Assured every year until the maturity of the policy.

6. LIC Jeevan Pragati

LIC Jeevan Pragati is a with-profit & non-linked participating endowment plan. An exclusive feature of this plan is the auto-increment of risk coverage every 5 years at the time of policy tenure. It is a combination of monetary protection and savings in a single plan.

LIC Jeevan PragatiEndowment Plan
Entry Age12-45 years
Sum Assured (Min-Max)Rs. 1.5 lakhs—No Limit
Loan FacilityAvailable
Premium Paying ModeYearly, Half-Yearly, Quarterly & Monthly
Tax BenefitAvailable under the Section 80C and Section 10(10D) of the Income Tax Act, 1961

Primary Features:

  • The life coverage increases automatically in intervals of every 5 years.
  • If the premiums are paid for at least 3 years, the loan facility is provided under the plan.
  • Several rider options are also available in the policy such as accidental death and disability riders.
  • Rebates on the premium paid by selecting yearly or half-yearly modes.
  • Surrender of policy is applicable after full premium payment of the initial 3 policy years.

Benefits Of The Plan:

Death Benefit: On the death of the policyholder before completing the policy years, the sum assured and complimentary bonuses like Simple Reversionary Bonus and Final Additional Bonus shall be paid as a death benefit to the nominee(s) of the policy.

Maturity Benefit: On surviving till the end of the policy tenure, the sum assured on maturity together with bonuses such as simple reversionary bonus and the final additional bonus shall be payable as a maturity benefit to the policyholder.

Summary

LIC of India launched 2 new unit-linked plans LIC SIIP (Single Premium) and LIC Nivesh Plus (Regular Premium) on 2nd March 2020.

LIC is the top-ranking and most trusted insurance company in India. The corporation offers a collection of more than 20 plans according to the different requirements of an individual. In 2019, they have launched many policies and will initiate more in the upcoming days. With an applauding reputation in the market and excellent benefits, you can easily bet your money on LIC.

Last updated on 25-03-2020