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Best LIC Plan to Invest in India 2023

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.For better decision making, here's a list of 6 best LIC plans in India on the basis of amount of coverage policy term, etc.

Top 6 LIC Plans In India 2023

LIC Plans Type of Plan Age at Entry (in years) Policy Term (in years) Maturity Age (Maximum) (in years) Sum Assured (Minimum - Maximum)
LIC Jeevan Amar Pure Term Insurance plan 18 - 65 10 - 40 80 years Rs. 25 lakhs - No limit
LIC Tech Term Plan Pure Term Insurance plan 18 - 65 10 - 40 80 years Rs. 50 lakhs - No limit
LIC New Children's money-back Plan Traditional money-back Child Plan 0 - 12 25 years - Age at Entry 25 years Rs. 1 lakh - No Limit
LIC New Jeevan Anand Endowment Plan 18 - 50 15 - 35 75 years Rs. 1 lakh - No Limit
LIC Jeevan Umang Whole Life + Endowment Plan 90 days-55 years 100 - Age at Entr 100 years Rs. 2 lakh - No Limit
LIC Jeevan Labh Endowment Plan 8 - 59 years 16/21/25 75 years Rs. 2 lakhs - No Limit

**Last Updated on April 2023

6 Best Plans To Invest In 2023

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 Amar Pure Term Insurance plan
Entry Age 18-65 years
Policy Term The minimum policy term for the policy is 10 years while the maximum is 40 years
Mode of payment Premiums are to be paid on a regular, limited or single basis.
Sum Assured Minimum- 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 Examination Urine cotinine is required for the non-smoker category (compulsory)

**Last Updated on April 2023

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. Afterwards, 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 Term Pure Term Insurance
Entry Age 18-65 years
Policy Term The minimum policy term for the plan is 10 years whereas the maximum is 40 years
Mode of payment Premiums are to be paid annually
Sum Assured Minimum- Rs. 50 lakhs
Maximum- No Limit
Medical Examination Required

**Last Updated on April 2023

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 Plan Traditional & Money-Back Child Plan
Entry Age 0-12 years
Premium Mode Yearly, Half-Yearly, Quarterly or Monthly through ECS or through SSS mode only
Policy Term 25 years - Age at Entry
Medical Examination Not required
Minimum Sum Assured Rs. 1 lakh

**Last Updated on April 2023

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 Plan Participating Traditional Endowment Plan
Entry Age 18-50 years
Sum Assured (Min-Max) Rs. 1 lakh-No Limit
Loan Facility Available
Optional Benefits LIC accidental death benefit or disability benefit.
LIC's New Term Assurance Rider
Tax Benefit Available under the Section 80C of the Income Tax Act, 1961

**Last Updated on April 2023

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 Plan Endowment and Whole Life Insurance Plan
Entry Age 90 days
Sum Assured (Min-Max) Rs. 2 lakh-No Limit
Loan Facility Available
Premium Paying Mode Yearly, Half-Yearly, Quarterly & Monthly (SSS and NACH Only)
Tax Benefit Available under the Section 80C of the Income Tax Act, 1961

**Last Updated on April 2023

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 Labh

LIC Jeevan Labh is a with-profits, non-linked and participating endowment plan where you need to pay premiums for a limited term. The plan offers several benefits including death benefit, maturity benefit and loan facility to meet the liquidity needs of the policyholder. It is a combination of monetary protection and savings under a single plan.

LIC Jeevan Labh Endowment Plan
Entry Age 8-59 years
Sum Assured (Min-Max) Rs. 2 lakhs—No Limit
Loan Facility Available
Premium Paying Mode 10 years for 16 years policy term
15 years for 21 years policy term
16 years for 25 years policy term
Tax Benefit Available under the Section 80C and Section 10(10D) of the Income Tax Act, 1961

**Last Updated on April 2023

Primary Features:

  • If the premiums are paid for at least 3 years, the loan facility is provided under the plan.
  • It offers different rider options such as LIC Accidental Death and Disability Benefit Rider and LIC New Term Assurance Rider.
  • 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 term, 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 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 and affordability of an individual. In March 2023, they have launched many policies and will initiate more in the upcoming years. With an applauding reputation in the market and excellent benefits, you can easily bet your money on LIC policies.

Best LIC Plans To Invest: FAQs

1. Which are the best LIC Plans to invest in 2023?

LIC has a wide range of insurance plans to protect you and your loved ones from unfortunate events and provide them with financial security. Here is a list of the plans you can choose from:

  • LIC Jeevan Amar
  • LIC Tech Term Plan
  • LIC New Jeevan Anand
  • LIC Saral Jeevan Bima
  • LIC New Children's Money-Back Plan
  • LIC Jeevan Umang
  • LIC Jeevan Labh

And many more.

2. Is it a smart decision to invest in LIC plans?

It is a good idea to invest in LIC plans as it gives one of the most suitable life insurance policies. It also has insurance plans that provide life cover + investment component in one plan, for such options you may consider a ULIP or an endowment option according to your risk appetite and financial goals.

3. Should I invest in LIC Jeevan Labh policy?

LIC Jeevan Labh policy gives maturity and death benefits with an extra profit participation bonus. The plan offers several benefits including the death benefit, maturity benefit, and loan facility to meet the liquidity needs of the policyholder. It is a combination of monetary protection and savings under a single plan. This policy has been rated as amongst the best-selling endowment policies given by LIC. It is meant for a group of 8-59 years.

4. Which LIC plan gives maximum returns?

LIC offers a wide range of life insurance policies designed to provide higher returns. The following plans by LIC provide you with the maximum benefits - Jeevan Amar, New Children's Money Back Plan, New Endowment Plan, New Money Back Plan- 20 years, and New Jeevan Anand Plan.

5. Are LIC policies a good investment option?

LIC is a government-owned corporation and comes with the guarantee of the Indian government, which makes its offerings a safe and reliable investment. The insurance behemoth also gave a huge discount to existing policyholders and employees as they launched their IPO. Policyholders can enjoy tax deductions on the premium amount under Section 80C of the Income Tax Act, 1961.

6. Is New Jeevan Anand a good LIC policy?

LIC's New Jeevan Anand is a good life insurance plan for your family. It offers an attractive combination of savings and protection. The cover provided is available throughout the lifetime of the policy. In addition, this plan comes with a loan facility as well.

7. How does the LIC Tech Term Plan benefit me?

If you are an individual looking to invest in a term insurance plan but have a limited budget, LIC Tech Term Plan is an ideal choice. This online pure risk plan offers life insurance cover at a relatively low premium rate in exchange for well-rounded coverage.

8. Which is a good policy LIC Jeevan Amar or LIC Tech Term?

LIC offers both these plans that are beneficial for you as per your requirements. The only difference is the sum assured amount which is high in LIC's tech term plan. If you want to buy a plan with a sum assured amount of more than 25 lakhs, you can select the tech term plan.

9. What is the Best LIC policy for 2023?

In 2023, the best LIC policy would depend on the individual's financial goals and requirements. However, some popular options to consider include LIC Jeevan Amar, LIC Jeevan Anand, and LIC New Endowment Plan.

10. What are the benefits of investing in LIC policy?

LIC policies offer several benefits, including life cover, tax benefits, and long-term savings. The policyholder's family receives a lump sum amount in case of the policyholder's unfortunate demise, and the premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act.

11. How can I choose the Best LIC policy for myself?

To choose the best LIC policy for yourself, you must consider factors such as your age, income, financial goals, and risk appetite. You should also assess the policy's features, such as the policy term, premium, and benefits, to ensure that it aligns with your requirements.

12. Can I customize my LIC policy to suit my needs?

Yes, LIC policies offer several customization options to policyholders. You can choose the policy term, premium payment frequency, and the sum assured based on your financial requirements. You can also add riders to your policy for additional benefits, such as accidental death and disability cover.

13. What is the process of buying a LIC new plan?

To buy a LIC new plan, you need to visit the LIC website or approach an authorized LIC agent. You will be required to fill in the application form, submit the necessary documents, and pay the premium. After the verification process, you will receive the policy document or can download the document, and the coverage will begin as per the policy's terms and conditions.

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