When it comes to insurance and investment, the one name that comes to every Indian's mind is – Life Insurance Corporation of India. Apart from Indians, even the NRIs prefer investing in LIC schemes and this is the reason, this public sector insurer is offering policies for them as well. Apart from term plans, ULIPs, and endowment policies, LIC also offers money-back plans for its NRI customers. Here we are discussing the Money Back plans that LIC is offering for the NRIs.Read more
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In laymen's terms, the money-back policy is a protection policy wherein an insured person gets a specific percentage of the sum assured at regular intervals rather than getting a lump sum amount upon maturity of the policy. Here is a quick lay down on some of the LIC money back plans for NRIs:
This policy is among the highly recommended insurance policies for NRIs who reside in Canada and those who have relocated abroad for a brief period. The savings are increased since the term for premium payment ends six years before the maturity period of the insurance policy. The insured get full coverage from the insurance company and does not have to pay additional premiums during the last period of six years.
Following the policy requirements, the insured can select a 16 year, 21 years or 25-year time frame. A policy with a longer duration is recommended since it can yield the best return. Additionally, the insured may pay for a premium on a quarterly, monthly, or half-yearly basis. In general, there is a discount of 2% applicable to those who select the annual premium payment mode. The maturity income is tax-free. In addition, the policyholder may be awarded a loyalty bonus which LIC will announce at times as a non-market-linked plan.
Jeevan Shiromani from LIC is a money-back, non-linked life insurance policy. It is specifically made for people with high net worth. The policy provides an income cushion for the family members if the policyholder dies. Usually, regular payments are made to the policyholder throughout the policy term and in conjunction with the lump sum at the termination of the policy. Additionally, the policyholder is entitled to a payment equal to 10 percent of the Basic Sum assured (BSA) if any of the specified 15 Critical Illnesses are identified.
The LIC's Jeevan Lakshya plan is a full family protection plan which provides protection and savings both in one plan. It provides high-risk insurance and if the insured passes away, the nominee receives the sum assured. In an accident-related death, the accident riders pay the sum equal to the sum assured. The beneficiary starts receiving an annual pension of 10 percent of the sum assured up to the plan's expiration date. Upon the end of the plan, the nominee gets 110 percent of the Sum Assured.
The Jeevan Anand policy has been among the most popular LIC money-back policies offered by the company. The policy is a participant non-linked plan, and it provides an enticing combination of savings and protection. Standard loan facilities are offered within the policy. When the policy term ends, the policyholder will be entitled to the basic sum assured, simple reversionary bonuses, and a final additional bonus that become part of the policy. The policyholder has the option to avail the benefit of the LIC's accidental disability and death rider. The insurance coverage under Jeevan Anand is in force even after the policy's expiration. The term of the plan is between 15-35 years.
Jeevan Shanti Plan No.858 (earlier Table No. 85) is an assured pension plan from LIC of India which offers an ongoing stream of income in exchange for a single payment of the premium. Note that investing in other options such as mutual funds, equity, gold, or the property might not provide the desired results. However, LIC's pension plan promises a guaranteed return on investment, with the option for regular monthly income, either immediately or deferred.
Thus, by making a single investment in the pension plan of LIC, NRIs living in Canada can secure their future by getting a regular fixed income at any time they would like.
Jeevan Umang Insurance policy offers buyers two advantages. One allows them to earn a return on their investment while the other provides total life protection. This LIC endowment plan provides regular income for buyers until they reach at least 100 years of age. The payout begins immediately following the expiration of the premium payment term (PPT). It is available with four options of PPT - 15, 20, 25, or 30 years. The payment flow will cease in three circumstances - when the policy buyer reaches 100 years of age, the death of the policy buyer, or if the policy buyer decides to give up the policy and take the maturity amount. Therefore, the policy is not linked to the market and is completely free of any risk the market could experience in the future.
LIC's Children's Money Back Plan provides consistent savings with attractive returns and offers the right amount at a suitable time. Among other options, many NRIs staying in Canada prefer this endowment plan by LIC. Other benefits of this plan include:
As an NRI staying in Canada, you would want the best return on investment. LIC is a reputed insurance provider in India and has a host of policies for various requirements. Make sure you assess your lifestyle requirements and choose a suitable LIC Money Back Policy from the above-listed options.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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