LIC Endowment & Saving Traditional Plans

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LIC Traditional / Investment Plans

The Life Insurance Corporation of India, LICI, is the oldest and the most trusted Life Insurer in the insurance sector. Through the Life Insurance Corporation Act passed by the Parliament of India on 1st September 1956, LICI was incorporated and was enjoying monopoly power in the life insurance industry due to absence of other players. In January 2002, the Government of India relaxed the regulations governing the insurance sector and allowed private players to enter the insurance market. Today there are about 28 players in the market but LICI still enjoys the majority of the market share through decades of service in the insurance industry. Today, the company has a vast customer base of more than 250 million people and is striving to maintain the same service and product pricing in the ever competitive insurance market. The range of products offered by Life Insurance Corporation of India includes Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.

What are Traditional / Investment Plans

Traditional plans, also called Conventional Insurance Plans are plans where money is invested as per the guidelines laid down in the Insurance Act. The whereabouts of the invested premium is not known to the policyholder. The policyholder is simply promised certain benefits payable on death, maturity or as money back. Traditional Investment Plans have some of the basic features which are mentioned below:

  • These plans are issued for a longer term perspective and money cannot be withdrawn from the plans.
  • In case of stopping the premium payment, the plan becomes paid-up if at least three full years’ premiums have been paid. A paid-up plan has a reduced Sum Assured and the policyholder has a choice to either run the plan at the reduced coverage or surrender the plan.
  • The plans may be offered as participating or non-participating plans. Participating plans are entitled to participate in the company’s profits and earn bonuses which are not true for non-participating plans.
  • The plans may be issued either as Endowment Plans or Money Back Plans

LIC Traditional / Investment Plans

The LIC of India offers various investment plans which are discussed in details below:

LIC's Jeevan Pragati Plan – A non-linked LIC Endowment Plan with the profits option, the plan offers a two-way benefit of savings and protection. The features of this plan are as follows:

  • The LIC endowment plan provides automatic increase in cover after every five years of the policy
  • The plan offers maturity benefits include a lump sum payment of sum assured, vested simple reversionary bonuses and final additional bonus, if any
  • The company provides a staggered death benefit that equals higher of 10 times the annual premium or 100% of sum assured in the first 5 years, 125% from year 6 to 10, 150% from year 11 to 15 and 200% from year 16 to 20
  • This LIC endowment plan has an optional accidental death and disability benefit rider
  • The policy has a surrender value if the premium for at least 3 years has been paid
  • Policyholders can avail loans against the policy after a period of 3 years when it has a surrender value

Eligibility Details

 

Minimum

Maximum

Entry Age

12 years

45 years

Maturity Age

-

65 years

Policy Term

12 years

20 years

Sum Assured

Rs.1,50, 000

No limit

Premium Payment Term

Yearly, half-yearly, quarterly or monthly

 

LIC's Jeevan Labh– A non-linked LIC endowment plan with limited premium payment option. The policy offers financial support for the family in case of the unfortunate demise of the policyholder or a lump sum payment on maturity of the policy to the insured person

  • The participating LIC endowment plan offers the insured the option to avail reversionary bonus and final bonus at the end of the policy term
  • Offers a limited premium payment option wherein the policyholder needs to pay for only 10 years for a 16 year policy, for 15 years for a 21 year cover and for 16 years for a 25 year plan
  • The death benefit that equals the higher of 10 times the annual premium or basic sum assured. The death benefit shall not be less than 105% of the sum assured
  • Maturity benefits would include the sum assured, the declared reversionary bonus and any additional bonus, if declared
  • The LIC endowment plan offers two optional riders, accidental death and disability benefit rider, and new term assurance rider
  • The company offers a rebate for high sum assured
  • The insured can avail a loan under the policy after at least 3 years of premium has been paid

Eligibility Details

 

Minimum

Maximum

Entry Age

8 years

50-59 years

Maturity Age

18 years

75 years

Policy Term

16 years

25 years

Sum Assured

Rs. 2,00,000

No limit

Premium Payment Term

Yearly, half-yearly, quarterly, monthly

 

LIC’s Single Premium Endowment Plan – An LIC endowment plan with an option to pay premium in lump sum at the commencement of the plan. The features of this LIC endowment plan are as follows:

  • It is a participating LIC endowment plan which earns bonus through participation in the company’s profits.
  • For children aged less than 8 years, there is a deferment period. The risk cover will begin one day before the completion of 2 years of the policy commencement or one day before the policy anniversary which coincides with or follows the completion of 8 years of age.
  • In case of death during the deferment period, the premium paid is returned and in case of death post the deferment period, the Sum Assured and the vested Simple Reversionary Bonus and Final Additional Bonus, if any is paid, under this LIC endowment plan
  • On maturity, Sum Assured and vested simple reversionary bonus and final additional bonus, if any, is paid
  • Loan is available under the LIC endowment plan.
  • Rebate is allowed in premium for choosing a high Sum Assured of Rs.1 lakh and above under this LIC endowment plan
  • Tax benefit is available on the premium paid and the claim received. The premiums paid are exempt from taxation under Section 80C of the Income Tax Act and the claim received in exempt under Section 10(10D) of the Income Tax Act.

 Eligibility Details

 

Minimum

Maximum

Entry Age

90 days

65 years

Maturity Age

18 years

75 years

Policy Term

10 years

25 years

Sum Assured

Rs.50, 000

No limit

Premium Payment Term

Single Premium

 

LIC’s New Endowment Plan– An LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death.
  • On maturity, the Sum Assured, vested bonus and final additional bonus, if any, is paid under this LIC endowment plan
  • LIC’s Accidental Death and Disability Benefit Rider can be availed wherein the rider Sum Assured is paid in equal monthly instalments over a period of 10 years and all future premiums payable are waived off if the insured suffers an accidental death or disability.
  • Loan can be availed under this LIC endowment plan
  • In this LIC endowment plan, rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.2 lakh and above in this LIC endowment plan.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act.

Eligibility Details

 

Minimum

Maximum

Entry Age

8 years

55 years

Maturity Age

-

75 years

Policy Term

12 years

35 years

Sum Assured

Rs.1 lakh

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s New Jeevan Anand – An LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of 125% of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death.
  • On maturity, the Sum Assured, vested bonus and final additional bonus, if any, is paid to the insured under this LIC endowment plan
  • LIC’s Accidental Death and Disability Benefit Rider can be availed wherein the rider Sum Assured is paid in equal monthly instalments over a period of 10 years and all future premiums payable are waived off if the insured suffers an accidental death or disability under this LIC endowment plan.
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.2 lakh and above.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act, under this LIC endowment plan.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

50 years

Maturity Age

-

75 years

Policy Term

15 years

35 years

Sum Assured

Rs.1 lakh

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s Jeevan Rakshak – An LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death.
  • On maturity, the Sum Assured along with the Loyalty Additions is paid to the insured under this LIC endowment plan
  • Loyalty Additions accrue after the completion of 5 policy years under the LIC endowment plans
  • LIC’s Accident Benefit Rider can be availed by paying extra premium which pays an additional amount in case of accidental death.
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Under this LIC endowment plan, rebates are allowed in premium for choosing a high Sum Assured level of Rs.1.5 lakhs and above.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act.

Eligibility Details

 

Minimum

Maximum

Entry Age

8 years

55 years

Maturity Age

-

70 years

Policy Term

10 years

20 years

Sum Assured

Rs.75,000

Rs.2 lakhs

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s Limited Premium Endowment Plan – A limited pay LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of 125% of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death.
  • On maturity, the Sum Assured, vested bonus and final additional bonus, if any, is paid under this LIC endowment plan
  • LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider can be availed under the LIC endowment plan
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the LIC endowment plan policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.5 lakhs and above.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act, under this LIC endowment plan

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

62 years

Maturity Age

-

75 years

Policy Term

12, 16 or 21 years

Premium paying term

8 and 9 years

Sum Assured

Rs.3 lakhs

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s Jeevan Lakshya – An LIC endowment plan with the following features:

  • A participating LIC endowment plan where Sum Assured on death, vested bonus and final additional bonus is paid in case of death subject to a minimum of 105% of all premiums paid till death
  • Sum Assured on death is the total of 10% of the Sum Assured payable from the policy anniversary following the date to death to the policy anniversary one year before the date of maturity and 110% of the basic Sum Assured.
  • On maturity, the Sum Assured, vested bonus and final additional bonus, if any, is paid under this LIC endowment plan
  • LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider can be availed under this LIC endowment plan
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.2 lakhs and above.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act, under this LIC endowment plan

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

50 years

Maturity Age

-

65 years

Policy Term

13 years

25 years

Premium paying term

Policy term – 3 years

Sum Assured

Rs.1 lakh

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s New Money Back Plan 20 years –A money back LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of 125% of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death
  • 20% of the Sum Assured is paid as Survival Benefits in the 5th, 10th and 15th policy year of this LIC endowment plan
  • On maturity, 40% of the Sum Assured, vested bonus and final additional bonus, if any, is paid
  • LIC’s Accidental Death and Disability Benefit Rider can be availed wherein the rider Sum Assured is paid in equal monthly instalments over a period of 10 years and all future premiums payable are waived off if the insured suffers an accidental death or disability.
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the LIC endowment plan policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.2 lakhs and above under this LIC endowment plan.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act, under this LIC endowment plan

Eligibility Details

 

Minimum

Maximum

Entry Age

13 years

50 years

Maturity Age

-

70 years

Policy Term

20 years

Premium paying term

15 years

Sum Assured

Rs.1 lakh

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s New Money Back Plan 25 years –A money back LIC endowment plan with the following features:

  • It is a participating LIC endowment plan where in case of death higher of 125% of the Sum Assured or 10 times the annual premium, vested bonus and final additional bonus, if any, is paid subject to a minimum of 105% of all premiums paid till death
  • 15% of the Sum Assured is paid as Survival Benefits in the 5th, 10th, 15th and 20th policy year of the LIC endowment plan
  • On maturity, 40% of the Sum Assured, vested bonus and final additional bonus, if any, is paid
  • LIC’s Accidental Death and Disability Benefit Rider can be availed wherein the rider Sum Assured is paid in equal monthly instalments over a period of 10 years and all future premiums payable are waived off if the insured suffers an accidental death or disability.
  • Loan can be availed under this LIC endowment plan
  • Rebate is given in premium rates if the policyholder chooses to pay yearly or half-yearly premiums @ 2% and 1% respectively.
  • Rebates are allowed in premium for choosing a high Sum Assured level of Rs.2 lakhs and above under the LIC endowment plan.
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act if policyholders opt for this 25 years LIC endowment plan

Eligibility Details

 

Minimum

Maximum

Entry Age

13 years

45 years

Maturity Age

-

70 years

Policy Term

25 years

Premium paying term

20 years

Sum Assured

Rs.1 lakh

No limit

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

LIC’s New BimaBachat – An LIC endowment plan with the following features:

  • A participating LIC endowment plan where on death during the first 5 years the Sum Assured is paid and on death after that, Sum Assured and Loyalty Additions are paid
  • Survival benefits @15% of the Sum Assured is paid from the 3rd year and thereafter every 3 years given the policy term
  • On maturity, the single premium along with the loyalty additions is paid back under this LIC endowment plan
  • Loan is available under the plan if a LIC endowment plan policyholder wishes to avail the same
  • High Sum Assured rebate is given for Sum Assured of Rs.75, 000 and above
  • The premiums paid are exempt from taxation under Section 80C and the claim received in exempt under Section 10(10D) of the Income Tax Act for people opting for this LIC endowment plan.

Eligibility Details

 

Minimum

Maximum

Entry Age

15 years

66 years

Maturity Age

-

75 years

Policy Term

9, 12 or 15 years

Premium paying term

20 years

Sum Assured

Rs.35,000

No limit

Premium Payment Frequency

Single Pay

 

LIC’s New Children’s Money Back Plan –A child plan offered as a money back LIC endowment plan. The LIC endowment plan participates in the company’s profits and earns simple reversionary bonuses. The child is the life insured under the plan and the plan offers money back benefits on the policy anniversary following the child attaining 18, 20 and 22 years of age. On death, if the risk has not started, the premiums paid are returned and if the risk has started, the higher of the Sum Assured or 10 times the annual premium along with the vested bonus and any final additional bonus is paid

LIC’s Jeevan Tarun – Another Child Plan which is also offered in the money back format. The LIC endowment plan participates in the company’s profits and earns simple reversionary bonuses. The child is the life insured under the plan and the LIC endowment plan offers money back benefits under four different options. On death, if the risk has not started, the premiums paid are returned and if the risk has started, higher of 125% of the Sum Assured or 10 times the annual premium along with the vested bonus and any final additional bonus is paid.

Applying for a Traditional / Investment Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required LIC endowment plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

LIC endowment plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

You may also like to read : Best 5 LIC Policies To Invest in 2016

LIC Traditional Plans - FAQ 

1. How to pay a premium? What are the modes of payment available?

The Life insurance Corporation of India Ltd. offers 6 modes of premium payment namely:

  • Cash/ cheque / DD payment at the branch and cash counters
  • Payment at the Axis Bank
  • Payment at the Corporation Bank
  • Online Payment
  • NEFT
  • ECS
  • AP online
  • MP Online
  • Suvidha Infoserve
  • Easy bill pay
  • Premium point by empowered agents
  • Life plus SBA
  • Retired LIC Employee collection
  • Phone banking
  • Authorized Service Provider (in selected cities)

For the online payment mode, the policyholder can pay via;

  • Credit Card,
  • Debit Card
  • Net banking

2. How can I check policy status for LIC traditional plans?

For online registered users, they can check the policy status by logging into the e-Portal

Alternatively, visit the branch personally to know the policy status. 

3. What is the policy renewal process for LIC traditional plans?

For renewing online, follow these easy steps;

Step1: Enter your Client ID and Date of Birth to login into e-portal

Step2: Choose the policy and payment option (Net Banking/ Debit/Credit Card)

Step3: Print/save the premium deposit receipt on successful payment completion

Alternatively, you can pay via cash/cheque at any of the nearest LIC branches in your city. 

4. What is the company’s process to settle claim for LIC traditional plans?

For the claim settlement nominee can visit the branch personally and the customer service desk will help you there. 

5. What is the policy cancellation process for LIC traditional plans?

For the cancellation of the policy, you can visit the branch personally. 

6. Will the plans remain active if I do not pay the premium a few times?

LIC offers its policyholders a grace period of 15 days if the premium is paid monthly and a time of 30 days if the premium is paid with any other frequency. The policy lapses if the premium is not paid within the grace period. The insured can revive the policy within a period of 2 consecutive years from the due date of the first unpaid premium. 

7. What happens if I cannot pay the premium for more than 3 years?

If the policyholder is unable to pay the premium for more than 3 years, then the policy converts into a paid up policy. The sum assured for this paid up policy is less than the original sum assured and is generally derived on a pro-rata basis. The insured does not get to participate in future company profits, which are paid in the form of bonuses, in a paid-up plan, though the reversionary bonus already declared remains attached to the policy. The insured must note that the riders do not apply in paid-up policies and are deemed as lapsed. 

8. What happens if I want to surrender the policy?

LIC allows policyholders to surrender their plans and pays them a surrender value if at least three years of premium has been paid uninterruptedly. The surrender value calculation is done on a staggered basis with the amount rising with the increase in the number of years for which the policy was held.

LIC India - Latest News

Life Insurance Corporation Launches Single Premium Plan Advertisements

Life Insurance Corporation of India (LIC), India’s largest insurance provider, launched its advertisement campaign for its single premium plans. Currently, the advertisement campaign is promoting the “Jeevan Shikhar” and “Bima Bachat” single premium plans with the intention of extending the brand proposition to other LIC products. The current campaign is specifically targeted at middle class Indian families and features the tagline “Be rest assured once and for all”. The key objective of this campaign designed by Rediffusion Y&R is to ensure that LIC builds on existing communication to increase prospective customers’ familiarity with the company’s various single premium endowment plans. Apart from the Bima Bachat and Jeevan Shikhar plans, the campaign also aims at promoting savings early in life among middle class Indian families to ensure future benefits. This latest promotional campaign is just one among the recent steps which have been taken by Life Insurance Corporation of India to get better connected with its customers.

LIC Endowment & Saving Traditional Plans Reviews

TOTAL REVIEWS (3)
Vikram
Gangtok
July 20, 2016

Investment plan

My traditional insurance plan is the best because i took it is lic endowment plan which has all my trust. The premium is normal but the returns are much more than that. Coverage is high which cover maximum scenarios and conditions. Best investment plan which secure the future and reduces taxes too.

Akash
Noida
July 20, 2016

Good Service

The lic endowment plan is very nice which has low premiums and many more benefits like this. The policy coverage is high and claims are high which can be easily sanctioned due to fast service provided by the executives and staff members of the company.

Devesh
Navi_mumbai
May 13, 2016

Awesome

LIC endowment & saving traditional plan is the best. Claims are good in low premiums. The policy coverage is high. Good service provided by the company members and the each task completed in very short time period. Good policy.