What Are The LIC Plans that Need a Monthly Premium of Rs. 500?

Read more to find out the best LIC 500 per month policy options that can help you to secure your family from future risks. .

LIC Plans with a Monthly Premium of Rs. 500

LIC of India offers various life insurance plans for all your requirements. Below mentioned are some of the LIC 500 per month policy options that can help you to secure your family from future risks.

Let us take a look at the LIC policy 500 per month list:

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

LIC’s New Endowment Plan:

LIC’s New Endowment Plan is an individual life insurance policy furnished with both protective as well as saving characteristics. With the combination of the said features, this plan aims to provide financial security to the surviving family members in case of an unfortunate demise of a policyholder before or at the time of maturity. This plan allows the insured person to avail large sum assured rebate along with guaranteed returns and bonuses.

Key features of the plan are:

• Death benefit consists of the sum assured on death combined with simple reversionary bonuses and a final additional bonus.

• On the occasion of the policyholder’s survival throughout the entire tenure of the policy, s(he) will receive the “Sum Assured on Maturity”, consisting of the basic assured amount and vested bonuses.

• After paying an additional premium, one can avail any four of the five following riders under one policy:

  • LIC’s Premium Waiver Benefit Rider

  • LIC’s New Term Assurance Rider

  • LIC’s Accidental Death and Disability Benefit Rider

  • LIC’s Accident Benefit Rider

  • LIC’s Critical Illness Health Rider
    Note - However, it is important to note that the concerned policyholder may avail only one option of the two - LIC's Accidental Death and Disability Benefit Rider or LIC's Accident Benefit Rider.

• If desired by the policyholder, her/his family members may receive the death benefit in installments across a tenure of 5, 10, or 15 years.

Sample Premium Illustration

This is a sample for annual premiums that are calculated for standard lives for a sum assured of Rs. 2 Lakh.

*The above premiums are exclusive of taxes.

If you wish to know premium amounts for your chosen policy details, then you should use the LIC New Endowment Plan Calculator. This LIC calculator allows you to modify the policy details as per your requirements and computes it with your basic personal information to provide personalized premium and benefit details under the policy.

LIC’s Saral Jeevan Bima

LIC Saral Jeevan Bima is a non-linked, non-participating plan that is designed to offer risk protection to your family in case you unfortunately pass away during the policy term. It offers a waiting period of 45 days after inception, post which the benefits are payable to the nominee. There is no maturity benefit under this endowment plan.

Some of the important features of this plan are:

• The death benefit under regular and limited premium paying modes is defined as 10 times the annualized premium or 105% of all premiums paid until the date of death or absolute amount assured on death, whichever is higher.

• Policyholders can choose from single, limited or regular premium payment options. The premium paying term under limited premium is of 5 years or 10 years.

• Rebates are available if you choose a high sum assured.

• The policyholders cannot avail any loans through this plan.

Sample Premium Illustration

Refer to the sample to see how the premium amounts vary for different individuals opting for different policy terms and with different age and policy terms. This illustration is computed for a standard life buying this LIC policy offline and opting for a sum assured of Rs. 10 Lakhs and a policy term of 25 years:

*The above premiums are exclusive of taxes.

You can use the LIC Saral Jeevan Bima calculator to know your personalized premium and benefit details. It requires your basic personal information and allows you to adjust the policy details as per your preference to provide you details of the LIC plan.

You shall also refer to the LIC Saral Jeevan Bima Premium Chart for detailed information.

LIC Digi Term

LIC Digi Term plan is a non-participating, non-linked, individual, pure risk term plan that offers a payout on death of the life assured while the LIC policy is still active and within the policy term. The death payout is fixed as the policy does not share the company’s surplus. No maturity benefit is payable under this policy.

Important features of the policy include:

• Sum assured payable as the death benefit is the higher of the absolute amount assured on death or 7 times the annualized premium or 105% of total premiums paid till date..

• Attractive rates for female applicants and for individuals choosing a high sum assured.

• This plan does not offer any loan facility for your immediate liquidity needs.

Sample Premium Illustration

To find out how premium fluctuates with increasing age, refer to the sample below. This premium illustration is based on non-smoking standard male lives with a basic sum assured of Rs. 50 Lakh under Option 2 - Increasing Sum Assured:

*The above premiums are exclusive of taxes.

Use the LIC plan calculator to the premium amounts for your LIC policy. You can easily choose the given policy parameters and get your premiums for all the premium paying modes in just a few clicks.

LIC Micro Bachat

This LIC plan being a non-linked, participating, individual, life micro insurance plan, offers customers a combination of savings as well as protection. The protection that LIC Micro Bachat policy provides involves financial support against the death of the policyholder throughout the policy term, with the provision of a lump-sum payment at the end of the policy term in case of the policyholder's survival.

Key features of this policy are:

• This plan takes care of your liquidity needs through loan facilities.

• In the event of the demise of the policyholder during the first 5 years, sum assured on death shall be payable. On death after completion of 5 years of policy and within the policy term, sum assured on death is defined as basic sum assured or 7 times the annualized premium, whichever amount is higher. Loyalty benefits are also added to the death benefit here.

• If the policyholder survives beyond the stipulated date of maturity of the plan, (s)he shall be eligible to receive the sum assured on maturity along with loyalty additions.

• This policy offers 2 optional riders named LIC’s Accidental Death and Disability Benefit Rider and LIC’s Accident Benefit Rider.

Sample Premium Illustration

Refer to the sample to see how the premium amounts differ with different age and policy terms. Below given example is an illustration of the annual premium amount calculated for standard lives for a base sum assured of Rs. 1 Lakh.

*The above premiums are exclusive of taxes.

If you wish to know premium amounts for your chosen policy details, then you should use the LIC calculator. This digital tool allows you to modify the policy details as per your requirements and computes it with your basic personal information to provide personalized premium and benefit details under the policy.

How Much Life Cover Can You Get With a Premium of 500 Per Month LIC Policy?

There are various life insurance policies that provide life insurance protection at such nominal premium rates. What you will get as a payout depends completely on the age, plan type, policy term and even the frequency at which you decide to pay the premiums. If you require a higher sum assured, then you will either need to pay a higher premium or pay Rs 500 per month for a longer premium paying term. Remember to thoroughly check and confirm the premium rates of your cheapest LIC plan before inception to avoid lapse or surrender of your LIC policy in future.

Factors that affect your sum assured under the 500 per month LIC policy are:

• Young age at inception and a longer premium paying term allows you to get the sum assured at very economical premium rates because you pay small amounts for a longer period of time. Older age at inception and a shorter premium paying term creates financial pressure as you pay more premium in a short span of time.

• Premium paying frequency is available only for selected LIC plans but allows you to manage your budget and pay premiums in regular installments for every month, quarter, half-year, or year. This keeps the individual premium installment lower.

• Riders can be added for increased life protection but riders can only be added at an additional premium payment. So if you opt for riders, then the premium rates go up.

How to Buy an LIC Policy for Rs 500 Per Month Online?

From LIC’s official Website

Step 1: Visit LIC of India’s official website and click on Buy Online in the top right corner.

Step 2: Enter your details like name, date of birth and phone number.

Step 3: Personalize your plan by selecting your desired sum assured, policy term and premium paying frequency. Add riders for increased risk protection.

Step 4: After successfully completing your details, pay your premium using various payment methods.

Step 5: After a successful payment, details and transaction receipt will be sent to your email ID.

From Policybazaar’s Website

Step 1: Visit Policybazaar’s official website and select LIC plans.

Step 2: Enter your name and phone number in the form and click on View Plans.

Step 3: Then fill in your age, city and annual income.

Step 4: Once you are done filling up the information, a list of plans will be displayed on your screen.

Step 5: You can even modify the sum assured and policy term that suits your needs.

Step 6: Choose the best LIC plan for yourself and proceed by paying the first premium.

Is Rs. 500 Premium LIC Policy Beneficial?

Buying a term life insurance policy at a low premium rate not only protects your families future needs but also lets you live stress free. Life insurance policies are not just luxuries in today’s time but have become an integral investment to protect your family’s future interests. Paying 500 Rs a month can secure your family from future financial crises in case you unexpectedly pass away. Insurance plans offered by LIC are some of the more economical options available in the market today. These LIC 500 per month plan comes with a multitude of benefits and can help serve the wide-ranging needs of people. All of the above-mentioned plans are worth your investment. However, you are advised to go through the terms and conditions of each plan before you decide to buy an insurance policy.

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