What Is Survival Benefit in LIC?

LIC Survival Benefits- An Overview

Every life insurance policy offers coverage throughout the policy term. If the policyholder dies within this period, his/her family gets the death benefit. But, if he/she survives the whole duration, they will get the maturity benefit.

Survival benefit, on the other hand, is an amount that is given to this policyholder if he/she survives specific years within the policy term. This amount is defined as a percentage of the basic sum assured and is fixed for each policy year.

Key Features of LIC Survival Benefits

• Survival benefits in LIC come with Endowment Plans & Money-Back Plans.

• The final maturity benefit for some policies may be reduced by the survival benefit paid out.

• The amount and policy years for which it is to be paid are fixed and cannot be changed.

• Survival benefits already paid out have no bearing on the death benefit amount.

However, on the death of the policyholder, any pending survival benefit amount ceases.

Which LIC Policies Offer Survival Benefits?

The following table lists all the LIC plans that offer survival benefits. Take a look:

How do LIC Survival Benefits Help in Financial Planning?

Many life events are predictable, such as funding a child’s education or managing loan repayments. LIC’s survival benefits, especially in money-back plans, can be instrumental in managing these expenses. By aligning the policy payouts with your financial needs, you can better plan for and cover anticipated costs.

Unlike lump sum payouts, which require careful financial management to avoid running out of funds, LIC’s periodic survival benefits provide a structured approach to handling cash flow. These benefits ensure you receive regular payments, allowing you to maintain a steady track of your finances.

Example: Funding Your Child’s Education with LIC Survival Benefits Consider a scenario where your child will start college in 18 years. To prepare for this expense, you can purchase a LIC money-back insurance policy that begins to pay survival benefits when your child is ready to attend college.

Each survival benefit payment can be allocated towards tuition fees, accommodation, and other educational expenses. By planning ahead with LIC's money-back policy, you ensure that funds are available exactly when needed, thus reducing financial stress and helping you manage education costs more effectively.

How Are Survival Benefits in LIC Different From Maturity Benefits?

Wrapping It Up!

LIC’s survival benefits offer a strategic way to manage predictable financial needs by providing periodic payouts that align with significant life events, ensuring consistent financial support when needed. While lump sum payments have advantages, periodic survival benefit with LIC policies is the best choice for someone struggling with financial planning.

LIC Resources

FAQs