Review of LIC Short Term Investment Plans

Short term LIC investment plans provide several benefits like, death payout to the nominee, maturity benefit to the life assured, tax concessions, and even share in bonuses, if any.

“We recently bought LIC short term investment plan for our future security. I must say that LIC of India indeed has a wide variety of short term investment plans as per everybody’s requirements. The benefits and features of these plans are simply amazing. I no longer worry about my future goals because I know that me and my family are secure. I would like to thank the team Policybazaar who understood my insurance needs and helped in making my decision.” Says Vrinda Pandey who recently bought a short term insurance plan from Policybazaar.

The short term investment plan that she bought to provide herself and her family with financial protection, offers the benefits of life protection and investments. These short policy tenures allow the policyholder to derive financial output for short-term goals.

LIC short term Investment plan is an insurance policy wherein the policyholder pays a single lump sum premium amount for a short span of time. The term insurance policy then pays out a specified amount of money at a predetermined date in the future if the policyholder outlives the policy tenure.

What are the Key Features of LIC Short Term Investment Plans?

Let’s explore the key features of LIC short term investment plans:

• Beneficial for people with short-term goals because the policy term does not extend lifelong.

• These insurance plans offer both risk protection and wealth generation even for specific terms.

• Flexibility to choose various policy details like premium payment mode, premium amount, sum assured, and policy duration.

• Benefits are guaranteed in case the policyholder dies during the policy term in case of an uncertain event.

• These short term investment plans are also eligible for tax benefits like the other life insurance plans.

Note: The potential policyholders can even use the LIC calculators for estimated premium and benefit illustrations while deciding the best short term LIC policy.

What are the Benefits of LIC Short Term Investment Plan?

With this plan, Mrs. Pandey and her family will also be entitled to the below mentioned benefits:

Death Benefits

• If the policyholder dies before the commencement of risk, the single premium paid is refunded as the death benefit.

• In the event of death of the life assured within the period of the policy, the nominee receives the sum assured on death along with any vested bonuses and guaranteed additions, if promised.

Maturity Benefits
If the policyholder survives till the maturity date, the plan will offer the basic sum assured to the insured. The maturity amount will be calculated as the sum assured along with the vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Tax Benefits
The LIC short term plan for 10 years like LIC Single Premium Endowment policy offers tax benefits to the insured on the premium paid and on the claims received under Sections 80C and 10(10D) of the Income Tax Act. Other policies with varied policy tenures offer tax benefits as well.

Availability of Riders for enhanced protection
The plans offer two additional riders namely LIC Accidental Death and Disability Benefit, and LIC New Term Assurance Rider. These riders can be added for extra protection against natural death, death or disability by accident.

Option to receive Death and Maturity Benefit in Installments
The option to receive death/maturity benefits in installments is available to both the policyholder and the nominee. The minimum installment amount for each method of payment is as follows. The payments must be paid in advance at intervals of a year, a half-year, a quarter, or a month, depending on the option.

LIC Short Term Investment Plans

Are LIC Short Term Investment Plans Worth It?

Short term investment plans are worth it for people who wish to use their investment benefit within a shorter period of time. People with shorter financial responsibilities can opt for such plans with a policy term of 5-25 years. Mrs. Vrinda and other buyers of the LIC short term investment Plan are satisfied with the advantages the plan provides. The plan is affordable in addition to providing thorough coverage. These are indeed the best LIC plan for short term investment if you are looking for plans that offer dual advantages under a single plan.

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