Best LIC Policies for Investment in 2021

When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC is one of the most trusted and leading insurance provider companies in India. The company has a strong customer base of more than 250 million and enjoys the largest market share in the life insurance business.

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LIC policies offer a one-stop solution for all the insurance needs of the buyers. The Life Insurance Corporation of India (LIC) offers an extensive range of insurance products to cater to the various requirements of insurance buyers. As per one's requirement and choice, the customers can choose from different LIC plans ranging from pure protection to whole life, endowment, and money-back plan. Among the different LIC policies issued by the company, there are some of the best plans, which offer comprehensive coverage.

Best LIC Plans List for 2021

LIC Policies Plan Type Entry Age Maximum Maturity Age Policy Term Sum Assured Status
LIC Tech Term Plan  Term Assurance Plan 18 years-65 years 80 years 10-40 years Min-Rs.50,00,000 Max- No upper Limit Active
LIC Jeevan Umang Whole Life Insurance 90days(completed)-55 years 100 years 100 years minus(-) the age at entry Min- Rs. 2,00,000 Max- No upper Limit Active
LIC Jeevan Amar Term Assurance Plan 18 years- 65 years 80 years 10 years-40 years Min-Rs.25,00,000 Maximum- No upper limit Active
LIC Money Back 25  years Money Back Policy 13 years-45 years 70 years 25 years Min-Rs.1,00,000 Max- No upper limit Active
LIC New Jeevan Anand Endowment Plan 18 years- 50 years 75 years 15 years-35 years Min- Rs.1,00,000 Max- No upper limit Active
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

To choose the best LIC policy, the buyers must compare the plans and go through the LIC policies in detail. Here we have elaborated top LIC plans in detail.

LIC Tech Term Plan

This LIC plan is a profit, non-linked pure protection plan, which provides financial security to the family of the insured in the event of his/her unfortunate demise. The Tech Term LIC plan is available only through the online application process and no intermediaries are involved. The following are the benefits and features of the LIC policy.

  1. Features of LIC Tech Term Policy

    Let’s take a look at some of the salient features of the LIC Tech Term Plan.

    • Tech Term LIC Plan offers the flexibility to choose from two death benefit options i.e. Level sum assured and increasing sum assured.
    • The policyholder can choose different options of premium payment to pay the premium of the policy.
    • The plan offers special rates for women.
    • The plan offers the option to enhance the coverage by opting for accidental benefit rider.
    • It offers the benefit of an attractive rebate for a higher sum assured amount.
  2. Death Benefit

    In the event of the demise of the insured, during the policy tenure, the death benefit is payable by the insurer to the beneficiary of the policy. For ‘limited premium and regular premium’ the sum assured on death is defined as:

    • 7 times the annualized income; or
    • 105% of the total premium paid as on the date of death; or
    • Absolute amount assured to be paid on death.

    For a single premium policy, the sum assured on death is defined as:

    • 125% of the single premium.
    • Absolute amount assured to be paid on death.

    The absolute amount paid on death is based on the death benefit option chosen at the time of policy purchase.

  3. Maturity Benefit

    As this is a pure protection plan, no maturity benefit is offered to the life assured if he/she survives the entire tenure of the policy.

  4. Eligibility Criteria of the LIC Tech Term Plan

      Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 18 years N/A Rs. 50,00,000/- 10 years Regular pay, limited pay, and single pay
    Maximum 65 years 80 years No limit 40 years
  5. Rider Benefits Offered by LIC Tech Term Plan

    • Accidental Benefit Rider 

LIC Jeevan Umang

As one of the LIC best plans, LIC Jeeva Umang is a participating, non-linked, individual whole-life insurance plan which offers the combined benefit of income and protection to the family. The plan offers annual survival benefits to the insured from the end of the premium paying term until the maturity of the policy. Moreover, a lump-sum payment as maturity benefit is paid to the insured at the time of maturity of the policy, or a death benefit is paid to the nominee of the policy in case of demise of the insured during the policy term. Let's take a look at the features and benefits offered by the policy.

  1. Features of LIC Jeevan Umang

    • The plan offers the option to receive a death benefit in installments.
    • Different rider options can be availed to increase the coverage of the policy.
    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.
    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.
    • Offers the benefit of attractive rebate for higher sum assured amount.
  2. Death Benefit

    In case of the demise of the life insured during the tenure of the policy, the death benefit is paid to the beneficiary of the policy.

    On death before the commencement of risk

    In the case of the demise of the insured before the commencement of risk, the return of premium is paid without interest is paid to the beneficiary of the policy.

    On death after the commencement of risk

    In the case of the demise of the insured after the commencement of risk, the death benefit is defined as the sum assured on death plus vested reversionary bonus, and a final additional bonus (if any) is paid to the beneficiary of the policy. The sum assured on death is defined as:

    • Higher of 7 times the annualized premium; or
    • 105% of the total premium paid to date.
  3. Survival Benefit

    In case the life insured survives the premium paying tenure of the policy, survival benefit as 8% of the basic sum assured amount is paid annually on completion of each subsequent year till the policy anniversary before the date of policy maturity.

  4. Maturity Benefit

    In case the life insured survives the entire tenure of the policy, the maturity benefit is paid to the insured as the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any) is paid to the life insured. The sum assured on maturity is equal to the basic sum assured amount.

  5. Eligibility Criteria of LIC Jeevan Umang

      Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 90 days(completed) 100 years Rs. 2,00,000/-  100 years minus(-)age at entry 15 years
    Maximum 55 years 80 years No limit 30 years
  6. Rider Benefits Offered by LIC Jeevan Umang

    • Accidental Death and Disability Benefit Rider
    • Accidental Benefit Rider
    • New Term Assurance Rider
    • New Critical Illness Benefit Rider
    • Premium Waiver Benefit Rider

LIC Jeevan Amar

As one of the best LIC policies, LIC Jeevan Amar is with profit, a non-linked pure protection plan that offers the flexibility to the policyholder to choose from two different options of the death benefit. The plan offers comprehensive insurance coverage to the family of the insured in case of any eventuality. The plan secures the financial future of the family and takes care of the future liabilities of the family, even in the absence of the policyholder.  Here are the features and benefits offered by the policy.

  1. Features of LIC Jeevan Amar

    The following are some of the key features offered by the policy.

    • The Jeevan Amar LIC plan offers the flexibility to choose from two different options of death benefits i.e. level sum assured and increasing sum assured.
    • The plan offers the flexibility to choose different options for the premium payments i.e. single, regular, or limited (premium payment term).
    • The life insured can choose to receive the death benefits in installments.
    • Special discount rates on premium amounts are offered to female policy buyers.
    • The plan offers the advantage of attractive rebates on the higher sum assured amount.
    • The add-on benefit of riders can opt under the plan to enhance the coverage of the policy.
  2. Death Benefit

    In the event of the demise of the insured, during the policy tenure, the death benefit is paid by the insurer to the beneficiary of the policy. For ‘limited premium and regular premium’ the sum assured on death is defined as.

    • 7 times the annualized income; or
    • 105% of the total premium paid as on the date of death; or
    • Absolute amount assured to be paid on death.

    For a single premium policy, the sum assured on death is defined as:

    • 125% of the single premium.
    • Absolute amount assured to be paid on death.

    The absolute amount paid on death is based on the death benefit option chosen at the time of policy purchase.

  3. Maturity Benefit

    As this is a pure protection plan, no maturity benefit is offered to the life assured if he/she survives the entire tenure of the policy.

  4. Eligibility Criteria of the LIC Jeevan Amar

    Let’s take a look at the eligibility criteria of the policy.

      Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 18 years N/A Rs. 25,00,000/- 10 years Regular pay, limited pay, and single pay
    Maximum 65 years 80 years No limit 40 years
  5. Rider Benefits Offered by LIC Jeevan Amar

    • Accidental Death Benefit Rider

LIC Money Back 25 

This is a limited premium payment, non-participating, individual life insurance plan, which offers an attractive combined benefit of insurance coverage plus a money-back in the form of periodic payment on survival at a specific duration during the policy tenure. This combined benefit provides financial backup for the family in the event of unfortunate decease of insured and also provides a lump sum amount on maturity of the policy if the insured survives the entire tenure of the policy. The plan also takes care of the liquidity needs through the facility of the loan. The following are the features and benefits offered by the policy.

  1. Features of LIC Money Back 25 Years

    The following are some of the salient features offered by the policy.

    • The Money Back 25 years LIC plan offers a settlement option to receive the maturity benefit, which means that the insured can receive the maturity benefits in installments over the chosen period of 5 years, 10 years, or 15 years.
    • The plan offers the option to take death benefits in installments.
    • The policyholder can avail of the benefit of the loan facility.
    • Rebates are applicable for the higher sum assured amount.
    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.
    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.
  2. Death Benefit

    If the life assured dies an unfortunate death during the tenure of the LIC policy, the death benefit will be payable by the insurer to the beneficiary of the policy. The death benefit will be payable as the 'sum assured on death along with a vested simple reversionary bonus and final additional bonus, (if any) is paid to the beneficiary of the policy. The sum assured on death is defined as:

    • Higher of 125% of the basic sum assured or
    • 7 times the annualized premium; or

    The death benefit should not be less than 105% of the total premium paid to date.

  3. Survival Benefits

    In case the life insured survives the policy duration, provided all the premiums of the policy are dully paid, 15% of the basic sum assured amount will be paid to the insured at the end of each 5th, 10th, 15th, and 20th policy year.

  4. Maturity Benefit

    If the life insured survives the entire tenure of the policy, the maturity benefit is paid to the insured as the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any) is paid to the life assured. The sum assured on maturity is equal to 40% basic sum assured amount.

  5. Eligibility Criteria of the LIC Money Back 25 years Plan

      Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 13 years N/A Rs.1,00,000/- 25 years 20 years
    Maximum 45 years 70 years No limit
  6. Rider Benefits Offered by LIC Money Back 25 years Plan

    • Accidental Death and Disability Benefit Rider
    • Accidental Benefit Rider
    • New Term Assurance Rider
    • New Critical Illness Benefit Rider
    • Premium Waiver Benefit Rider 

LIC New Jeevan Anand

LIC New Jeevan Anand is a non-linked participating plan which offers the combined benefit of protection and savings. The plan provides financial protection to the family of the insured in case of an unfortunate demise of the insured person. Moreover, as one of the best life plans, the LIC new Jeevan Anand also provides the maturity benefit to the insured in case he/she survives the entire tenure of the policy. The plan also takes care of the liquidity need of the family through the loan facility. The following are the features and benefits offered by the policy.

  1. Features of LIC New Jeevan Anand

    Let’s take a look at some of the key features of the policy.

    • The plan offers the option to receive the death benefit in installments.
    • The plan offers the option to pay the premium of the policy through regular premium payment or by salary deductions during the PPT of the policy.
    • The plan offers the benefit of rebates for the higher sum assured amount.
    • Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.
    • The policyholder can avail of the benefit of the loan facility.
    • The policy can be surrendered at any time provided the premiums of the policy are duly paid for two full years.
    • A free-look period of 15 days is offered by the policy from the date of LIC plan initiation. A policyholder can cancel the policy if he/she is dissatisfied with the terms and conditions of the policy.
  2. Death Benefit

    If the life assured dies an unfortunate death during the tenure of the LIC policy, the death benefit will be payable by the insurer to the beneficiary of the policy. The death benefit will be payable as the 'sum assured on death along with a vested simple reversionary bonus and final additional bonus, (if any) to the beneficiary of the policy. The sum assured on death is defined as:

    • Higher of 125% of the basic sum assured or
    • 7 times the annualized premium; or

    The death benefit should not be less than 105% of the total premium paid to date.

    • On the death of the insured after the expiry of the policy tenure i.e. from the stipulated date of maturity: the basic sum assured amount shall be payable to the nominee of the policy.
  3. Maturity Benefit

    In case the life insured survives the entire tenure of the policy, the maturity benefit is paid to him/her as the sum assured on maturity plus vested reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured amount.

  4. Eligibility Criteria of LIC New Jeevan Anand

    The following are the eligibility criteria of the policy.

      Entry Age Maturity Age Sum Assured Policy Term Premium Paying Term
    Minimum 18 years N/A Rs. 1,00,000/- 15 years Regular pay
    Maximum 50 years 75 years No limit 35 years
  5. Rider Benefits Offered by LIC New Jeevan Anand

    • Accidental Death and Disability Benefit Rider
    • Accidental Benefit Rider
    • New Term Assurance Rider
    • New Critical Illness Benefit Rider

The Bottom Line!

These are some of the most remunerative LIC plans that insurance buyers can consider purchasing as per their affordability and financial needs. However, make sure that you go through the details of the plan before making an informed choice. Don't forget to secure the financial future of your family with a life insurance policy.

FAQ's

  • Q1. Is it advisable to Invest in a LIC Plan?

    Ans. Yes, LIC gives one of the most suitable life insurance policies. If you are searching for a life cover + investment component in one plan, you can consider a ULIP or Endowment option according to your risk appetite and financial goals.
  • Q2. Can I Take LIC Jeevan Labh Policy? Is it any good?

    Ans. Yes. The LIC Jeevan Labh policy gives maturity and death benefits with an extra profit participation bonus. This policy has been highly rated as among the best-selling endowment policies given by LIC. It is meant for a group of 8-59 years. This policy provides a plethora of benefits to the insured.
  • Q3. Is FD better than LIC, or is it the opposite?

    Ans. Fixed deposits are ideal for medium and short-term investments. Contrary to this, the life insurance plan is designed to be a long-term investment. You can put money into an FD plan for a duration of as little as 7 days, unlike life insurance plans where you have to put in your money for at least 10 years.
  • Q4. How to calculate the LIC maturity amount?

    Ans. The simple way is Amount Assured + Bonuses + Final Additional Bonus (if applicable). 
  • Q5. What is the best LIC policy for 5 years?

    Ans. LIC's Bhagya Lakshmi Plan is a 5-year policy, you can consider it.
  • Q6. Which is the best LIC policy for women in 2021?

    Ans. Mentioned below are the options you can consider:
    • HDFC Life Smart Woman Plan.
    • TATA AIG Wellsurance Woman Policy.
    • Bajaj Allianz Women-Specific Critical Illness Insurance.
    • LIC Jeevan Bharati-I.
    • Swayam Shakti Suraksha.
Written By: PolicyBazaar - Updated: 27 October 2021

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