Best LIC Policies for Investment in 2020

When it comes to purchasing a life insurance plan, LIC plans are the most popular choice of 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.

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 the 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

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, it important that the buyers 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 with 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.

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.
  • Offers the benefit of attractive rebate for higher sum assured amount.

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 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.

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.

Eligibility Criteria of the LIC Tech Term Plan

Below we have shown the eligibility criteria of the LIC policy is tabular form.

 

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

 

Rider Benefits Offered by LIC Jeevan Amar

  • Accidental Death Benefit Rider 

LIC Jeevan Umang

As one of the LIC best plan, 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 lumpsum payment as maturity benefit is paid to the insured at the time of maturity of the policy or 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.

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.

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, death benefit defined as the aum assured on death plus vested 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 7 times the annualized premium; or
  • 105% of the total premium paid till date.

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.

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.

Eligibility Criteria of LIC Jeevan Umang

Below we have shown the eligibility criteria of the Jeevan Umang LIC policy is tabular form.

 

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

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 tow 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.

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 benefit i.e level sum assured and increasing sum assured.
  • The plan offers the flexibility to choose different options for the premium payment 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 the female policy buyers.
  • The plan offers the advantage of attractive rebates on the higher sum assured amount.
  • The add-on benefit of riders can be opted under the plan to enhance the coverage of the policy.

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 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.

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.

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

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 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.

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 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 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.

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 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 till date.

Survival Benefits

In case the life insured survives the end of a specific 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.

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

Eligibility Criteria of the LIC Money Back 25 years Plan

Below we have shown the eligibility criteria of the LIC policy is tabular form.

 

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

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.

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 the benefit of the loan facility.
  • The policy can be surrendered at any time provided the premiums of the policy are dully paid for two full years.
  • A free-look period of 15 days is offered by the policy from the date of LIC plan initiation to cancel the policy if the policyholder is dissatisfied with the terms and conditions of the policy.

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 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 till date.

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

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

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

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 the 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

More Useful Resources

LIC Online Services

LIC Plans

Check LIC Policy Details

LIC Investment Plans

LIC Online Premium Payment

LIC Retirement Plans

LIC Premium Calculator Online

LIC Child Plans

LIC Online Login Process

LIC Term Insurance

Written By: PolicyBazaar - Updated: 23 September 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Newsletter
Sign up for newsletter
Sign up our newsletter and get email about ulip plans.
You May Also Want to Know About
What is Investment and What is Its Purpose?
What is Investment and What is Its Purpose? Different people possess different notions and understanding of “investment”. To start with, first of all, let’s try to get a clear understanding of what is investment and how it can be useful for ...
Post Office Monthly Income Scheme (POMIS)
Post Office Monthly Income Scheme (POMIS) Are you looking for an investment avenue which is safe and secure, earns substantial returns with a short locking period, which says no to equities and is absolutely risk free? Well then, think about inves...
Best 5 SBI Life Insurance Plans in 2019-20
Best 5 SBI Life Insurance Plans in 2019-20 SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides comprehensive life insurance cover at competitive prices. SBI Life Insurance provides Unit Linked ...
State Bank Of India Investment Plans
Monthly Investment Plan Monthly investments plan is a popular investment options for individuals who wants to gain a profitable investment returns and wants to achieve their short-term and long-term financial goals of life. Nowadays, monthly investm...
Short Term Investments Options
Short Term Investments Options Short-term investments can be described as temporary investments or marketable securities, which can be easily converted into cash, generally within 5 years. Short-term investments are highly liquid assets that are s...