LIC Policies

Best 5 LIC Policies To Invest in 2017

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LIC is the most trusted brand when it comes to life insurance. LIC has a huge range of products to offer and it often becomes difficult to choose the right fit.  So, we thought of easing this for you and bring the best 5 policies offered by Life Insurance Corporation of India.

You can pick your cues from below.

Best LIC Policy - Plans Details 

LIC Policies

Plan Type

Entry Age

Maximum Maturity Age

Policy Term

Minimum Premium/Purchase Price

Minimum Sum Assured

Medical Examination

Status

LIC JeevanAkshay

Immediate Annuity Pension Plan

30 – 85 years

N/A

N/A

Rs.100000/- ,

Rs. 150000/-(online)

Rs. 7190/- (annually

Not required

Active

LIC e-term Plan

Pure Term Plan

18 – 60 years

75 years

10 – 35 years

Rs. 4600/-

Rs. 25,00,000/-

Required

Active

LIC New Children’s Money Back Plan

Traditional Money Back Child Plan

0 – 12 years(for child)
18 – 55 years (for proposer)

25 years

25 - entry age

Rs.24,000/-

Rs.1,00,000/-

Not required

Active

LIC JeevanAnand

Participating Traditional Endowment Plan

18 – 50 years

75 years

15 - 35 years

N/A

Rs.1,00,000/- (on maturity)

Required

Discontinued

LIC Jeevan Saral

Endowment Plan

12 – 60 years

70 years

10 – 35 years

Rs.250/- (for age below 50years)
Rs. 400/- (for age above 50years)

250 times monthly premium

N/A

Discontinued

 

In the above table, we have included both active and discontinued life insurance plans. Though Jeevan Anand and jeevan Saral (as mentioned in the table above) have been discontinued, they have been among the top selling policies offered by LIC. 

1. LIC Jeevan Akshay VI 

LIC Jeevan Akshay VI Plan is a Single Premium Immediate Annuity Plan which can be purchased by paying a lump sum amount. It is a non unit-linked pension plan. This plan provides for annuity payment of a fixed amount extending for a life time. 

Salient Features

  • Immediate Annuity Plan – Annuity starts as early as the next month
  • Single Premium Plan – “Pay Once, Enjoy Forever”
  • Minimum purchase price is Rs.1, 00,000 for offline and Rs.1, 50,000 for online purchase. There is no maximum limit on purchase or annuity.
  • More Annuity Options – 7 Options of Annuities to choose from
  • Annuity payable for life at a uniform rate till the life assured is alive.
  • Annuity payable for 5, 10, 15 or 20 years no matter if the insured person is alive or not, and thereafter as long as the annuitant is alive.
  • Annuity for life with return of purchase price on death of the annuitant.
  • Increasing Annuity in which the pension is paid till the life assured is alive at an increasing rate of 3% p.a.
  • Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  • Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life time on death of annuitant. The purchase price will be returned on the death of last survivor.
  • Annuity for life with a provision for 100% of the annuity payable to the spouse of the annuitant for life on death of the annuitant, with return of purchase price on the death of last survivor
  • Covers broad range of age group – From 30 years to 85 years
  • Maturity Benefit – No maturity benefits are available in this policy.
  • No medical examination is required.
  • Income Tax Benefit – Although, premiums paid under this policy are exempted from tax under section 80C, but the pension received will be taxable.
  • No surrender value shall be payable under this policy.
  • No loan available under this plan.
  • Incentive for online – Rebate of 1% by way of increase in the basic annuity rate will be available.

LIC Policy Type

Single Premium Immediate Annuity Plan

Entry Age

Minimum Age – 30  Years (Completed)

Maximum Age – 85 Years (Completed)

Minimum Purchase Price

Minimum – Rs.1 lakh (All distribution Channels Except for Online)

Maximum – Rs. 1.5 Lakhs (Online)

Maximum Purchase Price

No Limit

Modes of Annuity Payment

Monthly, Quarterly, Half-Yearly, Yearly

Tax Benefit

Premium paid is tax exempt under Section 80C

Pensions received is taxable

Loan Facility

Not Available

 

2. LIC e-Term Plan

LIC's e-Term policy is a pure life cover policy that provides financial protection to the insured's family in case of any unfortunate event. In other words, you can say that it is a regular premium non-participating (without bonus), “on-line term assurance policy”. This term insurance plan will be available through on-line application process only and no agents are required. 

Under the LIC’s e-Term policy, the insurer agrees to pay an agreed sum assured in the event of his/her premature death during the policy term. Nevertheless, if the insured survives till the end of the policy term, nothing is payable.

Salient Features

  • Available on the official website of the LIC
  • Differential premium rates for Smoker/Non-Smoker lives
  • Application of own life ONLY will be considered
  • Minimum Basic Sum Assured should be Rs. 25, 00,000 for Aggregate category and for Non-smoker category it should be Rs. 50, 00,000. There is no upper limit for Maximum Basic Sum Assured.
  • Covers broad range of age group – Form 18 years to 60 years
  • Loan is not available in this plan; Premiums have to be paid yearly.
  • Minimum Policy Term for this plan is 10 years and Maximum Policy Term is 35 years.   

Death and Maturity Benefits

Death Benefit: During the policy term if the unfortunate death of the life assured happens then the sum assured will be payable. 

Maturity Benefit: If the individual survives the policy term, nothing shall be payable. 

LIC Policy Type

Pure Term Plan

Sum Assured

Minimum – Rs. 25,00,000

Maximum – No Limit

Entry Age

Minimum Age – 18  Years

Maximum Age – 60 Years

Age at Policy Maturity

Minimum – N/A

Maximum – 75 years

Policy Term

Minimum – 10 years

Maximum – 35 years

Modes of Premium Payment

Yearly

Tax Benefit

Premium paid up to Rs. 1,00,000 is tax exempt under Section 80C

Policy Revival

Allowed, within 2 years from the due date of first unpaid premium payment

Grace Period

30 Days from premium due date

Riders

Not Available

Loan Facility

Not Available

 

3. LIC New Children’s Money Back Plan

Launched on 4th March, 2015, New Children’s Money Back Plan is a non-linked, with-profit regular premium payment policy particularly intended to meet educational, marriage and other needs of a growing children. Moreover, this plan also provides risk cover to the insured child during the policy term. That's why, it can be considered as a saving cum protection plan.

Salient Features

  • Minimum Basic Sum Assured should be Rs. 100,000 and Maximum Basic Sum Assured has No Limit. It should be noted that the Basic Sum Assured shall be in multiples of Rs. 10,000/-.
  • Premiums can be paid regularly at monthly, quarterly, half-yearly or yearly mode (through ECS only) or through SSS mode over the term of policy.
  • Loan facility is available under this plan after the payment of premiums for at least three full years.
  • Age limit at entry for Life Assured: 0-12 years. The maturity age for the life assured is 25 years i.e. policy term or premium paying term can be calculated by subtracting the age at entry by 25. For example, if the child’s age is 7 at the time of entry then the policy term will be 25-7= 18 years.
  • Surrender Value: If the premium has been paid for full three years then the policy can be surrendered at any time during the policy term. 

Death & Survival Benefits

Death Benefit:

    • If death of insured occurs before the commencement of risk, an amount equivalent to the premium payments will be paid.
    • If death of the insured occurs after the commencement of risk, death benefit amount including “Sum Assured on death + Final Additional Bonus + Accrued Bonuses” will be paid. 

Survival Benefits (Money-Back payments):

    • 20% of Sum Assured is paid after the child completes 18 years.
    • 20% of Sum Assured is paid after the child completes 20 years.
    • 20% of Sum Assured is paid after the child completes 22 years.
    • After the child completes 25 years, the policy gets matured and the maturity amount which includes 40% of sum assured + Accrued Bonuses + Final Additional Bonus (FAB – if any) will be paid.

 

LIC Policy Type

Participating Non-linked Money Back Plan

Sum Assured

Minimum – 1,00,000          

Maximum – No Limit

Entry Age

Minimum Age – 0  Years (last birthday)

Maximum Age – 12 Years (last birthday)

Age at Policy Maturity

25 years

Policy Term

25 years

Modes of Premium Payment

Yearly, Half-yearly, Quarterly or Monthly (ECS only) or through SSS mode

Tax Benefit

under section 80C, under section 10(10D) (Death Benefit ), under section 10(10D) (Maturity Benefit)

Policy Revival

Allowed within a period of 2 consecutive years from the date of first unpaid premium but before the end of policy term on payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the insurer.

Grace Period

30 days for all modes

15 days for monthly

Riders

Premium Waiver Benefit Rider

Loan Facility

Available

  

4. LIC Jeevan Anand Plan

LIC Jeevan Anand is a non-linked participating endowment plan that offers the dual benefit of savings and protection. The advantage of investing in this plan is that, even after the policy terminates, the life coverage continues till the death of the policy holder. A combination of whole life and endowment plan, LIC Jeevan Anand offers Income tax benefits.

Salient Features

  • Entry Age of the policy holder has to be minimum 18 years and maximum 50 years.
  • Maximum maturity age is 75 years.
  • Minimum and maximum policy terms are 15 years and 35 years respectively.
  • You have to pay the premiums for the entire policy tenure
  • If the policy holder survives till the completion of the policy term, the maturity benefit is paid out.
  • It is whole life insurance plan.
  • If the policy holder dies before the completion of the policy term, the sum assured is paid out to the nominee as the death benefit.
  • The minimum sum assured offered by the plan is Rs. 1,00,000/-
  • Rebate is provided on opting for higher sum assured.
  • Accidental death and disability benefits are the inbuilt rider of this plan.
  • For additional protection you can buy Critical Illness rider.
  • Premium paying term is equal to policy term.
  • Premium paying frequencies include monthly, quarterly, half-yearly, and yearly.
  • In case the policy holder commits suicide within 12 months from the commencement of the policy, 80% of the premiums will be paid back to the nominee.
  • Accrued bonuses are paid out along with the sum assured. 

Death and Maturity Benefits

  • Death Benefit: In case of the policy holder’s death, the death benefit is paid out. The death benefit is higher of :

1)    125% of the basic sum assured
2)    10 times the annualized premium
3)    105% of the total premium paid till the insured event. 

  • Maturity Benefit: If the policyholder survives the entire policy term, the sum assured is paid out as the maturity benefit. 
  • Bonuses: Accrued bonuses are also paid out additionally with the sum assured. The bonuses include simple reversionary bonus and terminal bonuses (if any). 

LIC Policy Type

Endowment cum Whole Life Policy

Sum Assured

Minimum – 1,00,000          

Maximum – No Limit

Entry Age

Minimum Age – 18 Years

Maximum Age – 65 Years

Age at Policy Maturity

75 years

Policy Term

Minimum– 5 Years

Maximum– 57 Years

Modes of Premium Payment

Yearly, Half-yearly, Quarterly or Monthly, SSS mode

Tax Benefit

Premium exempt under section 80C, Maturity proceeds under section 10(10D)

Policy Revival

Allowed within a period of 2 years

Grace Period

30 days for all modes

15 days for monthly

Riders

Premium Waiver Benefit Rider

Loan Facility

Available after 3 years

  

**This plan has been withdrawn. However, LIC has launched a revised version of this plan- LIC New Jeevan Anand. Almost all features and benefits of the older version are still available in the newer one, except for the maximum entry age and policy term. The maximum entry age has been reduced to 50 years from 65 years and the policy term under this plan is now 15 years (minimum) - 35 years (maximum).

5. LIC Jeevan Saral

Categorized under Special Plans, LIC Jeevan Saral is, in fact, an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans (ULIPs). With excellent features of the traditional plans and the flexibility of ULIP plans, Jeevan Saral insurance plan gives double death benefit of um assured plus return of premium.

Salient Features

  • Flexible Monthly Premium payments and the Sum Assured is 250 times the Monthly Premium amount.
  • Minimum Sum Assured in this plan is Rs. 62,500 and has no upper limits.
  • Policy Term – Minimum: 10 Years and Maximum: 35 Years
  • Entry Age of Policy Holder – 12 to 60 Years
  • Payment Mode can be monthly, quarterly, half yearly and yearly.
  • Optional higher cover through Term Rider, Accidental Death and Disability Benefit.
  • Loyalty Additions are provided after the policy completes 10 years.
  • Partial surrender of the policy can be done after the 3rd policy year.   
  • Loan on this plan is available.
  • Income Tax Benefit – Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. 

Death and Maturity Benefits

Death Benefit – In case of death of the Life Insured, the nominee receives

    • Sum Assured (i.e. 250 times the Monthly Premium)
    • Return of premiums excluding extra/rider premium and first year premium
    • Loyalty Addition, if any 

Maturity Benefit – At the maturity of the policy, the insured will get

    • Maturity Sum Assured (Depends on age of entry and policy term)
    • Loyalty Additions, if any  

LIC Policy Type

Endowment Assurance plan

Sum Assured

250 times Monthly Premium

Entry Age

Minimum Age – 12 Years

Maximum Age – 60 Years

Age at Policy Maturity

70 years

Policy Term

Minimum Age – 10 Years

Maximum Age – 35 Years

Modes of Premium Payment

yearly, half-yearly, quarterly, or monthly through salary deductions

Tax Benefit

Premium exempt under section 80C, Maturity proceeds under section 10(10D)

Policy Revival

Allowed within the five consecutive years from the date of first unpaid premium

Grace Period

30 days for all modes

15 days for monthly

Riders

Term Rider, Accidental Death & Disability Rider

Loan Facility

Available

 

**This plan has been discontinued by LIC. However, this was one of the top selling policies in India.

This was our list of 5 Best Selling LIC Policies. 

Do leave your comments and share your experience with these plans. Also, please let us know if you would love to read about more bestselling plans from LIC. We would love to hear from you! 

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