One of the best investments which an individual can make is insurance. An insurance policy will not only offer protection to your family but can act as a good saving scheme as well. It is necessary that you opt for an insurance policy which suits your needs. As there are several kinds of life insurance policies, it is advised that you compare the policies before narrowing down on one. When there are talks revolving around insurance policies, the first one which strikes everybody’s mind is the Life Insurance Corporation or LIC. There are many options when it comes to an LIC policy for a 27 year old or any under-30 group. But you may have often wondered what it is about these policies which make them popular.
LIC or Life Insurance Corporation is one of the biggest players among insurance providers in India. LIC is one of the first companies to introduce insurance in India. Over the year the company has evolved and today it offers a wide range of policies which support a wide customer base in India. There are several insurance policies which individuals nearing thirty can opt for. Options for an LIC policy for a 27 year old include LIC Jeevan Saral, LIC Jeevan Anand and LIC Jeevan Shree.
About Jeevan Saral Policy
LIC Jeevan Saral Plan is an endowment plan which comes with a lot of flexibilities which is usually available with ULIP or a unit linked insurance plan. The key features of this LIC policy for a 27 year old include:
- The premium amount is chosen by the policy holder and the sum assured is almost 250 times the monthly premium amount.
- The death benefit under this plan is the sum assured+ return on premium excluding the extra riders and the first year’s premium+loyalty addition.
- Policy term; minimum: 10 years, maximum:35 years
- You can surrender the policy partially after three years.
- After you have paid premiums for 3 years you can expect an extended risk cover for one year.
- Through Term Rider, Accidental Death and Disability Benefit, a policy holder of Jeevan Saral has the option of availing a higher cover.
- Under this policy, Loyalty Additions are provided from the 10th policy year.
Under this policy premiums paid up to Rs. 1,00,000 are allowed as deduction from the taxable income every year under section 80C. When the LIC Jeevan Saral policy matures, the insured will get:Maturity Sum Assured+ Loyalty Additions if any
LIC Jeevan Anand
LIC’s new Jeevan Anand Plan is one of the best options when it comes toLIC policy for a 27 year old. The endowment type is such where maturity benefit includes: Sum assured, Bonus and the final addition bonus which is paid at the end of the term. What makes this plan popular is the additional life-long insurance coverage. It is a whole life plan with guaranteed returns and is not market based. This is a good LIC policy for a 27 year old as it comes with average premium, high bonus rate and great features. It is a Double Death Benefit Plan where the nominees get the sum assured when the policyholder dies. The policy parameters include:
Minimum Age: 18 years
Maximum Age: 50 Years
Minimum Term: 15 years
Maximum Term: 35 years
Min. Sum Assured
Minimum Sum Assured: Rs. 1,00,000 Max. Sum Assured: No Limit
LIC Jeevan Shree
LIC Jeevan Shree Plan is mostly for the High Net Worth Individuals as the minimum sum assured is Rs.5,00,000. It is an endowment plan with a limited premium paying term, making it a suitable LIC policy for a 27 year old who is looking for returns in the short run. Under this plan
- The policy holder needs to pay the premium for a maximum of 16 years.
- The life cover will continue for the entire policy term for a maximum of 25 years.
- When the policy matures, the sum assured+ accrued revisionary bonus+ guaranteed additions will be payed to the policy holder or to the nominee in case of an early death of the life insured.
- Every year for the first 5 policy years there are guaranteed additions.
- Premiums paid for the policy are exempted from tax under section 80C and the maturity proceeds are exempted from tax under Section 10 (10D).
A 27 year old individual will benefit from all the three policies.But, it is important that he narrows down on the best plan after comparing the top three policies of LIC for a 27 year old. It is essential to weigh the terms of the policies and compare them with individual requirements before taking the final pick.