LIC of India

Types of LIC Plans – Compare Features and Benefits

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What is meant by LIC?

LIC stands for Life Insurance Corporation of India, which is the largest insurance company since the year 1956. LIC is issuing different types of insurance plans to its customers. All such plans have the main aim of fulfilling the customers’ needs. Some of its older plans are not available now with the exposure of new plans.

LIC is an investment and state-owned insurance company. According to a study, its estimated asset worth is around Rs 1,99,3018.82 crore. In India, LIC has many branches all over the country which is close to 2,048 branches. The number of agents working in such branches is around 1,337,064.

 What is Life Insurance?

From the term “Life Insurance”, you will get the exact meaning of it. It means that, in the event of the death of the insured person, the monetary compensation from the insurance company will reach his/her family members. This is to help the family members to lead an independent life free from financial issues.

On the other hand, if the insured person doesn’t die after the policy ends. This will help the person to meet financial goals. Life insurance is a legal contract between the insured person and the insurance company. The person who is taking insurance has to pay a certain amount as a premium to get the policy.

 Life Insurance covers the risk in two ways

  1. Early Death of insured person – insurance amount helps the family members
  2. An insured person living too long – insurance amount helps him to run a family in his old age without any support

 LIC Plans

LIC has various life insurance plans to meet the different needs of people. All such plans cover various requirements such as

  • Life Cover
  • Child Education
  • Retirement
  • Investment
  • Saving
  • Tax Saving

How many types of Life Insurance Plans are there?

Life insurance plans are of many types, but the basic classifications are:

  • Term Plans
  • Endowment Plans
  • Unit Linked Investment Plans
  • Child Plans
  • Money-Back Plans
  • Pension Plans

These were the main categories and under each category, it has many sub-categories. Let us discuss some of those LIC plans in detail.

 LIC New Endowment Plan

LIC New Endowment Plan (Table 814) is a basic LIC plan that provides a great life cover to the insured person. This endowment plan provides a good amount for the policyholder. Such an amount is highly beneficial to manage financial requirements like marriage and child’s education, etc.

One can invest in this plan for the following reasons:

  1. One has to pay a low premium amount when compared to other plans
  2. One can get a higher bonus amount
  3. The maturity amount is free from taxes
  4. It is a great combination of investment and insurance

Plan Parameters

  • Entry age – 8 to 55 years
  • Policy Term – 12 to 35 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly
  • Loan Facility – One can avail a loan after 3 years of successfully paying a premium
  • Higher Sum Assured Rebate – 0% on 0 to 1,95,000 of Sum Assured, 2% on 2,00,000 to 4,95,000 of Sum Assured, 3% on 5,00,000 and above Sum Assured

LIC New Jeevan Anand Plan

LIC New Jeevan Anand Plan (Table 815) is one of the popular LIC plans that most people opt for. This plan provides the risk cover after the maturity period of the plan. This plan is much useful for accidental death and disability benefit rider death. This is because; the person’s family can get with additional amount than the basic sum in the event of death. This plan has major highlights:

  1. Maturity benefits
  2. Lifetime risk cover after maturity
  3. Life cover
  4. Loan facility

Plan Parameters

  • Entry age – 18 to 50 years
  • Maturity age – 75 years
  • Policy Term – 15 to 35 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly
  • Loan Facility – One can avail a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – Rs. 1, 00,000 and above

LIC Jeevan Lakshya Plan

LIC Jeevan Lakshya Plan (Table 833) is the best policy to get good financial security for your family and children. During the policy term, one can get a life cover of 10% of the sum assured. On maturity, the policy provides 110% of sum assured + bonuses. This plan has the following highlights:

  1. In the event of death, they can get an annual income
  2. Maturity = Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
  3. The maturity amount is free from taxes
  4. In the event of the death of an insured person, an annual income can help his child’s education

Plan Parameters

  • Entry age – 18 to 50 years
  • Premium Tenure – 3 years
  • Policy Term – 13 to 25 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can avail a loan after 3 years of successfully paying the premium
  • Basic Sum Assured – Rs. 1, 00,000 and above

LIC Jeevan Labh Plan

LIC Jeevan Labh Plan (Table 836) is an endowment plan having fewer premium terms. Here the premium paying term is less than the LIC policy terms. For instance, 15 years policy term, one has to pay a premium for 10 years only. After the completion of 15 years, the person will get the maturity amount.

One can invest in this plan for the following reasons:

  1. Maturity = Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
  2. One has to pay a premium for less number of years
  3. Best LIC plan for child’s education
  4. The maturity amount is free from taxes

Plan Parameters

  • Entry age – 8 to 59 years
  • Premium Tenure – less than the policy term
  • Policy Term – 16 to 25 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can avail a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – Rs. 2, 00,000 and above

LIC Jeevan Pragati Plan

LIC Jeevan Pragati Plan (Table 838) is a new LIC plan that is not dependent on the share market. Here the attractive feature is that life cover keeps on increasing every 5 years. So the plan provides enough life cover against inflation. Those who are looking for an adequate risk cover and savings for his family members can choose this plan.

Key Features

  1. The maturity amount is free from taxes
  2. Increasing risk cover
  3. Best plan to manage during inflation

Plan Parameters

  • Entry age – 12 to 45 years
  • Maturity Age – 65 years
  • Policy Term – 12 to 20 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can avail a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – Rs. 150000 and above

LIC Aadhaar Stambh Plan

LIC Aadhaar Stambh Plan (Table 843) is a LIC plan only for males. This plan is especially for males who are having Aadhar Card (UIDAI). It is a loyalty addition based LIC policy that is available to males without requiring any medical test of them.

Key Features

  1. LIC plan for only males
  2. The Premium amount is free from taxes
  3. Maturity = Basic Sum Assured + Loyalty Addition
  4. During the first five years on death: Death claim amount = Basic Sum Assured
  5. After five years on death: Death claim amount = Basic Sum Assured + Loyalty Addition
  6. It is a low premium plan
  7. The Maturity amount is free from taxes

Plan Parameters

  • Entry age – 8 to 55 years
  • Gender – Male only
  • Maturity Age – 70 years
  • Policy Term – 10 to 20 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can avail a loan after 3 years of successfully paying a premium
  • Higher Sum Assured Rebate – Minimum 75,000 and Maximum 3,00,000

LIC Aadhaar Shila Plan

LIC Aadhaar Shila Plan (Table 844) is similar to the above plan, but it is only for females. This low-premium plan helps females to get a maturity amount. This policy is available for females without requiring any medical tests.

Key Features

  1. LIC plan for only females
  2. It is a low premium plan
  3. The Maturity amount is free from taxes
  4. Maturity = Basic Sum Assured + Loyalty Addition
  5. During the first five years on death: Death claim amount = 110% of Basic Sum Assured
  6. After five years on death: Death claim amount = 110% of Basic Sum Assured + Loyalty Addition
  7. It is a low premium plan

Plan Parameters

  • Entry age – 8 to 55 years
  • Gender – Female only
  • Maturity Age – 70 years
  • Policy Term – 10 to 20 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – Minimum 75,000 and Maximum 3,00,000

LIC Jeevan Utkarsh Plan

LIC Jeevan Utkarsh Plan (Table 846) is a non-linked insurance plan with 12 years of maturity term. The plan offers different settlement period options such as 5, 10, and 15 years. The plan offers a high life cover of 10 times of Single premium amount.

Key Features

  1. Different settlement options such as 5, 10, or 15 years
  2. Provides high-risk cover of 10 times of Single Premium
  3. The Premium amount is applicable for a rebate
  4. After completing 12 years, Maturity = Basic Sum Assured + Loyalty Addition
  5. Death during the policy term: Death claim amount = 10 times of Single Premium + Loyalty Addition
  6. The maturity amount is free from taxes

Plan Parameters

  • Entry age – 6 to 47 years
  • Policy Term – 12 years
  • Paying Mode – One Time
  • Loan Facility – One can get a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – 75,000 and above

 LIC Jeevan Shiromani Plan

LIC Jeevan Shiromani Plan (Table 847) is a LIC plan for high-income groups, as it provides a minimum sum of Rs 1 crore. The plan provides a guaranteed addition of Rs. 50 per thousand for the first 5 years. From the sixth year, the plan provides Rs. 55 per thousand until the maturity period. The plan offers different premium payment terms.

Key Features

  1. The plan offers critical illness benefits for 15 diseases
  2. Different premium payment terms are 10, 12, 14, and 16 years
  3. Maturity and Money Backs are free from taxes
  4. Maturity = Basic Sum Assured + Loyalty Addition + Guaranteed Addition
  5. The plan offers benefits for accidental death and disability benefit, and term assurance riders
  6. During the first five years on death: Death claim amount = 125% of Basic Sum Assured + Guaranteed Addition at the rate of Rs. 50 per thousand
  7. After completion of five years on death: Death claim amount = 110% of Basic Sum Assured + Loyalty Addition at the rate of Rs. 55 per thousand

Plan Parameters

  • Entry age – 18 to 55 years
  • Maturity Age – 70 years
  • Policy Term – 14(10), 16(12), 18(14), and 20(16)
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – 1,00,00,000 and above

LIC Bima Shree Plan

LIC Bima Shree Plan (Table 848) is a money-back LIC plan that provides guaranteed additions along with the sum assured. It is similar to the Jeevan Shiromani plan, as it offers similar guaranteed additions to the policyholder.

Key Features

  1. The plan has benefits such as Accidental Death and Disability Benefit
  2. Paid premiums are free from income tax
  3. The plan provides a premium waiver benefit rider for minor insured persons
  4. The plan offers a guaranteed addition of Rs. 50 per thousand for the first 5 years. From the sixth year, the plan provides Rs. 55 per thousand till the end of the policy

Plan Parameters

  • Entry age – 8 to 55 years
  • Policy Term (Premium Paying Term) – 14(10), 16(12), 18(14), and 20(16)
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – 1,00,00,000 and above

 LIC Jeevan Umang Plan

LIC Jeevan Umang Plan (Table 845) is a whole life assurance plan. In this plan, one has to complete the process of paying a premium amount for getting a fixed yearly amount. The fixed yearly amount will be 8% of the sum assured. The plan is almost similar to the Jeevan Tarang plan, which is not available now.

Key Features

  1. It is a whole life plan
  2. One can get 8% of the sum assured every year till 100 years
  3. The best LIC plan for pension
  4. The maturity amount is free from taxes

Plan Parameters

  • Entry age – After completing 90 days to 55 years
  • Policy Term – 100 years
  • Maturity age – 100 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 3 years of successfully paying a premium
  • Basic Sum Assured – 2,00,000 and above

LIC Jeevan Tarun Plan

LIC Jeevan Tarun Plan (Table 834) is a special LIC plan for a child’s education. It is a money-back plan that assures to help your children’s education. One can get financial help related to education from 20 to 25 years of your child’s age. Parents or Grandparents can purchase this plan when your child is in 0-12 years old.

Key Features

  1. A best LIC plan for child’s education
  2. Premium waiver option is available in the event of the death of a guardian to help children
  3. One can get the financial benefits of this plan from 20-25 year age of children
  4. The maturity amount is free from taxes
  5. Paid premiums are free from income tax

Plan Parameters

  • Entry age – 90 days to 12 years
  • Policy Term – 25 years
  • Premium Paying Term – 20 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 2 years for less than a 10-year policy term and 3 years for more than a 10-year policy term
  • Basic Sum Assured – 75,000 and above

LIC Limited Premium Endowment Plan

LIC Limited Premium Endowment Plan (Table 830) is another non-linked LIC policy that provides a life cover with investment. The plan has different premium paying terms such as 8 and 9 years. Coming to the policy terms, they are 12, 16, and 21 years. The policyholder can make use of this policy term to get financial help with paying a premium for less number of years.

Key Features

  1. The plan is a perfect amalgamation of life cover and investment
  2. One can get a higher bonus amount
  3. The plan has less number of premium paying term
  4. One can save tax amount on paying a premium

Plan Parameters

  • Entry age – 18 to 62 years
  • Fixed Policy Term – 12, 16, and 21 years
  • Fixed Premium Paying Term – 8 or 9 years
  • Premium Mode Rebate – 2% on yearly, 1% on half-yearly, NIL on quarterly and monthly
  • Loan Facility – One can get a loan after 2 years of paying a premium amount
  • Basic Sum Assured – 3,00,000 and above

LIC Jeevan Akshay VII Plan

LIC Jeevan Akshay VII (Table 857) is the updated version of the Jeevan Akshay of LIC of India. Here the policyholder has to pay a single premium amount. After paying a premium, the policyholder can opt for any one of the ten pension options available. So, the policyholder can get a guaranteed pension monthly, quarterly, half-yearly, or annually as per their plan. Here the pension amount depends on the policyholder’s age.

Plan Parameters

  • Age limit – 30 to 85 years or 100 years
  • Minimum Purchase Price – Rs. 1, 00,000
  • Minimum Pension Amount – 1000(Monthly), 3000(Monthly), 6000(Monthly), and 12,000(Yearly)
  • Mode of payments – Allows Monthly, Quarterly, Half-yearly, or Yearly installments
  • The pension plan offers different 10 pension or annuity plans
  • There is no maturity benefit in this plan

 LIC PM Vaya Vandana Yojana Modified-2020

LIC PM Vaya Vandana Yojana Modified-2020 (Table 856) is a new version of the PMVVY scheme. It is a pension scheme of the government of India especially for senior citizens of above 60 years of age. The modified plan is available till 31-03-2023 for the next three years with the close of the earlier scheme. One can purchase this scheme from LIC and it is available from 26-05-2020 for purchase.

Key Features

  1. One can get a pension amount at the interest rate of 7.4% monthly or 7.66% yearly
  2. The policyholder can get back the invested amount after 10 years
  3. In the event of the death of the policyholder, the amount will reach the nominee
  4. The interest rate is the same for the entire policy term of 10 years

Eligibility & Restrictions

  • Age – 60 years and above
  • Scheme Term – 10 years
  • Rate of interest – 7.4% monthly or 7.66% yearly
  • Last date of the scheme – 31-03-2023
  • Pension payment mode – Monthly, Quarterly, Half-yearly or Yearly payments
  • Loan benefit – One can avail loan after 3 years, which will be 75% of the purchase price

LIC Amulya Jeevan II Plan

LIC Amulya Jeevan II Plan (Table 823) is a high life cover LIC plan. It is a pure term plan that provides the sum assured to the family members in the event of the death of the policyholder. It is applicable when the policyholder dies during the policy term. There is no maturity value available in this plan. One has to pay a low premium amount, but the plan offers a high sum assured.

Key Features

  1. One has to pay a low premium amount
  2. The plan offers high-risk cover in the event of the death of the policyholder
  3. There is no survival benefit

Plan Parameters

  • Age limit – 18 to 60 years
  • Premium Paying Mode – Half-yearly and Annually
  • Policy Term – 5-35 years
  • Sum Assured – 25,00,000 and above
  • Loan – Not available
  • There is no maturity benefit in this plan

LIC New Endowment Plus Plan

LIC New Endowment Plus (Table 835) is a new LIC policy that provides insurance and investment. The plan offers four fund options in which the policyholder can choose any one of them. Once you deposit the premium amount, you can buy units from funds. Here some units of funds may provide life cover at the starting of the month. And the remaining units may participate in the investment. So, it is a mix of investment and life cover.

Fund Types

  1. Bond Fund
  2. Secured Fund
  3. Balanced Fund
  4. Growth Fund

Plan Parameters

  • Entry age – 90 days to 50 years
  • Policy Term – 10-20 years
  • Premium Paying Term – 10-20 years
  • Minimum Premium Amount – Rs. 3000 Monthly, Rs. 8,000 Quarterly, Rs. 13,000 Half Yearly and Rs. 20,000 Yearly
  • Maximum Premium Amount – There is no maximum limit
  • Sum Assured – 10 times of the annual premium amount

These are the LIC plans that are currently available to purchase for your financial needs. Some of the earlier plans are not available. They are

  1. LIC Jeevan Sangam
  2. LIC Jeevan Shikhar Plan
  3. LIC Bima Diamond Plan
  4. Pradhan Mantri Vaya Vandana Yojana

 Why Choose LIC?

LIC has 2048 branches all over India that provides a great service to its customers. LIC is the dominant life insurer, as there is no other trusted service in India. LIC is issuing many policies to its customers in the current year. LIC has issued 1 crore policies in the current year. Thus, most people choose LIC for purchasing policies, as LIC is a dominant life insurer.

How Life Insurance Plan Works?

Life insurance is a legal contract between the policyholder and the insurance company or insurer. Here the policyholder has to pay a premium amount (monthly/quarterly/half-yearly/yearly). In the event of the death of the insured person, the policy amount is payable to the nominee which ends the policy. If still, the policyholder is alive till the end of the policy term, he/she will get the sum assured on maturity.

How much Life Insurance should I Buy?

The LIC plan offers a life cover or sum assured to the policyholders or their family members. Such a life cover will help them to prevent financial issues in the future. Life insurance cover depends on significant parameters such as

  • Income and number of dependants of the policyholder
  • Insured person’s current family expenses
  • Financial needs such as marriage and child’s education
  • Policyholder’s assets
  • Policyholder’s other liabilities such as car loan, home loan, etc
  • Inflation

Documents to buy a LIC Insurance Plan

One has to submit the following documents to the LIC branch to purchase a plan;

  • Age Proof Documents – Birth certificate, Aadhar card, Passport
  • Residence Proof – Ration card, electricity bill, Voter ID, telephone bill, bank passbook, credit card bill driving license, water bill, rental agreement
  • Identity Proof – PAN card, License, Passport, Aadhar card
  • Latest medical certificate
  • Income Proof – Salary slip, Income tax return statement

How to Check Policy Status of LIC Life Insurance Policy?

One can check the LIC policy status using the LIC online portal, once the individual finish the registration process. It is important to register your policy details for making premium payments. Soon after registration, you will get details like registration number or policy number, which you can use to check the status. Another way is to visit the nearest LIC branch to check your status using policy number and ID proof.

Which events are covered under a Life Insurance Policy?

There are some events for which LIC provides risk cover called Insured Events.

  1. Death – When the policyholder dies during the policy term, the nominee receives the financial compensation
  2. Maturity – When the policyholder lives until the completion of the policy term, he/she will receive financial compensation.
  3. Accident/Disease/Disability – When the policyholder meets with an accident or suffers from disease or disability, he/she will get financial compensation. Here the policyholder may also get additional benefits.

What is not covered under a Life insurance Policy?

The following reasons are excluded from the LIC policy terms:

  • Death due to alcohol or drugs consumption
  • If the policyholder commits suicide within one year of the policy term
  • If the policyholder dies due to war or riots
  • If the policyholder dies due to his illegal or criminal activities
  • Death of the policyholder due to his/her adventurous activities such as car racing, rock climbing, etc

Why you should buy a Life Insurance Policy?

There are several reasons to buy a life insurance policy. They are

  1. To provide financial security to your family or loved ones, in the event of the death of the earning member
  2. Life insurance will help you to accomplish financial goals such as a child’s education, buying a new house, marriage, etc. Some LIC plans offer pension amount for the retired persons
  3. LIC plan offers a regular source of income to the retired persons in the form of annuities.
  4. One can enjoy tax benefits of LIC policy, as the premium amount is free from taxes

Claim Process of LIC Insurance

LIC insurance plan offers two basic claims such as

  • Death Claim
  • Maturity Claim

Death Claim

In the event of the death of an insured person, the branch office asks for the following documents:

  • Claim form A
  • Death certificate of an insured person
  • Original policy document
  • Evidence of title in case the LIC policy is not issued under M.W.P. Act

Maturity Claim

For endowment policies, the policyholder gets the sum assured at the end of the policy term. The policyholder has to submit the policy document, discharge form, etc. For money back policies, the policyholder gets periodic payments once he/she pays the premium amount.

 Conclusion

LIC is the only insurance company in India that offers several plans to its customers for their financial needs. Since it is the most trusted service in India one can purchase a suitable plan to meet his/her financial goals of the future.

 

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