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5 Best LIC Policies to Invest in 2019

Jul 27, 2015 (0) comment

Life Insurance Corporation of India (LIC) is the pioneer insurance company of India. With a century old history and being accredited as a Government of India undertaking, LIC is indeed the most trusted insurance brand today.

Also playing a crucial role in its success is the vast repertoire of insurance policies that the company offers. Undoubtedly, it becomes difficult to choose the best fit from the extensive range.

Here we make a modest attempt to put forth 5 best LIC policies that have genuinely surfaced above the rest:

Jeevan Anand

LICs Jeevan Anand is a non-market linked, profit participating plan. Offering the dual advantage of endowment and whole life cover, it is the perfect insurance policy for long term saving and life protection.

Maturity Benefits

The Maturity Benefits are paid to the policy holder upon the completion of policy term.

The Maturity Benefits of the policy are:

  • Sum Assured + Vested Bonuses + Final Bonus

Death Benefits

The policy’s most important and acknowledged feature is the provision of life cover under the plan i.e. the death cover remains active even after the completion of the policy term.

The Death Benefits are calculated depending upon the date of death, as follows:

  • Death During Policy Term: Sum Assured + vested bonuses + Final Bonus.
  • Death After Policy Term: Basic Sum Assured + Maturity Benefit already paid on maturity of the policy.

The Sum Assured on Death is higher of the following:

  • 125% of the Basic Sum Assured
  • 10 times the annual premium

(Subject to a minimum of 105% of the total premiums paid till death)

Salient Features:

  • Sum Assured – Rs 1,00,000 to No limit
  • Policy Term – 15 Years – 35 Years
  • Entry Age: 18 Years
  • Maturity Age:75 Years
  • Surrender Value:Surrender Value available upon payment of three premiums.
  • Loan:Loan facility available upon payment of three premiums.
  • Premium Payment Mode:Monthly, Quarterly, Half- Yearly, Yearly
  1. Jeevan Labh

LICs Jeevan Labh is an endowment plan offering the dual advantage of saving and protection. The non-market linked, profit participating plan promises a handsome growth in investment over the years.

The limited premium paying term which is considerably less than the policy term, is an attractive feature of the policy.

Key Features of the Policy

  • Sum Assured – Rs 2,00,000 to No limit
  • Policy Term – 16 /21/25 Years
  • Premium Paying Term: 10/15/16 Years
  • Entry Age: 18 Years
  • Maturity Age:75 Years
  • Surrender Value:Upon payment of three premiums
  • Loan:Upon payment of three premiums
  • Premium Payment Mode:Monthly, Quarterly, Half- Yearly, Yearly

Maturity Benefits:

Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

Death Benefits:

In case the policyholder dies during the policy term, the nominee receives

Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

  1. Jeevan Umang

LIC’s Jeevan Umang is an endowment policy with an added feature of whole life cover. It is a profit participating, non-market linked plan with guaranteed 8% annual returns. The policy promises a regular payout from the end of the premium payment term till the policyholder is alive or until he/she turns 100. Thus, the policy remains in continuation till the policy holder turns 100 or dies, whichever is earlier.

Key Features of the Policy

  • Sum Assured – Rs 2,00,000 to No limit
  • Policy Term – 100 – Age at entry
  • Premium Paying Term – 15, 20, 25 and 30 years
  • Minimum Entry Age:90 days
  • Maturity Age:100 Years
  • Age at End of Premium Payment Term– 30 years to 70 years
  • Surrender Value:Surrender Value available upon three annual premium payments.
  • Loan:Loan facility available upon payment of three annual premiums.
  • Premium Payment Mode:Monthly, Quarterly, Half- Yearly, Yearly

Survival Benefits

If the policy holder survives past the premium paying term, he/she is eligible for survival benefits till he/she is alive or reaches age 100, whichever is earlier.

8% of the Sum Assured annually 

Maturity Benefits

The policy matures once the policy holder reaches age 100. The Maturity Benefits are paid in lump sum.

Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

Death Benefit

If the policy holder dies during or after the premium paying term (before attaining age 100), death benefits are paid as under.

Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus.

  1. Jeevan Shiromani

The best pick for High Net-Worth Individuals, LIC’s Jeevan Shiromani offers a comprehensive benefit of saving and protection. The plan can be further enhanced to include critical illness benefits. It is a profit participating, non-market linked, Money Back policy. It also includes a Guaranteed Addition clause.

  • Sum Assured –1 crore to no limit
  • Policy Term (PT) – 14, 16, 18, 20 Years
  • Premium Paying Term – PT – 4 years
  • Minimum Entry Age:18 Years
  • Maximum Entry Age: 45 years for 20 year PT and 55 years for 14 year PT
  • Maturity Age:65 years for 20 year PT and 69 years for 14 year PT
  • Premium Payment:Monthly, Quarterly, Half-Yearly, Yearly
  • Surrender Value:Surrender Value accrues after one year’s premium is paid.
  • Loan:Loan facility available.

Survival Benefit

If the policy holder survives the policy term and all premiums are paid, a fixed percentage of the Basic Sum Assured (BSA) is returned at periodic intervals and the policy continues.

  • 14 year Policy Term: 30% of BSA each at the end of 10th and 12th policy year.
  • 16 year Policy Term: 35% of BSA each at the end of 12th and 14th policy year.
  • 18 year Policy Term: 40% of BSA each at the end of 14th and 16th policy year.
  • 20 year Policy Term: 45% of BSA each at the end of 16th and 18th policy year.

Maturity Benefit

If the policy holder survives the entire term, the policy holder receives ‘Sum Assured on Maturity’ along with Guaranteed Additions and Loyalty Addition.

  • Sum Assured On Maturity is defined as
    • 14 year Policy Term: 40% of BSA
    • 16 year Policy Term: 30% of BSA
    • 18 year Policy Term: 20% of BSA
    • 20 year Policy Term: 10% of BSA
  • Guaranteed Addition is as under:
    • For first 5 Years – Rs 50 per 1000 of BSA
    • 6thyear onwards – Rs 55 per 1000 of BSA
  • Loyalty Addition is as under:
    • As declared by the LIC

Death Benefit:

If the policy holder dies within the first 5 policy years = Sum Assured on Death + Guaranteed Addition.

If the policy holder dies after 6th year onwards the policy term = Sum Assured on Death + Guaranteed Addition + Loyalty Addition.

  • Sum Assured On Death is the higher of the following:
    • 10 times of your annualized premium (after deducted taxes and rider premium)
    • 125% of Basic Sum Assured
    • Sum Assured on Maturity

Please Note: Death Benefit will never be less than 105% of all premiums paid

Critical Illness Benefit:

In case the policyholder is diagnosed with any of the 15 critical illnesses mentioned in the policy brochure

  • A lump sum of 10% of the BSA is paid.
  • Option to defer the payment of premiums falling due within next 2 years.
  • Policy holder has the option to seek second opinion from LIC empanelled doctors and experts.
  1. Jeevan Tarun

LICs Jeevan Tarun is one of the kid’s best policies catering to the needs of child’s education and future.

It is a non-market linked participating insurance plan that offers a limited premium payment term.

It offers 4 repayment options including money back and lump sum maturity value. The repayment mode is opted at the time of commencement of the policy.

Option Survival Benefit Maturity Benefit
Option 1 No survival benefit 100% of Sum Assured + Vested Bonuses
Option 2 5% of Sum Assured every year for 5 years 75% of Sum Assured + Vested Bonuses
Option 3 10% of Sum Assured every year for 5 years 50% of Sum Assured + Vested Bonuses
Option 4 15% of Sum Assured every year for 5 years 25% of Sum Assured + Vested Bonuses

Survival Benefit:

Depending upon the repayment option opted, money back comes into play. Survival benefits are payable once the child turns 20. They are paid till the child ages 24.

 Maturity Benefit:

 The policy matures once the child turns 25.  Depending upon the option picked, the maturity benefit is paid to the policy holder.

Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus.

 Death Benefit:

 In case the policy holder dies during the policy term, a ‘Sum Assured on Death’ along with vested Simple Reversionary Bonuses and Final Additional Bonus is paid to the nominee.

The Sum Assured on Death is calculated as under:

Higher of

  • 10 times of annualized premium paid till date of death.
  • 125% of Sum Assured

Death Benefit shall not be less than 105% of the total premiums paid as on date of death.

Get in touch with us at 91+9230091000 today for personalized presentation of insurance plans. We believe in putting forth the best plan that matches your current and future needs.

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