Best 5 LIC’s Policies to Invest in 2017-18

We all work hard, so that one can fulfill our family’s financial obligations such as children’s higher education, marriage expenses, going on a dream vacation with your family, etc. In order to achieve this objective, you need to invest your money with an investment plan that offers you an appreciation on your investment along with offering family protection. When it comes to investing, it becomes necessary to invest with a plan that can help you earn higher returns that will further help you to achieve the financial objectives.

LIC is the oldest and stand alone public sector life insurance company in India which was founded in the year 1956 by an act of parliament.

In this blog, we are focusing on top 5 LIC policies, you can consider investing.

Snapshot of LIC’s Policies you can invest in:

Snapshot of LIC’s Investment Plans
LIC’s Investment Plans Entry Age Maturity Age Policy Term Sum Assured Riders
LIC’s Bima Diamond Plan Min: 14 years,
Max: 50 years
Max: 66 years Min: 16 years,
Max: 24 years
Min: Rs 1 Lac,
Max: Rs 5 Lacs
  • Accidental Death &  Disability Benefit Rider
  • New Term Assurance Rider
LIC’s New Jeevan Anand Plan Min: 18 years,
Max: 50 years
Max: 75 years Min: 15 years,
Max: 35 years
Min: Rs 1 Lac,
Max: No Limit
Accidental Death and Disability Benefit Rider
LIC’s Jeevan Pragati Plan Min: 12 years,
Max: 45 years
Max: 65 years Min: 12 years,
Max: 20 years
Min: Rs 1.5 Lac,
Max: No Limit
Accidental Death and Disability Benefit Rider
LIC’s Jeevan Labh Plan Min: 8 years,
Max: 59 years
Max: 75 years Min: 16 years,
Max: 25 years
Min: Rs 2 Lac,
Max: No Limit
  • Accidental Death and Disability Benefit Rider
  • New Term Assurance Rider
LIC’s New Endowment Plus Plan Min: 90 days,
Max: 50 years
Min: 18 years,
Max: 60 years
Min: 10 years,
Max: 20 years
Higher of (10 * Annualized Premium) or (105% of the total premiums paid) Linked Accidental Death Benefit Rider

Note: Scroll down to know more about the LIC’s 5 Best Investment plans in detail which are mentioned in the above table.

Common Benefits offered by LIC’s Investment Plans:

Common Benefits offered by LIC’s Investment Plans

LIC’s Bima Diamond Plan

LIC’s Bima Diamond Plan is a non-linked, with-profit & limited premium money back insurance plan that offers protection cum savings benefits. It provides periodic payments on stipulated durations during the policy term plus pays a maturity benefit at the completion of the policy term. In the event of the demise of the policyholder, this plan also offers financial cover for the family during the policy term and extended coverage period.

Key Features

  • Payment at specified durations within the policy term
  • Sum Assured on Maturity is payable
  • Loyalty additions to boost benefit payouts
  • Financial cover is available on your death
  • Get loan under this policy
  • Rebate on choosing high sum assured amount
  • Rebate on opting annual/semi-annual mode
  • Tax benefits are applicable

LIC’s Bima Diamond Plan

Benefits

  • Death Benefit:
    In the event of death of the policyholder prior the date of maturity, Sum assured on Death and Loyalty Addition is payable, if death occurs after the first 5 policy years. In case of death during the first 5 years, Sum Assured on Death is payable.
    In the event of death of the policyholder after the date of maturity, but during the Extended Cover Period, an amount equal to 50% of the basic sum assured is payable.
  • Survival Benefit: Upon survival till the end of the specific durations (depending on the policy term chosen) within the policy term, a fixed percentage of the Basic Sum Assured is payable.
  • Maturity Benefit: On survival of the policyholder till the date of maturity, Sum Assured on Maturity and Loyalty Addition is payable.
  • Loyalty Addition: Loyalty Additions (as participation in profits) are payable at maturity or death after completion of 5 policy years. This benefit is applicable, depending on the corporation’s experience.
  • Surrender Value: Surrender Value is payable after payment of at least three consecutive policy years. It is higher of Guaranteed Surrender Value and Special Surrender Value.
  • Loan Benefit: This plan provides loan amount up to 90% of the acquired surrender value.
  • Rider: LIC’s Accidental Death and Disability Benefit Rider & LIC’s New Term Assurance Rider can be opted under this plan.

LIC’s New Jeevan Anand Plan

LIC’s New Jeevan Anand is a participating & a non-linked endowment plan that ensures the benefit of protection and savings. This policy provides a lump sum amount at maturity of the policy.It also provides financial cover for the family, in case of the demise of the policy holder.

Key Features

  • Benefit payable at maturity of the policy
  • Financial cover for the family
  • Bonuses add-up to the benefits payable
  • Loan amount can be availed under this policy
  • Enjoy premium rebates
  • Tax benefits are applicable

LIC’s New Jeevan Anand Plan

Benefits

  • Death Benefit: In case of unfortunate demise of the life insured prior completion of the policy term, Sum Assured on Death, vested Simple Reversionary Bonuses and Final Additional Bonus is payable.
  • Maturity Benefit: On survival of the policyholder till the completion of the policy term, the basic sum assured, vested Simple Reversionary Bonuses and Final Additional Bonus is payable.
  • Bonus: Simple Reversionary Bonuses and Final Additional Bonus is payable, under the policy.
  • Loan Benefit: This plan provides loan amount, upon payment of all due premiums for at least 3 policy years.
  • Surrender Value: Surrender Value is payable after payment of at least three consecutive policy years.
  • Rider: LIC’s Accidental Death and Disability Benefit Rider can be attached to this plan.

LIC’s Jeevan Pragati Plan

LIC’s Jeevan Pragati is a non-linked & participating plan that provides the benefit of savings and protection. This plan helps you to create wealth and thereby, you can fulfill your financial obligations. This plan provides an automatic increase in life cover in every five years within the policy term.

Key Features

  • Benefit payable at maturity
  • Financial cover for family on your death
  • Take benefit of bonuses applicable
  • Loan benefit can be availed
  • Rebate on choosing high sum assured
  • Premium rebate on choosing an annual/semi-annual mode
  • Tax benefits under Income Tax Act, 1961

LIC’s Jeevan Pragati Plan

Benefits

  • Death Benefit: In case of unfortunate demise of the life insured during the policy term, Sum Assured on Death, vested Simple Reversionary Bonuses and Final Additional bonus is payable.
  • Maturity Benefit: On survival of the policyholder till the completion of the policy term, a lump sum amount equal to Sum Assured on Maturity plus vested Simple Reversionary bonuses and Final Additional bonus is payable.
  • Bonus: Simple Reversionary Bonuses and Final Additional Bonus is payable.
  • Loan Benefit: This plan provides loan amount, upon payment of all due premiums for at least 3 full policy years.
  • Surrender Value: Surrender Value can be acquired after payment of at least three consecutive policy years.
  • Rider: LIC’s Accidental Death and Disability Benefit Rider can be attached to this plan.

LIC’s Jeevan Labh Plan

LIC’s Jeevan Labh is a non-linked, participating, limited premium payment plan that offers protection and savings benefits. This plan provides a lump sum payout at its maturity. It also ensures financial security for the family, when you are not around.

Key Features

  • Lump Sum payment at maturity
  • Bonuses are payable
  • Financial cover for the family on your demise
  • Loan benefit is available under the policy
  • Rebate available on opting high sum assured
  • Rebate on choosing annual/semi-annual premium mode
  • Tax benefits are applicable under the Income Tax Act

LIC’s Jeevan Labh PlanBenefits

  • Death Benefit: In case of an unfortunate demise of the life insured within the policy term, Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional bonus is payable.
  • Maturity Benefit: On survival of the policyholder till the completion of the policy term, Sum Assured on Maturity plus vested Simple Reversionary bonuses and Final Additional bonus is payable.
  • Bonus: Simple Reversionary Bonuses and Final Additional Bonus is payable.
  • Loan Benefit: You can avail loan amount, upon payment of all premiums for at least 3 full policy years.
  • Surrender Value: Surrender Value can be acquired after payment of at least three consecutive policy years.
  • Rider: LIC’s Accidental Death and Disability Benefit Rider & LIC’s New Term Assurance Rider can be attached to this plan.

LIC’s New Endowment Plus

LIC’s New Endowment Plus is a unit linked, non-participating endowment assurance plan which provides you the dual benefit of investment plus insurance cover within the policy term. This plan has four types of investment funds, where you can invest to obtain higher returns for your investment that help realize your dreams.

Key Features

  • This plan provides 4 fund options to invest your money
  • Option to receive maturity benefit as a lump sum or in installments
  • Financial protection for family on your unfortunate demise
  • 4 free switches are available during a policy year
  • Partial Withdrawal is allowed after completion of 5th policy year
  • Tax benefits are applicable under IT Act, 1961

LIC’s New Endowment Plus Plan

Benefits

  • Death Benefit: Death Benefit payable is the higher of Policyholder’s Fund Value or Basic Sum Assured, in the event of death after the date of Commencement of Risk. When death occurs before the date of Commencement of Risk, Policyholder’s Fund Value is payable as death benefit.
  • Maturity Benefit: Upon survival of the policyholder till the end of the policy term, the policyholder’s fund value is payable as maturity benefit. You also have the option to receive the maturity benefit as a lump sum at maturity or receive this benefit in installments post the date of maturity.
  • Surrender Value: Surrender value is also payable after completion of the first 5 policy years.
  • Rider: You can opt for LIC’s Linked Accidental Death Benefit Rider.

Conclusion

Investing with policies that can help you build wealth is always the best option worth considering. When looking to receive higher returns, you are advised to invest with ULIP Plans and other traditional plans such as endowment Plans or money back plans.

This blog mentions top 5 LIC policies that provide you savings and life cover benefit. You only need to pick a policy that matches your financial goals, so you can easily fulfill your family’s desires & aspirations. These plans provide you the option to pay premium as annually, semi annually, quarterly or monthly payment mode, as per your paying capacity.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

One thought on “Best 5 LIC’s Policies to Invest in 2017-18

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