We all work hard so that we can fulfill our family’s financial obligations such as children’s higher education, marriage expenses, going for a dream vacation with our family, etc for that we can choose LIC policies to invest in our dream. In order to achieve this objective, you need to invest your money with an investment plan that offers you a return on investment along with offering family protection. When it comes to investing, it becomes necessary to invest in a plan that can help you to choose LIC policies to invest in and earn higher returns that will further help you to achieve your financial objectives.
LIC is the oldest and only 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 the top 5 LIC policies to invest and you can consider investing.
Table Content
- Snapshot of LIC Policies You can Invest in 2020:
- Common Benefits offered by LIC’s Investment Plans:
- LIC’s Bima Diamond Plan
- Key Features
- Benefits
- LIC’s New Jeevan Anand Plan
- Key Features
- Benefits
- LIC’s Jeevan Pragati Plan
- Key Features
- Benefits
- LIC’s Jeevan Labh Plan
- Key Features
- Benefits
- LIC’s New Endowment Plus
- Key Features
- Benefits
- Conclusion
- Related posts:
Snapshot of LIC Policies You can Invest in 2020:
| Snapshot of LIC 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 |
|
| 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 | LIC’s 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 | LIC’s 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 |
|
| 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) | LIC’s Linked Accidental Death Benefit Rider |
Note: Scroll down to know more about the Best 5 LIC Policies to Invest plans in detail which are just above in the table.
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 on your death
- Get a loan under this policy
- Rebate on choosing the high sum assured amount
- Rebate on opting for annual/semi-annual mode
- Tax benefits are applicable
Benefits
- Death Benefit:
In the event of the death of the policyholder prior to the date of maturity, Sum assured on Death and Loyalty Addition is payable, if death occurs after the first 5 policy years.
Sum Assured on Death is payable In case of death during the first 5 years, In the event of the 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 the 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 a loan amount of up to 90% of the acquired surrender value.
- Rider: LIC’s Accidental Death and Disability Benefit Rider & LIC’s New Term Assurance Rider can opt for under this plan.
LIC’s New Jeevan Anand Plan
LIC’s New Jeevan Anand is a participating & non-linked endowment plan that ensures the benefit of protection and savings. This policy provides a lump sum amount at the maturity of the policy. It also provides financial cover for the family, in case of the demise of the policyholder.
Key Features
- A benefit payable at maturity of the policy
- Financial cover for the family
- Bonuses add-up to the benefits payable
- One can opt Loan amount under this policy
- Enjoy premium rebates
- Tax benefits are applicable
Benefits
- Death Benefit: In case of the 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 a 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
- Financial cover for the family on your death
- Benefit payable at maturity
- Take benefit of bonuses applicable
- Loan benefit can be availed
- Rebate on choosing a high sum assured
- Premium rebate on choosing an annual/semi-annual mode
- Tax benefits under the Income Tax Act, 1961
Benefits
- Death Benefit: In case of the 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 the loan amount, upon payment of all due premiums for at least 3 full policy years.
- Surrender Value: Surrender Value can opt after payment of at least three consecutive policy years.
- Rider: LIC’s Accidental Death and Disability Benefit Rider include in this plan
LIC’s Jeevan Labh Plan
LIC’s Jeevan Labh is a non-linked, participating, limited premium payment endowment 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
- Death Benefit: In case of an unfortunate demise of the person within the policy term, the 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, the 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 available 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 the family on your demise
- During a policy 4 free switches are available
- You are eligible for partial withdraw after the completion of 5th policy year
- Tax benefits are applicable under the IT Act, of 1961
Benefits
- Death Benefit: Death Benefit payable is the higher of the Policyholder’s Fund Value or Basic Sum, in the event of death after the date of Commencement of Risk. When a death occurs before the date of Commencement of Risk Where Policyholder’s Fund Value is payable as the 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 however 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 the completion of the first 5 policy years.
- Rider: You can opt for LIC’s Linked Accidental Death Benefit Rider.
Conclusion
Investing in 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 to invest and that provide you with savings and life cover benefits. 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 a premium as LIC policies to invest annually, semi-annually, quarterly or monthly payment mode, as per your paying capacity.