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LIC Life Insurance
Life Insurance Corporation of India

About LIC Life Insurance Life Insurance

The Life Insurance Corporation of India (LIC) is a state-owned insurance group and investment company. It is the largest insurance company in India. Established in 1956, The Life Insurance Corporation of India offers a variety of insurance products to its customers such as insurance plans, pension plans, Unit Linked plans, special plans and group schemes as well as online child insurance plans. The LIC currently has a network of close to 2,048 branches and 1,337,064 agents operating in different cities and towns all over the country.

Types of insurance plans

  • LIC Endowment Plans
  • LIC Money Back Plans
  • LIC Pension Plans
  • LIC Term Insurance Plans
  • LIC ULIP Plans
  • LIC Child Plans
  • LIC Group Plans
  • LIC Child Plans

LIC Life Insurance Plans Details

1. LIC Endowment Plans:
  • Single Premium Endowment Plan - Single Premium Endowment Plan is a participating non linked savings and protection plan. The premium is paid in lump sum when the policy is drawn.
  • New Endowment Plan - The New Endowment Plan provides a lump sum amount to the policyholder at the time of maturity and offers financial protection to the family members of the policyholder in case of the death of policyholder.
  • New Jeevan Anand - The New Jeevan Anand policy offers a lump sum amount to the insured at the end of the policy term in case of their survival and also takes care of liquidity needs.
  • LIC’s Jeevan Rakshak - The LIC’s Jeevan Rakshak pays the policyholder the basic sum assures along with loyalty addition at the end of the policy term.
  • LIC’s Limited Premium Endowment Plan - : In case of the death of the insured during the policy term, the death benefit (Basic Sum assured) along with reversionary bonuses will be paid considering that all the premiums have been paid up until then.
  • LIC’s Jeevan Sangam- : In LIC’s Jeevan Sangam plan, the proposer will have the option of choosing the maturity sum assured and the premium to be paid will be decided on the maturity sum.
2. LIC Money Back Plans:
  • LIC’s Money Back Plan 20 years - In case the insured survives by the end of the specified duration 20% of the basic sum assured at the end of each 5th, 10th and 15th policy year.
  • LIC’s Money Back Plan 25 years -In case the insured survives by the end of the specified duration 15% of the basic sum assured at the end of each 5th, 10th, 15th and 20th policy year.
  • LIC’s New Bachat Plan - : A money bank plan that offers financial protection against death along with the provision of payment of survival benefits at specified durations during the policy term.
3. LIC Pension Plans:

LIC’s Pension Plans assures financial security in your old age. These policies are tailor-made for senior citizens planning a secure future.

  • Jeevan Akshay - The Jeevan Akshay plan is an immediate annuity plan where annuity payments of a stated amount will be made throughout the lifetime of the annuitant..
  • LIC’s New Jeevan Nidhi- The LIC’s New Jeevan Nidhi plan provides death cover during the postponement period and offers annuity on survival to the date of vesting.
4. LIC Term Insurance Plans:
  • LIC’s Anmol Jeevan - : A protection plan that offers fiscal protection to the family of the insured in case of his/ her unfortunate demise.
  • LIC’s Amulya Jeevan : A protection plan with no maturity benefits.It offers 1 crore life cover and above.
  • LIC’s e-Term- :: An online pure term plan with different premium rates for tobacco users and non-tobacco users.
  • LIC’s New Term Assurance Rider - : : LIC’s New Term Assurance Rider is a life insurance plan which can be combined with a basic policy with add on benefit at a nominal cost.
5. LIC ULIP Plans:

The Life Insurance Corporation of India (LIC) offers Unit Linked Insurance Plans (ULIPs) designed to help their clients achieve substantial returns on their investments as well as help them save tax even if they don’t draw a consistent income. LIC ULIP Plans offer protection and flexibility in investment, where the premium paid is used to purchase units in investment assets chosen by the policyholder. The Life Insurance Corporation of India provides its customers with Unit Linked Plans which assure the policyholder of good returns through market linked growth along with the added facility of life insurance coverage.

6. LIC Child Plans:

The Life Insurance Corporation of India (LIC) offers a range of child plans, available in both conventional and ULIPs form, to meet the needs of growing children. LIC Child Plans are designed with special features to meet the marital, educational and other requirements of children through survival benefits. LIC Child Plans also provide risk cover on the insured child over the course of the policy term. The Life Insurance Corporation of India provides different child plans such as LIC Jeevan Tarang, LIC Child plan Komal Jeevan, LIC Plan no 184 and LIC Jeevan Ankur to cover all the needs of the children.

7. LIC Group Plans:

Group Insurance schemes offer protection and stability to a group of a people

  • LIC’s New Group Leave Encashment Plan - : : It is a fund-based Insurance plan that helps the employer in providing leave encashment to their employees.
  • LIC’s New Group Superannuation Cash Accumulation Plan : It is tailor-made to the employer who has a defined superannuation scheme for their employers.
  • LIC’s New One Year Renewable Group Term Assurance Plan 1- :: This plan offers the option of renewing premium rates at each Annual Renewal Date.
  • LIC’s New One Year Renewable Group Term Assurance Plan 2 : Under this, premiums can be renewed through profit sharing arrangement.
Some Other Plans from LIC
1. LIC Micro Insurance Products
  • LIC’s New Jeevan Mangal: This is a protection plan which also has inbuilt accident benefits that act as a double-risk cover in case of accidents.
  • LIC’s Bhagya Lakshmi Plan: : This plan is a limited payment protection scheme where the policy term is always higher by two years than the premium payment term.
2. Jeevan Lakshya Life Insurance:
  • Jeevan Lakshya Life Insurance: - Jeevan Lakshya Life Insurance from Life Insurance Corporation of India is a plan focused at providing insurance cover to your loved ones in case of any unforeseen sudden events. Securing your family’s future is top priority for most people. This plans aim to ease your stress regarding your responsibilities towards your family.
Key features of Jeevan Lakshya Life Insurance Plan
  • Minimum basic sum assured is Rs.1 Lac
  • There is no limit on the maximum sum assured
  • Minimum and Maximum entry ages are 18 and 50 respectively
  • Maximum maturity age for this policy is 65 years
  • Policy term offered is between 13-25 years
  • Choice of premium payment interval, that is, monthly, half-yearly, quarterly or yearly
  • Grace period of 30 days for premium payment
  • Policy doesn’t lapse if regular premiums are paid for 3 continuous policy years. The policy subsists on a reduced paid-up basis
  • Death Benefit: In the event of death of the policy holder a sum assured equaling 105% of the premiums paid will be given to the nominee
  • Maturity Benefit:Sum assured on maturity plus all accrued bonuses shall be paid to the policyholder if he survives even after the completion of policy period
  • Optional Benefits:Option to avail any of the following two riders with this insurance scheme
  • LIC’s Accidental Death and Disability Benefit Rider
  • LIC’s New Term Assurance Rider
  • Social Security Scheme
  • Aam Admi Bima Yojana:A combination of two social security schemes, Aam Admi Bima Yojana and Janashree Bima Yojana.

FAQs about Lic Life Insurance Life Insurance:

Are there any advantages in buying Lic Life Insurance insurance at an early age?

Yes. The premium that you pay on your insurance policy is mainly dependent upon two things - your age and the tenure of the policy. The younger you are, the lower is your insurance premium amount. At younger age, you would be physically sound and may not be suffering from illnesses/ medical. This would entitle you to a lower premium on the policy. Therefore it is advisable to buy insurance at an early age to reduce the cost of insurance.

Do you need life insurance?

If you have dependents and financial responsibilities towards them, then you certainly need insurance. Imagine what would happen if you were to lose your life suddenly or become disabled and cannot earn. Being insured in a situation like this is a necessity. When you insure your life, in effect what you are doing is insuring your earning capacity. This guarantees that your dependents will be able to continue living without financial hardships even in case of your demise. Most insurance plans available today come with a savings element built into it. These policies help you plan not only for protection against death but also for a financially independent future, which would enable you to have a comfortable retirement.

How else does life insurance help?

The primary need is buying financial security for your family. Other aspects that insurance helps fulfill are:

Tax benefits of opting Lic Life Insurance Life Insurance?

The Tax exemption available under our insurance and pension policies are described below:

Deductions

*The aggregate amount of deduction under section 80C and 80CCC shall not exceed one lakh fifty thousand rupees.

Exemption

  • Benefit is available to individual assessee and Hindu Undivided Family assessee.
  • In case of individual assessee - himself/herself, spouse, children of such individual.
  • In case of HUF assessee - any member of HUF.
  • Premiums paid under a life insurance policy are eligible for deduction under Section 80C* of the Income Tax Act, subject to the provisions of the said section.
  • Contributions to a pension plan are eligible for deduction under Section 80CCC* of the Income Tax Act, subject to the provisions of the said section.
  • The proceeds under a life insurance policy are exempt under Section 10(10D) of the Income Tax Act, subject to the provisions of the said section.
    Note: If the amount of premium paid in a financial year for a policy is in excess of 10% of the actual capital sum assured, then deduction will be allowed only for premiums up to 10% of the actual capital sum assured.

How much do I insure myself for?

One of the simplest rules is to assume that insurance is a replacement for your lost earning capacity. Calculate your total income for the years that you expect to work. Assuming that the prevailing interest rate is 8%, you need to insure your life for at least 12 times your current annual income. Assuming that a family needs Rs.100 annually for household expenditure and the rate of interest would be at 8%, then the breadwinner needs to have a life insurance policy of approximately Rs.1200. If the insurance amount were to be put in the bank by the family, the family would get a comfortable Rs.96 p.a., which would at least let the family maintain the current life style.

However to calculate your insurance need more precisely, use the following steps:
  • Calculate Monthly Livable Income required (Post tax). This is the monthly amount that the survivors of the policyholder will need in the event of his death. This is taken at 70% of the current total family expenses. Denote this as "M".
  • Calculate Monthly Income required (Pre tax) as M/ (100-t)%. Denote this as "M1". Here t = Tax rate.
  • Assume Estimated-earning rate on capital as 8%. Denote this as "r".
  • Calculate Capital livable income required (C ) as A/ r%.
  • Subtract Existing Insurance Cover amount (if any) from "C".
  • The final amount you arrive at is the amount for which you should buy insurance

How much does it cost to buy Lic Life Insurance life insurance?

Pure protection covers have become fairly affordable over a period of time. Further, the amount of premium depends on the cover and benefits one needs

Is there any policy where I can receive money during the tenure of the policy?

Yes, a MoneyBack Policy. This is an anticipated endowment policy with an additional feature of receiving benefit at regular intervals during the tenure of the policy. The risk cover continues for the entire policy term inspite of the installments already paid. If you outlive the policy, the maturity benefit along with accumulated bonus is paid back to you.

This is suitable for you if
  • You plan to coincide the funds received from the policy with your future anticipated needs like a car, an overseas holiday, children's educational needs, marriage expenses, etc.

What are riders?

Riders are additional benefits that can be attached onto your basic life insurance policy. These riders give you the benefit of increasing your risk cover in case of certain events happening. For instance if you have taken an Accident Death Benefit rider and you die due to an accident then your beneficiaries can get up to a maximum of twice the basic sum assured subject to Claims acceptance. Similarly there are different riders addressing different contingencies like Critical Illness, Permanent Disability Benefit, etc. There are riders available that waive your future premiums in case of death or disability of the proposer. These riders come at a nominal cost and can be availed of depending on the policy taken. These can be taken at the beginning of the policy term or during the policy term.

What are the different premium paying options available?

Nearly all policies provide yearly, half yearly, quarterly and monthly modes of premium payment. In addition, some plans also have the option to pay the premiums only for a limited period of time and not for the full policy term

What is an Lic Life Insurance Endowment Policy?

An Endowment Policy is a combination of savings along with risk cover. These policies are specifically designed to accumulate wealth and at the same time cover your life. In simple words, these polices are issued for specific time periods during which you pay premiums. If you die during the tenure of the policy, your beneficiaries will receive the death benefit along with the accumulated bonus additions and if you outlive the policy tenure you will receive the maturity benefit along with accumulated bonus additions (if any). This is suitable for you if You want to accumulate capital for anticipated financial needs like buying an asset such as a home, providing for your old age, your children's education, marriage, etc.

What is Lic Life Insurance Term Insurance?

Term Insurance, also known as pure life cover, is the cheapest and the simplest form of insurance. Under this insurance policy, against payment of regular premium, the insurer agrees to pay your beneficiaries the Death Benefit in event of your premature death. However, if you survive till the end of the policy term, nothing is payable to you. This policy has no savings component and the premiums you pay are purely a cost to buy you a life cover. This is suitable for you if
• You are looking for a low cost life cover without any savings benefits attached.

What is Life Insurance?

Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased. The primary purpose of life insurance is therefore protection of the family in the event of death. Insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your children's future needs. Today, the market offers insurance plans that not just cover your life and but at the same time grow your wealth too.

What will I receive on maturity of my policy?

On maturity, you will receive the maturity benefit as defined as for respective Plan.

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