LIC most popular 5 plans
Life Insurance Corporation of India (LIC) also known as LIC India, is a stalwart in the Indian insurance landscape, renowned for its comprehensive range of products that cater to various financial needs of its diverse clientele. Among its vast portfolio, there are a few plans that stand out due to their unique benefits and popularity among policyholders. This detailed article will explore five of LIC’s most celebrated plans: Jeevan Labh, Jeevan Umang, Jeevan Lakshya, Jeevan Akshay, and Jeevan Shanti. Each of these plans serves different financial goals, ranging from savings and protection to retirement planning.
1. LIC Jeevan Labh
LIC Jeevan Lab is a limited premium paying, non-linked, with-profits endowment plan that offers a combination of protection and savings. This plan provides financial support for the family in case of the unfortunate death of the policyholder before maturity, and a lump sum at the time of maturity for the surviving policyholders.
Features of LIC Jeevan Labh:
Premium Payment Term (PPT): Shorter than the policy term, options available are 10, 15, and 16 years.
Maturity Benefit: Sum Assured on Maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
Death Benefit: Includes “Sum Assured on Death” along with Bonuses.
Benefits:
Financial Protection: Offers a robust death benefit, ensuring family’s financial security.
Flexibility: Multiple term and premium payment options to suit various financial planning needs.
Tax Benefits: Tax deduction under Section 80C and tax-free maturity under Section 10(10D) of the Income Tax Act.
Suitability: Ideal for individuals looking for a safe investment avenue which provides both protection and a decent return on investment at maturity.
2. LIC Jeevan Umang
LIC Jeevan Umang is a whole life plan that provides for annual survival benefits from the end of the premium paying term until maturity and a lump sum payment at the time of maturity or on the death of the policyholder during the policy term.
Features:
Whole Life Cover: Up to age 100 years.
Survival Benefits: 8% of the sum assured is paid annually after the premium payment term until the age of 100.
Maturity Benefit: Sum Assured plus Bonuses.
Benefits:
Regular Income: Provides a steady flow of income after the premium payment term.
Comprehensive Cover: Life cover up to the age of 100 years.
Loan Facility: Enables loan against the policy, providing financial flexibility in times of need.
Suitability: This plan is suitable for individuals who are looking for long-term income to support their retirement years, along with life insurance.
3. LIC Jeevan Lakshya
LIC Jeevan Lakshya is a participating, non-linked plan that offers a combination of protection and savings. This plan provides for an annual income benefit that may help fulfill the needs of the family, primarily for the benefit of children, in the event of the unfortunate death of the policyholder at any time before maturity.
Features:
Annual Income Benefit: 10% of the Basic Sum Assured paid yearly in case of death of the policyholder.
Maturity Benefit: Sum Assured on Maturity along with reversionary bonuses and Final Additional Bonus, if any.
Death Benefit: In addition to the annual benefit, a lump sum amount is payable on death.
Benefits:
Targeted Savings: Specifically designed to meet the financial needs of children and family in case the breadwinner is no longer around.
Financial Security: Provides a safety net through annual income and lump sum death benefits.
Tax Advantages: Offers tax benefits on premiums paid and benefits received.
Suitability: Best suited for parents or primary earners looking to secure their family’s future and ensure continued support in case of their absence.
4. LIC Jeevan Akshay
LIC Jeevan Akshay is an immediate annuity plan which can be purchased by paying a lump sum. The plan provides for annuity payments of a stated amount throughout the lifetime of the annuitant. Several annuity options are available to cater to the needs of the annuitant.
Features:
Immediate Annuity: Annuity starts as soon as the investment is made.
Multiple Annuity Options: This includes options like annuity payable for life at a uniform rate, annuity payable for 5, 10, 15, 20 years and for life thereafter, etc.
No Medical Examination: Annuity purchase do not require a medical examination.
Benefits:
Guaranteed Income: Provides a guaranteed income for life, which is a critical component in retirement planning.
Flexibility: Offers a range of annuity options to choose from based on personal and financial circumstances.
Ease of Purchase: Simple and straightforward process with immediate payout options.
Suitability: This plan is ideal for retirees who want to convert a portion of their savings into a steady lifetime income stream post-retirement.
5. LIC Jeevan Shanti
LIC Jeevan Shanti is a single premium plan which offers the policyholder options to choose between immediate and deferred annuity. The plan is designed to provide recipients with a series of regular and assured income through annuity payments.
Features:
Flexible Annuity Options: Choice between immediate and deferred annuity.
Guaranteed Additions: Provides guaranteed additions during the deferment period in case of deferred annuity.
Loan Facility: Available after the completion of one policy year.
Benefits:
Customizable: Tailor the payouts according to personal financial needs, choosing from various payout options.
Financial Security: Offers a predictable income stream, ideal for managing post-retirement financial needs.
Tax Benefits: It provides tax benefits under Section 80C (for premiums), and the payout phase can be tax-efficient depending on the chosen option.
Suitability: Suitable for those approaching retirement or already retired, looking to secure a steady and reliable source of income for their golden years.
LIC’s array of plans ensures there’s something for everyone, whether it’s safeguarding the future of a family, planning for retirement, or ensuring regular income after work life ends. Each plan is designed with distinct goals in mind, catering to the diverse financial needs and stages of life of its customers. When choosing an LIC plan, it is essential to consider personal financial goals, investment horizons, and risk tolerance to make an informed decision that aligns with long-term objectives.