A Guide to LIC’s Popular Plans: 

The Life Insurance Corporation of India (LIC) is a trusted name in the insurance sector, offering a variety of plans tailored to meet the needs of diverse customer segments. Among its most popular offerings are LIC Jeevan Labh, LIC Jeevan Umang, and LIC Jeevan Lakshaya. These plans are well-suited for salaried individuals and businessmen, providing not only life coverage but also tax savings and guaranteed returns. This article delves into the specifics of each plan, highlighting their features, benefits, and suitability for different financial goals.

 

LIC Jeevan Labh

Overview: LIC Jeevan Labh is a non-linked, with-profits endowment plan that combines savings and protection. It offers financial protection against death throughout the policy term, with the provision of a lump sum payment at the end of the selected policy term in case of survival.

Features:

1. Flexibility in Policy Term: The policyholder can choose between policy terms of 16, 21, and 25 years.
2. Premium Paying Term: The premium paying term is shorter than the policy term (10, 15, and 16 years, respectively).
3. Death Benefit: Sum Assured on Death along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
4. Maturity Benefit: Sum Assured on Maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
5. Loan Facility: Policyholders can avail of loans against the policy.
6. Riders: Option to enhance coverage through additional riders like LIC’s Accidental Death and Disability Benefit Rider, and LIC’s New Term Assurance Rider.

Example Scenario: For a salaried individual aged 30, opting for a sum assured of ₹10 lakhs with a double accident benefit, a policy term of 25 years and a premium paying term of 15 years:

• Annual Premium: Approx. ₹47514/-
• Maturity Benefit: Sum Assured + Bonuses (estimated to be around ₹24–26 lakhs, depending on bonus rates).
• total premium paid is Rs. 7,44,979 in the first 16 years, at the end of 25th year, the maturity will be paid to the policyholder 

LIC Jeevan Umang

Overview: LIC Jeevan Umang is a non-linked, with-profit whole life assurance plan. It provides annual survival benefits from the end of the premium paying term until maturity and a lump sum payment at the end of the policy term or upon the death of the policyholder.

Features:

1. Lifetime Coverage: Provides coverage up to 100 years of age.
2. Regular Income: Annual survival benefits equal to 8% of the Basic Sum Assured, starting after the completion of the premium paying term.
3. Death Benefit: Sum Assured on Death along with Bonuses, paid as a lump sum.
4. Maturity Benefit: Sum Assured on Maturity along with Bonuses, if the policyholder survives till 100 years.
5. Loan Facility: Policyholders can avail of loans against the policy.
6. Riders: Optional riders include LIC’s Accidental Death and Disability Benefit Rider, LIC’s New Term Assurance Rider, and LIC’s Critical Illness Benefit Rider.

Example Scenario: For a businessman aged 35, opting for a sum assured of ₹10 lakhs with a premium paying term of 15 years:

• Annual Premium: Approx ₹82000/-
• Survival Benefit: ₹80,000 annually from the end of the 15th year until the policyholder reaches 100 years of age.
• Maturity Benefit: Sum Assured + Bonuses at 100 Years (estimated to be significant, considering accumulated bonuses).

LIC Jeevan Lakshya

Overview: LIC Jeevan Lakshya is a non-linked, with-profits endowment plan that offers comprehensive coverage and savings. It is particularly suitable for securing the future of one’s family and ensuring that financial goals are met even in the policyholder’s absence.

Features:

1. Maturity Benefit: Sum Assured on Maturity plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
2. Death Benefit: A lump sum payment equal to the sum assured on death, along with bonuses. Additionally, 10% of the Basic Sum Assured is payable every year until the end of the policy term.
3. Premium Paying Term: Premium paying term is (Policy Term – 3) years.
4. Loan Facility: Policyholders can avail of loans against the policy.
5. Riders: Optional riders such as LIC’s Accidental Death and Disability Benefit Rider, and LIC’s New Term Assurance Rider.

Example Scenario: For a salaried individual aged 30, opting for a sum assured of ₹15 lakhs with a policy term of 25 years:

• Annual Premium: Approximately ₹65457/- 
• Death Benefit: Immediate lump sum payout of the Sum Assured on Death + Bonuses, and 10% of the Sum Assured annually until policy maturity.
• Maturity Benefit: Sum Assured on Maturity + Bonuses (estimated to be around ₹30–35 lakhs, depending on bonus rates).

Tax Benefits and Guaranteed Returns

All three plans, LIC Jeevan Labh, LIC Jeevan Umang, and LIC Jeevan Lakshya, offer significant tax benefits under Section 80C of the Income Tax Act, 1961, for the premiums paid. Additionally, the maturity proceeds and death benefits are tax-free under Section 10(10D), subject to the provisions specified therein.

Guaranteed Returns: The guaranteed returns in these plans are primarily in the form of the Sum Assured. The addition of bonuses, which are declared annually by LIC, enhances the total returns. While the exact bonus rates can vary, LIC has a strong track record of providing consistent returns, making these plans attractive for conservative investors seeking stability and security.

Suitability for Salaried Individuals and Businessmen

For Salaried Individuals:

• LIC Jeevan Labh: Ideal for those looking for a combination of savings and protection with a relatively shorter premium paying term.
• LIC Jeevan Lakshya: Suitable for individuals aiming to secure their family’s financial future with a focus on meeting long-term goals like children’s education or marriage.

For Businessmen:

• LIC Jeevan Umang: Perfect for those seeking regular income after the premium paying term, coupled with lifetime coverage and the benefit of annual survival benefits.
• LIC Jeevan Labh: Also beneficial due to its flexibility in premium paying terms and significant maturity benefits.

In conclusion, LIC’s Jeevan Labh, Jeevan Umang, and Jeevan Lakshya plans offer a blend of savings, protection, and tax benefits, catering to both salaried individuals and businessmen. Each plan has unique features that align with different financial goals, making them versatile options for building a secure financial future.

For more information and buy the popular plans,