LIC is a state-owned insurance company in India that was established in the year 1956. Its main objective was to strengthen the life insurance segment of the country. It caters to the needs of a vast range of customer base with a variety of products ranging from regular insurance to unit plans to micro insurance plans. LIC has over two thousand completely computerized branch offices, more than a hundred divisional offices. The reputed company is known for its claim settlement ratio of 98.2%. It is one of the most trusted insurers in India.

Customers these days prefer plans offering higher returns on the premiums paid. An endless list of such plans is offered by LIC. These plans are created to offer optimum benefits besides protection. The following are the four best insurance policies offered LIC that promise high returns:

LIC Jeevan Akshay VI

This is an immediate annuity plan. It ensures a steady cash flow in return of a lump sum paid upfront. As per this policy, the annuity is paid throughout the policyholder's lifetime. The type of annuity payment cannot be changed later after being chosen. This flexible policy allows customers to select the type of plan and payment modes. These are the annuity options available under Jeevan Akshay VI:

• The annuity is paid at a fixed rate throughout the life of the person insured

• A certain portion of the annuity is payable on the 5th, 10th, 15th and 20th years of the policy

• Lifetime annuity available at the rate of 3% per annum

• Lifetime annuity along with a return of purchase price when the policyholder expires

• Lifetime annuity with the option of 50% as well as 100% annuity payment to the spouse on the death of the policyholder

• Additionally, the purchase price of the policy is returned on the death of the last annuitant.

Annuity Payment Mode:

Policyholders can select the mode of payment when they apply for the plan. The annuity will accordingly be paid either monthly, quarterly, half-yearly or on a yearly basis, based on the chosen option.

Features:

• Premium is to be paid as a lump sum

• The minimum purchase price is Rs.1 lakh for normal sale and Rs.1.5 lakhs for online purchase

• There is no maximum purchase price limit

• A medical examination is not required

• There are no maximum limits for annuity

• Minimum age of entry is 30 years

• Maximum age of entry is 85 years

• Proof of age has to be submitted mandatorily

• Maturity benefits are not applicable to the policy

• Income tax benefits are available on premiums paid but the pension received is taxable.    

• Surrender value is available after completing one year, but it is only applicable to the “annuity with return of purchase price” option.

• Loan facility is available

• This policy doesn't acquire paid-up value

Incentives offered:

The policies with a purchase price of above Rs.2.5 lakhs receive higher incentives than the other policies. Such incentives reflect in the annuity. Additionally, the policies purchased online are entitled to a rebate of 1% proportional to the increase in annuity rate.

Service tax:

As per the existing Service Tax Laws, service tax is applicable, and the applicant has to pay it while purchasing the policy.  

Surrender value:

Policyholders who have subscribed to the “annuity with return of purchase price” option can surrender their policy after the completion of one year, under the following circumstances.

1. If the policyholder is diagnosed with any of the conditions mentioned below:

• Cancer (of specified severity)

• Heart attack

• Motor Neuron Diseases (MND)

• Coronary Artery Bypass Graft (CABG)

• Kidney failure, necessitating regular dialysis

• Open heart valve replacement/repair surgery

• Stroke, leaving behind permanent symptoms

• Major organ transplant

• Bone marrow transplant

• Permanent limb paralysis

• Angioplasty

• Non-cancerous brain tumor

• Blindness, deafness, loss of speech

• Final stage lung disease

• Multiple sclerosis with persisting symptoms

• Final stage liver failure

• Loss of limbs

• Third-degree burns

• Major Head Injuries

• Primary Pulmonary Hypertension

2. If the policyholder furnishes evidence of changing his country of residence Third-degree burns, then a surrender value will be paid to him/her, depending upon their age at the time of surrender.

LIC New Children’s Money Back Plan

This is a type of non-linked participating plan, designed to meet education costs, marriage expenses and other financial needs of growing children. Moreover, the plan also offers risk cover on the life of the insured child during the entire policy term. The plan can be purchased by the parents or grandparents of children below 12 years of age.

Features:

• The minimum basic sum assured is Rs.1 lakh

• There is no maximum basic sum assured

• The policy can be purchased right from the birth of a child till he/she turns 12 years.

• The policy matures when the child turns 25 years

• Policy term is 25 minus the age of the child during the commencement of the policy

• Flexible premium payment modes - Yearly, half-yearly, quarterly, monthly through ECS or SSS

• 1 month of grace period for yearly, half-yearly and quarterly modes of premium payment and 15 days for monthly mode

• 2% of rebate on a tabular premium for yearly mode and 1% for the half-yearly mode.

• Rebate of Rs.2 per Rs.1000 for every basic sum assured ranging between Rs.2 lakhs to 4.9 lakhs and Rs.3 per Rs.1000 for basic sum assured above Rs.5 lakhs

• Lapsed policies are allowed to be revived within 2 years from the date of the first unpaid premium

• Optional add-on benefits like Accidental Death and Disability Benefit Rider

LIC’s New Endowment Plan

This policy is a participating endowment plan. It provides the prospective buyer with an option to select the sum assured as well as the premium payment mode. This plan offers financial protection to the policyholder throughout the policy term and also provides loyalty additions. The death benefit depends upon the premiums paid. The maturity benefit is based on the policyholder’s age during the commencement of the policy.

Features:

• Minimum age of entry is 8 years

• Maximum age of entry is 55 years

• Minimum policy term is 12 years

• Maximum policy term is 35 years

• Maximum maturity age is 75 years

• Minimum basic sum assured is Rs.1,00,000

• Maximum basic sum assured doesn't have any limit

• Minimum accident benefit sum assured is Rs.1,00,000

• Flexibility to select the premium payment mode - yearly, half-yearly, quarterly, monthly

• Optional benefits like Accidental Death and Disability Benefit Rider are available

Benefits:

Death benefit: The nominee receives the sum assured on the death of the policyholder along with simple reversionary bonuses as well as the final additional bonuses provided that all premiums that were have been paid till date of the policyholder's death. The death benefit cannot be less than 105% of the total premium amount paid.

Maturity benefit: Maturity benefit is payable as a lump sum. It includes the basic sum assured as well as simple reversionary bonuses and final additional bonuses.

Profit participation: The policy participates in the profits of LIC and accrues simple reversionary bonuses at certain intervals.

Surrender value: These policies can be surrendered at any time after the premium for 3 full years have been paid.  The surrender value will depend on the total premiums paid, the policy term and the year of surrender.

Loan: The policyholder may be eligible to apply for loans once the policy attains the surrender value, depending upon the terms and conditions at the time of application

Exclusion: In case the policyholder commits suicide within a year of the commencement of the policy, the insurer will not pay the assured benefits. However, the nominees will receive an amount equal to 80% of the premiums paid. However, in case the policyholder commits suicide after the completion of a year from the date of policy revival, the beneficiary will get an amount of more than 80% of the premiums paid.

LIC’s New Money Back Plan- 20 years

This policy is a non-linked plan and it offers a plethora of features. besides the death benefits, this policy also gives returns at specified times throughout the policy term. This policy protects the family of the policyholder on his/her death and simultaneously offers a lump sum on survival till maturity. The plan also extends a loan facility to meet the immediate financial needs of the policyholder.

Features:

• Minimum basic sum assured is Rs.1 lakh

• Maximum basic sum assured doesn't have a specified limited

• Minimum entry age is 13 years

• Maximum entry age is 50 years

• Maximum age at maturity is 70 years

• Policy term is 20 years

• Premium payment term is 15 years

• Flexibility to select the premium payment mode - yearly, half-yearly, quarterly, monthly

• 15 days of grace period for monthly payment mode and one month for quarterly, half-yearly and yearly modes

• Optional benefits like Accidental Death Rider and Disability Benefit Rider are available

Benefits:

Death benefits: In the event of the policyholder's death, provided that the policy is in full force, the nominee/beneficiary receives the sum assured along with simple reversionary bonuses as well as the final additional bonus. The sum assured on death is either 10 times the annualized premium or 125% of the basic sum assured. Also, the death benefit will not be less than 105% of the total premium amount paid till death.

Survival benefits: If the policyholder survives the term, he/she receives survival benefits equal to 20% of the basic sum assured at an interval of five years, starting from 5th policy year.

Maturity benefits: Upon maturity of the policy, the policyholder receives 40% of the basic sum assured coupled with simple reversionary bonuses as well as the final additional bonus.

Policy Revival: Policies lapse if premium payments are discontinued past the grace period. Lapsed policies are allowed to be revived within 2 years from the date of the first unpaid premium.

Surrender Value: Policyholders who have paid premiums for three continuous years are eligible to surrender the policy. The surrender value will be a percentage of the total premiums paid excluding the premiums paid for optional benefits.
Exclusion: In case the policyholder commits suicide within a year of the commencement of the policy, the insurer will not pay the assured benefits. However, the nominees will receive an amount equal to 80% of the premiums paid. However, in case the policyholder commits suicide after the completion of a year from the date of policy revival, the beneficiary will get an amount of more than 80% of the premiums paid.

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What are the top LIC plans for 2020-2021?

Have you ever wondered about the logo of LIC India? The two hands cupping the small flame in between them, as if preserving it?

That is symbolic. The flame stands for Life while the hands stand for the Support of LIC or life insurance in general. Life, as it is, is not just temporary but is also more vulnerable than we want to think. Accidents, diseases, ailments, and unforeseen deaths can end life in a flash. The only way a person can ensure that his or her loved ones remain financially well-off is by having life insurance.

LIC is one of the biggest life insurance companies in the world and one of the biggest brands in its industry. Did you know that it has more than 30 crore policyholders in India alone, and where companies give the highest claim settlement? 

All LIC plans are created having in mind the Indian audience. There are many plans, but some are more popular than the rest. Below we are going to give you 5 top LIC plans for 2020-2021.

LIC Jeevan Umang

 As per this policy, you need to pay for a period ranging from 15 to 30 years. You can choose various terms like 15, 20, 25 and 30 years. After the premium payment term is completed, from the next year onwards you get lifetime pension and the LIC coverage.

LIC Jeevan Anand

This is said to be the best LIC product in the market. It’ll be interesting to know that LIC of India was the very first plan of its kind in the country. Jeevan Anand covers protection of whole life and also covers endowment. One of the most important benefits of this plan is that it continues post maturity. The plan’s nominee gets an assured sum after the policyholder’s demise. The amount you get a maturity can be converted into pension as well. LIC Jeevan Anand gives you the benefits of investment, insurance, pension, tax planning and whole life insurance.

LIC Jeevan Labh

This is quite similar to the Jeevan Shree LIC plan. You get three options here, and this is what makes it very popular among the working class. This is the best plan for those who want to do the majority of their investing during the best productive years of their lives, and to get the benefits in the end. In this plan, the period of paying premium is kept as short as possible so as to enable most working people to avail this plan. This is the best plan for getting a return along with Life Insurance cover.

LIC Jeevan Lakhshya

This plan is said to be the best for children. It gives guaranteed returns after plan maturity. It aids in a child’s education. The plan allows the child to become the nominee. It gives yearly benefits and this shall be paid till the plan proposer’s death.

LIC term plan- Jeevan Amar

This plan is said to be popular mostly among the insurance proposers. It has two options. In the first option, you get a normal plan in which the level sum assured absolute amount shall be paid after the death, and shall be equal to the basic sum assured. This shall remain equal throughout the policy term. In option two, the sum assured absolute amount shall be paid on the death, and this shall be equal to the basic sum assured till the 5th policy year is completed. After this period, it increases by 10% of the sum assured every year till the 15th policy year till it becomes 2x the basic sum assured.

So as you have seen, these are the3 top LIC plans for 2020-2021. Right now, these are the best and highly popular.