People looking to leave a substantial amount behind for their families must consider an LIC policy to address this need. These life insurance policies are extremely advantageous because they provide the customers with a choice between different types of insurance plans, such as endowment and term insurance plans. Additionally, many of these plans offer a very high sum assured to ensure that if the policyholder expires, their family’s financial future is secure.

Types of LIC Policies with High Sum Assured

Some of the plans offered by LIC promise really high sum assured. While some policies are a mix of term insurance plans that provide pure protection, there are endowment plans too that provide survival and death benefits. Moreover, pension plans help ensure a pleasant retirement.

LIC Term insurance plans

Term insurance is a type of insurance availed for a specific time or a fixed term. Unlike other types of life insurance policies, term insurance policies are less expensive as they do not have any cash value. Term insurances are useful and beneficial only if the policyholder expires within the timeframe when the policy is still active. These are traditional insurance products offering a high sum assured for a relatively low premium. These plans are the ideal cost-effective solutions for protection.

• Amulya Jeevan – I: This term insurance plan provides high sum assured with long policy terms.

• Amulya Jeevan – II: This term insurance plan offers no maturity benefits; instead, it offers the entire sum assured as the death benefit.

• E-Term: This term insurance plan can be purchased online. It offers discounts on the premiums for the policyholder, provided that they are not smokers.

Endowment Plans

Traditional insurance plans pays a lump sum assured if the policyholder expires to the beneficiaries/nominees of the policyholder in case of the policyholder's death. This is called a death benefit. An endowment plan works in a similar way with an additional benefit. In endowment plans, the policyholder is entitled to a lump sum payment if he/she survives till the “maturity period” and completes the “endowment policy term” or “survival term.” Different endowment policies may have different payout clauses – some companies even offer a lump sum payout for a critical illness or other life-changing events. These policies can be good options for investments. Endowment plans are of two types - participating and non-participating plans. Some of the plans take part in company profits while others don’t.

• Single Premium Endowment Plan: An endowment plan in which the premium has to be paid in a single lump sum.

• New Endowment Plan: An endowment life insurance policy, in which the insurance cover can easily be past Rs. 1 crore.

• New Jeevan Anand: An endowment scheme offering discounts on the policy premiums if the sum assured is very high.

• Limited Premium Endowment Plan: An endowment plan, in which the premiums are paid for a limited period instead of the entire duration of the policy

• LIC’s Jeevan Lakshya: A participating endowment plan offering high sum assured and maturity benefits.

• New Endowment Plus: A ULIP and an endowment, which invests in various funds and allows policyholders to build up savings by taking advantage of the investments made in the markets

Money Back Plans

Traditional insurance policies pay an assured lump sum as a death benefit in the event of the policyholder's death to the beneficiaries or dependents or nominees. Money back insurance plans, instead, pay out the same benefits in the form of numerous guaranteed “survival benefits" which are scheduled out evenly throughout the policy duration. It is like an endowment plan with the benefit of regular liquidity. These plans thus offer both death and maturity benefits.

• New Money Back Plan-25 Years: A money back policy with a limited premium term and a tenure of 25 years.

• LIC’s New Bima Bachat: A savings and protection plan which is not linked but participates in the company profits.

Pension Plans

A Pension or Annuity plan is an insurance product best suited for post-retirement usage. It pays income to the policyholder. An individual needs to invest in the annuity scheme and the policy makes payments on a future date. These payments are typically determined on the length of the payment period. A Pension Plan ensures that the individual continues receiving regular income after their retirement.

• New Jeevan Nidhi: A pension plan with no limits on the maximum sum assured. It can be taken for 9, 12 or 15 years.

All of these plans serve specific purposes. They can be used to fulfill various needs customers may have. People who are looking for protection can opt for one of the term plans; those who want maturity benefits can go for the endowment, money back and pension plans. The more daring ones who are not averse to slight risk can hugely benefit from ULIP plans that help create savings by investing in debt and equity markets.

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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.