LIC Policies – Quick Overview of all the Key Policies

The life insurance corporation of India is a well-known and trusted insurance company for the past many years. It is quite popular among masses of people. With the current IPO of LIC, there is even more buzz. There was a time when there were no other insurance players in the market and LIC served on a larger scale. Even today it offers many policies and a few of them are suggested in this article to fetch a policy holder maximum out of his/her policy. Insurance cover is imperative and LIC is a leading state-owned insurer to take care of all your safety requirements. 

1. Tech Term Plan-Being an online term policy, it is cheaper than other offline polices. It is purely a risk premium plan. There is an option to receive death benefits over the chosen period of 5-10 years instead of lump sum amount. The beneficiary will get instalments in advance at yearly or half yearly/quarterly/monthly intervals. You can choose an accident rider as an add-on. Just by paying 25-30% higher than the regular premium amount, you can get double the sum assured under this plan. 
2. New Jeevan Anand-It is an endowment plan offering protection along with savings. It is a participating non-linked plan.  It offers liquidity throughout the policy tenure. It not only protects against death but also provides for a lump-sum payment at the end of the policy in case of survival of the insured.  Sum assured plus vested simple reversionary bonuses are provided. If you opt for this policy, you can participate in the profits of LIC and receive bonus declared by the company.  It provides maturity benefits as the basic sum assured and vested bonuses. Also an additional bonus at the end of the term of the policy.  The policy holder has an option of regular payment of premium. Added top-up covers are available as riders on payment of a nominal premium amount. 

3. Jeevan Shanti-It gives an option to select between immediate and differed annuity. It has ten different annuity options to suit your investment goals. Out of them two are available for life cover. Within differed annuity plan also, two options are available to cover against any risk one might encounter in life. The sole purpose of LIC Jeevan Shanti is to offer prospective customers various insurance options. If you have opted for an annuity option with return of purchase price, the policy can be surrendered after three months from its completion. It is available both online and offline. Annuity rates are fixed at the inception of the policy term. These are guaranteed for both types of annuity plans which are payable throughout the lifetime of annuitants. You can also avail a loan after completion of first policy year. The policy is more suitable for those with handicapped dependent. An individual can either withdraw the pension immediately or delay the same with returns. 
4. Jeevan Labh-It is a non-linked, with-profits traditional endowment, limited premium paying investment plan. Thus, you don’t have to pay the premiums for the entire duration of the term of the policy. The premium payment term gets decided automatically based on the policy term. Age at which you are taking the policy is the base of your annual premium. It comes with the facility to opt for riders. It provides protection and savings. Along with death benefit it allows maturity benefit as a lump sum amount to be paid to the policyholder after the completion of the plan. Loan facility is available against it. Policy holders get simple reversionary bonuses subject to conditions. Final additional bonus is payable during claim settlement in case of the policyholder’s death or maturity of the policy. 
5. Jeevan Umang-The plan is good for those who want a pension facility post retirement. It gives annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on death of the policy holder during the policy term. It is a rare policy giving life coverage for 100 years. Among other benefits simple reversionary bonus and final additional bonus, 8% of the sum assured every year is paid as money back on survival at the end of the policy tenure. The policy holder has an option of availing rider benefits for death and disability, term insurance and critical illnesses.

Note that all the above policies are eligible for tax exemption on the premium paid and claim settlement under Section 80C and 10(10D) of the Income Tax Act. Also, it is advisable that you should study the policy features, other terms and conditions before buying one. That way you can optimize your benefits and can know more about the inclusions and exclusions in detail. 

Everyone’s choice is unique and LIC’s Insurance plans are wider enough to meet all your criteria. You can choose from them as per your goals. 

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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