LIC Insurance Plans Overview
Life Insurance Corporation of India is the King Player in India’s Life Insurance sector.
LIC was the only one company authorized for Life Insurance Business till before globalization of Indian Economy.
Life Insurance Corporation of India has its customers present in all over India, from rural India to Urban India. In India, LIC is the Synonym for Life Insurance.
It has reached throughout India offering a wide variety of plans.
Generations of families are getting benefited by associating with LIC as a Life Insurance Customers.
In the Twentieth Century, many companies have entered into India’s Life Insurance market.
Though the completion has on the rise, the company has evolved with its wide range of product portfolio.
It also brings some of the best plans to its customer for maximum life insurance coverage at a very affordable possible cost.
We will discuss here the best LIC policy offered under term plan, child plan and retirement plans.
In this article, we will take a brief look regarding various LIC Plans:
- LIC Term Plans
- LIC Child Plans
- Retirement Plans of LIC
- LIC plans for women
Also read: What is term insurance
A) LIC Term Plans
- The Term Plans from LIC Term insurance policy offers the policyholder a life cover for the duration of the policy tenure.
- In the event of policyholder’s death, during the policy tenure, the nominee will be paid a lump sum death benefit by the insurer.
- LIC term life insurance plans have the most affordable premium rates. Thus one can opt for a high sum assured at a competitive rate.
- Some of the LIC insurance policies can be purchased directly through the company’s website, Customer is not required to visit a company branch or go through an agent.
- Specific LIC’s term insurance plans offer low premium rates for non-smokers.
The below table is helpful to understand best term insurance plans from LIC.
LIC’s Amulya Jeevan can provide maximum sum insured having no limit.
Thus one can get 1 crore life cover insurance policy LIC by purchasing this plan.
|Plan Name||Age of Entry||Maturity Age||Policy term||Premium payment mode||Sum Assured|
|Amulya Jeevan-II||18-60||70 Yrs||5-35||Yearly/Half Yearly||25 Lakhs Maximum No Limit|
|Anmol Jeevan-II||18-55||65 Yrs||5-25||Yearly/Half Yearly||6 Lacks -24 Lacks|
|LIC E-Term Plan||18-65||75 Yrs||5-35||Same as Base Plan||10 Lakhs- 25 Lakhs|
a) LIC’s Amulya Jeevan II Plan:
This is the LIC term insurance plan that offers financial protection to the family of the policyholder in the event of his/her unfortunate death.
This is an income protection plan and does not provide any maturity benefit.
The plan offers higher value life cover at an affordable premium.
This plan doesn’t provide any maturity or survival benefit since it is designed to provide life cover only.
LIC Amulya Jeevan is pure term insurance policy with high sum assured which is primarily for protection only.
Amulya Jeevan Term Insurance will guarantee entire Sum assured, in case of insured’s death but nothing is payable on maturity.
The product is useful for the high amount of sum assured requirements.
Key Features under LIC’s Amulya Jeevan Term Insurance Plan:
- This is a basic term Insurance Plan
- In this LIC plan death cover is available
- Maturity benefits are not provided.
- Benefits of tax savings are offered
- The policyholder can pay the premium on a yearly or half-yearly basis.
Benefits of Amulya Jeevan LIC Plan:
- It offers Life cover at a nominal premium
- Policy can be assigned in case of Amulya Jeevan Term Insurance II plan
- Minimum cover is Rs. 25 Lacs.
- Income tax benefits are applicable.
- Cooling period is offered under Amulya Jeevan Policy.
- Grace Period and Policy revival options are available under this term plan.
Amulya Jeevan LIC Term Policy Details:
- Age of Entry: Minimum 18 to Maximum 60 Yrs
- Age of Maturity: Maximum 70 Yrs
- Policy term is Minimum 5 Yrs to Max 35 Yrs.
- No limit on the maximum sum assured.
- Cooling period is offered under Amulya Jeevan Policy.
- Grace Period and Policy revival options are available under this term plan.
b) LIC Anmol Jeevan Term Insurance Plan:
This is a pure risk plan without any maturity.
The particulars of this policy are the least premium & highest cover.
The minimum Risk cover will be offered is Rs 5 lac and maximum Risk cover offered is Rs 24 lac.
The high-risk cover is offered at least premium.
Risk Cover: Rs. 5 Lacs to Maximum 24 Lacs
The tax benefit is offered under section U/S 80(C).
Premium is less if the policy term and the age of the proposer are less.
Anmol Jeevan LIC Policy Details:
- If the policyholder dies during the term of the plan, the sum assured shall be paid to the nominee
- LIC’s New Term Assurance Rider can be added to this policy. Under this rider, if the policyholder dies during the term of the plan, an additional amount, equal to the sum assured, shall be paid to the nominee. This means the nominee gets double the sum assured.
- In case of suicide within 12 months of buying the policy or renewal, no death benefit shall be paid, but 80% of the total premiums paid shall be returned to the nominee.
- Income tax benefit shall be available under section 80C and section 10 (10) D
Also check out our blog on Term Insurance advantage & Benefits
c) LIC e-Term policy (LIC Policy Online)
- It is a single LIC online term plan.
- No Maturity Benefits are applicable, because this is pure term plan.
- In this LIC online term insurance plan Income tax benefits are applicable as per rules.
- LIC e term policy is very economical, as there are no mediators. Therefore the premium is affordable.
- In the event of policyholder’s death during the term of the plan, the nominee will receive the sum assured as per policy documents.
- Tax benefits are applicable.
LIC e- Term Policy Details:
- Age of Entry: Minimum entry age is 18 years, up to 60 yrs of age.
- Maturity Age: Here age of maturity is 75 yrs. But no maturity benefits are available as this is pure term plan.
- The term of policy will be a minimum of 10 Yrs and maximum of 35 yrs
- Premium should be paid on yearly basis.
- Sum Assured will be Rs. 25 Lakhs for if the person is from Aggregate category. For No-smoker the sum assured will be 50 Lacs and there is no Maximum limit
d) Term Insurance Riders offered by LIC
Following is the term insurance rider available with any non-linked term plan:
New Critical Illness Benefit Plan Rider:
|Age of Entry||Min 18 Yrs and maximum 65 Yrs|
|Maturity Age||Maximum 75 Yrs|
|Min and Max-Sum Assured||1 Lac- 25 Lac|
|Premium term||5 Yrs- 35 Yrs|
|Policy Term||10 Yrs- 35 Yrs|
|Diseases Covered||Cancer, Kidney Failure, Stroke, Blindness, Third Degree Burns, Open Chest CABG etc.|
|Death Benefit||Sum Assured will be paid to the nominee|
|Maturity Benefit||No Maturity Benefit.|
Also read: SBI Life Insurance
B) LIC Insurance Plans (Child Plans)
The Child Insurance plans offered by LIC gives due attention to the child’s needs as they protect the child’s future.
LIC Child Plans secures the future of a child and the encouragement to pursue his/her life goals.
Even after the death of the parent, it protects children against uncertainties and provides the parents with an opportunity to build on the savings.
Besides, LIC Policy for a child is having dual benefits of both insurance and savings.
a) LIC’s New Children Money Back Plan:
This is a traditional LIC money back policy is useful for a child’s future at various steps in life like his/her education and marriage.
Following are the best lice policy for the child:
LIC New Children’s Money Back Plan Table:
|New Children’s Money Back Plan – Eligibility Conditions and Features|
|Entry Age||0 years(last birthday)||12 Years (Last Birthday)|
|Sum Assured||Rs. 1,00,000||No Limit|
|Entry Age (PWB Rider)||18 Years (Completed)||55 Years (Nearer Birthday)|
|Policy Term||25 – the age at entry (Years)|
|Scope for Premium Paying Term||25 – the age at entry (Years)|
The New Children’s Money Back Plan is a tailor-made plan to achieve milestones like higher education, marriage, etc. by planning for the finances well in advance.
These plans help against rising education expenses.
Salient features and benefits:
- Parents or guardians with children below 12 years of age can buy the policy.
- Policy term is up to 25 years of child’s ageless age at policy purchase.
- No Maximum limit is applicable to the sum insured, payable along with additional bonuses and maturity benefits
- Survival benefits are available. It is paid back along with incentives at the rate of 20%
- The premium paying option is monthly/ quarterly/ half-yearly / yearly as per the discretion of the policyholder
- Attractive rebates will be provided on payment of high premium amounts
- Bonuses will be paid as per corporate profits earned by LIC of India.
- Tax benefits can be availed under Section 80C of the Income Tax Act, 1961
- Premium waiver rider option is available
- If Policyholder dies during the deferment period, the entire premium amount is returned to the nominee.
- In the event of a lapse of policy, revival is possible on payment of the entire sum due within two years of the first unpaid premium
- Loan facilities can be availed on this plan.
- The policy can be surrendered after 3 years of the start of the policy.
b) LIC Jeevan Tarun Plan
The Jeevan Tarun Plan is a limited premium payment plan that is a healthy mix of insurance and savings for the child’s future.
It is a unique product that will enable the parents to fulfill his/her dreams of education as per his interest/ wish.
|Option||Survival Benefit||Maturity Benefit|
|1.||No survival benefit. Nothing will be paid.||100% of Sum Assured|
|2.||Total Sum Assured amount 5% will be paid for 5 years each year||75% of the Sum Assured|
|3.||Total Sum Assured amount 10% will be paid for 5 years each year||50% of the Sum Assured|
|4.||Total Sum Assured amount 15% will be paid for 5 years each year||25% of the Sum Assured|
Salient features and benefits:
- Traditional child plan which is a blend of Endowment Plan and Money Back Plan.
- Parent or grandparent of the child between 0 and 12 years of age can become the policyholder
- There is no limit on the maximum sum assured for the plan
- Premium payment options are flexible, along with a free lock-in period of up to 15 days, so policyholder should return the policy if it does not meet his/her objectives.
- It Offers LIC premium waiver benefit rider
- Loan facility against the policy is available after it has reached a surrender value
- An annual survival benefit for children between ages between 20 and 24 years. It is available in four options ranging from 5% to 15% every 5 years on the sum assured.
- This child plan offers maturity benefit, in the range of 25% to 100% sum assured. This can vary on the basis of the selected policy option.
- This plan becomes null and void in case of suicide during the policy term.
- Survival benefits are also available under different options in the range of 5% to 15%, for the sum assured every year for 5 years.
- The survival benefit is payable annually to the policyholder, beginning from the completion of 1 year of the policy.
- Add-on rider is available after paying an additional premium payment.
- The policy can be revived within a time frame of 2 years after first unpaid premium
- Tax benefits are applicable under Section 80C of the Income Tax Act.
- Maturity benefits can get availed under Section 10(10D) of the Income Tax Act, 1961.
Also read: Max Life Insurance
C) LIC Retirement Plans
a) LIC’s New Jeevan Anand plan
It is amongst the LIC policy plans that offer insurance coverage for the entire life of the insured person.
In this endowment plan, Sum assured will be paid along with bonus and Final Additional Bonus at the policy end date, but the policy cover will be continued till the death of the life insured or they complete 100 yrs of age, whichever happens, earlier.
If the life insured survives until his 100th age, a sum assured will be provided to him at the end of his 100th age.
If the insured person dies before the completion of his 100th age, a sum assured will be paid to his nominee.
Risk cover is for the life of the insured person for his overall life.
Accidental Death Benefit rider is an option available with payment of Rs.100/- per 1 Lakh sum assured per year. This optional benefit if opted gives the double benefit (Twice the sum assured) to the nominee in case of accidental death.
b) LIC New Endowment Policy
It is a pure investment plan offering retirement benefits with high bonus and liquidity
The Sum Assured along with bonus and final additional bonus (if any will be paid at the end of the policy term.
This plan provides for disability benefit within it, where the future premiums would be waived off in case of permanent disability during the policy term.
The Personal accident benefit is applicable in the same way as that of Jeevan Anand Policy.
c) LIC Jeevan Shanti Guaranteed Pension Plan
It is a single premium annuity plan that came with various options.
It’s a one-time investment plan that comes in two options – immediate annuity or deferred annuity.
There is a number of options available in immediate annuity plan and in deferred annuity plan two options are available.
The plan should get purchased for the insured person’s life or jointly with his grandparent, parent, spouse, sibling, grandchildren or children.
The annuity rates are guaranteed at the time of inception of the policy.
In case of both the plans, annuities are payable throughout the lifetime of annuitants.
The plan can be purchased online as well as offline.
Loan facility to be applicable after the completion of 1 year of the policy.
A policy loan is available under both the options of the deferred annuity plan.
Following is the eligibility criteria for LIC Jeevan Shanti Guaranteed Pension Plan:
1) The minimum age of entry is 30 years.
2) Maximum age for an immediate annuity is 85 years
In a deferred annuity, it is 79 years.
3) Minimum deferment period is 1 year, while the maximum deferment period is 20 years
4) Minimum annuity amount is Rs 1,000 per month, Rs 3,000 quarterly, Rs. 6000 half-yearly Rs. 12,000 annually.
The upper limit of the maximum annuity is not applicable.
5) The basic purchase price of the policy is Rs 150,000.
There are certain exceptions where this limit is exempted.
e.g. If the insured has any handicapped dependent, then the minimum purchase price is Rs 50,000 and if the plan is purchased by NPS subscribers, no maximum upper limit is there.
Also read: HDFC Life Insurance
d) The retirement plan for a short period
These LIC plans also come under LIC retirement plans.
These are LIC short-term policy offering life cover and retirement benefits.
LIC Plans for 5 years:
- Jeevan Akshay VI:
This plan is recommended for customers who wish to avail retirement solutions by paying a one-time lump-sum amount.
Annuity payment interval (pension) can then be chosen by the policyholder and it can be chosen as monthly, quarterly, half-yearly and yearly options
- LIC’s New Jeevan Nidhi:
This is a traditional insurance plan that offers benefit to policyholders.
It can be purchased in one single premium and it offers death benefit in the form of an annuity to the nominee and also offers maturity benefit in the form of annuity if the policyholder survives after policy tenure.
D) LIC Policies for Women
Following are the best LIC policies for women:
- LIC e-Term Policy
- New Jeevan Anand Plan
- LIC Jeevan Bharti-I
- Jeevan Lakshya
- Health Plus
We have already covered the LIC e-Term Policy and LIC Jeevan Anand Plan.
This both plans are the same for both Male & Female Participants.
We will look at remaining LIC Plans designed for women.
a) LIC Jeevan Bharati – I Plan:
- This life insurance policy is designed only for women.
- LIC Jeevan Bharati –This is a money back plan, hence concerned female policyholder is assured regarding the regular payouts from LIC.
These payouts will be at a regular interval of time against that of in the form of lump sum payment at the end of the year.
This is a very important feature as a steady income is very important in order to continue livelihood.
- The policyholder can use the maturity amount to purchase an annuity.
- The female policyholder enjoys the benefit of the survival benefit of 20% of the sum assured for every 5 policy years.
- At the maturity of this policy, a maturity benefit is paid in the form of the remaining sum that is assured along with bonus amount to the customer.
The customer can also choose 3 additional riders as an add-on benefit as follows:
- Critical Illness rider
- Accident Benefit rider
- Congenital Disabilities benefit rider
These riders are very important for women as it covers disease like cancer, common female disease, childbirth problems etc.
Also read our blog on Birla Sun Life Insurance
b) Jeevan Lakshya LIC Policy for women:
- It is one best LIC plan for women launched recently.
- In case of death, this plan offers an annual income to the family which is very important.
In the case of survival at the maturity of the plan, it will provide a survival benefit.
- Jeevan Lakshya is a traditional LIC plan; hence the premium term of the policy is 3 years less than the policy term.
- Premium option is provided as monthly, quarterly, every six months and annually.
- Maturity amount is free from any tax.
LIC plans Jeevan Lakshya offer two optional riders as below:
- Disability and Accidental Death plan in LIC
- LIC Assurance rider for the New Term
c) Health Plus LIC Policy for Women:
This plan is the best plan for women, but cannot be considered as a life insurance plan.
Women’s LIC Health Plus plan the one and only long-term health insurance plan that combines the health insurance which covers of the entire family – wife, husband and the children.
- The plan offers benefits like hospital cash and major surgical benefits along with the ULIP component.
It helps to meet the domiciliary treatment-related expenses of the customer and other insured members of the family.
- Premium amount can be paid through ECS.
- Death Benefit is not available under the plan. In case of death of the policyholder, the Amount of units held in the policy fund is payable to the nominee or legal heir(s) of the principal insured.
- In the case of Pre-existing diseases, the policyholder is excluded from Health Plus policy benefits.
LIC Policy Online
The few of the LIC policies can be purchased online.
The policyholder can check his policy status, premium payment, claim status online.
Below is the snapshot of the LIC term plan Premium Calculator.
This calculator can provide online life insurance quotes.
Below is the simple calculator for getting LIC Quotes.
Premium Calculator for LIC Amulya Jeevan Term Plan
LIC Online Plan
For accessing LIC’s online registration please follow the following guidelines.
Registration for Premier Services:
For a registered user, login with your user-id and password for LIC-Portal.
One can use the LIC Portal by below process
Registration, Printing, and uploading of documents.
Step 1—Filling up Registration Form:
Basic details including date of birth, mobile no, e-mail id provided at the time of registering as a policyholder will be automatically incorporated in the registration form.
Provide PAN Card or passport details.
All the valid LIC policies enrolled (policies on own life and on the lives of minor children) will be displayed at this stage.
Policies bought in the name of spouse, separate registration will be required to be done.
Step 2 – Print Form
By clicking on Print/Save form and print the registration form. Fill the registration form and sign it.
Scanned image of the signed form should be created and one of the KYC documents (PAN or Passport) should be attached.
The file size should be maximum 100 KB.
The image should be in of the following formats: .bmp, .png, .jpg, .jpeg, .gif, .tiff
Step 3 – Upload Form /Check status
Scanned image of the registration form through the option should get uploaded.
Similarly, an image of PAN Card or Passport should also, get uploaded. Next task is to submit.
SMS or email regarding the acknowledgment gets received.
The request will be sent to customer care for further process.
Also read: Exide Life Insurance
Services activated after validation of request:
Following Services will be activated after validation of documents:
1. Policy and proposal images
2. Claim history
3. Service Request Registration for Online Loan.
LIC Online payment facilities:
The customer can make online payment through the following options.
- Net Banking
- Debit Card
- Credit Card
VISA, Master, and Rupay debit cards will be accepted.
- LIC Policy status
A policyholder can see LIC policy details such as Plan-Term, Sum Assured, Date of commencement, first unpaid premium etc.
- Bonus status
Accumulated Bonus will be shown
- Loan status
Present status will be shown.
- Claims status
The policyholder will able to see Survival Benefit (if any) or maturity benefit due under the policy during the policy term.
- Revival Quotation
In case of policy gets lapsed, revival quotation will be provided.
- Premium due calendar
The policyholder will able to know his premiums due during the year (month wise).
- Premium paid certificate :
The policyholder can see his premium related certificates.
The policyholder can register a complaint with LIC.
LIC Claim Process
In case of death claim, one has to submit the following documents:
- Death certificate.
- Original policy documents.
- ID proof of the beneficiary.
- Age proof of insurer.
- Discharge form (executed and witnessed)
- Medical certificate (as proof for the cause of death)
- Police FIR (in case of unnatural death)
In case of maturity benefits, the policyholder may contact the policy issuing branch office of LIC.
LIC Customer care and Contact Details
LIC Customer Services are now available 24*7 at phone number 022 6827 6827.
For contacting LIC’s concerned branch one should check it from the internet.
The policyholder can opt for the help of LIC Agents or LIC officials to solve their queries and doubts.
These people will be available for solving customer solutions.
Also read our blog on Aviva Life Insurance
Q.1 How can one get the money back in case of lapsed policy?
If 3 years premium is paid, then policyholder is eligible to get surrender value.
It is usually 30% of the premiums paid.
Premium paid for the first year is excluded.
It also excludes any additional premium paid for riders, taxes and any bonus that has been received from the LIC.
Q.2 How the loan will be available against LIC policy?
The loan can be availed only; if the premiums have been paid for three years.
Total 90% of loan amount can be availed on surrender value of LIC Policy.
Q.3 How much sum assured one should take in term insurance?
Sum assured amount depends on the following factors.
It varies according to a number of dependents i.e. investment needs, affordability, and education expenses.
Q.4 How much life cover should be chosen for LIC Policy?
Life cover should be 20 times to current annual income, plus other loans and liabilities amount should be added.
Q.5 Does LIC covers the death under terrorist attacks?
Yes. The death under the terrorist attack is covered for death benefits from LIC.
Q.6 What documents are required for buying an online policy from LIC?
Following are the compulsory documents to be submitted for online policy.
Lists of documents are required to purchase term insurance online. They are listed below.
- Proof of income/ employment
- Proof of age
- Proof of education
- Proof of address – residence and correspondence
- Proof of identity
- PAN Card copy
Q.7 What is the grace period for Paying the premium?
LIC offers 15 days grace period for the policies having a monthly premium.
In other cases, the maximum grace period is generally one month.
Also read: What is life insurance