LIC best life insurance plan, better choice

Imagine you are the only bread earner in your house and your whole family is dependent on you. it’s like you are the engine of the train. You are the one who fulfills all your family needs.. What will happen if you somehow stop earning or you get retired?. Who will support you financially? It is scary to imagine…right?

We have to look at Life insurance(LIC for example) to avoid such situations in the future. Life insurance is a financial safeguard against unexpected events such as Accident, Death and any kind of disability. When human life is lost then the whole family dependent on that person loses source of income. So, buying life insurance will financially support your loved ones even when you are not around to help them. India’s one of the best Life insurance is LIC. We will look at LIC plan and their benefits, it’s plans and benefits and at last you will be able to decide which LIC plan is best for you.

What is LIC ?

LIC stands for Life Insurance Corporation. LIC is owned by Indian Government with its headquarters situated in Mumbai. It is India’s oldest life insurance company and to everyone’s amusement it was started nearly 100 years ago. LIC guarantees full protection against risk of death of insured person. LIC has many Life insurance plans for your flexibility. You can choose which ever plan you thin is good for you. The company has hundreds of offices all across India. It has nearly 13+ lacs agents working for it. LIC has nearly 2000+ branch offices, 113 divisional offices all over India. So their service is well reached and well connected with millions of customers.

LIC ‘s Insurance plans:

LIC’s Jeevan Umang

LIC’s Jeevan Umang is a whole life insurance plan which means the plan covers for all the risks that come across policy holder for 100 years. The plan offers income as well as protection to your family. Jeevan Umang policy pays not only Death benefits and maturity benefits but also survival benefits to the insured person and his family. There are four different policy terms of Jeevan Umang –15 years, 20 years, 25 years and 30 years. The minimum sum assured to the insured person is 2 lacs.

Jeevan Umang plan Benefits:

  1. After the death of insured person, for the first five years the policy will pay “Sum assured on the death” to the insured persons family.
  2. After the five years of the death of the insured person but before the date of expiry of the insurance the policy pays “Sum assured on death” and loyalty addition .
  3. Survival Benefits:-If the policy holder survives even after the end of policy payment then the policy will pay annualize premium (which is 8% of total sum assured) to the insured person till his/her death.
  4. Death Benefits: In case insured person dies before he turns 100 then policy will pay death benefits to the nominees. Death Benefits includes total sum assured, plus simple revisionary bonus and final additional bonus.

ALSO READ: Best Health insurance in India

LIC’s Bima Jyoti plan and its benefits

LIC’s Bima Jyoti is a non linked plan which means the money you pay for the policy will not be invested in equity market. So the ups and downs in the market will not affect your total sum assured. It is a limited premium payment plan that means premium payment term is less than policy term. There are six policy terms- 15, 16, 17, 18, 19, 20 years.

Benefits of LIC’s Bima Jyoti plan:

  1. Maturity Benefit:- If in case the insured person does not die during the policy term the insurance company gives “sum assured on maturity” along with some additional benefits to the insured person.
  2. Death Benefits:- if the insured person dies within the policy term then insurace company will pay “sum assured on death” to nominees. The sum assured on death is equivalent to 125% of the basic sum assured. The payments are usually done in installments.
  3. Rider benefits:- The following riders are available in this policy:
    • LIC’s accidental death and disability benefit rider.
    • New term assurance rider.
    • LIC’s accident benefit rider.
    • new critical illness benefit rider.
    • premium waiver benefit rider.

Also Read:- All plans of LIC

New Jeevan Anand plan and its benefits

LIC’s New Jeevan Anand is a whole life policy. The minimum age required to buy New Jeevan Anand is 18 years and maximum of 50 years. the policy term varies from 15 years to 35 years. and the minimum sum assured in this policy is ₹5,00,000. There are various options of premium payments- monthly, quarterly or yearly.

New Jeevan Anand Benefits:

  1. Maturity benefits:- The policy will pay “sum assured on maturity” along with simple bonus to the insured person. The maturity benefit is more if the policy term is also more. The nominee can choose how to receive Maturity benefits either in installments or lumpsum.
  2. Death Benefits:- If the person dies after policy term then the policy will pay “sum assured on death”(sum assure on death is 125% of basic sum insured) to the nominees. if the person dies during the policy term then policy will pay “sum assured on death” along with revisionary bonus and final additional bonus to the nominee. The policy will cease to exist when policy pays all the insured money to the nominee.

Above explained are the three popular LIC plans which are pretty good as compared to other company policies. You might have got idea about these plans and their benefits

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