Best LIC Plans to Buy in 2023- An Expert Guide
Life is about money and money is one of the most crucial things to survive. To ensure financial stability in one's life, buying an insurance plan from Life Insurance Corporation is the best way. LIC has to offer an array of plans & policies that the policyholders can choose according to their needs.
While the terms & conditions of each policy or plan may be different, they all serve the same purpose. And that aim is to provide financial benefit to the loved ones when you die. But how do you choose the best life insurance plan for yourself?
Well, there are a few factors that you should consider before you buy a LIC policy.
- 1 Age
- 2 Gender
- 3 Health Condition
- 4 Budget
- 5 Current Financial Situation
It is one of the critical factors that decide on which policy you can or should buy. There are certain age limits for some policies. In some cases, you need to be at least 18 years old and for some plans, your maximum age is 60.
It is commonly believed that women’s life expectancy is higher than men's. Thus, the policy on women’s names is less costly compared to that of men.
Before you purchase a policy, you need to undergo a physical examination to check your health status. And a healthier person’s insurance will be less expensive than that one who is unhealthy.
The next thing to consider is the cost of life insurance, permanent life insurance is costlier as compared to a term policy. The reason behind this is the policy is just for a specified duration. You may not want to buy a policy that does not reap the maximum benefits and even costs you more. So choose the plan wisely.
You need to have a clear picture of your financial situation before determining the type and amount of life insurance you require. Consider what you have in place to support loved ones who are financially dependent on you.
LIC Jeevan Amar Plan
LIC Jeevan Amar's policy is one protection plan that offers financial security for your family. It was introduced in 2019 by the Life Insurance Corporation of India. It is a non-connected, non-active, profitless policy that is only available online.
- The sum assured can be increased, and there is a level sum assured option
- Death benefits may be paid in installments or as a lump sum.
- Coverage for the higher risk is available.
- This plan does not include a maturity amount.
- The policyholders can select the premium payment terms and the policy terms.
- Premium rates are divided into two categories: smokers and nonsmokers.
- Even if the policyholder dies during the policy term, the death claim amount is payable to the beneficiary.
- Death Benefits
When the policyholder dies, his family receives a lump sum payment as a death benefit. For regular and limited premium policies, the 'Sum Assured on Death' will be the greater of:
- 1105 percent of total premiums paid as of the date of death; or
- 2 The actual amount guaranteed to be paid upon death; or
7x the annualized premium For a Single premium, the 'Sum Assured on Death' will be the highest of:
- 1The actual amount assured will be paid upon death.
- 2 125% of the Single Premium
- Entry age 18-65 years
- Policy term; Maximum- 40 years & Minimum- 10 years
- Sum Assured: Maximum- 25,00,000 & Minimum- no limit
- Maturity Age- 80 years
The policyholder can avail of LIC’s Accident Benefit Rider under the limited and regular payment options by paying an additional premium during the policy term, provided the minimum remaining premium paying term is five years.
Advantage of maturity
At the end of the policy term, the policyholder receives no maturity benefit.
LIC Jeevan Umang Plan
The LIC's Jeevan Umang Plan is a traditional whole-life insurance plan with enormous profits. It offers a regular payout from the end of the premium payment term till the date of your survival. If you are looking for financial stability with LIC, then LIC Jeevan Umang Plan is ideal for you. It also provides income protection to policyholders and those who rely on the individual. It is a non-linked but participative policy.
- Coverage for the lifetime i.e. 100 years.
- 8% of the sum is paid each year as money back on survival at the end of the policy term.
- A large sum is assured and available under this plan.
- The plan offers the combined benefits of regular income and insurance coverage.
- The plan offers an option to choose from different premium paying terms that is 15 years, 20 years, 25 years, and 30 years.
- Death Benefits
If the policyholder dies before the policy's maturity date, the nominee will receive a lump-sum payment based on the following terms:
- Death before the start of the risk: The amount paid out will be the total amount of premiums paid, excluding interest and any additional charges. Any additional fees that is charged for add-on riders or underwriting decisions will be reimbursed.
- Death after the start of the risk: The payout will be ten times the annualized premium, the sum assured on maturity, or the basic sum assured. The amount cannot be less than 105 percent of the total premiums paid.
If the policyholder lives until the maturity date, he or she receives a lump sum payment. It consists of the basic sum assured, reversionary bonuses, and final additional bonuses.
To supplement the coverage of their LIC Jeevan Umang insurance, policyholders can purchase any of the following add-on riders:
- Rider for accidental death and disability benefits
- Rider benefits from an accident
- Term guarantee rider has been added.
- A new critical illness benefit rider has been added.
Policyholders are only eligible for a loan during the policy period if their plan has a surrender value. On such loans, interest rates apply, and the rates are revised at regular intervals. Only if the policy premium is paid in full can a loan be obtained.
- Entry age: Minimum- 90 days & Maximum- 55 years
- Policy term: 100 years
- Sum Assured: Minimum- 2,00,000 & Maximum- no-limit
- Maturity Age- 100 years with the nearest birthdays
- Policyholders must be at least 30 years of age at the end of the premium paying term.
- Policyholders can be up to 70 years of age at the end of the premium paying period.
To conclude, we live in interesting times - interesting yet volatile! In such times, where there are no guarantees on life, Life Insurance is the only assurance that you have to guard you and your loved ones against the unknown and the unforeseen. Thus, it is advisable to choose the plan wisely that suits your needs & requirements.