LIC of India Popular Plans in 2024: LIC Buy New policy

The Life Insurance Corporation of India (LIC) has long been a cornerstone of financial security for millions of Indians. Offering a variety of insurance and investment products, LIC caters to diverse needs ranging from life insurance to retirement planning. Here, we explore some of LIC’s most popular plans in 2024, including Jeevan Labh, Jeevan Umang, Jeevan Akshay VII, and Jeevan Shanti, and address common FAQs about purchasing LIC life insurance plans.

1. LIC Jeevan Labh

Overview: LIC Jeevan Labh is a non-linked, limited premium paying, endowment plan that combines savings and protection. It is designed to provide financial support to the family in case of the unfortunate death of the policyholder at any time before maturity, and a lump sum amount at the time of maturity for the surviving policyholder.

Key Features:

• Policy Term: 16, 21, and 25 years.
• Premium Paying Term: 10, 15, and 16 years, respectively.
• Sum Assured: Minimum of ₹2,00,000 with no upper limit.
• Bonus: Participates in the corporation’s profit by way of simple reversionary bonuses.
• Maturity Benefit: Sum Assured + Bonuses.
• Death Benefit: Sum Assured on Death + Bonuses.

Benefits:

• Death Benefit: The sum assured on death is 10 times the annualized premium or 105% of all premiums paid, whichever is higher.
• Loan Facility: Available after the payment of premiums for three full years.
• Tax Benefits: Premiums paid, and the benefits received qualify for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

2. LIC Jeevan Umang

Overview: LIC Jeevan Umang is a whole life insurance plan providing coverage up to 100 years of age. It is a combination of income and protection to fulfill the policyholder’s long-term and short-term needs.

Key Features:

• Policy Term: 100 years minus the entry age of the policyholder.
• Premium Paying Term: 15, 20, 25, and 30 years.
• Sum Assured: Minimum of ₹2,00,000 with no upper limit.
• Annual Survival Benefit: 8% of the Basic Sum Assured from the end of the premium payment term till maturity.
• Maturity Benefit: Sum Assured + Bonuses.

Benefits:

• Death Benefit: Sum Assured on Death + Bonuses.
• Survival Benefits: Annual payouts after the premium payment term until maturity.
• Loan Facility: Available after paying premiums for three years.
• Tax Benefits: Applicable under Sections 80C and 10(10D).

3. LIC Jeevan Akshay VII

Overview: LIC Jeevan Akshay VII is an immediate annuity plan that offers policyholders the flexibility to choose from ten different annuity options. This single premium payment plan starts offering payouts immediately after the purchase.

Key Features:

• Annuity Options: Ten different options, including immediate annuity for life, joint-life last survivor annuity, etc.
• Purchase Price: Minimum ₹1,00,000 for online sales, with no upper limit.
• Payout Modes: Monthly, quarterly, half-yearly, or yearly.
• Lifetime Annuity: Guaranteed annuity payouts for the lifetime of the annuitant.

Benefits:

• Regular Income: Assured income for life, addressing post-retirement needs.
• Joint Life Options: Provides for the spouse after the annuitant’s death.
• Return of Purchase Price: Options available for return of purchase price on death.

4. LIC Jeevan Shanti

Overview: LIC Jeevan Shanti is a single premium, deferred annuity plan, offering policyholders the option to receive a guaranteed pension either immediately or after a chosen deferment period.

Key Features:

• Single Premium: One-time premium payment.
• Annuity Options: Deferred annuity for single life, joint life, etc.
• Deferment Period: 1 to 20 years.
• Guaranteed Payouts: Fixed and guaranteed annuity payouts.

Benefits:

• Flexible Payouts: Choose the deferment period and annuity options based on financial needs.
• Financial Security: Ensures a steady income post-retirement.
• Joint Life Options: Provides for a spouse in case of the annuitant’s demise.

Frequently Asked Questions (FAQs)

Q1: How do I choose the right LIC plan for me?

A1: Assess your financial goals, risk appetite, and the coverage period you need. Endowment plans like Jeevan Lab hare good for those looking for a combination of savings and protection, while whole life plans like Jeevan Umang offer long-term security. For immediate and guaranteed income post-retirement, annuity plans like Jeevan Akshay VII and Jeevan Shanti are suitable.

Q2: Can I purchase LIC policies online?

A2: Yes, LIC offers many of its plans online. You can visit the official LIC website or use authorized LIC agents’ portals to buy policies. Online purchases can be more convenient and sometimes come with discounts on the premium.

Q3: What are the tax benefits of LIC policies?

A3: Premiums paid towards LIC policies qualify for deductions under Section 80C of the Income Tax Act, up to ₹1,50,000 per annum. The maturity proceeds and death benefits are also tax-free under Section 10(10D), subject to terms and conditions.

Q4: Can I take a loan against my LIC policy?

A4: Yes, most LIC policies offer a loan facility. Typically, loans are available after the policy acquires a surrender value, which is usually after the payment of premiums for three years.

Q5: What happens if I miss a premium payment?

A5: LIC policies come with a grace period, typically 30 days for yearly, half-yearly, and quarterly premiums, and 15 days for monthly premiums. If you fail to pay within this period, the policy may lapse, but it can usually be revived within a specified period by paying the overdue premiums with interest.

Q6: How do I check the status of my LIC policy?

A6: You can check your policy status online through the LIC e-services portal by registering your policy. Additionally, you can contact your LIC agent or visit the nearest LIC branch.

Q7: Are LIC plans customizable?

A7: LIC offers some flexibility in its plans, such as choosing the sum assured, premium paying term, and policy term. Riders for additional coverage, such as accidental death and disability benefits, are also available for many plans.

LIC of India offers a broad range of insurance plans to cater to the diverse needs of individuals. From the savings and protection combination of Jeevan Labh, the whole life coverage of Jeevan Umang, to the retirement-focused annuity plans Jeevan Akshay VII and Jeevan Shanti, each plan has distinct features designed to provide financial security and peace of mind. By understanding these plans and their benefits, policyholders can make informed decisions that align with their financial goals and requirements.