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  • LIC New Plan Policies to invest in 2019 – The Complete Guide

LIC New Plan Policies to invest in 2019 – The Complete Guide

 

Five Things to Consider before buying a New Insurance Policy

Buying something substantial needs a lot of careful planning and execution. It is no different when you decide to buy a new insurance policy. So here are the few considerations that you must keep in mind before purchasing a new insurance policy –

Decide what to buy – There are various types of plans available in the market. Some are simple investment plans whereas some are investment cum savings plans. Some may give you accident cover whereas others may not. There are various criteria on which we can segregate multiple policies available in the market. So, you must decide what to buy according to the result that you desire to get out of it.

Determine the Policy Period – You must choose your policy period wisely. It can be term insurance or life insurance. In term insurance, you will receive the maturity amount after the specified period, whereas in life insurance, your nominee will receive a lump sum on your death. The term of a policy primarily depends on your current age and how far you are from your retirement.

Understand Policy Benefits – Now every policy offers the same set of benefits. Most policies have their own specific set of features. So, we must read the offer documents carefully before zeroing on the policy that is most suitable for our family and us. It is imperative to understand the policy terms to reap maximum benefit from it.

Choosing a beneficiary – Choosing a nominee is a tricky affair. There are several things that you must keep in mind while selecting a nominee for your policy. Try to avoid minor as a beneficiary and always remember the purpose of your policy while designating a beneficiary. Ensure that you have all the corners covered while finalizing one for your policy.

Talk to a trusted LIC advisor – There may be many people around you who claim to give the best pieces of advice to others. It can be true, and it can be false as well. But why do you need to try your luck when you have the ever-trusted set of LIC advisors always waiting to help you out? Just click on the link here to visit our official LIC Advisor page to contact one of them to advise you.

What are the most popular LIC plans?

There are various plans that LIC has introduced to cater to multiple requirements of human beings. Some of the most notable ones are –

Child Insurance Plan

LIC New Children’s Money Back Plan :

Post School Education has increasingly become a costly affair and parents need to shelve a significant part of their savings to ensure that their children get an excellent medium to turn their dreams into reality. Children’s Money Back Plan saves you from this expenditure by paying a specific part of the Sum Assured when your child attains 18, 20 and 22 years of age. Balance is paid on maturity along with any bonuses as applicable.

Eligibility Criteria –

  • Survival Benefit – 20% of the Sum Assured on 18th, 20th and 22nd year of your child
  • Minimum Entry Age – 0 years
  • Maximum Entry Age – 12 years
  • Minimum Premium Amount – Rs. 24,000
  • Minimum Sum Assured – Rs. 1,00,000
  • Maturity Age – 25 years
  • Death Benefit – Not less than 105% of the premium amount paid till death
  • Loan Facility and Surrender Value available after 3 years of full premium payments
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

Money Back Plans

LIC Money Back Plan 20 Years :

This policy is quite famous amongst people looking for regular support in their life. Money Back Plan 20 years is a plan with scheduled payments and bonus facility. You are eligible to receive a certain sum after certain intervals. You can attach various riders like accidental benefits and disability benefits with this policy as well.

  • Survival Benefit – 20% of the Sum Assured at the end of 5th, 10th, 15th and 20th year of the policy
  • Minimum Entry Age – 13 years
  • Maximum Entry Age – 50 years
  • Maturity Age – 70 years
  • Minimum Sum Assured – Rs. 1 Lakh
  • Maximum Sum Assured – No Limit
  • Death Benefit – Sum Assured along with bonuses (if any)
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

In addition to LIC Money Back Plan 20 Years, LIC also offers LIC Money Back Plan 25 Years. Have a look at it here.

Pension Plans

LIC Jeevan Akshay Plan VI :

This policy is for people who have a lump sum amount of savings and are looking to invest it securely to get regular returns out of it. LIC Jeevan Akshay Plan VI is a one-time payment policy with regular pay-outs. This plan is available for both single and joint life. The assured receive the routine returns till he/she/they are alive.

  • Minimum Age – 30 years
  • Maximum Age – 85 years
  • Premium – Single Payment
  • Minimum Payment – Rs. 1 lakh
  • Maximum Payment – No Limit
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

LIC also has another plan that is quite famous under its Pension Plans, LIC Jeevan Shanti Plan. You can know more about it by clicking on the link here.

LIC Jeevan Labh Plan :

A traditional, non-linked plan, LIC Jeevan Labh Plan provides support to the family in case of sudden death of the insured life. This plan also has the benefit of riders’ attachment like Accidental Death and Disability Rider.
Minimum Age – 8 years of a completed life

  • Maximum Age – 59 years
  • 59 years for 16 years policy term
  • 54 years for 21 years policy term
  • 50 years for 25 years policy term
  • Minimum Sum Assured – Rs. 2 lakh
  • Maximum Sum Assured – No Limit
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

Premium –

  • 10 years for 16 years policy term
  • 15 years for 21 years policy term
  • 16 years for 25 years policy term
  • Loan Facility and Surrender Value available after 3 years of policy completion

LIC Jeevan Anand plan:

LIC Jeevan Anand Policy is a participating, non-linked endowment cum whole life plan. This plan is trendy among the masses as it allows free life cover even after its maturity, in addition to tax savings. This plan also allows you to share the profits of LIC in the form of a revisionary bonus.

  • Minimum Entry Age – 18 years
  • Maximum Entry Age – 50 years
  • Maturity Age –75 years (Maximum)
  • Minimum Sum Assured – Rs. 1 Lakh
  • Maximum Sum Assured – No Limit
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

LIC Jeevan Lakshya Plan:

LIC Jeevan Lakshya Policy allows the insured to fulfil their objectives during their lifetime and even after their death. This policy has an Annual Income option which allows some financial security to the nominee of the policy. This plan for more preferable for you if you have a girl child. It is famously known as Kanyadaan Plan in North India.

  • Minimum Entry Age – 18 years
  • Maximum Entry Age – 50 years
  • Maturity Age –65 years (Maximum)
  • Minimum Sum Assured – Rs. 1 Lakh
  • Maximum Sum Assured – No Limit
  • Tax Benefits – Exemptions available under Section 10(10D) and Section 80C under Chapter VIA Deduction of The Income Tax Act, 1961

LIC Jeevan Umang Plan is also a good option if you are looking to invest in Tax Savings Plans. Here is the link to the policy page if you are interested in having a look at it.

LIC tries to ensure that every query regarding their policies is answered professionally by their team of experts within a reasonable period. So, what are you waiting for? Get a new plan today to secure your family’s future. You can contact us regarding any queries that you may want an answer to by clicking here.

FAQs
1. How do I apply for a loan on my policy?
You can contact your nearest LIC agent in case if you want to avail a loan on your policy. You will need some supporting documents to ensure that the loan process is smooth and quick. Documents required are:

  • Original Policy bond
  • PAN Card copy
  • One cancelled chq.

Getting a loan from existing LIC policy is very easy. Loan amount once sanctioned would be directly credit to your Bank account within 2 to 3 day. Policy Bond would be returned to the policyholder after clearing the Loan completely.

2. How do I increase/decrease the insurance cover in my policy?
Unfortunately, if you want to increase/decrease the insurance cover in your policy, you will have to opt for a new plan. This is not possible in the existing plan. This is because the premium amount consists of various factors like age, risk, occupation, income, etc. If you suddenly decide to change your policy cover, the premium amount will have to be re-calculated which is not a feasible option because of its dynamics.

3. How do I change the Premium Payment frequency in my policy?
Policyholders get the option to pay their premiums monthly/quarterly/half yearly/annually. If they have opted for a specific option initially and they want to change it afterward, they can do it quickly. All they need to do is to contact their Agent or meet the LIC officer of home Branch and submit a request along necessary documents.

4. I am 25 years old. Which policy should I choose?
LIC offers a plethora of policies that have been developed keeping in mind the various requirements of an individual. So if you are looking to save your taxes, you can opt for Tax Savings Plans. Similarly, if you want to secure your after-retirement life, you can go for Pension Plans. There are many plans across various categories. You can click on the link here to check out all the available policies for you.

5. What are the best policies for short term return?
You can invest in Short term policies available for 10 and 12 years of payment. These short-term plans not only to provide life insurance they also provide tax benefit under section 80C of the Income Tax Act.,

6. How do I calculate the Surrender Value of my LIC Policy?
Surrendering your policy is not suggested unless you need some quick cash and you have no other source to get it. Some plans allow partial as well as complete surrender. Surrender value is the higher of Guaranteed Surrender Value and Special Surrender Value.

Guaranteed Surrender Value is only applicable if you have completed 3 years of the policy. It is 30% of the total amount of premium paid excluding the premium paid in the first year of the policy.
Special Surrender Value is

  • 80% of Maturity Sum Assured if the premium has been paid for more than 3 years but less than 4 years.
  • It is 90% of Maturity Sum Assured if the premium has been paid for more than 4 years but less than 5 years
  • 100% of Maturity Sum Assured if the premium for 5 or more years is complete

How do you calculate the Maturity Value?
Maturity Value is the total of Maturity Sum Assured along with any bonuses that are a part of the policy.