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LIC BEST PLAN

LIC Child Plans

Minimum Maximum
Entry Age 0 years 12 years
Maturity Age - 25 years
Policy Term 25 years – entry age of the child
Sum Assured Rs.1 lakh No limit

Maximum
LIC Plans Plan Type
maturity age
LIC- e Term Pure Term insurance plan 75 years
Participating Traditional
LIC Jeevan Anand 75 years
Endowment Plan
LIC New Children Money Traditional Money Back Child
25 years
Back Plan Plan
LIC Jeevan Saral Endowment Plan 70 years

LIC Jeevan Anand.

LIC's New Jeevan Anand Plan is a participating Whole Life Endowment Plan with various
advantages. As the name suggests, this whole life endowment plan continues to provide
coverage till the death of the insured even after the maturity of the plan.

et us have a sample plan of Jeevan Anand: If you invest Rs.2800/- per month, you
get a Insurance with Sum Assured of Rs.10 Lacs. And on Maturity (after 30 years),
you get Rs.38 Lacs.

Keeping the above example for comparison, I will answer your question in 2 parts:

Part 1 - Advice

Part 2 - Analysis with Numbers

Advice

Instead of buying Jeevan Anand, I would advise you to buy a Term Plan from some Life
Insurance Company. A Term Insurance with a Sum Assured of Rs.40 Lakhs will cost you
about Rs.550/- per month.
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Analysis with Numbers

 Assuming the expected rate of 14% per annum, a monthly SIP of Rs.1500/-,
over 31 years will grow to about 96 Lakhs. Trust me, there is no typo here. It's
actually NINETY SIX LAKHS. :-)
 The Sum Assured is 4 times(40 Lakhs) than that with Jeevan Anand.
 You will be saving Rs.750 per month.
Here is a snapshot of the comparison of the 2 plans:

New Jeevan Anand Plan is one of the best plan in LIC, which offers an attractive
combination of protection and savings. This plan
continues to provide coverage till the death of the
insured even after the maturity of the plan.

Highlights and Benefits:

 One of the most sold endowment plans in LIC

 Life Cover even after Maturity of the plan
 Loan Available
 Tax Saving under Section 80C up to 1.5 lakh
 Death Benefit: (Sum Assured on Death + Vested
Bonus till date of death + any Final Addition
Bonus)
 Maturity Benefit: (Sum Assured + Bonus which have been declared throughout
the policy term + If any Final Addition Bonus)
Plan Parameters:

Age of Entry : 18 to 50 years

Premium Paying Mode : Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
Policy Term : 15 to 35 Years
Basic Sum Assured : 1 lakh and above

Required Documents:

 Address proof
 Age proof
 Other KYC Documents: PAN Card, Adhaar Card, Tax Details etc.
 Medical Report
Others:
Check how this policy benefits at the age of 60 for the age bracket between 22 to 40.
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For Sum Assured: Rs.10 lakh.

Benefits of Buying Life Insurance @ Early Age!!

LIC Jeevan Akshay

If you start investing in LIC Jeevan Akshay, as you rightly said interest rates in coming
years are going to come down.

Few advantages of Akshay -

1. Life long pension with various optoptions to choose from. With same rate
which would be declared today. The amount you will get will never change.
2. It's one time payment, so you need not worry about future regular payments in
this policy.
3. Hassle free investment - with peace of mind.
4. Children will not be able to control your money or take it away from you. You
will get money in monthly or quarterly of half yearly or yearly mode. In case of
family dispute no one will be able to take lumpsum amount from you.
5. On death Principal amount that you invest will be returned back to spouse or
she can continue with pension till her death and after her death your son or
nominee will get principal amount.
6. If one invests 1 cr today - he or she will get 60k approx monthly (till death).
Compare the investmnt and rental of a 2bhk house in metro city. House cost -
1–1.5 cr - loans - emi - maintenance - etc . Rental of 2 bhi in metro is approx
20–25k pm.
7. Jeevan Akshay is a good plan when compared to FDs as rate of return is fixed for
life. Remember Akshay is a Pension plan. The new Akshay six is paying you
somewhere between 6.5% pa. Considering your age and inflation I won't vouch
for Akshay.

8. You are still young and can consider other options like NPS where you can make
investments every year unlike Akshay which is single investment. NPS has
different investment styles that change with age. Kindly get to know about NPS
before taking a decision.. Cheers!!

Benefits of Jeevan Akshay

9. It is hassle free investment with peace of mind.

10. You will get money in monthly, quarterly, half yearly, and yearly mode.
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11. No one will be able to get your lump-sum amount from you.

12. On proposer’s death, your spouse or nominee will get pension till death.

LIC's New Money Back Plan 20 years is a non-linked participating policy which provides
protection against death in addition to periodic payment on survival at specific periods during the
term. As part of the policy, 20% of Sum Assured is paid as survival benefit at the end of 5, 10 and
15 years. Also, a simple reversionary bonus is payable on maturity. What’s more, LIC new money
back policy provides accidental death and disability benefit riders. Policyholders can also avail of
loan facility under the policy.

Key Features and Highlights of LIC Moneyback 20

years Policy
 Death benefit: If the policyholder dies during the policy term, the nominee will get 10 times of
annualized premium or 125% of the Basic Sum Assured, vested simple reversionary bonuses and
final additional bonus. Also, the periodical survival benefits which have been paid will not be
deducted.
 Survival Benefits: If the policyholder survives the policy term, the nominee will receive 20% of
the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year and 40% of Sum
Assured in addition to accrued bonuses.
 Maturity Benefit: If the Life Assured survives till maturity, 40% of the Basic Sum Assured in
addition to simple reversionary bonuses and final additional bonus will be paid.

Benefits of LIC Moneyback Plan for 20years

LIC’s Accidental Death and Disability Benefit Rider: Rider can be opted after payment of
additional premium provided the policy is in force on the day of the accident. In case of accidental
death, the Accident Benefit Sum Assured and the death benefit will be paid. In case of accidental
permanent disability, a sum equal to the Accident Benefit Sum Assured will be paid over a period
of 10 years. Consequently, future premiums for Accident Benefit Sum Assured will be waived.
Simple Reversionary Bonus: It is declared per thousand Sum Assured at the end of each a year,
following which, they form part of the guaranteed benefits. Simple Reversionary Bonus, therefore,
accrues during the premium paying term but is paid at the end of the term or death in addition to
the final additional bonus. Simple Reversionary Bonuses is declared as per the performance of the
Life Insurance Corporation.
Final Addition Bonus: Paid if the policy has run for a minimum period. Final Additional Bonus
may be declared when a claim is made either as a result of death or maturity, provided the policy
has been in effect for a minimum term.

Eligibility Conditions
Minimum Basic Sum Assured: Rs. 100,000
Maximum Basic Sum Assured: No Set Limit
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Minimum Age: 13 years

Maximum Age: 50 years
Maximum Maturity Age for Life Assured: 70 years
Term: 20 years
Premium paying term: 15 years
Accidental Death and Disability Benefit Rider
Minimum Accident Benefit Sum Assured: Rs. 100,000
Maximum Accident Benefit Sum Assured: Amount equal to the Sum Assured under the Basic Plan
(maximum of Rs.50 lakh) Accident Benefit Sum Assured.
Minimum Age: 18 years
Maximum Age: Can be opted at any time.
Maximum cover: 70 years
Payment of premiums
Premiums under the policy can be paid at a yearly, half-yearly, quarterly or monthly basis or via
salary deductions. A grace period of one month will be given (for yearly, half-yearly, quarterly
modes) and 15 days for monthly mode.

The table below shows the premiums per Rs. 1000 of basic sum assured

Age (in years) Premium (Rs.)

20 78.00
30 79.10
40 82.95
50 92.05
Exclusions
If the Life Assured ends life irrespective of whether sane or insane, in a year, from the date of risk
commencement, LIC will not accept any claim except 80% of the premiums paid sans taxes, extra
premium and rider premiums. If the Life Assured ends life from date of revival, 80% of the
premiums paid till the date of death (excluding taxes, extra premium and rider premiums) or the
surrender value, will be payable.

An Example
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Subhash Chaturvedi, a 30-year-old IT professional opts for LIC Money back plan – 20 years for a
sum assured of Rs. 2,00,000. Subhash pays an annual premium of around Rs. 15,000 for 15 years.
If Subhash dies from an accident, his nominee will receive 125% of Sum assured besides additional
accidental Sum assured and Accrued bonuses. Also, any survival benefit which has been already
paid will not be deducted. If he survives, he gets 20% of the Sum Assured, i.e, Rs. 40,000 at the
end of 5, 10 and 15 years. At the end of 20 years, Subhash will get Rs. 80,000 in addition to accrued
bonuses.

Under the LIC money back policy, the survival benefits are paid periodically, which is one of the
several reasons why Subhash opted for the policy. The payments can be done on a yearly, half
yearly, quarterly or monthly basis. Policyholders can also avail of double tax benefit under section
80 C and 10 D of the IT Act. The large Sum Assured available under the LIC money back plan in
addition to additional benefits such as accidental death and disability benefit rider ensures that
Subhash’s family is not in doldrums in the event of his accidental death or disability. Also, while
the minimum Sum Assured under the plan is Rs. 1,00,000, there is no limit for the maximum which
is one of the highlights of the plan.

Top 5 Popular LIC Plans

 LIC Jeevan Anand
 LIC E-term Plan
 LIC Amulya Jeevan
 LIC Jeevan Tarun
 LIC Jeevan Lakshya
 LIC Term Insurance Plans
 LIC Money Back Plans
 LIC Endowment Plans
 LIC ULIP Plans
 LIC Child Plans
Top Child Plans offered by LIC

Child Career Plan:

Child Career Plan by LIC, as the name itself suggests, is specially designed to meet the career
planning goals of your child as well as other financial needs during his/her growth phase. The plan
offers not just risk cover for life of the child insured but also substantial survival benefits in case
the policyholder survives the entire policy term. The flexibility offered by this insurance plan is
great and the customer is free to choose sum assured, premium amount, policy period mode of
payment etc.
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LIC Jeevan Tarun Plan:

The Jeevan Tarun Plan is a participating, non-linked plan that offers a good combination of
insurance plus savings for children. The plan is specifically designed to meet the financial needs
of growing children. The plan offers an annual survival benefit from the ages of 20 to 24 years and
also offers a maturity benefit as the end of 25 years. These years are generally the formative years
in an individual’s life when he/she is pursuing higher education and as such needs money for
various purposes. These financial needs include money for admission to higher education courses,
hostel fees and varioud other expenditure.

The survival benefit can be chosen by the policyholder and is a certain percentage of the sum
assured. This survival benefit is paid annually to the policyholder starting from the anniversary
year of policy. An optional rider which helps to raise the total sum assured can be availed by
policyholders.

This plan can be availed by the parent or grandparent of any child between 0 and 12 years of age.

LIC New Children’s Moneyback Plan:

The New Children’s Moneyback plan from LIC is aimed at addressing the financial needs of your
child once he or she grows up. These financial needs include higher education as well as marriage.
In addition to survival benefits, the plan also offers risk cover for life of your child throughout the
policy period.

Survival benefit equal to 20% of the sum assured is payable on completion of 18, 20 and 22 years
of age. Maturity benefit is paid out in case the policyholder survives the entire policy period. This
maturity amount is equal to 40% of the sum assured plus reversionary bonus plus terminal bonus
if any. Simple reversionary bonus comes from the profits earned by the company since this
insurance policy is a participating insurance scheme.

The above list of plans is some of the on-going child insurance plans offered by LIC. There are
other child insurance plans which have been discontinued by the company and which may come
back at some point of time in future. Child plans are an effective way of reducing and managing
the financial liability that comes with the birth of a child. With education expenses increasing on
an ongoing basis, it is imperative for customers to plan their finances in a way which offers enough
cushion for known and as well as unforeseen financial needs of their kids.
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LIC Insurance with high sum assured

These are some of the plans from LIC that offer really high sum assured. They can be a mix of term
insurance plans provide pure protection, endowment plans providing survival and death benefits or
even pension plans that help you ensure a pleasant retirement.
1. LIC Term insurance plans:
Term insurance plans are traditional insurance products that offer a high sum assured for a
relatively low annual premium. These plans are the ideal, cost effective, protection solutions.
o Amulya Jeevan – I:
This is a plan that is a term insurance plan that offers protection through high sum assured with
long policy terms.
o Amulya Jeevan – II:
The Amulya Jeevan – II is a term insurance plan that offers no maturity benefits but does offer
the entire sum assured as the death benefit.
o E-Term:
This is a term insurance plan that can be bought online and offers discounts on the premiums
for policyholder who are not smokers.
2. Endowment Plans:
Endowment plans offer two types of plans, participating and non-participating plans. This means
that some of the plan take part in company profits and others don’t. These plans typically offer
death and

o Single Premium Endowment Plan:

This is an endowment plan for which the premium is paid in a single lump sum.
o New Endowment Plan:
The New Endowment Plan is an endowment life insurance policy where the insurance cover
chosen can easily be past Rs. 1 crore.
o New Jeevan Anand:
This is an endowment scheme that offers discounts on the premiums if the sum assured is
really high.
o Limited Premium Endowment Plan:
This is an endowment plan where the premiums are not paid for the duration of the policy but
for a limited period only.
o LIC’s Jeevan Lakshya:
This is a participating endowment plan that offers high sum assured and maturity benefits for
policyholders.
o New Endowment Plus:
The New Endowment Plus is a ULIP and an endowment that invests in various funds. It allows
policyholders to take advantage of investments made in the markets to build up savings.
3. Money Back Plans:
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Money back plans are insurance policies that come with both death and maturity benefits.
o New Money Back Plan-20 Years:
This is a money back life insurance plan that comes with a limited premium paying term.
o New Money Back Plan-25 Years:
Just like the 20 year plan, this insurance plan comes with a limited premium term and a tenure
that is 25 years.
o LIC’s New Bima Bachat:
This is a savings and protection plan that is not linked and participates in the company profits.
4. Pension Plans:
Pension plans are those life insurance policies that can be used to provide oneself with a source
of income even after retiring.
o New Jeevan Nidhi:
This is a pension plan that has no limits on the maximum sum assured and can be taken for 9
years, 12 years, or 15 years.

All these plans serve specific purposes and can be used to fulfil various needs that you as a
customer, may have. If you are looking for protection then you have the term plan to choose from, if
you want maturity benefits too then you have the endowment, money back and pension plans and if
you are not averse to a little bit of risk then you always have the ULIP plans that can create savings
through investments in debt and equity markets.

LIC Policy with medical cover

LIC offers a term insurance policy that comes with medical cover. The LIC e-Term and LIC Jeevan
Arogya are two insurance plans offered by LIC that offer life cover. These plans offer financial
protection along with medical cover.
1. LIC e-Term: It is a regular premium non participating online term assurance policy that offers
financial protection along with medical cover at a nominal cost. It offers differential premium rates
for smokers and non smokers. Premiums will be paid annually under this policy.The requirement
of medical tests depends on the underwriting of the policy. The costs of medical tests is borne by
the bank(if the medical tests are necessary). This online policy offers convenience in terms of
purchase and making payments.
2. LIC Jeevan Arogya: LIC Jeevan Arogya ensures that you stay protected even when your health
fails you. The plan covers the policyholder’s spouse, children, parents and even in-laws.The policy
offers high cash benefit along with other benefits such as optional riders.

Benefits of LIC policy with medical cover

Listed below are some of the benefits of LIC policy with medical cover
 Provides online and offline policies with health cover
 Offers medical cover along with financial protection
 Offered by LIC which has the best claim settlement ratio in the country
 Payment mode can be chosen by the policyholder
 Easy to avail
 Minimal documentation
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 Hassle free application process

 Dedicated team of customer service
 Easy claim settlement process

How to avail LIC policy with medical cover?

There are two ways in which one can avail LIC policy with medical cover, online and offline. The LIC
e-term insurance plan can only be applied for and availed online, the whole process of the insurance
policy is done online. The other policy, LIC Jeevan Arogya can be availed at one of the bank’s
branches.

Frequently asked questions

1. Can the LIC e-term policy be purchased at the bank?
A. No, the LIC e-term policy can be purchased online only on the bank’s website.
2. Is there a minimum age requirement for the policies?
A. The minimum entry age for the policy is 18 years

3. Do the policies offer tax benefits?

A. Yes, the policies offer tax benefits under section 80D of the Income Tax Act, 1961.

LIC Insurance Plans with Single Premium

LIC also offers some life insurance plans where the premiums need to be paid in a lump sum. These
plans offer different benefits to policyholders that range from group protection to building savings
through endowment plans.
1. Endowment plans:
These are the plans that don’t just provide life insurance cover but also allow investors to build
savings that can be used to plan big expenses in the future.
o Single Premium Endowment Plan:
The Single Premium Endowment Plan provides a minimum cover of Rs. 50,000 and has no limit
on the maximum cover possible. It is also available to anyone between the ages of 90 days and
65 years.
2. Money back plans:
These are plans that offer both death and survival benefits and come with either fixed or flexible
tenures.
o New Bima Bachat:
This is a participating money back plan that provides both protection for the life insured and the
option to create savings. IT has 3 options for tenures and offers bonuses like loyalty additions.
3. Pension plans:
Pension plans are the best thing if you are looking to use life insurance policies to provide you
with an income after retiring.
o Jeevan Akshay VI:
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The minimum premium that can be for this policy is Rs. 1 lakhs and it can even be bought
online. Higher premiums also become eligible for higher annuity as a result of incentives for
high sum assured.
4. Micro insurance:
Micro insurance plans offer smaller sum assured as compared to other plans but can be great for
those looking for investing and saving at the same time.
o New Jeevan Mangal:
This is a protection plan that offers the option to have premiums returned upon maturity. The
cover provided is a maximum of Rs. 50,000 but, due to the accident benefit which is built in, the
sum assured doubles in case of accidental deaths.
5. Group Insurance:
Group insurance policies the ideal thing for companies and other groups of people to provide
insurance benefits to members of the group.
o Single Premium Group Insurance:
This is a group protection plan that comes with a maximum cover of Rs. 10 lakhs. It can be
taken for a tenure ranging from 2 years to 7 years and requires a group of at least 50 people.

All these plans are tailor made to suite the specific needs of a variety of people and can be a
worthwhile investment.

The plans offered by LIC that also offer the option to pay the premiums in monthly instalments
include a mix of endowment, money back, micro insurance, group and pension plans.
1. Endowment Plans:
These are plans that allow investors to invest in life insurance and also build up savings that can
be used to meet financial needs in the future.
o New Endowment Plan:
The new endowment plan can be taken for tenures ranging from 12 years to 35 years and
comes with no limits on the maximum sum assured.
o New Jeevan Anand:
This an endowment plan that offers no limits on the cover chosen and can be taken for 15 years
to 35 years.
o Jeevan Rakshak:
The Jeevan Rakshak plan offers a maximum protection of Rs. 2 lakhs per life insured and can
be taken for tenures ranging from 10 years to 20 years.
o Limited Premium Endowment Plan:
With this insurance plan policyholder need not pay premiums throughout the policy tenure but
only for 8 years or 9 years. There is also no limit on the maximum sum assured under this plan.
o New Endowment Plus:
The New Endowment Plus plan offer the opportunity of building wealth through investments in
debt and equity mutual funds. It also provides a variety of risk profiles to suit the appetite of all
investors.
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o Jeevan Lakshya:
This is a participating non-linked plan that offers a minimum protection of Rs. 1 lakhs with no
limits on the maximum sum assured. It can be taken for tenures of 13 years to 25 years.
2. Money Back Plans:
Money back plans offer the advantage of investments in life insurance policies with the possibility
of watching the investments grow into substantial savings.
o New Money Back Plan-20 Years:
This is an insurance policy that comes with a fixed tenure of 20 years, a minimum sum assured
of Rs. 1 lakh and no limits on the maximum sum assured. It also has a limited premium paying
term of 15 years.
o New Money Back Plan-25 Years:
This plan is almost the same as the 20 years plan in that it too offers no limits on the maximum
sum assured. It does differ in two key areas though and they are that it has a fixed tenure of 25
years and a premium paying term of 20 years.
o Jeevan Tarun:
This is a participating life insurance plan and is targeted at providing for the future needs of
children. The minimum sum assured under this policy is Rs. 75,000 and the maximum has no
limits.
3. Pension Plans:
Pension plans are the best way to ensure that once you retire, there is a source of income that will
take care of your financial needs.
o New Jeevan Nidhi:
This is a pension plan that offers no limits on the maximum sum assured and comes with a
maximum entry age of 65 years. Even though this plan allows for premiums to be paid monthly,
it does offer discounts of 2% on premiums paid annually.
4. Micro Insurance Plans:
Micro insurance plans are insurance plans that are meant to be affordable and offer a relatively
lower sum assured.
o New Jeevan Mangal Plan:
This is a protection plan that offers a return of all premiums paid as its maturity benefit. The
maximum sum assured under this plan is Rs. 50,000.
o Bhagya Lakshmi:
This is an insurance plan available to anyone between the ages of 18 years and 55 years and
offers a maximum sum assured of Rs. 50,000.

All these insurance plans offered by LIC make it possible for almost everyone to afford the protection
and participate in the savings that life insurance policies can offer.
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