LIC Term Insurance Plans
LIC Term Insurance
LIC term insurance policies are constructed in such a way that it secures a family against financial loss that they may incur due to the death of the policyholder. And in the past 60+ years since its inception, LIC has touched over 250 million customers throughout the country.
LIC Term Insurance aims to enhance the quality of life by providing policies that meet the requirements of every individual at various stages of their life. In fact, LIC at one point in time was the only insurance company that had customers in the most remote parts of India. So, if the life assured dies when the policy is still active then the nominee will be paid the amount assured. And LIC term insurance is quite affordable. So, there’s no reason why one shouldn’t have life insurance as a safety measure. After all, it’s better to be safe than sorry!
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Bima Jyoti | ||||||
| LIC’s Dhan Sanchay | ||||||
| LIC Saral Jeevan Bima | ||||||
| LIC Jeevan Amar | ||||||
| LIC’s New Endowment Plan | ||||||
| LIC’s Jeevan Lakshya | ||||||
| LIC’s Jeevan Labh | ||||||
| LIC’s Aadhaar Stambh | ||||||
| LIC’s Aadhaar Shila |
Features Of LIC Term Insurance Plans
Endowment Plans
1. LIC’s Bima Jyoti
- Life Cover
Higher of 125 % of Sum Assured or 7 times of annualized premium+ Guanranteed Additions - Life assured below 8 years age – life cover will start, on completion of 2 policy years OR 8 years of age whichever is earlier.
- Maturity Benefit
Sum Assured + Guaranteed Additions (at the rate of Rs.50 per thousand Basic Sum Assured).
2. LIC’s Dhan Sanchay
Key Features & Benefits Of LIC’s Dhan Sanchay Plan
There are a plethora of features and benefits provided by LIC’s Dhan Sanchay Plan. Some of them are as discussed below:
- Benefit Options At Inception: The plan provides four benefit options at the time of inception. In the case of regular or limited premium payment, Option A (Level Income Benefit) and Option B (Increasing Income Benefit) are available to the policyholder. Whereas, in the case of single premium payment, the choice is given between Option C (Single Premium Level Income Benefit) and Option D (Single Premium Enhanced Cover with Level Income Benefit).
- Death Benefit: A lump-sum death benefit will be paid by the insurer. Alternatively, the policyholder may choose to collect the death benefit in equal payments over a maximum of five years. The “Sum Assured on Death”—which can differ for different options—will be the death benefit under the plan. The “Sum Assured on Death” for Options A and B will be higher of 11 times the “Annualized Premium,” or “Sum Assured on Maturity,” or 105% of all premiums paid up until the date of death.
3. LIC’s Jeevan Azad
Key Benefits of LIC’S Jeevan Azad Policy
This plan offers the life assured and his/her family multiple benefits to provide maximum financial protection and security. Those benefits are discussed below.
Death Benefit:
The death benefit is payable after the date of commencement of risk but before the maturity date on the death of the life assured during the policy term of an active policy. The death benefit is equal to the sum assured on death which is higher of the followings.
- Basic Sum Assured
- 7 times of Annualized Premium.
This Death Benefit shall not be less than 105% of the Total Premiums Paid up to the date of death.
Death benefit in case of a minor:
In case of a minor Life Assured, whose age at entry is below 8 years, on death before the commencement of risk, the Death Benefit payable will be a refund of premium(s) paid, excluding taxes, extra premium, and rider premium(s), if any), without interest.
Maturity Benefit:
If the life assured survives the stipulated date of maturity, Sum Assured on Maturity will be paid to him/her, which is equal to Basic Sum Assured.
4. LIC’s Dhan Vriddhi
Salient Features & Benefits Of LIC Dhan Vriddhi Plan
Listed below are some of the top key features and benefits of the LIC Dhan Vriddhi Plan:
- Flexibility Of 2 Options: Subject to specific qualifying requirements, the plan has two alternatives to choose from, each offering a different level of protection. In the first option, the basic sum assured’s death benefit can be up to 1.25 times the “tabular” premium. The second choice allows for a death benefit that is 10 times the tabular premium for the selected basic sum insured.
- Surrender Benefit: At any point throughout the policy term, the policyholder may surrender the coverage. When a policy is surrendered, the company will pay the higher of the guaranteed surrender value or the special surrender value as the surrender value.
- Loan Facility: A loan facility shall be made available under the plan anytime after 3 months of the date of issuance of the policy.
- Death Benefits: The “Sum Assured on Death” and “Accrued Guaranteed Additions” are payable upon the death of the life assured within the policy period following the date of beginning of risk but prior to the specified date of maturity. The “Sum Assured on Death” for both the options stated in the first point above.
- Maturity Benefit: ‘Basic Sum Assured’ and ‘Accrued Guaranteed Additions’ will be paid if the life assured survives the designated date of maturity.
- Guaranteed Additions: Throughout the policy term, the ‘Guaranteed Additions’ will accrue after each policy year. The ‘Basic Sum Assured’, the ‘Policy Term’, and the ‘Option Selected’ will all affect the ‘Guaranteed Additions’. The rates for GA are shown below:
5. LIC’s New Endowment Plan
Benefits Offered By LIC New Endowment Plan
The benefits of LIC’s New Endowment Plan, which make it a popular choice among insurance seekers, are listed below:
- Death Benefit
If the life insured dies within the policy term, the nominee will receive the “Sum Assured on Death” plus any vested bonuses as a death benefit, and the policy will be terminated. The basic sum assured or 10 times the annualized premium, whichever is greater, is the sum assured on death, subject to a minimum of 105 % of all premiums paid.
- Maturity Benefit
At the end of the policy term, the policyholder receives a maturity benefit from LIC’s New Endowment Plan. If the policyholder lives to the end of the plan and pays all of his premiums on time, he is eligible for the maturity benefit. The maturity benefit is a lump-sum payment equal to the basic sum assured plus the reversionary bonus.
6. LIC’s Jeevan Lakshya
Benefits of LIC Jeevan Lakshya Policy
LIC Jeevan Lakshya Policy has come up with a bunch of benefits to offer you protection and savings facilities. To more about its benefits in detail, have a look at the below mentions.
Death Benefit – In case of unfortunate demise of the Life Assured before the maturity date of an active policy, the beneficiary or nominee is entitled to get the death benefits. The amount of death benefit will not be less than 105% of total premiums paid up to the date of death of the insured person. The death benefits include the following:
- Sum Assured on Death. It refers to either 7 times of annualized premium or Sum of 110% of Basic Sum Assured and Annual Income Benefit equal to 10% of the Basic Sum Assured, whichever is higher.
- Vested Simple Reversionary Bonuses and,
- Final Additional Bonus
It has to be remembered that Simple Reversionary Bonuses and Final Additional Bonus will be paid only on the due date of maturity.
Maturity Benefit – In case of survival of the Life Assured through the entire policy period of an active policy, he/she is entitled to receive the maturity benefits. The maturity benefit refers to the following in total.
- Sum Assured on Maturity. It is equal to the Basic Sum Assured.
- Vested Simple Reversionary Bonuses and,
- Final Additional Bonus
7. LIC’s Jeevan Labh
Features Of The LIC Jeevan Labh Policy
Some of the key features of LIC Jeevan Labh policy are as follows:
- Tax Benefits: As per the relevant sections of Income Tax Act 1864, tax benefits are available under the LIC Jeevan Labh policy. Under Section 80C of the Income Tax Act, 1961, the premiums paid for LIC’s Jeevan Labh policy are tax-free. Furthermore, under Section 10(10D) of the Income Tax Act of 1961, the maturity amount is tax-free. The amount of tax paid will not be taken into account when calculating the plan’s benefits.
- Death Benefit: The total of the ‘Sum Assured on Death’, ‘Simple Reversionary Bonuses’, and the ‘Final Additional Bonus’ is handed out as death benefits (if any) to the policyholder. The higher of the 10 times annual premium paid or the basic sum assured is the ‘Sum Assured on Death’. The death benefit will not be less than 105 % premiums paid as of the death date.
- Maturity Benefit: The policyholder will receive the amount assured on maturity as a lump sum at the policy’s maturity, which is equal to the ‘Basic Sum Assured’ plus any vested ‘Simple Reversionary Bonuses’ and ‘Final Additional Bonuses’.
8. LIC’s Aadhaar Stambh
Features and Benefits of LIC Aadhaar Stambh Plan
LIC Aadhaar Stambh has presented a sack full of different benefits and facilities. To know more about its advantages and key features, have a look at the below mentions.
Death Benefit:
- On death during the first five years – In case of the unfortunate and untimely demise of the life assured before the date of maturity, during the first five years of the policy, Sum Assured on Death will be paid to the beneficiary of the policyholder. In this case, the policy should be an active one,
- On death after the completion of five policy years – In that case, on the demise of the life assured, the Sum Assured on Death along with loyalty addition have to be paid by the Corporation. Remember, in this case too, the policy should be in force which means all the due premiums should be paid.
The death benefit should not be less than 105% of total premiums paid up to the date of death. And this premium does not include any taxes, extra premium, and rider premium.
Maturity Benefit:
This is an endowment plan, so certainly this plan comes with maturity benefits. But, it has conditions like, the life assured has to survive the entire policy tenure and the policy should be active which means all the due premiums should be paid clearly. Only after fulfilling these conditions, one is eligible to receive the maturity benefit that is the compilation of Sum Assured on Maturity and loyalty additions. This Sum Assured on Maturity is equal to the basic sum insured.
9. LIC’s Aadhaar Shila
Features & Benefits Of LIC Adhaar Shila Policy
The LIC Adhaar Shila plan comes with a list of very useful features which are listed below. Let’s take a look at these features to understand this plan better.
- Death Benefits: The LIC Adhaar Shila plan offers death benefit which is payable to the nominee or family members of the policyholder upon death of the life assured during the policy term. If the policyholder dies during the first five years of the policy term, the sum assured amount on death is payable to their beneficiary. If death of the policyholder happens after the completion of five policy years but before the date of maturity, then the sum assured on death and loyalty addition, if any, is paid.
- Maturity Benefits: Another important feature of this plan is that it provides policyholders with a maturity benefit amount that is paid when the life assured survives to the end of the policy term, provided all due premiums have been paid and the policy is in-force. The benefit amount paid equals the sum assured amount on maturity and includes loyalty additional profits as well.
- Maturity Benefit in installments:Another interesting feature of the LIC Aadhaar Shila plan is that it provides customers with the flexibility to receive their maturity benefit in installments over the chosen period of 5, 10 or 15 years instead of lumpsum amount.
The installments shall be paid in advance at intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:
LIC’s Single Premium Endowment Plan
Features Of LIC Single Premium Endowment Plan
- Single-Premium Plan: As it is a single premium plan, the whole premium is required to be paid before the commencement of the policy.
- Tax Benefits: The single premium paid for this LIC one-time investment plan is considered a tax-free expense. Section 80C of the Income Tax Act of 1961 allows you to deduct the premium you paid. Additionally, the death and maturity benefits you receive from this LIC one-time investment plan are tax-free. You are not required to pay any taxes on the benefits you receive.
- Death Benefit: A death benefit is given if the insured dies during the policy’s term. This benefit is contingent on the insured’s death date. If the death of the insured occurs during the policy term before the commencement of risk, there will be the return of a single premium without any interest rates. However, if the insured dies after the date of commencement of risk, the sum assured, vested reversionary bonuses, and any final further bonuses are paid.
- Maturity Benefit: The policyholder will get the sum of ‘Sum Assured’, ‘Simple Reversionary Bonus’ (which is declared at the end of each year), and ‘Final Addition Bonus’ at the plan’s maturity. On survival, a lump sum payment will be made, and the policy will be terminated.
Whole Life Plans
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Jeevan Utsav | ||||||
| LIC’s New Jeevan Anand | ||||||
| LIC’s Jeevan Umang |
Features Of LIC Term Insurance Plans
1. LIC’s Jeevan Utsav
Jeevan Utsav LIC Plan Benefits
The key purpose of the LIC Jeevan Utsav plan is to secure the policyholder against any uncertainty of life and provide them with a second source of income if they survive the policy. Hence, if you purchase the Jeevan Utsav, you ultimately gain guaranteed financial security. Let’s understand the LIC Jeevan Utsav benefits in detail.
Death Benefit
If the life assured dies during the premium paying term, the family receives the death benefit equal to the ‘Sum Assured on Death’ with applicable guaranteed additions. The death benefit is equal to,
- Basic sum assured,
- Or, 7 times of annualised premium
The Sum Assured on Death is an amount not less than 105% of the total premium paid till the date of death.
Survival Benefit
If the life assured survives the whole premium payment term, they are eligible for the survival benefit as per the option selected at the time of policy inception. The policyholder can opt for the following two options and receive the benefits.
Option I: Regular Income Benefit
If the life assured chooses this option, in case of survival, they receive a regular income benefit equal to 10% of the Basic Sum Assured at the end of each policy year.
Option II: Flexi Income Benefit
If the life assured chooses this option, in case of survival, they receive a flexi income benefit equal to 10% of the Basic Sum Assured at the end of each policy year. In this option, the policyholder can defer and accumulate the benefits per the suitability and requirements.
The survival benefits are payable at the end of each policy year, as mentioned in the table below.
| Premium Paying Term | Regular Income Benefit/ Flexi Income Benefit Start Year |
Guaranteed Additions
Under the LIC Jeevan Utsav Plan, when all the premiums are duly paid, the Guaranteed Additions are added at the end of each policy year, only during the policy paying term. The rate of guaranteed additions is Rs. 40 per thousand basic sum assured.
2. LIC’s Jeevan Umang
Benefits of LIC Jeevan Umang Plan
Listed below are the top benefits of this plan offered by LIC.
- Death Benefit:
If the policyholder, however, dies during the period of the policy, then he/she will likely receive the final additional bonus and simple reversionary bonuses along with the sum assured on death.
For those who don’t know, the amount of sum assured on death is either;
125% of basic sum assured or 7X annualized premium
*The maximum of the above will be considered
On the other hand, if the policyholder dies after the end of the period of the policy, the family shall receive the basic sum assured.
- Maturity Benefit:
A policyholder is likely to get a maturity benefit which is given to him/her at the end/maturity of the policy only if they had paid all premiums on time. The major highlight of the policy is that it allows you to receive the so-called “Maturity Benefit” in installments for 5, 10, or 15 years.
| Maturity Benefit = Basic Sum Assured + Final additional & simple reversionary bonuses |
The policyholder, alongside, will likely receive a final additional bonus and a simple reversionary bonus that would be an additional bonus.
3. LIC’s New Jeevan Anand
Benefits of LIC New Anand Plan
The following benefits are extended under Life Insurance Corporation Jeevan Umang Plan:
Death Benefit
- If the policyholder dies before the risk commencement, the nominee can claim the entire premium amount paid till the date of death. The company shall return all the paid premiums, excluding interest and other expenses.
- If the policyholder dies after the risk commencement and before maturity, in that case, the company shall pay the death benefits as the higher of 7 times of annualised premium or basic sum assured. The death benefit includes a simple reversionary bonus and a final additional bonus (if applicable).
Survival Benefit
- If the policyholder survives the premium payment term and all the premiums have been duly paid, the Jeevan Umang plan provides annual survival benefits till maturity.
- The guaranteed annual survival benefit of 8% of the Basic Sum Assured will be paid annually.
- The benefits are provided till the policy anniversary prior to the maturity of the plan or the death of the policyholder (whichever event occurs first).
Maturity Benefit
If the policyholder survives the end of the premium tenure, a sum assured will be provided as the maturity benefits along with the vested Simple Reversionary Benefits and a Final Additional Bonus (if any).
Money Back Plans
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Dhan Rekha | ||||||
| LIC’s New Bima Bachat |
Features Of LIC Term Insurance Plans
1. LIC’s Dhan Rekha
The benefits provided by LIC Dhan Rekha plan are as follows:
- Death Benefit
The “Sum Assured on Death” plus Accrued Guaranteed Additions shall be paid on death during the policy period following the date of commencement of risk. For a single premium payment, the policyholder will receive 125% of the basic sum assured as the “Sum Assured on Death”. Whereas, for limited premium payment, the policyholder will receive 125% of the basic sum assured or 7 times the yearly premium as the “Sum Assured on Death”.
- Survival Benefit
A specific percentage of the basic sum assured will be paid if the life assured survives for each of the stated durations during the policy period, providing the policy is in force. The following is the fixed percentage for several policy terms:
| Policy Term (In Years) | Survival Benefits |
- Maturity Benefit
If the life assured survives the given date of maturity while the policy is in force, the “Sum Assured on Maturity” will be paid, along with any Accrued Guaranteed Additions.
- Guaranteed Additions
Guaranteed Additions will be paid if the insurance remains in force and the premiums are paid on time. From the 6th policy year to the conclusion of the policy term, the Guaranteed Additions will accumulate at the end of each policy year. The rate of Guaranteed Additions will rise in lockstep with the policy’s duration, as shown below:
| Policy Duration (In Years) | Guaranteed Additions (Per Rs. 1000 Basic Sum Assured) |
2. LIC’s New Bima Bachat
Here’s the list of the features and benefits of LIC New Bima Bachat;
- Survival Benefits: If the policyholder survives at the different durations of the policy period, then he/she will get a fixed percentage of the basic sum assured. Let’s take a look at the different percentages of the amount that is payable to the policyholder on different policy terms:
- For policy term 9 years: At the end of each of 3 & 6 policy years, 15% of the Basic Sum Assured shall be paid.
- For policy term 12 years: At the end of each of 3, 6 & 9 policy years, 15% of the Basic Sum Assured shall be paid.
- For policy term 15 years: At the end of each of 3, 6, 9 & 12 policy year, 15% of the Basic Sum Assured shall be paid.
- Death Benefit: If the policyholder, unfortunately, dies during the period of the policy, then the payable death benefit would be:
If the person dies during the five initial years of the policy period, then the nominee shall receive the “Sum Assured on Death”.
If the person dies after the completion of five policy years, then they will receive the sum assured on death along with the loyalty addition.
The “Sum Assured on Death” is defined as the higher of the two amounts.
- 1.25 times the single premium; or
- Minimum Sum Assured.
Taxes, extra premiums, and rider premiums, if applicable, are not included in the above-mentioned single premium.
- Loyalty Addition: The policyholders may share in the Corporation’s profits and be eligible for Loyalty Addition, based on the Corporation’s expertise. If the policyholder survives the maturity period or dies after five policy years, then loyalty addition shall be paid by the Life Insurance Corporation of India.
- Maturity Benefit:If the user lives to the end of the policy term, the “Sum Assured on Maturity,” in addition to the Loyalty amount shall be paid by the company after verifying the necessary documents.
Where “Sum Assured on Maturity” matches the Single Premium paid, excluding the premium of the rider, taxes, and additional premium.
Key Features & Benefits of LIC Money Back Policy 20 years
Death benefit – If the policyholder dies during the term of the policy, then the policy will pay out sum assured on death and accrued bonuses, if any, shall be paid to the nominee and the policy will terminate. Sum assured on death will be higher of 10 times of annual premium or 125% of basic sum assured. The survival benefit amount paid in the policy will not be deducted from the death benefit sum assured. All this will be paid out on the condition that policy is in force and all due premiums have been paid.
Maturity Benefit – The policyholder will receive 40% of the Sum assured, along with accrued bonuses (simple reversionary bonuses and Final Additional bonus, if any) that will be paid in lump sum on survival when the policy will terminate. The maturity benefit will be paid out provided the policy is active and all due premiums have been paid by the policyholder.
Survival Benefits – The survival benefit of 20% will be paid to the policyholder at the end of 5th, 10th, and 15th policy term, if the policyholder is alive on those specific durations.
Benefits of LIC Money Back Policy 20 Years include Death benefits, survival benefits, Maturity benefits.
Participation in Profits – The LIC Money back policy is participating, which means that it will pay out simple receive Simple Reversionary Bonuses and a final additional bonus, if any, provided the policy is active and all premiums have been paid.
Optional rider to enhance the value of the policy
LIC’s Accidental Death and Disability Benefit Rider – The rider provides an extra financial benefit to the policyholder in case the death is due to an accident. The minimum sum assured of the rider is INR 1 lakh and the maximum sum assured of the rider is INR 1 crore. The minimum age of entry is 18 years and maximum age of coverage under this rider is 70 years. The accidental death benefit sum assured will be paid in lump sum in addition to the death benefit.
In case of accidental permanent disability happening to the policyholder due to an accident (in 180 days from the date of accident), the sum assured which is equal to accidental benefit will be paid over 10 years and all future premiums will be waived off in the policy
Features and Benefits of LIC’s New Money Back Plan- 25 Years
Following are the key features and benefits of the LIC New Money Back Plan that promises to work for the betterment of its customers.
- Long Term Coverage:
The plan comes with a special feature under which the policyholder is required to pay premiums for a period of 20 years and can avail of the plan’s benefits up to 25 years.
- Death Benefit:
This policy offers a death benefit that is payable in case of death of the life assured. The amount of death benefit is equal to the sum assured which will not be less than 105% of the total premiums paid up to the date of death. The policyholders also have the flexibility to opt for the method in which they can receive the death benefit. They can either avail of the benefit amount in installments or lump sum amount. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments.
- Survival benefit:
The plan also provides customers with survival benefits under which 15% of the sum assured amount is paid as the benefit amount at the end of each of the 5th, 10th, 15th & 20th policy years.
- Maturity Benefits:
Upon maturity of this plan, the policyholder is provided with the maturity benefit amount which is equal to 40% of the basic sum assured amount and includes accrued bonus amount, if any. Customers also have the flexibility to receive their maturity amount either in the form of installments or lump sum amounts.
- Additional Riders:
Another special feature of this plan is that it comes with a variety of add-on riders that allow customers to enhance their coverage. At present, there are four optional riders available with this plan. These riders are-
- Accidental Death and Disability Benefit Rider
- New Term Assurance Rider
- Accident Benefit Rider
- New Critical Illness Benefit Rider
Please note that the customer can opt between either of the LIC’s Accidental Death and Disability Rider or LIC’s Accident Benefit Rider. This means that a maximum of only three riders can be availed under this policy.
- Loan Facility:
This plan also provides customers with a special benefit under which they can avail loan facility with this policy. Policyholders are required to pay at least two full years’ premiums in order to avail of this benefit. The maximum loan allowed under the policy, as a percentage of Surrender Value is given below:
- For in-force policies – upto 90%
- For paid-up policies – upto 80%
- Tax savings:
One of the best parts of this insurance plan is that it allows customers to avail tax benefits on the premium amount as per sections 10D and 80C of the Income Tax Act.
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Jeevan Shiromani | ||||||
| LIC’s Bima Shree |
Features Of LIC Term Insurance Plans
1. LIC’s Jeevan Shiromani
Features & Benefits of LIC Jeevan Shiromani
LIC Jeevan Shiromani offers a multitude of features and benefits to the policyholder that makes it one of the best insurance plans to consider for financial protection. Let’s discuss them in detail!
- Death Benefit:
This is the biggest benefit that is offered by the policy in case of the death of the policyholder.
The term assures that if you, unfortunately, die during the first five years, then you are entitled to receive “Sum Assured on death” along with the cumulative guaranteed and loyalty addition.
For those who don’t know, the “Sum Assured on Death” simply means that 125% of the minimum sum is assured or 7X the annualized premium. The benefit of the death shall be equal to 105% of the total of all the premiums that have been paid until the death date.
- Survival Benefit:
If the person who owns the policy lives for a particular time during the policy term, then a specific proportion of the Basic Sum Assured will be paid. But at the same time, there is a condition that all the due premiums should have been paid. Here’s the fixed percentage for different periods of the policy:
| Policy Period | Basic Sum Assured on each of the policy period |
2. LIC’s Bima Shree
Salient Benefits & Features of LIC Bima Shree Plan
Here’s the list of the features and benefits of the LIC Bima Shree Plan that help the policyholder offer financial protection to the family. Let’s discuss them!
- Death Benefit:
This is the biggest benefit that entices users to look for this policy. If the policyholder, unfortunately, dies during the first five years of the policy term, then “sum assured on death” and “guaranteed addition” shall be paid to the nominee/family members.
For those who don’t know, the sum assured on death is 125% of the minimum sum assured or you could say, “7X of the annualized premium”. Talking about the minimum amount, the death benefit won’t be less than 105% of all the premiums paid up to the death period of the user.
Note: The premium (mentioned above) doesn’t include rider premium, additional premium, or taxes if applicable.
- Survival Benefit:
This is the second benefit and feature that a policyholder will get after availing of the insurance plan.
During the period of the policy, if the policyholder survives at the end, then he/she is entitled to receive the minimum sum assured. But here’s the catch!
All premiums should have been paid by the user then only he/she shall receive the amount. Let’s take a look at the different policy terms:
| Policy Term | Minimum Sum Assured on different intervals of the Policy |
Children Plan
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| Lic’s New Children’s Money Back Plan | ||||||
| LIC’s Jeevan Tarun |
Features Of LIC Term Insurance Plans
1. Lic’s New Children’s Money Back Plan
Listed below are the key benefits offered by LIC’s New Children’s Money Back Plan:
- Death Benefit
The sum insured on death, as well as any collected bonuses, will be paid if the life assured passes away after risk beginning while the policy is in force. The higher of the basic sum assured or 7 times the yearly premium is the “Sum Assured on Death.” This death benefit must be at least 105 % of all premiums paid up to the date of death.
- Survival Benefit
If the life assured survives each policy anniversary occurring with or immediately following the completion of ages 18, 20, or 22 years, 20% of the basic sum assured is payable on each occasion, providing the policy is in existence.
- Maturity Benefit
If the life assured survives the policy period while the plan is still in effect, the sum assured on maturity will be paid, along with the final additional bonus and vested simple revisionary bonuses, with the total assured on maturity equalling 40% of the basic sum assured.
Under the LIC’s New Children’s Money Back Plan, the following options are available to the policyholder:
- Options To Defer The Survival Benefit
The policyholder will have the option to take the survival benefit(s) at any time during the policy’s currency, whether on or after the due date. The policyholder must notify the servicing branch of the policy for this option in writing six months prior to the due date of the survival benefit.
- Rider Benefits
Individuals can choose to add the “Premium Waiver Benefit Rider” to their policy, which effectively waives all future premiums in the event of the subscriber’s death (the person who pays the premium).
- Option To Take Death Benefit In Installments
Under an in-force and paid-up policy, this is an option to receive the death benefit in installments over a set term of 5, 10, or 15 years rather than a lump sum payment.
2. LIC’s Jeevan Tarun
What Are The Benefits Offered By LIC Jeevan Tarun Policy?
LIC Jeevan Tarun Policy has come up with a sack full of benefits to cater to the needs of the children. Have a look at the advantages of the plan below.
Death Benefit:
In case of the untimely and unfortunate demise of the life assured during the policy term while the policy is active, the beneficiary or nominee is eligible to avail of the death benefit. This Death Benefit shall not be less than 105% of the total premiums paid up to date of death. What the death benefit will be under the following criteria is given in the below table.
| On death before the date of commencement of risk | On death after the date of commencement of risk |
| Under this circumstance, the Corporation will pay back the premiums that have been paid to date to the policy. But this excludes the taxes, extra premium, and rider premium, if any, without the interests. | In this scenario, the death benefit will be 7 times of annualized premium or 125% of Sum Assured, whichever is higher. And also, along with that, you are entitled to receive the vested Simple Reversionary Bonuses and Final Additional Bonus. |
Maturity Benefit:
In case of the Life Assured survives the policy term while the policy is active, you are entitled to receive the maturity benefit. Maturity benefit includes “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. This Sum Assured on Maturity refers to a fixed percentage of Sum Assured and this varies for various Options. That percentage is mentioned below:
| Maturity age | Option 1 | Option 2 | Option 3 | Option 4 |
| 25 years | 100% | 75% | 50% | 25% |
Term Assurance Plans
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s New Jeevan Amar | ||||||
| LIC’s Jeevan Kiran |
1. Eligibility criteria of LIC Jeevan Amar Plan
Here are the main eligibility criteria of this term plan:
| Entry Age (Last Birthday) | Minimum: 18 years, Maximum: 65 years |
| Maximum Maturity Age (Last Birthday) | 80 years |
| Basic Sum Assured | Minimum: INR 25 lakhsMaximum: No limit |
| Policy Tenure | 10 years to 40 years |
| Premium Paying Term | Single-Premium: NARegular Premium: Same as policy term Limited Premium: When Policy Term is 10 to 40 years, the Premium Paying Term is: Policy Term minus 5 years |
Benefits of LIC Jeevan Amar Plan:
Here are the major benefits of Jeevan Amar LIC:
- The policyholder can choose either of the 2 available death benefit options: Increasing Sum Assured and Level Sum Assured
In the increasing sum assured option, the sum assured increases as the policy moves forward, while in the level sum assured option, the sum assured remains the same - At the time of purchase, the policyholder can opt for the death benefit to be paid out either as a lump sum or in installments.
- There is flexibility to choose different premiums paying terms for this plan that can be single, regular, and limited
2. LIC’s Jeevan Kiran
Eligibility Criteria
| Parameters | Details |
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 65 Years |
| Minimum Age At Maturity | 28 Years |
| Maximum Age At Maturity | 80 Years |
| Policy Term | 10 To 40 Years |
| Minimum Basic Sum Assured | Rs. 15,00,000/- |
| Maximum Basic Sum Assured | No Limit |
| Premium Payment Term | Under Regular Premium: Same As Policy Term
Under Single Premium: Not Applicable |
What Are The Main Advantages & Characteristics Of LIC Jeevan Kiran Plan?
Here is a list of some of the main features and benefits of the plan:
Flexibility:
The plan provides flexibility to choose between single and regular premiums, the period of time for which the protection is necessary, and payment of benefits in installments.
Death Benefit:
“Sum Assured on Death” or death benefit will be paid out if the life assured passes away within the policy’s term after the beginning of the risk but before the maturity date.
Pension Plans
Types of LIC Term Insurance Plans
| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Jeevan Akshay – VII | ||||||
| LIC’s New Jeevan Shanti |
1. Features of LIC Jeevan Akshay VII
- Multiple annuity options are offered to the policyholder, he can choose the plan option that best suits his requirements
- Under Annuity Options F and J, the death benefit can be received in any of the following ways:
- Lumpsum
The entire purchase price would be payable to the appointed nominee as a lump sum - Annuitisation
The death benefit that is payable is utilized to buy an Immediate Annuity from LIC. Under this option, the benefit amount can be opted as a full or part payout, at the time of death. The payments depend on the age of the annuitant as well the option chosen.
- Lumpsum
- An immediate annuity that can start as early as the following month
- LIC Jeevan Akshay VII is a single premium plan
- Individuals who are over 30 years and have completed 100 years can opt for this plan
- Under a few annuity options, the policy can be surrendered anytime after 3 months
- No medical tests are required to purchase this policy
- Loan facility can be availed once 3 policy months are complete
- Incentives can also be availed for a higher purchase price
- Depending on your convenience, the plan can be purchased online or offline
- Online discount can be availed up to 2% of the premium to be paid
- There is no maturity benefit in this plan.
Policy details of LIC Jeevan Akshay VII
LIC Jeevan Akshay VII plan is an immediate annuity plan. The plan offers to pay an annuity to the annuitant all through his life, based on the annuity option he has chosen. Being a single-premium individual immediate annuity scheme, the lump sum amount that you pay towards the policy is then paid out to you in instalments for as long as you may live according to the annuity option chosen.
As mentioned above, there are 10 annuity options that the individual can choose from. Right at the beginning of the policy, the annuity rates are explained to the annuitant.
2. LIC’s New Jeevan Shanti
Features of LIC Jeevan Shanti Plan
The LIC Jeevan Shanti Plan includes myriad features. To understand the policy better, let us take a look at the various features of LIC Jeevan Shanti.
- Lifetime Income
The LIC Jeevan Shanti guarantees income at selected intervals for a lifetime through the investment of a one-time lump sum.
- Various Available Alternatives
An investor can choose from two options among Deferred Annuity Plans. The rates of deferred payment are guaranteed during the period of deferment. The deferred annuity plans also come with death benefits with is either:
Higher of the purchase price, with added accrued guaranteed additions minus the total annuity sum payable until the demise date
OR
105% of the purchase price.
- Guaranteed Income
LIC Jeevan Shanti is composed of policies that will provide the insured with guaranteed income every month for a lifetime. Guaranteed incomes shall also be given at early demise to annuitants in context to the chosen alternatives.
- Tax Returns
The annuitants are eligible to avail of tax benefits under Section 80C on choosing a plan under LIC Jeevan Shanti. The one-time premium is tax-deductible and thus, is a considerable deduction when filing the income tax returns.
Annuity Options for LIC Jeevan Shanti Policy
Listed below are the various LIC Jeevan Shanti Deferred Annuity options. A customer might choose from among the given options to home in on a plan that best suits their desired financial goals throughout their lifetime and on death.
