Life Insurance
LIC-Life Insurance Corporation of India
The Life Insurance Corporation of India (LIC) is the country’s largest public-sector life insurance company, established in 1956. The company is one of the most popular life insurers in the market, offering a wide range of financial products, including - endowment plans, term policies, ULIPs, whole-life policies, pension plans, and more.
| Annual Business | ₹2,17,726 crores |
| Claims Settled | 98.55 |
| Claims settled within 30 days | 95.90% |
Term Insurance offered by LIC-Life Insurance Corporation of India
Saral Jeevan Bima
This vanilla term insurance plan extends financial protection to your family during your unfortunate absence. The sum assured so provided acts as your financial replacement and helps your family achieve their future financial goals. This plan has no riders to offer. However, the in-built death benefit perk is comprehensive and includes the Accidental Death Benefit feature. The maximum sum assured in this plan is ₹25 lakhs, and a lump sum payout equal to the sum assured chosen will be paid out as a death benefit.
Jeevan Kiran
With the built-in perks of maturity benefit, the Death Benefit feature, return of premiums, and a couple of riders, the Jeevan Kiran Plan is a decent insurance policy. The policy offers a minimum sum assured of ₹15 lakhs, and the underwriting team of the insurer determines the maximum amount based on your eligibility. Apart from this death benefit, the policy also offers a maturity benefit if the policyholder survives the policy tenure. This maturity benefit is equal to the total amount of premium paid (after deducting the GST and rider premiums)
Riders you can select with this plan
- Accidental Death and Disability Benefit Rider:
This rider is available for single and regular premium payments. Under this rider - If the policyholder dies due to an accident, the Accident Benefit Sum Assured is offered to the nominee along with the death benefit from the base plan. This entire amount is paid out as a lump sum. Suppose the policyholder is left disabled due to an accident (within 180 days of the accident). In that case, the Accident Benefit Sum Assured is paid monthly over the following 10 years as an income replacement. Additionally, in the case of regular premium payment mode, the outstanding premiums towards this rider and the residual base plan are waived.
- Accident Benefit Rider:
This rider is only available for the regular premium payment mode and can be opted for anytime during the policy tenure. Under this rider, in case of accidental death, the Accident Benefit Sum Assured is paid out as a lump sum along with the death benefit. However, please remember that the sum assured of the rider or the premium to be paid towards this add-on cannot exceed the cover amount and premium of the base plan, respectively.
New Tech Term
This is an online-only term insurance plan offered by LIC. The plan provides a couple of riders (Accidental Death Benefit and Inflation Increase Cover) but is a tad bit pricey with not many customisation options. The plan offers a death benefit that can be either paid as a lump sum or over installments (fixed amount of pre-decided % of the cover amount).
Variants of the policy
- Level Sum Assured:
The death benefit is offered to the nominee in case of the policyholder's death. This death benefit is equal to the total sum assured of the policy.
- Increasing Sum Assured:
The sum assured remains fixed for the first 5 years of the policy. From the 6th year onwards, the base amount increases by 10% each year till the policy tenure reaches 15 years. From the 16th year onward, the base sum assured doubles and remains constant for the rest of the policy tenure.
Riders you can select with this plan
- Accident Benefit Rider:
In case of the policyholder's accidental death, the Accidental Benefit Rider sum assured is offered as a lumpsum along with the death benefit amount.
New Jeevan Amar
This is LIC's offline version of the New Tech Term plan. The policy features, riders, and benefits are all the same.
LIC-Life Insurance Corporation of India Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
Saral Jeevan Bima | 18-65 years | 25,00,000 | Annually, Half yearly, |
Jeevan Kiran | 18-65 years | 15,00,000-Unlimited | Annually or Half-yealry |
New Tech Term | 18-65 years | 50,00,000-unlimited | Annually or Half yearly |
New Jeevan Amar | 18-65 years | 25,00,000-Unlimited | Annually or Half yearly |
ULIP Plans
Unit Linked Insurance Plans, or ULIPs combine life insurance policies with an investment option. A section of the premium is used to fund life insurance coverage, while the rest is involved in equity, debt, or balanced funds. Since these policies are market-linked, there is a significant risk associated with the returns.
Here is a list of the ULIPs from LIC - LIC's NIVESH PLUS, SIIP, New Pension Plus, Index Plus, NEW ENDOWMENT PLUS. Please read the policy document diligently. Remember, ULIPs largely depend on stock and bond market performance.
ULIP Plans offered by LIC-Life Insurance Corporation of India
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| LIC's Investment (Nivesh) Plus | 90 days to 70 years
| NA |
| SIIP of LIC | 90 days to 65 years
| NA |
| LIC's New Pension Plus | 25 years to 75 years
| NA |
| LIC's New Endowment Plus | 90 days to 50 years
| NA |