The Life Insurance Corporation of India (LIC) has been a trusted name in life insurance for decades, with policies that cater to a wide range of financial goals. As of 2024, LIC continues to offer some of the most popular and reliable insurance plans to meet the varied needs of its customers. Below, we explore the Top 4 LIC plans in India for 2024, each designed to help policyholders achieve their financial goals while providing robust life coverage.
1. New Jeevan Anand Plan (Plan Number 715)
The New Jeevan Anand Plan is a non-linked participating individual life assurance plan. The plan fulfills LIC motto of “Zindagi ke saath bhi, Zindagi ke baad bhi” (With you in life and after life). This policy is an endowment-cum-whole life plan, which means policyholders receive a lump sum amount along with a reversionary bonus on maturity, while the life cover continues until the age of 100. The plan also offers the flexibility of a loan facility once the policy acquires a surrender value.
Key Features:
- Basic Sum Assured: The minimum basic sum assured is ₹2 lakhs, with no upper limit.
- Eligibility: Individuals aged 18 to 50 can opt for this plan.
- Policy Term: The minimum policy term is 15 years, and the maximum is 35 years.
- Premium Payment: Premiums can be paid annually, semi-annually, quarterly, or monthly.
Benefits:
- Death Cover: If the policyholder passes away before the policy matures, the nominee receives either 125% of the sum assured or seven times the annual premium, whichever is higher, along with bonuses.
- Maturity Benefits: On policy maturity, the policyholder receives the basic sum assured along with the reversionary and final bonuses.
- Loan Facility: Policyholders can avail of a loan once the policy reaches surrender value.
- Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act, offering tax benefits up to ₹1.5 lakhs.
Why Choose New Jeevan Anand?
New Jeevan Anand is ideal for individuals seeking a plan that offers both long-term savings and life protection. With the option to secure lifelong coverage, this plan ensures that your family is financially protected even after your demise, making it a versatile choice for both savings and life insurance.
2. LIC Jeevan Labh (Plan Number 736)
The Jeevan Labh Plan is a limited premium-paying, non-linked, participating endowment plan. It offers the dual benefits of savings and risk cover, making it an excellent option for those looking for a mix of protection and financial growth.
Key Features:
- Basic Sum Assured: The minimum sum assured is ₹2 lakhs.
- Eligibility: The minimum entry age is 8 years, while the maximum varies depending on the policy term—59 years for a 16-year term, 54 years for a 21-year term, and 50 years for a 25-year term.
- Policy Term: Available for 16, 21, or 25 years.
- Premium Payment Term: Premiums are paid for a shorter period than the policy term: 10 years for a 16-year term, 15 years for a 21-year term, and 16 years for a 25-year term.
Benefits:
- Death Benefit: If the policyholder passes away during the policy term, the sum assured is paid to the nominee.
- Accidental Death Benefit: By opting for an accidental rider, policyholders can ensure an additional payout of ₹10 lakhs in case of accidental death.
- Loan Facility: A loan is available after two years of the policy term.
- Tax Benefits: Premiums qualify for tax deductions under Section 80C, and the death and maturity benefits are tax-free under Section 10(10D).
Why Choose Jeevan Labh?
Jeevan Labh is perfect for those looking for a policy with a limited premium paying period and robust life cover. Its flexibility in terms of policy term and rider options makes it suitable for individuals with varied financial planning needs.
3. LIC Jeevan Lakshya (Plan Number 733)
The Jeevan Lakshya Plan is another popular plan offered by LIC, specifically designed for individuals looking for financial protection and guaranteed savings. This plan provides financial support for the family in case of the policyholder’s untimely demise and offers a lump sum amount at maturity.
Key Features:
- Basic Sum Assured: The minimum sum assured is ₹2 lakhs.
- Eligibility: The policy can be taken by individuals aged 18 to 50 years.
- Policy Term: Available between 13 and 25 years.
- Premium Payment Term: Premiums are paid for three years less than the policy term. For instance, if the policy term is 21 years, premiums are paid for 18 years.
Benefits:
- Maturity Benefit: Upon policy maturity, the sum assured plus bonuses are paid to the policyholder.
- Death Benefit: If the policyholder passes away during the policy term, the nominee receives the sum assured along with bonuses accrued over the years.
- Loan Facility: Policyholders can avail of loans after a certain period, provided the policy acquires a surrender value.
- Riders: Optional riders like Accidental Death and Disability Benefit, and Term Assurance Riders can be added for enhanced protection.
- Tax Benefits: Like other LIC plans, Jeevan Lakshya also offers tax benefits under Section 80C.
Why Choose Jeevan Lakshya?
This plan is a great option for individuals looking to secure their family’s future while saving for long-term financial goals. The built-in flexibility of premium payments and the comprehensive death benefit make it an attractive choice for families.
4. LIC Jeevan Umang (Plan Number 745)
The Jeevan Umang Plan is a unique offering from LIC, providing life cover along with guaranteed annual returns. It is a whole life assurance plan, ensuring that the policyholder receives a steady income post-retirement while offering a substantial life cover.
Key Features:
- Basic Sum Assured: The minimum sum assured is ₹2 lakhs.
- Eligibility: The minimum entry age is 90 days, making it a policy that can be taken even for newborns. For a policy term of 15 years, the minimum entry age is 3 years.
- Maturity Age: The policy matures when the policyholder turns 100 years old.
Benefits:
- Guaranteed Annual Income: The policyholder receives 8% of the basic sum assured annually after the premium payment term ends. For instance, if the sum assured is ₹5 lakhs, the policyholder will receive ₹40,000 every year until they reach 100 years of age.
- Death Benefit: In case of the policyholder’s death, the nominee receives the sum assured plus bonuses accrued over the years.
- Accidental Death Benefit: An additional amount is paid in case of accidental death, provided the policyholder has opted for the rider.
- Loan Facility: Loans can be availed after one year of the policy.
- Tax Benefits: Premiums paid towards the Jeevan Umang Plan are eligible for deductions under Section 80C, and the maturity benefits are tax-free under Section 10(10D).
Why Choose Jeevan Umang?
Jeevan Umang is ideal for individuals who want to ensure a regular income stream after the premium paying term while enjoying life cover until the age of 100. This plan is perfect for those looking for long-term financial stability and a secure future for their family.
Conclusion
The 4 LIC policies discussed—New Jeevan Anand, Jeevan Labh, Jeevan Lakshya, and Jeevan Umang—are designed to meet a variety of financial needs, from lifelong protection and savings to securing a steady income post-retirement. Each policy offers unique features and benefits, ensuring that individuals can choose the one that best aligns with their financial goals and life circumstances. Additionally, the tax benefits, flexibility in premium payment options, and loan facilities make these plans even more attractive for policyholders. Whether you are looking for long-term protection, financial security for your family, or a steady income in your later years, LIC has a plan for you.
FAQs
What is the difference between New Jeevan Anand and Jeevan Labh plans?
New Jeevan Anand offers lifelong coverage and a lump sum on maturity, with life cover continuing until the age of 100. Jeevan Labh, on the other hand, is a limited premium endowment plan, providing risk cover and savings but without the whole-life coverage that New Jeevan Anand offers.
Can I take a loan against my LIC policy?
Yes, most LIC policies like New Jeevan Anand, Jeevan Labh, Jeevan Lakshya, and Jeevan Umang allow you to take a loan once the policy acquires surrender value, typically after 2 years or more, depending on the policy.
What riders can I add to these LIC policies?
LIC offers several riders that can be added to enhance your policy coverage. Common riders include the Accidental Death and Disability Benefit Rider, Term Assurance Rider, and Premium Waiver Benefit Rider.
How does the annual guaranteed return in Jeevan Umang work?
In the Jeevan Umang plan, once the premium payment term is over, the policyholder receives 8% of the basic sum assured every year as a guaranteed income until they turn 100 years old.
Are there tax benefits for investing in LIC policies?
Yes, premiums paid towards LIC policies are eligible for tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakhs. Additionally, the death and maturity benefits are tax-exempt under Section 10(10D).
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or insurance advice. Policy terms, conditions, and benefits may vary, and individuals should consult with a licensed insurance advisor or review official policy documents for specific details. LIC policies are subject to terms and regulatory guidelines, and tax benefits are subject to prevailing tax laws.