Which LIC Plans are closing from 30 September and why? | LIC Big News

LIC Plans are closing from 30 September– Today, I am going to share significant news that has recently come from the Life Insurance Corporation of India (LIC). The update pertains to the closed of some of LIC’s well-known insurance plans, effective from September 30, 2024. LIC has officially announced that several of its popular policies will be phased out by this date, marking a significant shift in their product offerings.

In this article, we will explore the details of the LIC plans that are set to be closed, understand the reasons behind this decision, and discuss the potential implications for policyholders and prospective buyers. We’ll also touch on what might come next from LIC in terms of new or revised plans. So, let’s dive in and take a closer look at this important update.

Also see: Which LIC plans will be available for sale from October 1, 2024

LIC Plans are closing from 30 September

The following LIC insurance plans are set to close by September 30, 2024:

1. Jeevan Labh (Plan Number 936)
2. Jeevan Umang (Plan Number 945)
3. Jeevan Anand (Plan Number 915)
4. Jeevan Utsav (Plan Number 871)
5. Jeevan Lakshya (Plan Number 933)
6. Endowment Plan (Plan Number 914)
7. Jeevan Tarun (Plan Number 934)
8. Money Back Plans (Plan Numbers 920 or 921)
9. Children Money Back Plan (Plan Number 932)
10. LIC’s Nivesh Plus (Plan Number 849)

Let’s take a closer look at each of these plans to understand what they offer and why they have been popular among policyholders.

Also see:

• LIC New Jeevan Anand Plan 715 Details
• LIC New Jeevan Labh Plan 736 Details
• LIC New Jeevan Lakshya Plan 733 Details

Jeevan Labh (Plan Number 936)

Jeevan Labh is a non-linked, with-profits, limited premium payment plan. It combines the benefits of protection and savings. This plan is ideal for individuals seeking financial protection against an unfortunate event during the policy term, with the added advantage of a lump sum payment at the end of the term if the insured survives. The plan also offers additional benefits like death and maturity benefits, rider options, and participation in the corporation’s profit through bonuses.

This plan has been particularly favored by those looking for a balanced mix of risk protection and investment return.

Also see: What will be the Surrender Value of LIC from October 1

Jeevan Umang (Plan Number 945)

Jeevan Umang is a whole life insurance plan that provides annual survival benefits from the end of the premium-paying term till maturity and a lump sum at maturity or upon the death of the insured. The unique selling point of this plan is its lifetime coverage and the potential for lifelong income, which makes it appealing to individuals looking for long-term financial security.

The plan also participates in the corporation’s profits and offers several optional riders for enhanced coverage.

Also see: Mukhyamantri Subhadra Yojana online apply

Jeevan Anand (Plan Number 915)

Jeevan Anand is one of LIC’s most popular endowment plans, offering a combination of protection and savings. The plan provides financial protection against death throughout the lifetime of the policyholder, with the provision of a lump sum payment at the end of the selected policy term in case of survival. This plan is known for its dual benefits—insurance protection plus the potential for wealth creation through bonuses.

Jeevan Anand has been a top choice for individuals seeking a blend of security and savings.

Jeevan Utsav (Plan Number 871)

Jeevan Utsav is a lesser-known plan compared to the others on this list. It is an endowment assurance plan, offering a combination of protection and savings with a lump sum benefit payable on maturity or on death. The plan also participates in the corporation’s profits, thus providing an additional bonus to policyholders.

Jeevan Utsav appeals to individuals who want a straightforward insurance-cum-savings plan.

Jeevan Lakshya (Plan Number 933)

Jeevan Lakshya is a limited premium paying, non-linked, with-profits endowment plan. The plan is designed to provide financial security to the policyholder’s family in case of the policyholder’s demise before the maturity of the policy. Additionally, a lump sum is paid on the maturity date, irrespective of the survival of the life assured. The plan also provides annual survival benefits during the policy term, making it a comprehensive insurance plan.

This plan is particularly attractive to individuals who prioritize their family’s financial security while also aiming for savings.

Endowment Plan (Plan Number 914)

The Endowment Plan is a traditional life insurance policy that offers both savings and protection. The plan provides a lump sum amount to the policyholder at the end of the policy term, provided the insured survives the policy term. In case of the unfortunate demise of the policyholder during the policy term, the nominee receives the sum assured along with bonuses.

This plan has been a go-to option for those looking for a simple yet effective insurance solution that also helps in wealth accumulation.

Jeevan Tarun (Plan Number 934)

Jeevan Tarun is a participating non-linked limited premium payment plan designed specifically for children. It provides annual survival benefits from the age of 20 to 24 years and a lump sum maturity benefit at the age of 25 years. This plan aims to cater to the financial needs of children for their education, marriage, and other significant life events.

Parents and guardians have preferred this plan for securing the future financial needs of their children.

Money Back Plans (Plan Numbers 920 or 921)

The Money Back Plans under plan numbers 920 and 921 offer periodic payments to the policyholder as survival benefits during the policy term. These plans also provide a lump sum amount at maturity, along with bonuses. The key feature of these plans is the regular payout during the policy term, which can help in meeting intermediate financial needs.

These plans are particularly suitable for those looking for periodic returns while still enjoying life cover.

Children Money Back Plan (Plan Number 932)

The Children Money Back Plan is a non-linked, with-profits money-back plan, tailored to meet the financial needs of growing children. It provides survival benefits at various stages of the child’s education, along with a maturity benefit at the end of the policy term. The plan also includes a death benefit, ensuring financial security for the child in the event of the policyholder’s untimely demise.

This plan is popular among parents looking to secure funds for their children’s education and other future needs.

LIC Nivesh Plus (Plan Number 849)

In contrast to the plans being discontinued, LIC Nivesh Plus remains an active option for those seeking investment-linked insurance. It’s a single premium, non-participating, unit-linked insurance plan (ULIP) that offers both life cover and investment opportunities. This plan allows policyholders to choose between four fund options, giving them control over their investment portfolio. Nivesh Plus is ideal for individuals who are willing to take market-linked risks in exchange for potential higher returns.

As LIC phases out several traditional plans, Nivesh Plus could serve as a viable alternative for those looking for a more flexible investment-cum-insurance option.

Why is LIC closing these plans?

The decision to closing these popular plans may come as a surprise to many, especially given their popularity. However, there are several potential reasons why LIC might be phasing out these products:

• Regulatory Compliance: Insurance companies are required to regularly review and update their product portfolios to ensure compliance with the latest regulatory guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI). Changes in regulations might necessitate the withdrawal of certain products.

Also read: IRDAI New Guidelines for LIC

• Product Rationalization: Over time, insurance companies streamline their offerings to focus on plans that better meet the evolving needs of customers. LIC might be discontinuing these plans to introduce new products that are more aligned with current market demands and customer expectations.

• Performance and Profitability: LIC might be discontinuing these plans based on their performance and profitability metrics. Plans that no longer align with the corporation’s long-term financial goals or that have become less attractive to new customers might be phased out to make room for more innovative products.

• Digital Transformation: As LIC continues to enhance its digital presence and offerings, it may choose to phase out older, traditional plans in favor of new-age products that are better suited for digital sales and service channels.

Implications for Policyholders and Prospective Buyers

The closing of these plans has several implications for both existing policyholders and those considering purchasing a policy before the September 30, 2024 deadline.

1. For Existing Policyholders:

• Continued Coverage: Existing policyholders need not worry about the closed affecting their current coverage. All policies purchased before the cut-off date will remain in force as per the original terms and conditions.

• Bonus and Payouts: Policyholders will continue to receive bonuses, survival benefits, and maturity payouts as specified in their policy documents.

• Claims Processing: LIC will continue to process claims and provide customer service for these policies without any changes.

2. For Prospective Buyers:

• Limited Time to Purchase: If you are interested in any of the plans listed above, you must act before September 30, 2024. After this date, these plans will no longer be available for purchase.

• Potential Alternatives: While these specific plans will be discontinued, LIC may introduce new or revised plans that offer similar benefits. It’s advisable to stay updated on any new product launches that might be announced in the coming months.

Also see: What changes are going to happen in LIC from October 1, 2024

What’s Next? Possible New Offerings from LIC

While there is no official update from LIC regarding new products, it is possible that LIC might introduce revised versions of some of these discontinued plans or launch entirely new plans that cater to the changing needs of consumers. LIC has a history of adapting its product offerings in response to market trends and customer feedback, so it’s reasonable to expect some exciting new developments in the near future.

In the meantime, prospective buyers should carefully evaluate their insurance needs and consider purchasing one of the soon-to-be-discontinued plans if it aligns with their financial goals. Consulting with an LIC advisor or agent can provide personalized guidance and help you make an informed decision.

Conclusion

The announcement of LIC closing several of its popular insurance plans marks a significant development in the Indian insurance landscape. These plans, which have been favored by millions of policyholders for their comprehensive coverage and savings potential, will no longer be available after September 30, 2024.

For those who currently hold any of these policies, there is no cause for concern, as your coverage will continue as per the policy terms. For prospective buyers, this is the time to act if you wish to purchase one of these plans. As LIC continues to evolve its product offerings, we can expect new and innovative insurance solutions that cater to the diverse needs of its customers.

Stay tuned for further updates, and be sure to consult with a licensed LIC advisor to explore your options before the deadline. The world of insurance is ever-changing, and staying informed is the best way to ensure that your financial security remains intact.

FAQs about LIC Plans are closing from 30 September

Disclaimer- This article is for informational purposes only and does not constitute financial or legal advice. Readers are encouraged to consult with a licensed insurance advisor or LIC representative for personalized guidance. The information provided is based on current updates and may change; always verify details with official LIC sources.