Life Insurance Corporation of India, commonly known as LIC, is a government-owned insurance company that provides various insurance products and policies in India. LIC has a wide range of policies that cater to the needs of every individual, be it a term plan, endowment plan, pension plan, health plan, or unit-linked plan. In this article, we will discuss the different types of LIC policies and their key features.
Types of LIC Policies
- Insurance (endowment, money back, and term plans): These plans offer life cover along with maturity and survival benefits. The policyholder can choose the sum assured and policy term as per their requirements.
- Pension Plans: Pension plans are designed to provide financial stability to individuals during their retirement years. These plans offer regular income in the form of annuity payments.
- Unit-Linked Plans: These plans invest a portion of the premium in the equity market and provide the policyholder with a market-linked return. The policyholder can choose the fund as per their risk appetite.
- Micro-Insurance Plans: These plans are designed for low-income individuals and provide affordable insurance coverage. The sum assured in these plans is relatively lower than other plans.
- Health Plans: These plans offer financial assistance to policyholders in case of medical emergencies. The policyholder can avail cashless hospitalization and reimbursement of medical expenses.
LIC Endowment Plans
LIC has a vast range of endowment plans that offer the policyholder a dual advantage of life insurance and long-term savings. These plans participate in the company’s profits and create wealth through investment in equity markets. Here are some of the top LIC endowment plans:
- LIC New Endowment Plan: This plan offers a policy term of 12 to 35 years, and the policyholder can choose to pay premiums monthly, quarterly, half-yearly, or annually. The minimum sum assured in this plan is INR 1 lakh, and there is no limit on the maximum sum assured.
- LIC Single Premium Endowment Plan: This plan offers a lump-sum payment on the maturity of the policy, and the policyholder can choose to pay the premium in a single installment. The minimum sum assured in this plan is INR 50,000, and there is no limit on the maximum sum assured.
- LIC New Jeevan Anand: This plan offers coverage up to the age of 75 years, and the policyholder can enhance the coverage by using accidental death and disability riders. The policy term in this plan is 15 to 35 years, and there is no limit on the maximum sum assured.
- LIC Jeevan Lakshya: This plan provides a regular income to the policyholder during the policy term, and the minimum sum assured in this plan is INR 1 lakh. The policy term in this plan is 13 to 25 years, and there is no limit on the maximum sum assured.
LIC Whole-Life Plans
LIC Jeevan Umang is the only whole-life plan that LIC is currently offering. This plan provides guaranteed survival benefits and offers a combination of income and protection to the policyholder and their family. Here are some key features of LIC Jeevan Umang:
- The policy term is 100 years, and the entry age is 90 days to 55 years.
- The policy provides death and maturity benefits, and there is no limit on the maximum sum assured.
- Riders such as accidental death and disability rider, accident benefit rider, and premium waiver rider can be opted for.