The Life Insurance Corporation of India was formed in 1956 as the sole life insurance company in India. Since then, till the year 2000, the company has enjoyed a monopoly position in the life insurance segment and has created a customer base of more than 250 million individuals. Every individual has an inherent trust in LIC’s brand name which has resulted in the company having the largest market share in the life insurance business.
LIC offers a range of life insurance policies that help in fulfilling the varied insurance needs of individuals. Among the various LIC plans issued by the company, there are some plans which are the best-selling plans as they have the most comprehensive coverage benefits. But before we dive into the best LIC policy to buy, let’s first understand the different types of LIC plans that are available:
Best LIC policy in Different Categories in India:
Among the variety of life insurance plans offered by LIC in all the above-mentioned categories, let’s discuss some of the best LIC plans that the company offers for the various types:
Term Insurance Plans
Term plans are the most basic life insurance plans which cover the risk of premature death and offer financial security. The salient features of term plans are as follows –
- High sum assured levels can be selected as premiums are very low and affordable
- These plans usually don’t have a maturity benefit
- There might be inbuilt riders that help in enhancing the coverage under the plan
- Term insurance helps in financially securing the policyholder’s family in case of their early death. Additionally, survival benefits might be provided by some insurers. Choosing the right term insurance policy is a crucial decision for individuals as well as their dependents, which is why comparing their features and benefits becomes a critical decision. Visitthis page & enter the relevant details to help us showcase the best term insurance plans available in the market & the best available prices.
LIC’s most popular term insurance plans:
LIC’s Tech Term Plan :
- This is an online term plan which can be bought at the click of a mouse. The plan’s USPs include the following:
- Differential premium rates are applicable for smokers and non-smokers as well as women
- Premium discounts help in lowering the premium charged. You can avail of a premium discount through high sum assured rebates
- The accident death benefit rider can be added for enhanced coverage
- You can opt for the increasing sum assured coverage option wherein the sum assured would increase @10% from the 6th policy year till the 15th policy year.
|Name of the LIC Plan||LIC’s Tech Term Plan|
|Type of Plan||Term Insurance Plan|
|Whom does the plan suit?||Suitable for all as the plan creates financial security for the policyholder as well as for his family.|
|Entry Age||18-65 years|
|Maximum Maturity Age||80 years|
|Policy Tenure||10-40 years|
|Sum Assured||INR 50 lakhs onwards|
|Death Benefit||Sum assured on death’ which is higher of the following –
The basic sum assured (level or increased as per the coverage option you have selected)
LIC’s Jeevan Amar Plan:
This term plan offers you the benefit of choosing the coverage as per your needs. The salient features and benefits of the plan are as follows –
- You can opt for uniform coverage throughout the policy tenure or an increasing sum assured
- Under the increasing sum assured option, the sum assured would increase by 10% every year from the 6th policy year till the 15th policy year thereby doubling the coverage level
- You have the flexibility to choose the premium payment tenure, policy tenure as well as premium payment mode and frequency
- Premium discounts are allowed for women as well as for choosing higher sum assured levels
- The accidental death benefit rider can be added to the policy for higher coverage against accidental deaths
- You have the option to avail of the death benefit in instalments rather than in one lump sum
|Name of the LIC Plan||LIC’s Jeevan Amar Plan|
|Type of Plan||Term Insurance Plan|
|Whom does the plan suit?||Suitable for everyone as the plan offers financial security and allows you to opt for high coverage at low premiums|
|Entry Age||18-65 years|
|Maximum Maturity Age||80 years|
|Policy Tenure||10-40 years|
|Sum Assured||INR 25 lakhs onwards|
|Death Benefit||‘Sum assured on death’ which is higher than the following
Endowment plans are those which provide both insurance coverage as well as savings. The features of endowment plans include the following –
- A death benefit is paid on death during the policy term. If the plan matures, however, a maturity benefit is paid
- The endowment plans provide guaranteed benefits
- The bonus might be added if the plan is offered as a participating plan
LIC’s most popular endowment plan: LIC’s Jeevan Lakshya Plan
The plan is an endowment plan which has an enhanced death benefit. The USP of the plan is as follows –
- Death benefit consists of annual incomes as well as lump sum payment on completion of the policy term
- Two optional riders are available with the plan
- Bonus additions help in enhancing the plan benefits
- Attractive premium discounts lower the premium payable
|Name of the LIC Plan||LIC’s Jeevan Lakshya Plan|
|Type of Plan||Endowment Plan|
|Whom does the plan suit?||Risk-averse individuals who are looking to create savings along with insurance.|
|Entry Age||18-50 years|
|Maximum Maturity Age||65 years|
|Policy Tenure||13-25 years|
|Sum Assured||INR 1 lakh onwards|
|Death Benefit||10% of sum assured paid as annual incomes till second last policy year
+ 110% of basic sum assured on maturity
+ Accrued bonuses
|Maturity Benefit||Basic sum assured + accrued bonuses|
Would you like to check benefits & features offered by other Life Insurance companies? Visit Turtlemint’s endowment policy comparison page & enter the relevant details to browse through the most attractive endowment plans in the market.
Money-back plans are like endowment plans. However, they pay the sum assured in instalments during the policy tenure rather than in a lump sum on maturity. The features of money back plans include the following –
- Sum assured is paid in predetermined instalments at predefined intervals during the term of the policy
- When the policy matures, the rest of the sum assured is paid along with a bonus
- In case of death of the insured within the policy tenure, the entire sum assured is paid to the nominee irrespective of the amount of money back benefits already paid.
LIC’s most popular money-back plans:
LIC Jeevan Shiromani Plan
This is a money-back plan for High Net worth Individuals as the plan offers higher levels of sum assured. The USPs include the following –
- Loyalty additions and guaranteed additions are added to the plan benefits which enhances them
- Money-back benefits provide easy liquidity
- There is an inbuilt critical illness benefit that covers 15 critical illnesses.
- Four additional riders are available for customization
- The maturity and death benefits can be taken in instalments
|Name of the LIC Plan||LIC’s Jeevan Shiromani Plan|
|Type of Plan||Money-back plan|
|Whom does the plan suit?||Risk-averse individuals who want to create savings with insurance and also need liquidity during the policy tenure.|
|Entry Age||18-55 years|
|Maximum Maturity Age||65-69 years depending on the policy term|
|Policy Tenure||14,16,18,20 years|
|Sum Assured||INR 1 crore onwards|
|Death Benefit||Sum Assured on death
+ Guaranteed additions + loyalty additions (if any)
|Maturity Benefit||10% to 40% of the sum assured left after paying the money back benefit
+ Guaranteed additions
+ Loyalty additions
LIC’s Jeevan Umang Plan
This is also a money-back policy but with an added benefit of whole life coverage. Here are some of the salient features and benefits of LIC’s Jeevan Umang –
- This is a with-profit policy that gives bonuses that help in enhancing the plan benefits
- Limited premiums are payable for the plan
- After the completion of the premium paying tenure, 8% of the sum insured is paid every year till maturity. This gives you the desired liquidity without compromising the lifelong coverage
- Four optional riders are available for customizing the policy
- You can enjoy premium discounts if you choose a sum assured of INR 5 lakhs and above or if you pay the premium in the annual or semi-annual mode.
|Name of the LIC Plan||LIC’s Jeevan Umang Plan|
|Type of Plan||Whole Life Endowment Plan|
|Whom does the plan suit?||Investors looking for lifelong protection while creating a corpus for their financial goals.|
|Entry Age||90 days-55 years|
|Maximum Maturity Age||100 years|
|Policy Tenure||100 years – entry age|
|Sum Assured||INR 2 lakhs onwards|
|Death Benefit||Death within the first 5 years – Sum assured on death
Death after the first 5 years – the sum assured on death + loyalty additions
Sum assured on death is highest of the following –
A simple reversionary bonus would be added to the death benefit
|Survival benefit||8% of the sum assured payable after the end of the premium paying term till death or maturity|
|Maturity Benefit||Sum assured on maturity which is equal to the Basic sum assured
A simple reversionary bonus would also be paid with the maturity benefit
Unit linked insurance plans
Unit linked insurance plans, or ULIPs are what they are popularly called, are investment-oriented life insurance plans which promise market-linked returns as well as insurance coverage. Their features are as follows –
- The premium paid is invested in market-linked investment funds chosen by the policyholder
- There is the flexibility of switching between the available funds and partial withdrawals
- There are different funds with different risk profiles so that investors can plan their investments according to their risk appetites
- The returns are not guaranteed and depend on the market movements.
- ULIPs provide the benefit of investment returns along with insurance and the premium grows along with the market trends. These provide the options of different funds to the policyholder and they can choose according to their risk-capability. However, ULIPs are different from other investment options such as mutual funds and conventional life insurance policies, the best ULIP plans along with their salient features are listed here.
LIC’s most popular Unit Linked Insurance Plans:
LIC’s New Endowment Plus Plan
This is the standalone unit-linked insurance plan offered by LIC which has the following salient features –
- LIC’s Linked Accidental Death Benefit Rider can be chosen as an optional coverage benefit
- Four funds are available for investing the premium
- Four free switches are allowed in a policy year for changing between funds
|Name of the LIC Plan||LIC’s New Endowment Plus Plan|
|Type of Plan||Unit Linked Insurance Plan|
|Whom does the plan suit?||Suitable for risk-taking individuals who want to avail market-linked returns along with insurance|
|Entry Age||90 days – 50 years|
|Maximum Maturity Age||60 years|
|Policy Tenure||10-20 years|
|Sum Assured||Higher of 10 times the annualised premium or 105% of total premiums paid|
|Death Benefit||Higher of the available fund value or the basic sum assured|
|Maturity Benefit||Fund value|
An attractive unit-linked plan, SIIP provides coverage against the risk of premature death and also allows you to earn attractive returns through market-linked investments. The salient features of the plan include the following –
- The mortality charges are refunded on the maturity of the policy
- Guaranteed additions, ranging from 5% to up to 25% of the annual premium are added to the fund value at specific intervals
- Four types of fund options are allowed to diversify your portfolio
|Name of the LIC Plan||LIC’s SIIP|
|Type of Plan||Unit Linked Insurance Plan|
|Whom does the plan suit?||Suitable for investors looking for a dual benefit of market-linked returns and insurance protection|
|Entry Age||90 days – 65 years|
|Maximum Maturity Age||85 years|
|Policy Tenure||10-25 years|
|Sum Assured||If age is below 55 years – 10 times the annualized premium
If age is 55 years and above – 7 times the annualized premium
|Annualized premium||Minimum – INR 40,000
Maximum – no limit
|Death Benefit||Higher of the available fund value or the basic sum assured subject to a minimum of 105% of the total premiums paid.
Guaranteed additions, if added, would also be paid with the death benefit
|Maturity Benefit||Fund value + guaranteed additions|
Child plans are insurance plans which specifically cater to the financial security of a child. The plan can be issued as an endowment, money back or unit-linked plan. The salient features include the following –
- The plan can be bought by parents of minor children
- The parent or the child can be the life insured
- There is an inbuilt premium waiver benefit. This benefit waives off the premium if the parent dies. The plan continues till maturity and gives the promised benefits to provide the child with the required funds
Child plans assure a financial corpus that can be utilized in the future. There are several versions of these plans which are inflation-proof, adding to the security of the child’s future. More information on different child plans available in India and their comparison can be found here.
LIC’s most popular child plan: LIC’s Jeevan Tarun Plan
This is a child plan which pays the money back benefits between the ages 20 to 24 years of the child and when the child attains 25 years of age, the plan matures and pays the maturity benefit. The USP of the plan includes the following benefits –
- There are four money back benefits to choose from
- Bonuses help increase the plan benefits
- There is an optional premium waiver benefit rider for an enhanced coverage
- There are two types of premium rebates which help in lowering the premium amount.
|Name of the LIC Plan||LIC’s Jeevan Tarun Plan|
|Type of Plan||Traditional Child Plan|
|Whom does the plan suit?||Suitable for parents who want to create a secured corpus for their child’s future.|
|Entry Age||90 days – 12 years|
|Maximum Maturity Age||25 years|
|Policy Tenure||25 minus entry age|
|Sum Assured||INR 75,000 onwards|
|Death Benefit||Sum assured on death
+ Accrued bonuses
|Maturity Benefit||25% to 100% of the sum assured depending on the survival benefit option selected|
Pension plans are retirement oriented plans which help individuals create a retirement corpus. The features of pension plans are as follows –
- Pension plans can be offered in two variants – deferred annuity and immediate annuity plans
- The maturity benefit of a pension plan is used to create annuities that continue till the lifetime of the policyholder
- Under immediate annuity plans, annuities can be received on joint lives too.
One of LIC’s popular pension plans: LIC’s Jeevan Shanti Plan
This is a pension plan for senior citizens. The plan offers you the choice of choosing a deferred annuity option or an immediate annuity option. Each option further offers a range of annuity payment options that can be selected as per requirement. The USPs of the plan is as follows –
- The annuity payment options can be availed on a single life or on a joint life basis
- Under the deferred annuity option, monthly guaranteed additions are added to the policy corpus till the deferment period
- The death benefit can be taken in annuity payments, in instalments or in a lump sum as selected by the annuitant
- A policy loan is also available under some annuity options
|Name of the LIC Plan||LIC’s Jeevan Shanti Plan|
|Type of Plan||Pension Plan|
|Whom does the plan suit?||Suitable for individuals looking to create a retirement corpus as well as lifetime income after retirement.|
|Entry Age||60 years and above|
|Maximum Maturity Age||Depends on the annuity option selected|
|Policy Tenure||Depends on the annuity option selected|
|Death Benefit||Depends on the plan option selected.|
|Maturity Benefit||Nil. Annuity payments are made from the vesting date till the annuitant’s lifetime.|
LIC’s Jeevan Shanti plan not suiting your exact requirements for a pension plan?
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Comparative analysis of the best LIC policies
|LIC’s Tech Term Plan||LIC’s Jeevan Amar||LIC’s Jeevan Lakshya||LIC’s Jeevan Shiromani||LIC’s Jeevan Umang||LIC’s New Endowment Plus||LIC’s SIIP||LIC’s Jeevan Tarun||LIC’s Jeevan Shanti|
|Type of policy||Term||Term||Endowment||Money back||Money back||ULIP||ULIP||Child plan||Pension plan|
|Need||Financial protection||Financial protection||Savings + insurance coverage||Savings + liquidity + insurance coverage||Savings + liquidity + insurance coverage||Insurance protection + wealth creation||Insurance protection + wealth creation||Child planning||Retirement planning|
|Product USP||Increasing or level coverage||Increasing or level coverage||Bonus additions||Loyalty and guaranteed additions||Coverage till 100 years||Four investment fund options||Refund of mortality charges||Option to choose the plan as endowment or money back||Monthly guaranteed additions under the deferred annuity option|
|High coverage levels||The death benefit in instalments||The death benefit payable as incomes as well as in lump sum||Inbuilt critical illness cover||Steady income after the premium payment term||Four free switches||Guaranteed additions at specific intervals||Bonus additions enhance the corpus||Range of annuity choices under the immediate annuity option|
Top #9 Points to consider while identifying the best LIC policy:
So, these are some of the best plans offered by LIC which you can consider. You can select the plans depending on your insurance needs. Before selecting the plans, however, keep the following things in mind –
Make sure that the plan fulfils your financial needs. If you want to fulfil the need for income replacement, a term insurance plan is a must. Similarly, if you want to plan for your retirement, choose a pension plan. So, the choice of the plan should match your financial goals.
- Type of plan –
The choice of the plan should be based on your risk appetite as well. If you don’t mind taking risks, ULIPs are a good choice. However, if you are risk-averse, choose traditional endowment and money-back plans for guaranteed returns.
- Sum Assured –
The sum assured of the plan should be sufficient enough to cover the financial goal for which you are buying the policy.
- Policy term –
The term of the policy should be selected depending on the need for funds. Match your investment horizon with that of the policy tenure and then select the term. For instance, if you would be needing funds after 15 years, choose a policy term of 15 years so that you get the policy benefit just when you need it.
- Tax benefits –
Life insurance policies give you tax benefits. The premiums paid are allowed as a deduction under Section 80C up to INR 1.5 lakhs. Similarly, the death or maturity benefit received is also a tax-free income under Section 10 (10D). So, don’t forget to maximize the tax advantage offered by the plan that you buy.
- Rider benefits –
If you want additional coverage benefits, look for optional riders offered by the plan which would help you increase the scope of coverage.
Almost all LIC plans have suicide exclusion wherein suicides within 12 months of policy inception or revival are not covered. In such cases, the premium paid is refunded or the surrender value is paid. So, check the exclusion of the plan before buying to know the exact coverage details.
- Annuity options in pension plans –
LIC’s pension plans have multiple annuity options. If you are buying the pension plan, ensure that you choose the most suitable annuity pay-out option for earning the maximum benefits.
- Loyalty additions and bonuses –
Traditional LIC plans offer you the benefit of extra additions like loyalty additions, guaranteed additions or reversionary bonuses. Look for these extra additions in the plan’s benefits structure to get a higher payout under the policy.So, plan your financial goals and then find the best LIC policy which best suits your financial goals. Invest in any of the above-mentioned policies and enjoy the benefits which the policy promises.
To buy LIC’s policies you can choose Turtlemint. Turtlemint is an online platform that lets you buy the best LIC policy list for your coverage requirements. The benefits of buying through Turtlemint are as follows –
- You can simply provide your personal information and buy the policy with the click of a few buttons
- Turtlemint also recommends the ideal coverage level based on the income that you enter
- You can compare similar plans on Turtlemint before you buy the actual policy. When you compare you can find the plan which has the best coverage benefits at the most reasonable premium rates.
- Turtlemint not only helps you buy the most suitable LIC policy online, but you can also get help at the time of claims too. Turtlemint has a dedicated claim handling department that coordinates with the life insurance company to ensure a quick claim settlement.
So, choose the most relevant LIC policy based on your needs and buy the policy easily from Turtlemint.