The Life Insurance Corporation of India (LIC) offers a range of endowment and money-back plans designed to cater to different financial goals and needs. These plans not only provide life insurance coverage but also serve as a means to save systematically and earn returns over time. Here’s a detailed look at some of the prominent LIC endowment and money-back plans:

LIC Jeevan Umang

Overview

LIC Jeevan Umang is a whole life insurance plan that offers both protection and savings. It provides annual survival benefits from the end of the premium payment term until maturity and a lump sum payment at the time of maturity or on the policyholder’s death.

Key Features

• Lifetime Coverage: Coverage up to 100 years.
• Survival Benefits: Annual payouts after the premium payment term.
• Maturity Benefits: Sum Assured with bonuses at the end of the policy term.
• Death Benefits: Sum Assured with bonuses in case of the policyholder’s demise.
• Loan Facility: Policyholders can avail of loans against the policy.

Example

Mr. Sharma, aged 35, opts for LIC Jeevan Umang. He pays premiums for 20 years. Starting in the 21st year, he receives annual survival benefits until he turns 100 or until death. This plan ensures regular income post-retirement and financial security for his family.

LIC Jeevan Labh

LIC Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan. It combines the benefits of savings and protection, ensuring financial support for the family in case of the policyholder’s untimely demise and lump sum benefits at maturity.

Key Features

• Limited Premium Payment: Premiums are paid for a limited term while the coverage continues.
• Maturity Benefit: Sum Assured with bonuses.
• Death Benefit: sum assured plus bonuses paid to the nominee.
• Loan Facility: Available against the policy.

Example

Mrs. Patel, aged 30, chooses LIC Jeevan Labh for a policy term of 25 years and pays premiums for 16 years. In case of her demise during the policy term, her family receives the death benefit. If she survives the term, she receives the maturity benefit, ensuring financial security either way.

LIC Jeevan Lakshya

LIC Jeevan Lakshya is a non-linked, with-profits endowment plan designed to provide financial support primarily for the policyholder’s children’s education and future needs. It offers annual income benefits and a lump sum amount at maturity.

Key Features

• Annual Income Benefit: Paid from the policyholder’s demise till maturity.
• Maturity Benefit: Sum Assured plus bonuses at maturity.
• Death Benefit: Annual income benefit plus sum assured and bonuses.
• Premium Waiver: Future premiums are waived off in case of the policyholder’s demise.

Example

Mr. Verma invests in LIC Jeevan Lakshya to secure his son’s education. If Mr. Verma passes away during the policy term, his family receives annual income benefits and the maturity benefit, ensuring his son’s education is financially secured.

LIC Jeevan Anand

LIC Jeevan Anand is a combination of endowment and whole life plans, providing financial protection during the policy term and a lump sum amount at the end of the policy term. It also offers lifelong coverage.

Key Features

• Dual Benefit: Endowment and whole life coverage.
• Maturity Benefit: Sum Assured plus bonuses.
• Death Benefit: Sum Assured on death even after the policy term.
• Loan Facility: Loans can be availed against the policy.

Example

Ms. Sharma, aged 28, selects LIC Jeevan Anand. She pays premiums for 20 years. Upon maturity, she receives the Sum Assured with bonuses. The life cover continues for her lifetime, ensuring her family’s financial security.

LIC Endowment Plan

LIC Endowment Plan is a non-linked, with-profits plan that provides a combination of protection and savings. It offers a lump sum at the end of the policy term and financial support to the family in case of the policyholder’s demise.

Key Features

• Maturity Benefit: Sum Assured with bonuses at the end of the policy term.
• Death Benefit: Sum Assured plus bonuses to the nominee.
• Loan Facility: Policyholders can avail of loans against the policy.

Example

Mr. Kaushik, aged 32, invests in LIC Endowment Plan for a term of 20 years. He pays regular premiums, and at the end of the term, he receives the maturity benefit. If he passes away during the policy term, his family receives the death benefit.

LIC Money Back Plans

LIC Money Back Plans are designed to provide periodic payments as a survival benefit during the policy term. They offer both insurance coverage and regular returns at specified intervals.

LIC 20 Years Money Back Plan

• Survival Benefits: Paid at 5-year intervals.
• Maturity Benefit: Sum Assured with bonuses.
• Death Benefit: Sum Assured plus bonuses.

LIC 25 Years Money Back Plan

• Survival Benefits: Paid at 5-year intervals.
• Maturity Benefit: Sum Assured with bonuses.
• Death Benefit: Sum Assured plus bonuses.

LIC Bima Bachat

• Single Premium: One-time premium payment.
• Survival Benefits: Paid at specified intervals.
• Maturity Benefit: Sum Assured with Loyalty Additions.
• Death Benefit: Sum Assured in Case of Demise.

LIC Bima Shree

• Limited Premium Payment: Premiums paid for a limited period.
• Survival Benefits: Paid during the policy term.
• Maturity Benefit: Sum Assured with bonuses.
• Death Benefit: Sum Assured plus bonuses.

Example

Mr. Arun invests in the LIC 20-Year Money Back Plan. He receives 20% of the Sum Assured at the end of 5, 10, and 15 years, ensuring regular returns. At the end of 20 years, he receives the remaining Sum Assured with bonuses, providing financial security at various stages.

LIC Jeevan Utsav Policy

LIC Jeevan Utsav is a limited premium, single premium plan that offers maturity benefits along with insurance coverage. It’s designed to cater to those looking for a single premium investment option.

Key Features

• Single Premium: One-time premium payment.
• Maturity Benefit: Sum Assured with Loyalty Additions.
• Death Benefit: Sum Assured plus loyalty additions.
• Loan Facility: Loans can be availed against the policy.

Example

Ms. Rajesh opts for LIC Jeevan Utsav. She pays a single premium and receives the sum assured with loyalty additions at maturity. In the event of her untimely demise, her family receives the sum assured, ensuring financial security.

Frequently Asked Questions (FAQs)

Who can buy LIC Endowment and Money Back Plans?

LIC Plans are available to all, anyone meeting the age and health criteria specified by LIC can buy these plans.

What are the tax benefits of LIC plans?

The advantage of LIC plans over other Life Insurance plans are SOVEREIGN GUARANTEE by the Government of India. Premiums paid towards LIC plans are eligible for tax deductions under Section 80C of the Income Tax Act. The maturity proceeds are also tax-free under Section 10(10D), subject to conditions.

 Can I take a loan against my LIC policy?

Yes, most LIC plans allow policyholders to take loans against their policies once they acquire a surrender value.

What happens if I miss a premium payment?

LIC offers a grace period for premium payments. If the premium is not paid within this period, the policy may lapse but can be revived within a specified timeframe.

Are there any additional riders available?

A5: Yes, LIC offers additional riders like accidental death and disability riders that can be attached to enhance coverage.

How can I check my policy status?

Policyholders can check the status of their LIC policies online through the LIC website or mobile app.

What is the premium waiver benefit?

The premium waiver benefit ensures that in the event of the policyholder’s death, future premiums are waived, and the policy continues to provide benefits.

How do survival benefits work in money-back plans?

Survival benefits are periodic payouts made during the policy term at specified intervals, providing regular returns to the policyholder.

What are the maturity benefits of endowment plans?

Maturity benefits include the sum assured and accrued bonuses paid at the end of the policy term.

How do I purchase an LIC policy?

LIC policies can be purchased through LIC agents, online via the LIC India website, or by visiting an LIC branch.

Conclusion

LIC’s range of endowment and money-back plans offer comprehensive solutions for saving and securing your financial future. Whether you are planning for your child’s education, ensuring financial support for your family, or looking for a combination of savings and insurance, LIC has a plan tailored to meet your needs. By choosing the right LIC plan, you can ensure financial stability and peace of mind for yourself and your loved ones.