Investment Plans 308 views March 30, 2021

Life Insurance Corporation of India (LIC) offers life insurance plans that give you investment benefits and life cover. Under such LIC policies, you will get guaranteed maturity benefits, death cover, bonuses, etc. Also, the premium amount of LIC Investment Plans are as low as INR 3,000 per month. So, if you want to earn while also looking to secure the future of your loved ones, subscribing to LIC investment plans won’t be a bad idea! Let’s read further to know the features and benefits of each LIC Investment Plan in detail.

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LIC New Jeevan Anand

This LIC investment plan is a participating non-linked endowment plan that offers savings plus financial protection to the insured. LIC New Jeevan Anand provides you the financial protection against death throughout the policy period while also offering a lump sum amount at the end of the policy period should the insured be alive till the end of the policy term. In case of the insured’s death during the policy period, the company pays a benefit in the form of a sum assured along with the vested simple reversionary bonuses, provided the bonuses are declared by the company. Whereas if you survive the LIC New Jeevan Anand policy period till its maturity, the company will pay a maturity benefit that includes the basic sum assured and vested bonuses as well as an additional bonus (Terminal Bonus). You also get the option of regular premium payment under LIC New Jeevan Anand Plan, helping you pay the premium of this LIC investment plan in installments. With this LIC investment plan, you can also borrow money against the policy.

LIC Jeevan Tarun

This is a participating non-linked limited premium payment plan of LIC that offers protection and saving for children. LIC Jeevan Tarun is designed to meet the educational and other financial needs of growing children. Under this LIC investment plan, you will get survival benefit payments when your child turns 20, and this will continue till the age of 24 years. And when your child turns 25 years old, LIC Jeevan Tarun Maturity Benefit, amounting to 100% of the sum insured plus vested simple reversionary bonuses and final additional bonus, will be payable to you. It is a flexible LIC investment plan wherein the proposer can choose the Survival Benefit payout during the policy term.

In case of death of the life assured during the policy term, a Death Benefit will be payable to the nominee. LIC Jeevan Tarun Death Benefit is the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where the “Sum Assured on Death” is higher of –

  1. 10 times the annualized premium
  2. Absolute amount assured to be paid on death

Note – This plan can be purchased for a child of up to 12 years.

LIC New Endowment Plus

LIC New Endowment Plus offers you an investment at your own risk and also provides life cover during the policy term. The plan offers you a choice of investing premiums in any one of the four types of investment funds –

  1. Bond Fund
  2. Secured Fund
  3. Balanced Fund
  4. Growth Fund

And if you die during the tenure of this LIC investment plan tenure, the highest of the following will be payable to your nominee:-

  1. Basic Sum Assured minus partial withdrawals
  2. Fund Value
  3. 105% of paid premiums

Whereas, if the insured survives the policy term, he/she will be entitled to maturity benefits equaling your Policy Fund Value at the end of the policy term. LIC allows you to make partial withdrawals under LIC New Endowment Plus after the 6th policy year.

Note – You can switch freely among the four available funds during the policy term.

LIC Money Back Policy- 20 years

LIC Money Back Policy – 20 years is a participating, non-linked plan that offers you the benefits of saving and life cover during the term. The plan provides you a survival benefit payout of 20% of the Basic Sum Assured, and this shall be payable to you at the end of the 5th year, 10th year and 15th year, respectively, provided you are alive during the policy term.

If you survive the policy term and pay all the premiums, provided the policy is in force, the insurance company will pay 40% of the Basic Sum Insured with bonuses, if any, as a maturity benefit.

In case of your death, the policy sum assured will be payable to the nominee together with the simple reversionary bonus and an additional bonus, if any. The Death Benefit under LIC Money Back Policy- 20 years plan shouldn’t be less than 105% of the total paid premiums as on the date of death. Sum Assured on Death will be higher of:

  1. 125% of the Basic Sum Insured
  2. 10X the annualized premium

Note  – LIC Money Back Policy -20 years is a participation in the profits of the company and hence these profits shall be paid to the insured in the form of Simple Reversionary Bonus and Terminal Bonus, if applicable.

LIC Nivesh Plus

LIC Nivesh Plus is a non-linked, non-participating single premium unit-linked plan offering you a life cover and investment benefits. Under this LIC investment plan, you will get Guaranteed Additions, which are the percentage of Single Premium and will be added to the Unit Fund on completion of specific duration such as –

End of Policy Year (in Years)Guaranteed Additions
63%
104%
155%
206%
257%

The Guaranteed Addition shall be converted to units based on the NAV of your chosen fund type and get allocated accordingly. However, if any Guaranteed Additions are added subsequently to the date of death, the same shall be recovered from the Unit Fund immediately.

If you die before the date of commencement of risk of LIC Nivesh Plus, an amount equal to the Unit Fund Value shall be payable to the nominee. On the other hand, if you die after the date of commencement of risk, an amount equal to the higher of the following shall be payable to the nominee-

  1. Basic Sum Assured less Partial Withdrawals (if any made during the past two policy years)
  2. Unit Fund Value

The mortality charge, accident benefit charge and tax charges will be recovered subsequently to the date of death and shall be paid back to the nominee/beneficiary along with the death benefit.

Note – The death benefit shall be paid either in a lump sum or installments as chosen by the life assured.

If the Life Assured survives till the maturity of LIC Nivesh Plus, an amount equal to the Unit Fund Value shall be payable to him/her.

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