LIC or Life Insurance Corporation is one of the most trusted brand names in the world of insurance. Established on 1st September 1956, LIC still rules the market when it comes to life insurance. Though many other private market players have shown up since the past two decades, the popularity of LIC hasn’t gone down. LIC term plans are considered as one of the easiest, pocket and end-user friendly insurance plans that anyone could ever ask for. No wonder that the company has a huge database of 250 million people.
So, the legitimate question here is what you mean by LIC term plan and how it is different from others.
Basically, LIC term plan is a contract between the insured and LIC which offers various benefits. As per the term plan, an insured has to pay a certain amount as the policy premium, for a certain time period. After the sudden or natural demise of the insured, the family members get a certain amount as financial support to ensure financial stability of the family.
The basic difference between LIC term plan and other insurance plans is that it can be done at an early age with low investment. Usually, other private sector life insurance can be opted for only when you make a good initial investment. In addition, with LIC term plans, you can choose your coverage from 6 lakh with no maximum restriction.
Why Is LIC Term Plan Important For You?
Well, life is very unpredictable. Diseases, accident or any other untimely mishap may take us away from our loved ones in the blink of an eye. With such unpredictability, it is very important to provide financial stability to the family. While the emotional loss can’t be replaced, the financial stability can be provided with the help of an LIC term plan.
Buying an LIC term plan is indeed one of the wisest decisions that one can make for the family. LIC term is important for various reasons which can be stated as:
- To provide financial stability to family members: Finance is required to survive. With an LIC term plan, you can secure the future of your loved ones.
- Low premium: When compared to other life insurances, LIC has relatively low premium rates which are easy to manage and affordable for buyers of all socio-economic groups.
- High return on investment: LIC term plan is immensely popular amongst the masses. The reason is that it offers high return on investment. With a low-cost premium, you can get good compensation, which is not the case with other life insurance plans.
- To get a tax rebate: LIC not only gives you financial support, but also provides some relief from income tax. A policy buyer is eligible to get tax concession of the premium paid as per the Section 80 C of the Income Tax Act, 1961.
Which Plan Is The Best For You?
LIC is the only company which offers something for everyone. This is why majority of people opt for it. Whether you are a multi-billionaire or a person belonging to a lower income group, LIC has a term plan suited to your requirements.
Currently, LIC offers five-term plans.
- LIC Amulya Jeevan II: It is one of the premium term plans that LIC offers. With a flexible term and high-sum, this term plan is designed to provide financial support after the demise of the insured.
- LIC Anmol Jeevan II: You can avail this term plan from the age of 18 years. With a minimum of 6 lakhs financial support, this term plan has a maximum maturity age of 65 years. It is a pure term insurance plan, which means that no benefits will be credited to the insured’s family if he/she survives during the policy tenure.
- LIC Bhagya Lakshmi: Designed to provide financial stability to lower income groups, this term plan is a micro insurance product that provides maximum of 50,000 INR support to the family of the insured.
- LIC e-Term: For its tech-savvy clients, LIC offers an e-term plan which provides financial aid to the family only if insured dies before the maturity date.
- LIC New Jeevan Mangal: Another micro insurance product from the house of LIC, this term plan provides rock-solid financial support to the lower income groups. As it comes with a low premium, majority of people go for this. This is the only term plan by LIC which offers 110% premium return if the policyholder survives after the maturity date.
Depending on your need and spending capacity, you can easily pick one.