Best LIC Plans to Invest in India 2020

There is no denying the importance of life insurance in today’s uncertain times. Buying a life insurance plan provides the much-needed financial security to your family in case of your unfortunate & untimely demise and that too, at a nominal cost.

Though people are still hesitant to invest in life insurance plans as they don’t understand its potential and benefits. For most of the people, it’s just an additional expense to their budget. However, before rejecting any prospect of buying life insurance, every breadwinner of a family should consider the after-effects of her/his sudden demise on his family members/loved ones.

Going forward, when we talk about life insurance in India, the first company that comes to our mind is, of course, LIC (Life Insurance Corporation of India). LIC plans are the most trusted when it comes to life insurance plans. However, the availability of too many options makes it a tedious task to choose LIC policy that would work for you.

Top 6 LIC Plans & Policies in India 2020

Therefore, to help you make a better and informed decision, we’ve enlisted 6 best LIC policies in the below table:

Name of the LIC Policy Type of LIC Policy Entry Age (Min-Max) Term of LIC Policy (Min-Max) Maturity Age Sum Assured (Min-Max)
LIC New Jeevan Anand Endowment Plan 18-50 Years 15-35 Years 75 years INR 1 lac – No Limit
LIC New Children’s Money-Back Plan Money-Back Child Plan 0-12 Years 25 Years (Entry Age) 25 Years INR 1 Lac – No Limit
LIC Tech Term Plan Term Insurance 18-65 Years 10-40 Years 80 Years INR 50 lacs – No Limit
LIC Jeevan Pragati Endowment Plan 12 – 45 Years 12 – 20 Years 65 Years INR 1.5 Lacs – No Limit
LIC Jeevan Umang Endowment + Whole Life Plan 90 days – 55 Years 100 years 100 Years INR 2 Lacs – No Limit
LIC Jeevan Saral Endowment Plan 35 Years 25 Years N/A N/A

LIC New Jeevan Anand Plan

LIC New Jeevan Anand Plan is the LIC plan that offers the perfect blend of savings & financial protection. If you’ll follow the statistics, you’ll find out that it’s the highest-selling LIC plan.

LIC Jeevan Anand Plan Traditional Endowment Plan
Entry Age 18 to 50 Year
Sum Assured 1 Lakh – No Limit
Optional Benefits Accidental death benefit and disability benefit
Tax Benefits Section 80c
Loan Available

Benefits of LIC New Jeevan Anand Plan

  • In case the policyholder survives the maturity period, s/he will receive the Double Death Benefit under this LIC plan.
  • This LIC policy has a higher bonus rate, affordable premium, and best of all, great liquidity.
  • The policyholder will receive a lump sum amount once the LIC plan has attained maturity.
  • In case of the unfortunate demise of the policyholder, before the policy term is completed, her/his nominee will receive a total sum of:
  1. Sum Assured on Death
  2. Simple Reversionary Bonus
  3. Final Additional Bonus
  • If the policyholder survives the tenure of this LIC plan, s/he will be paid the survival benefit including:
  1. Basic Sum Assured
  2. Simple Reversionary Bonus
  3. Final Additional Bonus
  • This LIC plan can work as an ideal choice for women as they’re never off duty and responsibilities. This plan will continue paying the benefits, even after attaining the maturity.

LIC New Children’s Money-Back Plan

LIC New Children’s Money-Back Plan is specially designed to meet certain requirements of raising children such as their educational expenses, marriage expenses by availing through Survival Benefits.

Also, the policyholder will receive a life risk cover for her/his child and other survival benefits for the chosen policy term. Policyholders can choose to pay premiums at monthly, quarterly, half-yearly or yearly basis. This LIC Plan also offers the Surrender Value against the plan, if the policyholder has paid the premium for the first 3 years.

LIC New Children’s Money-Back Plan  Traditional Money Back Child Plan
Entry Age 0 to 12 Year
Policy Term 25 Years
Premium Mode Yearly, Half-Yearly, Quarterly & Monthly
Medical Examination No
Sum Assured 1 Lakh

Benefits of LIC New Children’s Money-Back Plan

  • In case of the policyholder’s demise before completing the policy term, her/his nominee will receive Death Benefit amount. In case of policyholder’s death after the policy term, her/his nominee will receive the Death Benefit as a total of:
  1. Sum Assured
  2. Accrued bonus
  3. Final Additional Bonus
  • Once the nominee has completed 18 years of age, s/he will receive 20% of the Sum Assured as money-back at an interval of every 2 years.

LIC Tech Term Plan

LIC Tech-Term Plan is a non-linked and pure protection plan. This LIC policy is available for the applicants only via an online application process, wherein, no intermediaries are involved.

LIC Tech-Term Plan  Pure Term Plan
Entry Age 18 to 65 Years
Policy Term Min 10 Years and Max 40 Years
Premium Mode Annually
Medical Examination Required
Sum Assured Min 50 Lakhs Max No Limit

Benefits of LIC Tech Term Plan

  • This LIC plan offers a higher sum assured in return of a very reasonable (compared to other plans in the market).
  • The policy term is as high as up to 40 years.
  • The policyholder will get access to legitimate income tax rebate under this plan.

LIC Jeevan Pragati

LIC Jeevan Pragati is one of the best endowment policies when it comes to endowment plans offered by LIC. One of the best features offered by this LIC plan is that it auto-increments the risk coverage amount every 5 years. The aforementioned feature makes this LIC policy an ideal combination of savings & financial protection.

LIC Jeevan Pragati  Endowment Plan
Entry Age 12 to 45 Years
Policy Term 20 Years
Premium Mode Yearly, Half-Yearly, Quarterly & Monthly
Medical Examination Required
Sum Assured 1.5 Lakhs

Benefits Of LIC Pragati Plan

  • In case of policyholder’s death before completing the policy term, her/his nominee will receive the sum assured along with complimentary bonuses such as Final Additional Bonus and Simple Reversionary Bonus.
  • In case of policyholder’s death after completing the policy term, her/his nominee will receive the sum assured along with different bonus amounts like Final Additional Bonus and Simple Reversionary Bonus.

LIC Jeevan Umang

LIC Jeevan Umang plan offers the perfect mix of savings and regular earnings for the policyholder’s family in case of her/his untimely demise. This exclusive feature establishes this plan as one of the best LIC policies

As it’s a whole life insurance plan, it offers a cover of 100 years wherein, a fixed amount of Sum Assured will be paid to the policyholder once the policy term is over.

LIC Jeevan Umang Endowment Plan
Entry Age 90 Days Old Baby
Loan Available
Premium Mode Yearly, Half-Yearly, Quarterly & Monthly
Tax Benefits Section 80 c
Sum Assured 2 Lakhs

Benefits Of LIC Jeevan Umang Plan

  • In case of policyholder’s death before completing the policy term, her/his nominee will receive the whole premium amount paid till the death date (excluding any interest amount).
  • In case of policyholder’s death after completing the policy term, her/his nominee will receive the sum assured along with Accrued bonus and Final Additional Bonus.
  • Once this LIC policy has attained maturity, the policyholder will receive the ‘Sum Assured on Maturity’ along with vested reversionary bonuses Final Additional Bonus.
  • The policyholder will receive the survival benefit as 8 per cent of the Basic Sum Assured amount every year until the policy reaches its maturity period.

LIC Jeevan Saral

LIC Jeevan Saral is an endowment plan which provides the policyholders and their dependents with the much-needed financial protection throughout the policy term. The Sum Assured amount given on plan maturity depends upon the premium amount paid by the policyholder till her/his death date. This LIC plan also comes with exclusive features such as liquidity and flexibility in policy tenure.

LIC Jeevan Umang Endowment Plan
Entry Age 12 to 60 Years
Policy Term Min 10, Max 35 Years
Premium Mode Yearly, Half-Yearly, Quarterly & Monthly
Tax Benefits Section 80 c
Sum Assured 62,500

Benefits of LIC Jeevan Saral Plan

  • Death benefit will be paid as 250 multiplied by the monthly premium amount along with loyalty additions (if there are any).
  • The nominee will receive the premium amount paid by the policyholder till her/his death date in case of policyholder’s death in mid of the policy term.
  • The sum assured amount on LIC policy maturity along with Loyalty additions, will be paid as a lump sum.
  • Premiums paid in this LIC plan are income-tax exempted under Section 80 C. Also, the maturity amount is tax exempted under Section 10 (10D).
  • The benefit of Loyalty Additions makes it as one of the best LIC policies in India. As it’s a with-profit plan, this LIC plan gets a share in the profits made by the organization in its life insurance business.  The profit share is given as loyalty additions to the policyholders depending upon the company’s experience with them during their policy tenure.
  • Loan facility and house loan surety are also available under this plan.

Conclusion

Now as you’re already aware of the best LIC plans in India to make your investments in 2020; according to experts, you should first focus on the reason behind purchasing a life insurance plan. Do you want it to offer financial support to your family or regular earnings or both, in case of your unfortunate demise?

LIC plans are undoubtedly the most trustworthy and reasonable plans when it comes to life insurance. LIC offers 20+ life insurance plans depending on your affordability & requirements. Having said that, with a trustworthy reputation in the Indian insurance market & excellent benefits to offer, you don’t have to worry about investing your money on LIC plans in India.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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