Life Insurance Corporation of India, commonly known as LIC, is India’s biggest and one of the oldest government-owned financial services company. Founded in 1956, LIC continues to rule the insurance sector with high growth and offers a wide range of insurance policies catering to different needs. For those looking for traditional insurance options, LIC offers a variety of traditional insurance policies, including endowment policies, whole life plans, and term insurance plans. Each plan has been designed to offer a bouquet of benefits and advantages. Here, we take a look at the various traditional life insurance policies offered by LIC.
Why Should You Choose LIC:
LIC offers insurance plans which are not only affordable but which also offer extensive coverage. Here are some reasons why LIC has been a preferred choice of hundreds of customers over the years.
- Expansive network – LIC’s network consists of 2,000+ computerized branches and branch offices, over 1,000 satellite offices, 8 zonal offices and 113 divisional offices.
- Use of advanced technology – To offer greater convenience to their customers, LIC makes use of sophisticated technology such as IVRS, WAN, LAN, and EDMS for allowing customers to apply online and for documentation purposes.
- Offers great variety – Under their insurance arm, LIC currently offers over 15 types of life insurance plans under various categories like endowment plans, term plans, whole life plans, and money back plans. These plans have been designed to suit varying requirements and are highly affordable as well.
- Market performance – LIC stocks are one of the better performing stocks on the BSE. Also many reputed stock market lists regularly feature LIC stocks as well.
Under traditional plans, LIC offers a range of endowment plans, whole life plans, and term insurance plans.
Endowment Plans by LIC:
An endowment policy is a basic life insurance policy which not only provides life cover but also enables one to save over a period of time. The policy will provide a lump sum benefit in case of the death of the life assured or after the policy has matured. Here are the endowment policies offered by LIC.
LIC Jeevan Pragati:
This is a non-linked plan with profits and offers the combined benefit of savings and life cover. Under this plan, the risk cover amount will automatically increase during the policy term at every fifth policy year. In addition to providing death benefit, maturity benefit, and simple reversionary bonus, this plan also offers loan facility to ensure you have funds ready when you need them most.
Key Features of LIC Jeevan Pragati:
| Age at Entry | 12 years to 45 years |
| Max. Maturity Age | 65 years |
| Policy Term | 12 years to 20 years |
| Min. Basic Sum Assured | Rs.1,50,000 |
| Max. Basic Sum Assured | No limit |
| Premium Payment Mode | Yearly, half-yearly, quarterly, and monthly |
| Benefits | Death benefit, Maturity benefit, and participation in profits via Simple Reversionary Bonus and/or Final (additional) Bonus |
| Riders available | LIC Accidental Death & disability Benefit Rider |
| Policy loan | Loan facility is provided under this plan, on the condition that the policy has acquired surrender value. |
| Grace period | 30 days (for yearly, half-yearly, and quarterly payment mode & 15 days (monthly mode) |
LIC Jeevan Labh:
The Jeevan Labh is a non-linked, limited premium payment endowment plan with profits. Offering savings and protection, this plan is equipped to offer financial support to your family in case of your sudden demise or will provide maturity benefit after the policy reaches maturity. This plan also comes with loan facility to help provide funds to you in times of need.
Key Features of LIC Jeevan Labh:
| Min. age at entry | 8 years |
| Max. age at entry | 59 years (for 16-year policy term); 54 years (for 21-year policy term); 50 years (for 25-year policy term) |
| Max. maturity age | 75 years |
| Policy term | 16 years, 21 years, and 25 years |
| Premium payment term | 10 years (16-year policy term); 15 years (for 21-year policy term); 16 years (for 25-year policy term) |
| Min. basic sum assured | Rs.2 lakh |
| Max. basic sum assured | No limit |
| Premium payment mode | Yearly, half-yearly, quarterly, and monthly |
| Benefits | Death benefit, Maturity benefit, and participation in profits via Simple Reversionary Bonus and/or Final (additional) bonus |
| Riders available | LIC Accidental Death & disability Benefit Rider & LIC New Term Assurance Rider |
| Policy loan | Available with this plan |
| Grace period | 30 days (for yearly, half-yearly, and quarterly payment mode & 15 days (monthly mode) |
LIC Single Premium Endowment Plan:
Another popular endowment plan offered by Life Insurance Corporation of India is the Single Premium Endowment Plan. This is a participating, non-linked protection cum savings plan. The unique feature of this plan is that the premium is payable in a single lump sum at the start of the policy itself. Under this plan, not only do you get a maturity benefit upon surviving the policy term, but in case of your sudden demise before the end of the policy term, your beneficiaries will be entitled to the death benefit. This policy also provides participation in profits by way of Simple Reversionary Benefit and Final Additional Bonus (if any).
Key Features of LIC Single Premium Endowment Plan:
| Age at entry | 90 days to 65 years |
| Age at maturity | 18 years to 75 years |
| Policy term | 10 years to 25 years |
| Premium payment term | Single premium payment at commencement of policy |
| Min. basic sum assured | Rs.50,000 |
| Max. basic sum assured | No limit |
| Premium payment mode | Single premium payment |
| Risk commencement date |
|
| Benefits |
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| Policy loan | Loan facility is available after the first policy anniversary |
| Free look period | Policy can be returned within a period of 15 days after receipt |
LIC New Endowment Plan:
If you are looking for a protection cum savings plan for your family, LIC's New Endowment Plan is an ideal option. This is a participating, non-linked plan combines the benefits of a savings and a protection plan. In case of the policyholder’s death before the end of the policy term, their beneficiary will be entitled to the death benefit sum assured. If the policyholder survives the policy term, they will be entitle to the maturity benefit sum assured. You can also attach the LIC Accidental Death & Disability Benefit Rider with this plan to enhance its coverage.
Key Features of LIC New Endowment Plan:
| Age at entry | 8 years to 55 years |
| Age at maturity | 75 years |
| Policy term | 12 years to 35 years |
| Min. basic sum assured | Rs.1 lakh |
| Max. basic sum assured | No limit |
| Premium payment mode | Yearly, half-yearly, quarterly, or monthly. |
| Benefits |
|
| Policy loan | Loan facility is available after the policy has acquired surrender value, subject to the terms and conditions of the plan |
| Free look period | Policy can be returned within a period of 15 days after receipt |
LIC New Jeevan Anand:
Another endowment plan offered by LIC is the New Jeevan Anand which is a non-linked, participating plan offering savings and protection. Under this plan, the policyholder is entitled to a maturity benefit for surviving the policy term. In case the policyholder passes away before the end of the policy term, their beneficiary is entitled to the death benefit. Policyholders can also opt for the Accidental Death and Disability Benefit Rider to enhance the protection of the plan.
Key Features of LIC Jeevan Anand:
| Age at entry | 18 years to 50 years |
| Age at maturity | 75 years |
| Policy term | 15 years to 35 years |
| Min. basic sum assured | Rs.1 lakh |
| Max. basic sum assured | No limit |
| Premium payment mode | Yearly, half-yearly, quarterly, or monthly. |
| Benefits |
|
| Rider available | LIC Accidental Death and Disability Benefit rider |
| Policy loan | Loan facility is available after the policy acquires surrender value. This is subject to the terms and conditions of the plan |
| Free look period | If policyholders wish to return the policy, they must do so within the free look period of 15 days starting from the date of receipt of policy document. |
LIC Accidental Death & Disability Rider:
| Min. benefit sum assured | Rs.1 lakh |
| Max. benefit sum assured | Equivalent to amount of basic sum assured under base plan, subject to cap of Rs.100 lakh. |
| Age at entry | 18 years to 70 years |
| Max. cover expiry date | 70 years or till expiry of policy term, whichever occurs earlier |
LIC Jeevan Rakshak:
Combining protection and savings, the LIC Jeevan Rakshak Plan is an ideal option for those looking to not only get life insurance coverage but would also like to make regular savings. This is a non-linked, participating plan which offers a maturity benefit upon survival of the policy term or death benefit in case of the untimely and sudden death of the policyholder before the end of the policy term. Along with that, this plan also comes with loan facility and a chance to participate in profits by providing Loyalty Addition.
Key Features of LIC Jeevan Rakshak:
| Age at entry | 8 years to 55 years |
| Max. age at maturity | 70 years |
| Policy term | 10 years to 20 years |
| Min. basic sum assured per life | Rs.75,000 |
| Max. basic sum assured per life | Rs.2 lakh |
| Premium payment mode | Premiums can be paid on an annual, semi-annual, quarterly, or monthly basis. |
| Benefits provided |
|
| Rider available | LIC Accident Benefit Rider |
| Grace period | 30 days for annual, semi-annual, and quarterly payment mode; 15 days for monthly payment mode |
| Policy loan | Policyholders can take a loan under this policy on the condition that the policy has acquired a surrender value. Loan will be provided subject to the terms and conditions of the policy. |
| Rebate on high sum assured | Yes |
LIC Accident Benefit Rider:
| Min. age at entry | 18 years |
| Max. age at entry | Within the policy term, rider can be attached at any policy anniversary. |
| Min. rider sum assured | Rs.75,000 |
| Max. rider sum assured | Equivalent to basic sum assured under the base policy, capped at a maximum of Rs.50 lakh. |
| Max. cover expiry date | Same as under base policy |
LIC Limited Premium Endowment Plan:
The Limited Premium Endowment Plan is a protection sum savings insurance plan offered by LIC. This plan is a non-linked, participating endowment plan which combines the benefits of a protection plan as well as a savings plan. Under this plan, customers can choose from 3 policy terms to suit their requirement and have to pay premiums only for a limited period under the chosen policy term. This plan also offers rebates on premiums when the policyholder opts for high sum assured amounts.
Key Features of LIC Limited Premium Endowment Plan:
| Policy term (PT) | 12, 16, and 21 years |
| Premium payment term (PPT) | 8 years and 9 years |
| Min age at entry | 18 years |
| Max. age at entry |
|
| Min. basic sum assured | Rs.3 lakh |
| Max. basic sum assured | No limit |
| Premium payment mode | Annual, semi-annual, quarterly, and monthly. |
| Benefit |
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| Optional benefit | Riders available with this plan include the LIC Accidental Death & Disability Benefit Rider and LIC New Term Assurance Rider |
| Policy loan | Policyholders can take a loan under the policy, provided it has acquired surrender value |
| Rebates on high sum assured | Yes |
LIC Jeevan Lakshya:
Jeevan Lakshya is another non-linked, participating endowment plan offered by Life Insurance Corporation of India. This endowment plan offers the combined benefit of a protection plan, along with the element of savings. In the event of the premature death of the life assured policy holder, the plan provides a death benefit which includes the sum assured on death, vested Simple Reversionary Bonus and a Final Additional bonus (if any). If the policyholder survives the policy term, they will be entitled to a maturity benefit. The notable feature of this plan is that, under the death benefit, the policy provides an annual income benefit which is equal to 10% of the basic sum assured. This annual incomes benefit will be paid starting from the policy anniversary following or coinciding with the date of demise till the policy anniversary before the maturity of the plan.
Key Features of LIC Jeevan Lakshya:
| Age at entry | 18 years to 50 years |
| Max. maturity age | 65 years |
| Policy term | 13 years to 25 years |
| Premium payment term | 3 years minus the policy term |
| Minimum basic sum assured | Rs.1 lakh |
| Maximum basic sum assured | No limit |
| Premium payment mode | Annual, semi-annual, quarterly, and monthly |
| Benefits |
|
| Riders available | LIC Accidental Death and Disability Benefit rider and LIC New Term Assurance rider |
| Loan facility | Yes, after policy acquires surrender value |
LIC Aadhaar Shila:
Exclusively designed for women, the LIC Aadhaar Shila is a non-linked, with-profit endowment plan. All women who hold an Aadhaar card can apply for this plan which combines the benefits of a savings and a protection plan. This plan provides a death benefit in case of the sudden death of the policyholder during the first 5 policy years. If the policyholder survives the policy term, they are entitled to receive a lump sum maturity benefit. This plan also provides a Loyalty Addition. If you wish to enhance the protection provided by the plan, you can opt for the LIC Accident Benefit Rider.
Key Features of LIC Aadhaar Shila:
| Age at entry | 8 years to 55 years |
| Max age at maturity | 70 years |
| Policy Term | 10 to 20 years |
| Premium payment term | Same as policy term |
| Min. sum assured | Rs.75,000 |
| Max. basic sum assured | Rs.3 lakh |
| Premium payment mode | Yearly, half-yearly, quarterly, or monthly |
| Grace period | 30 days (yearly, half-yearly, and quarterly mode); 15 days (monthly mode) |
| Risk commencement | Risk cover will start instantly after the policy has been accepted |
| Policy loan | Loan can be taken under the policy once it has acquired surrender value |
LIC Aadhaar Stambh:
Similar to the Aadhaar Shila, which has been designed especially for women, LIC has also introduced an equivalent plan for men, known as the LIC Aadhaar Stambh. This is also a non-linked, participating endowment assurance plan which comes with savings and protection. All men who hold an Aadhaar card are eligible for this plan. This plan provides death benefit, maturity benefit and loyalty additions to ensure that your family members are financially shielded in case of your sudden death. In case you survive the policy maturity term, you will be entitled to receive a lump sum maturity benefit.
| Age at entry | 8 years to 55 years |
| Max age at maturity | 70 years |
| Policy Term | 10 to 20 years |
| Premium payment term | Same as policy term |
| Min. basic sum assured | Rs.75,000 |
| Max. basic sum assured | Rs.3 lakh |
| Premium payment mode | Yearly, half-yearly, quarterly, or monthly |
| Grace period | 30 days (yearly, half-yearly, and quarterly mode); 15 days (monthly mode) |
| Risk commencement | Risk cover will start instantly after the policy has been accepted |
| Policy loan | Loan can be taken under the policy once it has acquired surrender value |
Whole Life Insurance Plans by LIC:
Another type of insurance policy that is offered by LIC is whole life insurance. These policies are different from endowment plans as they provide life cover for an entire lifetime. The policy will be in force for the entire lifetime of the life assured, assuming all premiums are paid.
LIC Jeevan Umang:
Jeevan Umang is a whole life insurance plan offered by LIC which is a non-linked, with-profit whole life plan. This is a unique plan which offers the dual benefit of protection as well as regular income. This plan provides a death benefit if the life assured passes away during the policy term, a survival benefit If the life assured survives the premium payment term, and a maturity benefit if the life assured survives till the end of the policy term. There are also multiple riders which can be attached to the plan to enhance its coverage. In addition to this, you can also take a loan under the plan in case of emergencies.
| Age at entry | 90 days to 55 years |
| Age at maturity | 100 years |
| Min. age at end of premium payment term | 30 years |
| Max. age at end of premium payment term | 70 years |
| Policy term | (100 - (minus) age at entry) years |
| Premium payment term | 15, 20, 25, and 30 years |
| Min basic sum assured | Rs.2 lakh |
| Max. basic sum assured | No limit |
| Risk commencement |
|
| Premium payment mode | Yearly, half-yearly, quarterly, and monthly |
| Benefits |
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| Riders | Riders available with this plan include LIC Accidental Death & Disability Benefit Rider, LIC Accident Benefit Rider, LIC New Term Assurance Rider, and LIC New Critical Illness Benefit Rider |
| Policy loan | Available with this plan |
LIC Term Assurance Plans:
Term insurance is another popular type of insurance which is preferred by millions of people who are looking for an affordable insurance plan to cover their dependents. Under a term insurance plan, the policy provides a death benefit sum assured to the beneficiary/nominee in case the policyholder passes away before the end of the policy term. Term plans are different from whole life plans as the coverage under these plans extends only for a specified number of years and not for the entirely of the policyholder’s life. There are no survival benefits provided under term plans, which means that if the policyholder survives the policy term, they will not receive a maturity or survival benefit. LIC offers different term plans which are listed here.
LIC Anmol Jeevan II:
Anmol Jeevan II is a term insurance plan offered by LIC which offers pure risk protection. This means that if the policyholder passes away before the end of the policy term, the policy sum assured death benefit will be provided their nominee/beneficiary. This policy can be taken for a term starting from as low as 5 years to as high as 25 years. There is no maturity/survival benefit included under this plan.
Key Features of LIC Jeevan Anmol II:
| Min. age at entry | 18 years |
| Max. age at entry | 55 years |
| Max. cover ceasing age | 65 years |
| Policy term | 5 years to 25 years |
| Min. sum assured | Rs.6 lakh |
| Max. sum assured | Rs.24 lakh (multiples of Rs.1 lakh) |
| Premium payment mode | Yearly or half-yearly |
| Benefits | Death benefit sum assured provided. No maturity benefit payable. |
| Grace period | One month (not below 30 days) will be provided for payment of outstanding premiums. |
| Policy lapse | If outstanding premiums are not paid within the grace period, the policy shall lapse. |
| Paid-up value | Policy has no paid-up value |
| Surrender value | Policy will not acquire ay surrender value |
LIC Amulya Jeevan II:
Another term insurance plan offered by LIC is the Amulya Jeevan II. With this plan, you can cover your dependent family members who will be entitled to a death benefit sum assured in case of your premature demise before the end of the policy term. This policy too can be taken for a term starting from 5 years and up to 35 years. Only a death benefit sum assured will be payable in case of death, and no maturity or survival benefit is included under this plan.
Key Features of LIC Jeevan Amulya II:
| Min. age at entry | 18 years |
| Max. age at entry | 60 years |
| Max. cover ceasing age | 70 years |
| Policy term | 5 years to 35 years |
| Min. sum assured | Rs.25 lakh |
| Max. sum assured | No limit (sum assured in multiples of Rs.1 lakh) |
| Premium payment mode | Annual and semi-annual basis |
| Benefits | Death benefit sum assured provided. No maturity benefit payable. |
| Grace period | One month (not below 30 days) will be provided for payment of outstanding premiums. |
| Policy lapse | If outstanding premiums are not paid within the grace period, the policy shall lapse. |
| Paid-up value | Policy has no paid-up value |
| Surrender value | Policy will not acquire ay surrender value |
LIC e-Term:
In an effort to provide online convenience to their customers, LIC has introduced e-Term. This is a non-participating, regular premium, pure term insurance policy which is available online for purchase and offers financial coverage to the beneficiary/nominee of the life assured, in the event of the latter’s untimely death. As the name suggests, this is an exclusive online plan and does not involve any middlemen like agents, brokers, etc. the unique feature of this plan is that it is available under 2 premium rate categories. The first category is for aggregate lives while the second category is for non-smoker lives. This policy can be taken for a term ranging from 10 years to a maximum term of 35 years. This policy only provides a death benefit. There is no survival or maturity benefit provided.
Key Features of LIC e-Term:
| Age at entry | 18 years to 60 years |
| Maximum cover ceasing age | 75 years |
| Policy term | 10 years to 35 years |
| Premium payment mode | Premiums are payable annually |
| Min. sum assured | Rs.25 lakh (aggregate lives); Rs.50 lakh (non-smoker lives) |
| Max. sum assured | No limit |
| Eligibility |
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| Premium payment channel | Net banking, credit card, debit card, e-wallet |
| Grace period | 30 days for payment of outstanding premiums |
| International coverage | Yes, this policy will cover you irrespective of where you may be in the world |
