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Top 6 LIC Plans and why you should consider them


Many a times, we make investments into policies of Life Insurance Corporation of India (LIC) in a rush, especially during the financial year end to accrue tax benefits. LIC, being the country’s largest and oldest insurer is the first choice for many. While doing so, we often forget to check LIC plans that are the most beneficial to us in the long run. Here, we list the top 6 LIC plans that are extremely popular with reasons why you should consider them:

LIC Tech Term Plan

  • LIC’s Tech-Term is a non-linked, without profit, pure protection “Online Term Assurance Policy”, which provides financial protection to the insured’s family in case of his/her unfortunate demise.
  • As the name suggests, it is a pure term plan available through online application process only without the involvement of any agent. Since this is a pure term policy, there are no maturity benefits in the policy. This means that the insured does not receive anything at the end of the term.
  • The policy has differential premium rates for smokers and non-smokers and the policy covers only the proposer’s life.

Term insurance policies are best suited for working individuals who have dependents (children, parents) and are looking for a considerable sum of protection against uncertainties of life (death) at fairly low prices.

  • The minimum policy term is 10 years, the maximum being 40 years.

LIC’s New Jeevan Shanti (Annuity plan)

  • LIC Jeevan Shanti is a single premium annuity plan. This plan can be used to secure fixed pay-outs (like a monthly pension) at regular intervals for the rest of your life.
  • You pay a single premium (also called the purchase price) to purchase an annuity under two plans – immediate annuity or deferred annuity.
  • Under immediate annuity, the annuity starts immediately, while in the deferred plan, the annuity starts after a deferment period as chosen by you ranging from a minimum of 1 year, to a maximum of 12 years.
  • LIC will then pay you regular amounts for the rest of your life, as per the option chosen by you of receiving the pay-outs monthly, quarterly, half-yearly or annually. This regular pay-out amount is called annuity.
  • The minimum age at entry is 30 years, while the maximum is 79 years for deferred annuity.

LIC’s Cancer Cover

  • LIC’s cancer cover is a non-linked, regular premium payment health insurance plan which provides fixed benefit in case you are diagnosed with any of the specified early and/or major Stage Cancer during the policy term.
  • Only the proposer’s own life will be covered under the policy.
  • The policy comes with two plans –
  • Level Plan – Where the sum insured is fixed
  • Increased Sum Insured – The amount of cover increases by 10 percent of the basic sum insured every year for the first five years/

In case of early stage cancer being detected, 25 percent of the Applicable Sum Insured is paid out and the premiums for next 3 policy years or balance policy term, whichever is lower, is waived off from the date of diagnosis.

  • In case of major stage cancer, 100 percent of the applicable sum insured is paid out. There is also an income benefit where 1percent of the applicable sum insured will be paid off for a fixed period of next ten years irrespective of the survival of the life insured. Also, all the future premiums shall be waived off from the next policy anniversary.

LIC’s Nivesh Plus

  • This is a single premium plan where you need to make a one-time payment that will be invested in high to low risk funds of your preference. The policy duration can range from 10 to 25 years.
  • LIC’s Nivesh Plus is a single premium, non-participating, unit linked, individual life insurance plan which offers insurance cum investment during the term of the policy.
  • You will have the flexibility to choose the basic sum assured at the inception. The option once selected cannot be altered. The two SumAssured options are

Option 1:1.25 times of Single Premium

Option 2:10 times of Single Premium

  • The plan offers death benefit in terms of a life insurance cover, and a maturity benefit on the life assured surviving the stipulated date of maturity, an amount equal to the unit fund value will be payable.


  • The plan offers 4 fund options to choose from. The policyholder can make free switches between the funds.
  • Partial withdrawals of funds are applicable under the policy.
  • The plan offers both death and maturity benefits. If the death happens after the date of commencement of the risk – 105 percent of the total premium paid till the date of death reduced by partial withdrawals if any, or, the basic sum assured amount on death is reduced by partial withdrawal if any.

The death benefit can be availed by the beneficiary either as a lump-sum amount or in installments. 

  • Guaranteed additions as a percentage of one yearly premium is added to the unit fund on completion of specific policy durations of 6, 10, 15, 20, 25 years provided all the due premiums of the policy are duly paid.

LIC Bima Jyoti

  • A recently launched product, the LIC Bima Jyoti is a non-linked, non-participating, individual, limited premium payment, life insurance savings plan offering guaranteed additions at the rate of Rs50 per thousand Basic Sum Assured at the end of each policy year throughout the policy term.
  • The minimum sum assured is Rs 1 lakh, and multiples of Rs 25,000 thereafter, with no upper limit. Premiums can be paid regularly at yearly, half-yearly, quarterly, or monthly intervals or through salary deductions.
  • The policy term of the plan varies from 15 to 20 years and the Premium Paying Term (PPT) will be 5 years less than the respective Policy terms. For example, for an 18-year policy, the PPT will be 13 years.

In the event of the unexpected death of the policyholder during the policy period, the scheme provides a guaranteed lump sum pay-out at maturity and financial assistance for the family of the policyholder.

  • Amid falling interest rates of bank FDs, the tax-free returns of LIC Bima Jyoti along with its life insurance benefit, make it a plan worth considering.

Before you go, some general points to consider, while buying a LIC policy:

  1. Online purchase is cheaper than getting an agent involved.
  2. Ensure you understand the policy conditions before making a purchase. Read and research about your policy, before taking the plunge.
  3. It is always advised to keep your insurance and your investments separate for a better return on investment.
  4. Investing in annuity plans takes care of life after retirement. Having a balanced retirement portfolio is the key
  5. Find out what the actual returns are, for avoiding the risk of mis-selling by an agent or an intermediary such as bank. This risk is generally high as the financial year end approaches.

(Elizabeth Mathai is a Kochi-based content creator and a therapist, with expertise in insurance)

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