Highest Return LIC Policy: What are its Features?
Highest Return LIC Policy: An Overview
LIC (Life insurance corporation) policies are the most preferred and safe option for the Indian population. Having insurance is a vital part of personal finance. It prepares you to meet unexpected events and protects your family financially. If you are the single breadwinner of the family, then having insurance is a must. The insurance company provides a variety of insurance services such as life insurance, term insurance, cancer insurance, ULIP, money back plan, Endowment policies, whole life policies, postal life insurance, and pension plan, that meet different people's requirements. In this article, we are going to learn about the highest return LIC policy, the LIC policy list to maximize your return, its benefits, and features.
LIC Policy List
- LIC Jeevan Akshay VI
- LIC New Children's Money Back Plan
- LIC Accidental Death and Disability Rider
- LIC New Endowment Plan
LIC Jeevan Akshay 6
LIC Jeevan Akshay VI plan is offered by LIC (Life Insurance Corporation). It is an annuity Plan to provide stable cash inflow for the policyholder. One can buy this plan by paying a lump sum amount. The plan secures your financial life after your retirement and you get to receive annuity payouts during your lifetime.
Features of LIC Jeevan Akshay 6 Plan
- The plan is suitable for those who want to get benefits of the pension throughout their life after their retirement.
- The plan can be bought by a single policyholder or both the policyholder and spouse.
- The minimum buying price is INR 1 lakh (except online) and the online minimum buying price is INR 1.5 lakh. There is no limit to the maximum buying price.
- An individual from 30 years of age to 85 years is eligible to buy this plan.
- Since it is a pension plan, there is no requirement for medical tests and no maturity benefits provided to the policyholder.
- The policyholder can avail of loan benefits on the LIC Jeevan Akshay VI plan.
- Under section 80 D of the Income Tax Act, the premium paid is exempted from tax but the pension amount is taxable.
LIC New Children's Money Back Plan
The LIC New Children's Money Back Plan is a plan specifically designed for children up to 12 years of age. This plan provides financial security by taking care of their higher education and marriage expenses. Moreover, the child gets risk cover benefits within the tenure of the policy with survival benefits.
- The plan is bought by parents for their children to secure their future and allows their children to accomplish their dream as the insurance company provides a lump sum amount at the end of the tenure.
- The policyholders are provided maturity benefits, death benefits, and survival benefits.
- The tenure of the policy is determined by the entry age of the policyholders. Let's say, the entry age of the policyholder is 5 years, and the tenure of the policy will be 25-5= 20 years.
- The plan can be returned within 15 days from the date of purchase.
- The maturity amount is based on the insurance sum assured at the time of buying the plan.
- The minimum insurance sum assured starts from INR 1 lakh and there is no maximum upper limit.
- The policyholders can pay the premium monthly, quarterly, half-yearly, or annually.
- The policyholders can avail of loan benefits on the LIC New Children's Money Back Plan.
LIC Accidental Death and Disability Rider
Having accidental insurance is a must as it is one of the common causes of death across the world. LIC Accidental Death and Disability Rider insurance provides financial compensation to the beneficiaries in case of accidental death or disability of the policyholders. LIC usually offers accidental benefits as an add-on to the base cover of your insurance policy.
- The minimum entry age to buy this plan is 18 years and the maximum is 65 years.
- The minimum sum assured for LIC's Accident Benefit Rider is INR 2 lakhs and the maximum assured is INR 2 crore.
- The nominees will not receive any rider sum assured in case
- The policyholder's death is caused by attempted suicide, under the influence of narcotics, drugs, and liquor, self-injury, or insanity.
Or the policyholder died due to participating in riots, war, civil commotion, adventure, or rebellion.
- The plan is an add-on benefit to your base insurance policy and is optional. To avail of the accidental death benefits, you have to pay an extra premium.
LIC New Endowment Plan
The plan provides financial protection within the tenure of the policy along with loyalty addition. The buyer has the option to choose the insurance sum assured and the mode of paying a premium. However, the insurance sum assured is determined by the premium paid and the entry age of the policyholder.
- The minimum entry age to buy this plan is 8 years and the maximum is 55 years.
- The maximum tenure of the policy is 35 years.
- The minimum insurance sum assured is INR 1 lakh and has no maximum limit.
- The policyholder can pay premiums on a monthly, quarterly, half-yearly, or annual basis.
- The insurance sum assured is paid as lumpsum to the nominees with other bonuses, provided all the premiums must be paid.
- The LIC New Endowment Plan can be surrendered after three years of premium payment in full and the surrender value will be determined by the total premium paid by the policyholders.
Feature Alert: Avail a Term Insurance Plan in a few simple steps here.
Protect yourself and your family with the help of Goal Based Planning from INDmoney. Seldom do we keep track of the extent of insurance protection available for our families. Do all this and a lot more with INDmoney. Check if your life insurance plan matches your life goals here.
To conclude, LIC plans offer a variety of plans that offer good returns to their policyholders and help them to grow their wealth. However, you should consider a few things before buying any highest return LIC policy such as the purpose of your plan, insurance sum insured, type of plan, tenure of the policy, tax benefits, pension plans, bonuses, or any other additional benefits before buying any plan.
Which LIC plans provide the highest returns?
LIC provides various plans suitable for different customers' needs with an aim to provide high returns. Some of the LIC plans that provide the best returns are New Jeevan Anand Plan, New Money Back Plan-20 years, New Endowment Plan, Jeevan Amar, and New Children's Money Back Plan.
What is the average return on LIC money-back policy?
The average return on LIC money-back plan is 4 to 6 percent. However, other investment options in financial markets offer better returns.
Do LIC policies offer better returns than fixed deposits?
Investing in LIC policies is suitable for those who have an investment horizon of at least 10 years or more whereas fixed deposit investment is suitable for short and medium-term investments.
Is investing in the LIC plan safe?
LIC or Life insurance corporation is safe as it is Indian government-owned.
Do LIC plans offer better returns than mutual funds?
Since mutual funds investment is linked with the stock market, it is considered a risky investment.