Best LIC Policies to Invest in 2024: Plans with High Returns

Life Insurance Corporation of India (LIC) is one of the leading insurance providers in India, offering a wide range of policies that provide both life cover and investment opportunities. In this comprehensive blog, we will delve into the best LIC policies to invest in 2024, considering their features, benefits, and potential returns. 

Understanding LIC Policies and Investment Options

Life Insurance Corporation of India (LIC) offers a diverse range of insurance policies to cater to the different needs of individuals. These policies not only provide financial protection to policyholders but also offer avenues for investment and wealth creation. Let's explore the various types of LIC policies:

• Endowment Plans: These policies offer both insurance coverage and savings. Premiums paid towards endowment plans are invested in a mix of debt and equity instruments, providing potential returns along with life cover.
• Term Insurance Plans: Term insurance plans provide pure life cover for a specific duration without any savings component. They offer a higher sum assured at affordable premiums, ensuring financial security for your loved ones in case of your untimely demise.
• Pension Plans: Also known as retirement plans or annuity plans, these policies help build a corpus for your retirement. They provide regular income after retirement and ensure financial independence during your golden years.
• Money-Back Plans: Money-back plans provide periodic payouts during the policy term, offering liquidity at specific intervals. These plans provide a combination of life cover, savings, and periodic cash inflows.

Factors to Consider Before Choosing a LIC Policy

Before investing in a LIC policy, it is crucial to consider the following factors to ensure that you make the right choice for your financial goals:

• Financial Goals: Clearly define your financial objectives, such as wealth creation, children's education, retirement planning, or buying a house. This will help you select a policy that aligns with your specific needs.
• Risk Appetite: Assess your risk tolerance and decide whether you prefer guaranteed returns offered by traditional plans or are open to market-linked plans that offer higher potential returns with associated risks.
• Policy Tenure: Determine the duration for which you want to invest in the policy based on your financial goals and the time horizon required to achieve them. Short-term goals may require a different policy type than long-term goals.
• Premium Affordability: Evaluate your budget and ensure that the premium amount is manageable throughout the policy term without causing financial strain. Choosing a premium amount that you can comfortably pay without affecting your regular expenses is essential.
• Flexibility and Riders: Consider the flexibility offered by the policy in terms of premium payment frequency, policy term, and additional riders or benefits that can be added to customize the policy to suit your specific needs.

Best LIC Policies for Investment in 2024

The best lic plans that should be considered for investment in 2024 are:

1. LIC Jeevan Akshay VII:

• Policy Type: Immediate Annuity Plan

• Features: LIC Jeevan Akshay VII is a non-linked, non-participating, single premium annuity plan. It offers various annuity options to choose from based on individual requirements.

• Benefits: This plan provides a regular income stream for life, ensuring financial stability post-retirement. The annuity options include options for the return of purchase price and joint-life annuity.

2. LIC New Endowment Plan:

• Policy Type: Endowment Plan

• Features: The LIC New Endowment Plan is a participating non-linked plan that offers life cover and savings through regular premium payments. The policy also participates in the profits of LIC through bonuses.

• Benefits: This plan provides financial protection through the life cover, along with the benefit of maturity proceeds which include the sum assured and accrued bonuses.

3. LIC Jeevan Labh:

• Policy Type: Endowment Plan

• Features: LIC Jeevan Labh is a participating non-linked plan that offers enhanced life cover and maturity benefits. It provides multiple premium payment options to suit individual preferences.

• Benefits: This plan ensures financial security with death benefits, maturity benefits, and accrued bonuses. It offers a combination of life cover and savings for the policyholder.

4. LIC Jeevan Umang:

• Policy Type: Whole Life Insurance Plan

• Features: LIC Jeevan Umang is a non-linked, participating whole life insurance plan that provides life cover until 100 years of age. It offers survival benefits and regular income post-retirement.
• Benefits: This plan provides life cover, maturity benefits, annual survival benefits, and tax advantages. It offers a source of income during retirement while ensuring lifelong protection.

5. LIC Tech Term Plan:

• Policy Type: Term Insurance Plan

• Features: LIC Tech Term Plan is an online term insurance plan that offers high life cover at affordable premiums. It provides flexibility in choosing the policy term and sum assured according to individual requirements.

• Benefits: This plan provides financial support to the policyholder's family in case of an untimely demise. It offers a pure life cover with no maturity benefits, making it an affordable option for obtaining substantial life insurance coverage.

Comparison of Best LIC Policies - 2024

Check the features-wise comparison of the best LIC policies in 2024.

Premium Amount:

Policy Term:

Maturity Benefit:

Death Benefit:

Benefits of Investing in LIC Policies

Some of the benefits of investing in LIC policies include:

• Tax Benefits: LIC policies offer tax benefits under Section 80C of the Income Tax Act, 1961, for the premium paid. The maximum deduction allowed is ₹1.5 lakh. Maturity benefits and death benefits received from LIC policies are tax-exempt under Section 10(10D) of the Income Tax Act, 1961.

• Life Cover: LIC policies provide financial protection to your family in the event of your untimely demise during the policy term. The sum assured is paid to the nominee as a death benefit, ensuring their financial well-being.

• Loan Facility: Some LIC policies offer a loan facility against the policy's surrender value, providing liquidity during emergencies or financial needs. The loan can be repaid in instalments, including the interest charged by LIC, making it a convenient option for policyholders.

• Maturity Benefits: On maturity, LIC policies provide maturity benefits, including the sum assured and accrued bonuses. These benefits assist policyholders in achieving their financial goals and meeting future expenses.

Tips for Choosing the Right LIC Policy

You should keep the following things in mind while choosing a LIC Policy:

• Evaluate your financial goals and risk tolerance: Determine your short-term and long-term financial objectives and assess your risk appetite to choose a policy that aligns with your goals and risk profile.

• Understand the policy features, benefits, and limitations: Read the policy brochure, terms, and conditions to understand the policy's inclusions, exclusions, and associated costs.

• Compare different policies based on premiums, policy terms, and benefits: Analyze the premium amounts, policy durations, and benefits offered by different LIC policies to identify the most suitable option for your needs.

Conclusion

Investing in LIC policies offers individuals the dual benefit of life cover and potential returns on their investments. The LIC policies mentioned in this blog - LIC Jeevan Akshay VII, LIC New Endowment Plan, LIC Jeevan Labh, LIC Jeevan Umang, and LIC Tech Term Plan - are among the top options to consider for investment in 2024. It is important to evaluate the specific features, benefits, and associated costs of each policy and consult with professionals before making a decision. 

FAQs

Ques. What is the maximum age to apply for LIC Jeevan Akshay VII?

The maximum entry age for LIC Jeevan Akshay VII is 99 years.

Ques. Can I surrender my LIC policy before maturity?

Yes, LIC policies can be surrendered before maturity. The surrender value depends on the policy duration and the number of premiums paid.

Ques.  Are the premiums paid for LIC policies refundable?

No, premiums paid for LIC policies are non-refundable, except for certain cases specified in the policy terms and conditions.

Ques.  Can I change the nominee for my LIC policy?

Yes, the policyholder can change the nominee by submitting a written request to LIC along with the necessary documents.

Ques. What happens if I stop paying premiums for my LIC policy?

If you stop paying premiums for an LIC policy, it may lapse after the grace period, and the policy benefits may cease. However, some policies may have a paid-up value or revival options.