Things You Must Know About LIC Endowment Plan

The Life Insurance Corporation of India (LIC) is one of India's largest life insurance firms, with a history that dates back to 1956. Over 250 million people have put their faith in the organization today. In terms of products, the Life Insurance Corporation of India (LIC of India) offers a variety of insurance plans to meet the financial needs of individuals. The organization offers a variety of distinct endowment plans, each with its own set of features and perks. Let's take a look at what endowment plans are and what LIC has to offer.

This combination gives financial assistance to the family of a deceased policyholder at any time prior to maturity, as well as a good lump sum payment for the surviving policyholders at maturity. Through its credit facility, this plan also addresses liquidity issues.

LIC Endowment Plan: What You Should Know

Below is everything you must know about LIC Endowment Plan:

• LIC’s Jeevan Pragati Plan

This is a with-profits endowment plan, which means bonus contributions are permitted. Among the plan's other characteristics are:

After every five policy years, the sum assured increases by a quarter. The higher sum promised is paid in the event of death.

The base sum assured, as well as any collected bonuses, are paid out upon maturity.

A rider can be added to the plan to increase its coverage.

Also included in the scheme are tax advantages. Tax breaks are available for both the premiums paid and the benefits obtained.

• LIC’s Jeevan Labh Plan

This endowment plan also accumulates incentives and provides a loan facility if the policyholder needs money for a financial emergency during the policy's term. The following are some of the plan's other features:

Simple reversionary bonuses are paid out over the course of the plan's life. Furthermore, a final bonus may be paid in addition to the maturity or death benefit.

With the base plan, you can choose between two additional riders.

Tax deductions are available for the premiums paid. Section 80C allows them to be deducted from taxable income up to a ceiling of INR 1.5 lakhs.

In the hands of the policyholder, even the plan benefits are tax-free.

• LIC’s New Endowment Plan

This endowment plan is available as a bonus-earning participating plan. The death benefit is paid if the assured dies during the policy term and the maturity benefit is paid if the assured lives to the end of the term. The following are some of the plan's other noteworthy features:

• Accidental Death and Disability Benefit from LIC It is possible to add coverage for accidental death and disability to a rider.
• After purchasing the policy, you can continue to use it for up to 35 years.
• The package offers two different types of premium discounts. The first is for the premium payment method, and the second is for the degree of sum assured chosen.

• LIC’s New Jeevan Anand Plan

New Jeevan Anand, a popular endowment plan, is available as a participating plan with the following features:

• With the standard policy, there is an optional rider that can be added.
• For paying the premium in annual or half-yearly mode, a discount of up to 2% of the premium is allowed.
• A large sum assured also entitles you to a premium discount.
• During the policy's term, policy loans are accessible.
• Premiums paid are allowed deductions under Section 80C, which contribute to reducing taxable income. The benefits are also considered as tax-free income, meaning they are not subject to any taxes.

• LIC’s Accidental Death And Disability Benefit Rider

The Accidental Death and Disability Benefit Rider from LIC is an optional rider that may be purchased for an additional premium. The Accident Benefit Sum Assured will be paid as a lump sum along with the death benefit under the standard plan in the event of accidental death. Premiums for the portion of Basic Sum Assured that is equal to Accident Benefit Sum, Assured under the policy, will be waived in the event of accidental permanent disability arising from an accident (within 180 days of the date of the accident).

Conclusion

When the plans reach a surrender value, or when the premiums have been paid for the first two or three years, depending on the plan, loans are issued. If the plan has a surrender value, loans up to a certain percentage of the surrender value can be obtained.

Also read-Reasons To Purchase An Endowment Policy

Who Should Purchase An Endowment Policy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.