Top 5 LIC Policies to Invest - 2024

Life is full of surprises, you never know what the future holds. This is exactly why having a solid financial plan is important! When it comes to securing your future, the Life Insurance Corporation of India (LIC) offers different life insurance policies designed for different purposes. 

In this blog, we are going to discuss the top 5 policies to invest in 2024: LIC Index Plus, LIC SIIP, LIC Jeevan Umang, LIC Bima Jyoti and LIC Jeevan Labh. All of these have unique benefits that help fulfil various financial objectives.

Benefits of Investing in LIC Policies

First, let's discuss some of the key benefits that make LIC policies the best choice for investments in 2024! 

1. Trusted Brand

LIC is a government-owned entity with a long-standing reputation of over 68 years. Out of all, they hold a 69.91% market share, as per FY. 2023-24 report.

2. Tax Benefits That Add Up

Who does not want to pay less tax? The premiums paid towards LIC policies are tax-exempted u/s 80C of the Income Tax Act. Also, the death benefit that is paid out to the nominee is absolutely tax-free. 

3. Guaranteed Returns – No Guesswork

Another good part about investing in LIC policies is that they give the policyholders guaranteed returns. This means that the insured will receive a guaranteed sum assured on policy maturity or the nominee in case of the policyholder's unfortunate death. 

4. High Survival Benefits – Cash When You Need It

Do you need regular payouts before policy maturity? No problem! LIC policies offer survival benefits; hence, one can withdraw part of the investment without disrupting the whole investment. It is really useful in those unforeseen circumstances where funds are needed instantly.

5. Extra Protection with Riders

If you seek a little extra coverage,  LIC also offers riders. For example, you can add LIC Accidental Death and Disability Benefit Rider to get the sum assured in case of accidental death or disability. 

6. Loan Facility – Easy Access to Cash

With the policies offered by LIC, you can apply for a loan using their policy as collateral. This option is especially useful when you face a financial crisis.

Comparison of Top 5 LIC Investment Policies

Here’s a detailed comparison of the top LIC investment policies in 2024 and why these made it to our blog. 

1. LIC Index Plus

Here’s why the LIC Index Plus policy stands out:

• Life Insurance Cover:  The life insurance protection is available for the entire duration of the policy. 
• Maturity Benefit: An amount equal to Unit Fund Value will be provided as the maturity benefit. 
• Partial Withdrawals: Because LIC Index Plus is a ULIP plan, the policyholder can’t withdraw money for up to 5 policy years. Once the five years are completed, partial withdrawals are allowed.
• Refund of Mortality Charges: If you survive till maturity, you can expect a refund of mortality charges (which excludes extra costs and taxes).
• Guaranteed Additions: You will receive guaranteed additions depending on the annual premium, which is paid towards your unit fund on specific dates.
• Investment Flexibility: Two fund options are available, i.e., Flexi Growth Fund and Flexi Smart Growth Fund. Invest in the fund of your choice, considering your risk tolerance.
• Customisable Options: The policy can be adjusted to your liking when selecting the sum assured, premium payable and the duration of the policy.
• Flexible Payout: The beneficiary can choose to receive the death benefits in a lump sum payment or in instalments.
• Riders/Add-ons: LIC’s Linked Accidental Death Benefit Rider is available.  

2. LIC SIIP

The LIC SIIP policy is amongst the best investments in 2024 as this policy not only grows your savings but also provides insurance coverage. Here are some its key features:

• Death Benefit: This guarantees payment in the event of death before or after the commencement of risk, providing a higher loss of insured unit fund capital or 105% of the total premium paid.
• Maturity Benefit: At the end of the term of the policy, the Units Fund Value is payable.
• Refund of Mortality Charges: A refund of mortality charges will be given if the insured lives to the end of the term.
• Guaranteed Additions: GAs are given up to 25% of the annualised premium, depending on the policy duration.
• Partial Withdrawals: Partial withdrawals are allowed after five policy years of completion. 
• Investment Flexibility: Four fund options are available, i.e., 

1. 1. Bond Fund 
   2. Secured Fund
   3. Balanced Fund
   4. Growth Fund 

• Riders/Add-ons: LIC’s Linked Accidental Death Benefit Rider is available.  

3. LIC Jeevan Umang

LIC Jeevan Umang is a popular whole-life plan offering a blend of life protection and income benefits. Here's why it's a great choice:

• Death Benefit: In case of policyholder death, “Sum Assured on Death”, i.e., a minimum of 105% of the total premium paid, will be given out as deemed death benefit to the deceased nominee in the form of a lump sum.
• Survival Benefit: After the completion of the premium paying term, regular income (survival benefit) shall be paid at the rate of 8% of the Basic Sum Assured every year.
• Maturity Benefit: After the policy term is completed, the insured is paid the Basic Sum Assured along with applicable bonuses.
• Participation in Profits: The policyholder earns Simple Reversionary Bonuses and other additional bonuses as a share of LIC’s profits.
• Riders/Add-ons: Five rider options are available, i.e., 

1. 1. LIC's Accidental Death and Disability Benefit Rider
   2. LIC's Accident Benefit Rider
   3. LIC's New Term Assurance Rider
   4. LIC's New Critical Illness Benefit Rider
   5. LIC's Premium Waiver Benefit Rider

4. LIC Bima Jyoti

Do you want an insurance policy that can adapt to your needs? LIC Bima Jyoti would be the best choice in 2024! Here are the reasons:

• Death Benefit: In the unfortunate event of the policyholder's passing, beneficiaries receive either the 
  • Paid premiums
  • The higher of 125% of the Basic Sum Assured or 7 times the annualised premium, along with any guaranteed additions.
• Maturity Benefit: The full Basic Sum Assured shall be payable with the guaranteed additions if the policyholder survives the policy term.
• Guaranteed Additions: Policyholders can earn ₹50 every year for every Rs. 1,000 of Basic Sum Assured, thus boosting your savings over time. 

5. LIC Jeevan Labh

• Death Benefit: In case of the insured's death while the policy is still in force, the nominee shall be entitled to receive ‘Sum Assured on Death’, which is higher of Basic Sum Assured or 7 times of annualised premium. Additionally, bonuses will be paid, ensuring overall financial security.
• Maturity Benefit: In case the insured survives the policy term, the Basic Sum Assured, along with any vested bonuses, will be paid.
• Flexible Settlement Options: Policyholders can also opt to receive the maturity benefit in instalments or lump sum.   
• Participation in Profits: This policy also contributes to LIC’s profit and thus provides additional bonuses.
• Policy Loan: Loan on policy can be avail against LIC Jeevan Labh if two policy years premiums are fully paid. 

Conclusion

Investing in LIC policies is surely a wise decision toward building your financial future with added benefits. From tax savings to assured returns, these policies are designed in a way to suit everyone’s needs. 

Keep in mind that picking the right insurance policy is important, so be sure to explore all options. It is always advised to see a professional insurance advsior to help you in making the right decision. 

Frequently Asked Questions

Ques 1. What is the death benefit under LIC Bima Jyoti?

Ans. Upon the passing of the insured, the beneficiary will be granted a sum assured and guaranteed additions. They will get whichever is higher than 125% of the basic sum assured or 7 times the annual premium paid out.

Ques 2. What are the key benefits of investing in LIC policies? 

Ans. Here are some key benefits of investing in LIC policies –

• Tax Benefits
• Guaranteed Returns
• High Survival Benefits
• Extra Protection (Riders)

Ques 3. What are Survival Benefits?

Ans. LIC policies offer survival benefits; hence, one can withdraw part of the investment without disrupting the whole investment. It is useful in those unforeseen circumstances where funds are needed instantly.

Ques 4. What are the keys to buying a LIC policy online?

Ans. Here are the key steps to buying a LIC policy – 

1. Visit the LIC Website
2. Choose Your Policy
3. Fill in the Application Form
4. Upload Documents
5. Make Payment
6. Receive Your Policy Documents

Ques 5. What is the minimum sum assured in LIC Jeevan Labh?

Ans. The minimum sum assured under LIC Jeevan Labh is 2 lakh.