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  • Category: Insurance

    Best LIC policy plan which gives the most interest and benefits


    Want to apply for an LIC policy which is most suitable for a family? Know from experts which LIC plan would obtain the maximum interest and benefits for you and your family.

    My age is 33 and I want to know which is the best LIC policy which can give me more interest and benefits. I have two children, one boy of 7 yrs and one girl of 5 yrs and a wife of 26 yrs. Please guide me to get the best policy plan in LIC which can fulfil the needs of all of us, my children, my wife and me also.
  • Answers

    7 Answers found.
  • I advise you to go through the website of LIC. This site is giving all the details of various schemes LIC announced and what are the conditions to take a policy and how it works. What are the returns and what is the premium value and other details. Once you see all these schemes, you will understand the best policy which will good returns will be known to you. Otherwise, you better contact a known LIC agent in your area so that they will guide you properly.

    drrao
    always confident

  • There are a number of schemes which can yield substantial benifits. But to know the benifits of each policy, it would be better if you could contact an agent of LIC of your area. He can give you details of each of the policies giving you the benifits of the policies to be undertaken such as Jeevan Anand, Education - policies of children, Marriage policy of the daughters or a Pension - policy.
    There are certain policies for which the premium is quite low but the benifits linked to such policies are quite attractive including the Life Endowment Policy.
    You can also contact the LIC Development Officer reporting in the LIC Branch and he can guide you to choose the most benificial policy in your case.

  • LIC has got various type of policies catering to the needs of different people. You will have to go through the details as given in their site or consult with an agent to find out the best suiting to people in your age group.

    I will like to tell you some basic things which may be helpful to you in selecting a good plan for yourself or your family members. This is a type of summary of categories of LIC policies and their maturity values.

    Most of the plans are having IT benefit and the premium amount is deductible from the income along with other elligible deductions under section 80C up to an overall limit of Rs 150000.

    The duration of LIC plans is generally around 10 years but plans for a longer period are also available.

    There are schemes where annual premium is payable but there are also schemes where one time lump sum payment can be done. Please note that one time premium policies are subject to TDS at the time of maturity while annual premium type do not have this hassle and in fact are tax free.

    Another thing is that in some policies you will get the maturity amount at the time of maturity but in others it will remain with the LIC and you will get an annuity or pension out of it depending upon the option you choose. This is an important point and you should ascertain it before purchasing such policies. The reason is that if you want to take your maturity amount in such policies you will get after deduction of about 5% of maturity amount.

    On an average the return in LIC schemes is in the range 6-7% but it is all right seeing the insurance risk covered.

    They have special scheme for senior citizens giving return of 8% but that is taxable if the senior falls under the tax bracket.

    So these are some basic things which you can keep in mind while selecting a policy.

    Knowledge is power.

  • There are lots of LIC plans you may find on the website of LIC or you may go to its office to understand which policy will suit you and your family. Still, I am giving you some basic plans LIC has:

    Term end insurance: This is the simplest insurance plan. In this, the policyholder has to pay the premium annually or payment team decided by the policyholder. As per this plan if the policyholder dies the nominee of the policy gets the sum insured. It gives financial security to the family members after the demise of the person. If the policyholder lives until the completion of the policy he gets the sum insured plus the bonus as per the policy term and condition.

    Endowment insurance plan: It offers both the benefit of life insurance as well as saving. A certain part of the premium is allocated towards insurance and rest is invested. It gives an amount as per the terms and conditions of the policy after the death of the policyholder or after the completion of the policy whichever is earlier.

    Money back insurance plan: It like other policy where once has to deposit the premium of the policy and periodic money back is given to meet the financial needs of the policyholder. In case of death of the policyholder, LIC gives the sum assured along with the survival benefits.

    ULIP: Unit-linked life insurance plan provides life insurance and investment. It offers an investment option like mutual funds. Because it is linked with the market so the return is not fixed, it depends on the market value of a unit.

    You can decide by yourself which type of plan you want to take. Also, the amount you want to invest depends on you. It's better to take a policy of amount after checking how much amount your family will get in case of your death.

    Sanjeev

    " It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

  • LIC is India's pioneer insurance provider giving life insurance and is in the public sector. Now there are a many life insurance providers in the private sector also. Hence there is any number of policy products. So we can have a great choice from them.
    Though life itself cannot be compensated, life insurance is a prudent and basically a financial relief provision for the surviving dependants, against unfortunate event of loss of life of the insured person who may be the head of family or earning member. However life insurance can also serve as an investment for persons. In fact now, as the longevity of people has increased, Life Insurance policies serve the dual purpose of life risk cover and investment.
    But being primarily a risk provision facility, and not an income generating instrument, Life Insurance policies are having very minimal return only. The return is added as Bonus. Realistically speaking, life insurance offer just about 4 or 5% return only. Hence if one has taken a life insurance policy for a prudent and practical sum assured, then it is not suggested to invest more in life insurance policies, if the aim is return.
    There are ULIPs, which are combination of investment return and life cover. Here the one point we should note is the 'amortisation' charges. This charge is deducted from the premium amount we pay. So the units purchased will be for the value net of the amortisation and other charges.
    There are single premium policies, long term policies etc.
    However if one is starting young, then it is better to have a Term Insurance. Here the main defect is that the amount remitted as premium has no return. But when we join as early young as possible, one can have a policy with a reasonable good sum assured with relatively low premium. Having provided a life risk cover, one can invest the spare amount in high return equity instruments.
    Even when you take LIC policies, it is suggested to have policies which will give periodical benefits benefits- i.e money back policies. That can come in help of lump sum needs which come at a later stage.
    So before taking a decision, one should sit and decide what the basic aim is. Is there any life cover already and is it sufficient cover. Evaluate the term insurance vis-a-vis the premium and benefit with immediate and long term tax benefit.
    So a practical suggestion is to have a minimum prudent and practical cover of sum assured a life insurance. And then to invest in equity linked investments to fetch more returns.
    You can compare the various policies available with various providers, keeping your aim. Then you may discuss with agents. However agents may push only the policies that give them more benefit. Hence tell them what exactly you need, read the terms and conditions clearly and then invest. Also, note that online investments can have benefits in premium.

  • Thanks to all for your valuable answer.
    But, I don't know any LIC agent in my area all are new to me, that's why I worried about whome should I believe/trust. I checked on the website of LIC also but I got confused after seening various different plans of LIC. I visited LIC office also there I met with an LIC agent but I find difficult to believe in that agent. Actually I want to meet the head of that LIC office but the person who was there at inquiry said to me that "you cannot meet to the head of the department, you can talk to LIC agent". That's why I posted my question on this platform so that I could get the sloution to my problem.

  • There are various Term and Pension policies present on LIC website. According to your budget and requirement of returns you can think about it.
    Before finalizing LIC policy with agent , learn about it and then go for it. LIC agents get commission from policies so they try to keep it long term. So be very careful what you are buying. Take a week , think about it and they buy.

    Avi
    Life Is Beautiful


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