LIC Endowment Plan: What You Should Know

With a history dating back to 1956, the Life Insurance Corporation of India (LIC) is one of India's leading life insurance companies. Today, almost 250 million people have placed their trust in the organisation. The Life Insurance Corporation of India (LIC of India), in terms of products, offers a wide range of insurance plans to satisfy the financial needs of individuals. The organisation provides a number of different endowment plans, each with its unique set of benefits and features. Let's take a look at endowment plans and the services provided by LIC. This combination provides financial help to the family of a deceased policyholder at any time prior to maturity, as well as a substantial lump sum payment to the policyholders who survive.

What You Should Know About the LIC Endowment Plan

Everything you need to know about the LIC Endowment Plan is listed below:

1. LIC Jeevan Pragati

Bonus contributions are allowed because this is a with-profits endowment plan. The following are some of the plan's other features:

• The sum assured grows by a quarter every five policy years. In the event of death, the higher sum promised is paid.
  At maturity, the base sum assured, as well as any earned bonuses, are paid out.
• To increase the plan's coverage, a rider can be added.
• Tax benefits are also incorporated in the system. Both the premiums paid and the benefits received are eligible for tax advantages.

2. Jeevan Labh Plan of LIC

• This endowment plan additionally accumulates rewards and provides a borrowing facility if the policyholder requires money during the policy's term for a financial emergency. Some of the plan's other aspects are as follows:
  Over the duration of the plan's life, simple reversionary bonuses are paid out. In addition to the maturity or death benefit, a last bonus may be provided.
• You can pick between two additional riders with the base plan.
• Premiums paid are eligible for tax deductions. They can be deducted from taxable income up to INR 1.5 lakhs under Section 80C.
• Even the plan benefits are tax-free in the hands of the insured
• LIC New  Endowment Plan 

3. LIC's Accidental Death and Disability Benefit

As a bonus-earning participation plan, this endowment plan is accessible. If the guaranteed dies during the policy term, the death benefit is paid, and if the assured lives to the end of the term, the maturity benefit is paid. Some of the plan's other important elements are as follows:

• A rider can be added to provide coverage for accidental death and disability.
• You can keep the coverage for up to 35 years after you purchase it.
• There are two sorts of premium discounts included in the package. The first is for the mode of premium payment, and the second is for the level of sum assured selected.

4. New Jeevan Anand Plan from LIC

A popular endowment plan, New Jeevan Anand, is now offered as a participating plan with the following features.

• There is an optional rider that can be added to the base insurance.
• A discount of up to 2% of the premium is offered if the premium is paid annually or half-yearly.
• You can get a premium discount if you have a high sum assured.
• Policy loans are available during the policy's tenure.
• Section 80C allows deductions for premiums paid, which helps to reduce taxable income. The benefits are also considered tax-free income, which means they are not taxed.
• The Accidental Death And Disability Benefit Rider from LIC is a rider that allows you to receive benefits in the event of an accident.

5. LIC Accidental Death and Disability Benefit Rider

It is an optional rider that may be added to your policy for a fee. In the event of accidental death, the Accident Benefit Sum Assured will be paid as a lump sum along with the death benefit under the basic plan. Premiums for the portion of the Basic Sum Assured equal to the Accident Benefit Sum Assured under the policy shall be waived in the event of an accident resulting in accidental permanent disability (within 180 days of the date of the accident).

Conclusion

After reading the plan's characteristics and benefits, it's evident that the plan is best suited for those who want a disciplined savings choice as well as the benefit of life insurance. You can set long-term financial objectives and begin saving for them in a more methodical manner with the help of the LIC New Endowment plan.

Also Read: Are Endowment Plans Preferable Than Fixed Deposits?

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.