LIC of India
LIC Endowment Policy

LIC Endowment Plans

LIC Endowment Plans are dedicated plans that combine life insurance protection with savings opportunities, making them a complete tool for policyholders. Unlike pure-term insurance, which solely provides coverage in the event of death, endowment plans extend their benefits to include both death and maturity payouts. Furthermore, no matter whether the policyholder survives the policy term or not, there is a guaranteed benefit. 

The endowment plans by LIC often include the option of surrender value, which allows policyholders to receive a certain percentage of the premiums they have paid if they decide to terminate the policy before its maturity. Furthermore, the death benefit provided by these plans is substantial, depending on the type of plan you choose. These plans offer flexibility through various riders, which can be added to enhance the coverage.

What are the Top LIC Endowment Plans?

Let’s take a look at the top LIC endowment plans. 

LIC’s Bima Jyoti:

LIC’s Bima Jyoti is a popular non-linked, non-participating individual life assurance savings plan that comes with a perfect blend of protection and savings. Furthermore, the plan is designed to provide financial security to the policyholder’s family in the event of their untimely death during the policy term. Furthermore, LIC’s Bima Jyoti effortlessly addresses liquidity needs by offering dedicated loan facilities. Speaking of the eligibility criteria, the plan is available to individuals from as young as 90 days old to a maximum entry age of 60 years. 

LIC’s Bima Ratna:

LIC’s Bima Ratna is a non-linked, non-participating individual savings life insurance plan that seamlessly combines protection and savings. Furthermore, the plan is designed to provide robust financial support to the policyholder’s family in the unfortunate event of their death during the policy term. The premium-paying term varies with 11 years for a 15-year policy term, 16 years for a 20-year term, and 21 years for a 25-year term, which allows policyholders to choose a plan that best suits their financial goals. 

LIC’s Dhan Sanchay: 

LIC’s Dhan Sanchay is a non-linked, non-participating individual savings life plan that offers a complete combination of protection and savings. Furthermore, the plan is designed to ensure financial security for their policyholders’ families in the unfortunate event of their death during the policy term. The plan offers flexible premium payment options: For regular or limited premium payments, policyholders can choose between Option A, which offers a Level Income Benefit or Option B, which provides an Increasing Income Benefit. 

LIC’s Jeevan Azad:

LIC’s Jeevan Azad is a non-linked, non-participating individual savings plan that comes with a perfect blend of protection and savings. As a popular limited premium payment endowment plan, it offers financial security to the policyholder’s family in the unfortunate event of their death during the policy term. Additionally, it caters to liquidity needs through a loan facility. The plan is accessible to a wide range of individuals with a minimum entry age of 90 days and a maximum entry of 50 years (or up to 65 years minus the policy term for policies obtained through POSP-LI/CPSC-SPV). 

LIC’s Amritbaal 

LIC’s Amritbaal is another popular non-linked insurance plan that is designed to build a solid financial corpus for your child’s higher education and other future needs. Furthermore, it offers guaranteed benefits on both death and survival, which ensure fixed payouts with no bonuses. The plan includes a guaranteed addition of Rs. 80 per thousand of the Basic Sum Assured throughout the policy term and it allows you to customize life insurance coverage for your child based on their needs. 

LIC’s New Endowment Plan: 

LIC’s New Endowment Plan is a non-linked, participating individual life assurance plan that comes with an ideal blend of protection and savings. It offers financial security to the policyholder’s family in the event of the policyholder’s death before maturity and a substantial lump sum payout to the policyholder upon maturity. Furthermore, the plan provides liquidity through a loan facility. It is available to individuals aged 8 to 55 years, which makes it a flexible option for long-term financial planning. 

LIC’s New Jeevan Anand: 

LIC’s New Jeevan Anand Plan is a non-linked, participating individual life assurance plan that combines protection and savings. It provides financial lifelong protection against death while also offering a lumpsum amount at the end of the selected policy term if the policyholder survives. Furthermore, the plan addresses liquidity needs through a loan facility. Furthermore, the plan offers a minimum basic sum assured of Rs. 1,00,000 with no upper limit on the maximum sum assured. 

LIC’s Single Premium Endowment Plan: 

LIC’s Single Premium Endowment Plan is a non-linked and non-participating plan that offers a perfect blend of savings and protection. With a one-time lumpsum premium payment, the plan provides financial security against death during the policy term, along with a lumpsum payout at the end of the term if the policyholder survives. Furthermore, it also offers liquidity through a loan facility. The plan is available from 90 days to 65 years of age which makes it an ideal choice for long-term financial planning. 

LIC’s Jeevan Lakshaya

LIC’s Jeevan Lakshaya is a dedicated individual life assurance plan that combines protection with savings. In the event of the policyholder’s death before maturity, it offers an annual income benefit to support the family’s needs, especially for the benefit of children. Furthermore, it provides a lumpsum payout at maturity, regardless of whether the policyholder survives the term. The plan includes a death benefit, maturity benefit, and participation in the company’s profits. 

LIC’s Jeevan Labh:

LIC’s Jeevan Labh is a non-linked and non-participating plan that comes with a perfect combination of both protection and savings. Furthermore, it provides financial support to the policyholder’s family in the event of their death before maturity and a lumpsum payout at maturity for the surviving policyholder. The plan has a minimum basic sum assured of Rs. 2,00,000 with no upper limit on the maximum sum assured and a maximum maturity age of 75 years. 

LIC Aadhar Stambh: 

LIC’s Aadhar Stambh is a non-linked insurance plan specifically designed for male lives. It combines protection and savings by providing financial support to the policyholder’s family in the event of death before maturity and a lump sum payout at maturity for the surviving policyholder. Furthermore, the plan includes death benefits, maturity benefits, and loyalty additions. It is available to individuals aged 8 to 55 years, which makes it a flexible option for financial planning. 

LIC’s Aadhar Shila: 

LIC’s Aadhar Shila is a non-linked, participating insurance plan specifically designed for female lives. It provides a blend of protection and savings by offering financial support to the policyholder’s family in the event of death before maturity and a lumpsum payout at maturity for the surviving policyholder. Furthermore, the policy is available to individuals aged 5 to 88 years, with policy terms ranging from 10 to 20 years. The minimum age at maturity is 18 years and the maximum age at maturity is 70 years.

How Does the LIC Endowment Plan Function?

Let’s take the example of Mr Aman Rathore, a 35-year-old IT professional. 

Mr Rathore opts for LIC’s Bima Jyoti Endowment Plan with a 20-year policy term and a premium payment term of 15 years. He chooses a basic sum assured of Rs. 10,00,000. For the first year, the GST rate on his annual premium of Rs. 78,770 is 4.50% which reduces to 2.25% from the second year onwards. In the event of his death during the policy term, the sum assured on death is Rs. 12,50,000. The plan also provides Guaranteed Additions of Rs. 50 per Rs. 1000 of the basic sum assured annually. 

Note: If something happens to Mr. Rathore before maturity, the family shall receive financial support (ensuring all premiums are paid).

How to Buy LIC Endowment Plans?

If you want to buy LIC endowment plans, listed below are the steps you will need to follow.

  • In the first step, you will need to visit the official website of LIC (Life Insurance Corporation of India).
  • After that, you will see a “Buy Online” option to your right in the gold-coloured button. Then, under “Are you looking for?”, click on “endowment and money-back plans.”
  • Then, you will see different plans. Let’s say you want to buy “LIC Jeevan Azad”. Simply click on the plan’s tab and click on “Know More”.
  • After that, you will see this message on the top “This is an external link-Are you sure want to continue”? Click on “OK”.
  • Then, on the next tab, you will see the documents required section. In the below, click on the “Proceed” button.
  • Then, simply enter your full name, date of birth, email ID, annual income, residential status, and more. Once entering all the information, click on the “Proceed” button.
  • When you select your city of residence, simply select a branch, click on all the checkboxes, and then click on “proceed.”
  • After that, you will need to enter your basic sum assured, policy term, premium-paying term, preferred mode, and more. Then, click on “proceed.”
  • In the next step, you will need to choose rider benefits. Then, simply click on “Calculate Premium”.
  • When you’re done, simply upload your documents and then make the payment and you have successfully purchased LIC Jeevan Azad.

Frequently Asked Questions

Listed below are the frequently asked questions related to LIC Endowment Plans.

Yes, you have a 30-day grace period to pay premiums. The grace period is 15 days for monthly premiums.

A policy lapses if premiums are not paid even within the grace period.

You can easily get a loan if your plan has a surrender value, which usually happens after paying premiums for the first two or three years. The loan amount is based on a portion of the surrender value.

Yes, LIC offers optional riders that you can add to your endowment plans for extra coverage.

Yes, you can surrender your policy before maturity and receive a “surrender value” but the specific terms depend on your plan. 

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