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LIC Of India Guaranteed Investment Plans

LIC Investment Plans

Headquartered in Mumbai and established in September 1956, Life Insurance Corporation of India (LIC) is an Indian statutory insurance and investment corporation that is under the ownership of the Government of India. Since its inception, LIC has been winning the trust of its customers through a sack full of different types of consumer-friendly insurance plans to cater to the varied needs of the individuals. It always tries to maintain transparency with its consumers and has also bagged numerous awards, accolades, and recognition for its magnificent works. It always takes care of the financial security of its consumers by providing them with the quality products.

Different Types of LIC Investment Plans

LIC has presented different types of investment plans to ensure the competitive returns and economic development of its customers. The investment plans can be in different forms such as money back plans, unit linked plans, whole life plans, etc. The following table contains the best investment plans offered by LIC along with the eligibility criteria for each plan.

Plan name Entry AgeMaturity AgePolicy termSum assured Premium payment mode
LIC New Bima Bachat

Minimum – 15 years

Maximum – 50 years for terms 9, 12, and 15 years

Maximum – 59 years for the term

9 years,

62 years for the term

12 years,

65 years for the term

15 years

9, 12, and 15 years

Minimum – Rs. 35,000 for term 9 years

Rs. 50,000 for the term of 12 years

Rs. 70,000 for the term of 15 years

Maximum – No upper limit

Single premium only
LIC Jeevan Umang

Minimum – 90 days

Maximum – 55 years

100 years(100 minus age at entry) years

Minimum – Rs. 2 lakhs

Maximum – No upper limit

Premium paying term
15, 20, 25, and 30 years
LIC Bima Jyoti

Minimum – 90 days

Maximum – 60 years

Minimum – 75 years

Maximum – 65 Years for policies procured through POSP-LI &

CPSC-SPV

15 years to 20 years

Minimum – Rs. 1 lakh

Maximum – No upper limit

Premium paying term
Policy term minus 5 years
LIC New Jeevan Anand

Minimum – 18 years

Maximum- 50 years

Maximum – 75 years

Minimum – 15 years

Maximum – 35 years

Minimum – Rs. 1 lakh

Maximum – No upper limit

NA
LIC Jeevan Lakshya

Minimum – 18 years

Maximum- 50 years

Maximum – 65 years13 years to 25 years

Minimum – Rs. 1 lakh

Maximum – No upper limit

Premium paying term
Policy term minus 3 years
LIC Nivesh Plus

Minimum – 90 days

Maximum – 70 years for Option 1.

35 years for Option 2

Minimum – 18 years

Maximum – 85 years for Option 1

50 years for Option 2

10 years, 10 to 20 years, and 10 to 25 years (depends on the age and the chosen option)

Under Option 1: 1.25 times of the single premium

Under Option 2: 10 times of the single premium

Single premium only
LIC SIIP

Minimum – 90 days

Maximum – 65 years

Minimum – 18 years

Maximum – 85 years

10 years to 25 years

Age below 55 Years – 10 times of Annualized Premiums

Age 55 years and above – 7 times Annualized Premiums

Premium paying term
Same as policy term
LIC New Endowment Plus

Minimum – 90 days

Maximum – 50 years

Minimum – 18 years

Maximum – 60 years

10 years to 20 years10 times of Annualized PremiumPremium paying term
Same as policy term
LIC Jeevan Labh

Minimum – 8 years

Maximum – 59 years for policy term 16 years.

54 years for policy term 21 years.

50 years for policy term 25 years

Maximum – 75 years16, 21, and 25 years

Minimum – Rs. 2 lakhs.

Maximum – No upper limit

Premium paying term
10, 15, and 16 years

LIC Investment Plans Details

Each investment plan mentioned in the above table has come up with varied benefits and facilities to cater to the different needs of the individuals. Therefore, for your better understanding, each plan is here discussed in brief.

It is a participating, non-linked, life assurance savings cum protection plan, which acts as a money back plan as a lump sum amount is paid at the outset of the policy. This plan not only takes care of the family of the life assured by offering them the death benefit in case of the unfortunate untimely demise of the policyholder but also provides survival benefit and maturity benefit along with the loyalty addition. 

Key highlights of the plan:

  • To enhance the benefits and the facilities of the plan, one can avail of the two-rider benefits available under this plan by paying a little extra premium. Those rider benefits are – LIC’s Accidental Death and Disability Rider Benefit and LIC’s New Term Assurance Rider. 
  • A loan facility can be availed of under this plan any time after the completion of one policy year. The loan will be equal to 90% of the surrender value as of the date of sanction of the loan.

2. LIC Jeevan Umang

It is a non-linked, participating, individual, whole life assurance plan which falls under the category of money back plan as it not only offers the opportunity to income but also provides protection to the family of the life assured. Moreover, this plan also takes care of your financial emergency by offering a loan facility.

Key Highlights of Policy:

  • In case of the unfortunate and untimely demise of the life assured before the end of the policy term for an active policy, the family is provided with the death benefit which can be of two types as follows:
    1. On death before the commencement of Risk:
    2. Return of premium/s paid without interest will be payable.
    3. On Death after the commencement of Risk:
    4. Sum Assured on Death and vested Simple Reversionary Bonuses along with Final Additional Bonus, if any, shall be paid.
  • The minimum age at the end of the premium paying term should be 30 years, whereas the maximum can be 70 years.

It is a Non-Linked, Non-Participating, Individual, Life Assurance Savings and Endowment Plan which can be purchased either offline through agents or other intermediaries or online directly through the official website of Life Insurance Corporation of India. To strengthen the plan, one can opt for rider benefits (5 rider benefits available) by paying an additional premium that is subject to the terms and conditions of the policy.

Key Highlights of Plan:

  • On death during the policy term before and after the commencement of risk, the death benefit is paid by the policy as per the norms of the Corporation. In case of survival of the life assured till the end of the plan, the maturity benefit along with guaranteed benefit will be paid for an active policy.
  • For an active policy, Guaranteed Additions at the rate of Rs. 50 per thousand Basic Sum Assured will be added to the policy at the end of each policy year. In case of death under an in-force policy, the Guaranteed Addition in the year of death will be for the full policy year.

It is a Non-linked, Participating, Individual, Life Assurance and endowment plan that provides life protection to the family members of the life assured in case of his/her untimely demise and also offers a lump sum amount as a maturity benefit. Two rider benefits are available under this policy to enhance the protection and benefits of the plan.

Key Highlights of Plan:

  • The policy participates in the profits of the Corporation and therefore, will be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during the policy term, in case of an active policy.
  • You can take the death benefit or the maturity benefit in installments instead of as a lump sum amount for a certain period of time to generate a regular flow of income. The installments should be either monthly, quarterly, half-yearly, or yearly.

It is a Non-linked, Participating, Individual, Life Assurance and endowment plan which offers Annual Income benefits that help to fulfill the needs of the family, especially, the requirements of the children, in case of the unfortunate and untimely death of the life assured. Under this policy, one can take the death benefit or the maturity benefit in installments, instead of as a lump sum amount for a certain period of time to generate a regular flow of income. 

Key Highlights of Plan:

  • Premiums can be paid regularly during the premium paying term in yearly, half-yearly, quarterly, or monthly mode (through NACH only) or through salary deductions over the premium paying term of the policy.
  • For this policy, a grace period of 30 days will be allowed for payment of yearly or half-yearly, or quarterly premiums and 15 days for monthly premiums from the date of the first unpaid premium.

6. LIC Nivesh Plus

It is a Unit Linked, Non-Participating, Single Premium Individual Life Insurance plan under which the policyholder can get insurance cum investment cover throughout the term of the policy just by paying the premium one time. The plan has come up with two variants and you can get 4 fund options to choose from according to your convenience. 

Key Highlights of Plan:

  • You can partially withdraw the units at any time after the fifth policy anniversary, subject to the following:
    1. In the case of minors, partial withdrawals will be allowed only after Life Assured is aged 18 years or above.
    2. Partial withdrawals may be in the form of a fixed amount or in the form of a fixed number of units.
  • The insured person can switch funds among the four types (Bond Fund, Secured Fund, Balanced Fund, and Growth Fund) of funds during the policy term. This switching is subject to the switching charges as per the terms and conditions of the policy.

7. LIC SIIP

LIC’s SIIP is a Unit Linked, Non-Participating, Regular Premium, Individual Life Insurance plan under which the insured person has the opportunity to invest the premiums in one of the four types of investment funds that are available. The Unit Fund is subject to various charges and the value of units may increase or decrease, depending on Net Asset Value (NAV).

Key Highlights of Plan:

  • If the life assured survives till the end of the policy term for an active policy, an amount equal to the total amount of mortality charges deducted in respect of life insurance cover will be paid along with the Maturity Benefit. However, this facility is not available in case of a surrendered or discontinued policy.
  • This plan is subject to different types of charges that are paid by the life assured and those are mortality charges, premium allocation charges, accident benefit charges, fund management charges, switching charges, partial withdrawal charges, discontinuance charge, right to revise charge, and miscellaneous charge.

8. LIC New Endowment Plus

It is a Unit Linked, Non-Participating, Regular Premium, Individual Life Insurance plan which is specially designed to provide a very good combination of protection and long term savings and also provides lots of flexibilities to build a financial corpus. In this policy, the investment risk in the investment portfolio is completely borne by the policyholder. 

Key Highlights of Plan:

  • Under this policy, the death benefit is provided in case of death of the life assured before and after the date of commencement of risk as per the policy norms. Also, the maturity benefit is payable on the survival of the policyholder that is equal to the Unit Fund Value.
  • Premiums for this policy can be paid regularly at yearly, half-yearly, quarterly, or monthly (through NACH only) intervals over the term of the policy.

It is a non-linked, participating, individual, life assurance saving and endowment plan that has come up with double benefits of savings and protection benefits. Not only that, but the plan also offers you the opportunity to fulfill your liquidity needs through the loan facility.

Key Highlights of Plan:

  • The policy offers the death benefit and the maturity benefit as per the terms and conditions of the Corporation. And also it participates in the profits of the Corporation and will be entitled to receive simple reversionary bonuses depending on the experience of the Corporation.
  • After purchasing the policy, if you feel that the terms and conditions or the benefits of the policy are not suitable for you, you can return the policy within 15 days from the date of inception.

Why Should People Go For LIC Investment Plans?

As the insurance market is filled with different types of investment plans along with their many variants offered by various companies to cater to the varied needs of the individuals, it becomes very difficult for a policy-seeker to find out the ideal company for himself. But if you follow certain parameters while selecting the company, it becomes easier for you to find out the ideal one. For your better understanding, after evaluating all the potential parameters, it has been found that the Life Insurance Corporation of India is the ideal company for you to buy an investment plan to build your financial corpus. To know about the reason in detail, have a look at the below mentions. 

Rich Background – LIC is in existence since 1956 and it is directly owned by The Government of India. Since then, LIC has not failed a single time to remain faithful and satisfactory to its customers. Looking at the strong history and rich background of the Corporation, it can be said that you can certainly invest in one of the investment policies of LIC. 

Online and Offline Facility – To keep pace with the demand for digitalization, LIC has opened the door to online purchasing for many of its investment plans. Not only that, those people who are comfortable with the offline procedure of buying, can also buy the plans offline. Moreover, LIC has made its website in such a way that you can do almost every policy-related work like renewal, paying a premium, tracking the claim status, and many more online anytime at your convenient pace.

Transparent Plans – The insurance and the investment plans offered by LIC are very transparent. No discrepancy can be found; neither are any hidden charges. The plans are customer-friendly. Therefore, you can always keep LIC on your bucket list.

Solvency Ratio – A solvency ratio stands for the potential of the company to meet its long-term financial goal. Generally, if the solvency ratio is higher, it is more likely the company has the capability to pay off the lump sum amount of its customers. According to the IRDA Annual Report, the solvency ratio of LIC of India as of March 2020 is 1.55, which is good enough to go for the Corporation. 

Market Share – According to the IRDA Annual Report the premium underwritten in the financial year of 2019-2020 of LIC is Rs. 3,79,386.60 crores which highlights the fact the Corporation has strong financial potential and it has the capability to handle any financial crisis in the near future. The data highlights that the company is reliable and trustworthy for investment plans.

Claim Settlement Ratio – We buy an investment plan and invest in it to build protection and financial corpus for our future, so that, whenever we fall into any kind of economic emergency, we will find the insurer beside us. For that, the claim settlement ratio plays a pivotal role as it depicts the commitment of the insurer. According to the IRDA Annual Report, the Incurred claim ratio of ICICI Prudential Life Insurance Company in the financial year of 2019-2020 is 96.69%, which is higher than many other companies. 

Distribution Network – LIC has a very strong distribution network spread all over the country. Apart from offices, regional offices, SATELLITE SAMPARK offices, LIC has also tied up with various banks to offer the maximum support to its customers. So, whenever you need the Corporation, it will be beside you always.

Number of Plans – If your selected insurer qualifies for all the above-mentioned parameters, but does not have enough number of plans to offer, it will be of no use. LIC has come up with a bundle of investment plans along with different variants to address the individual needs of its consumers. Therefore, you can always have multiple options to choose from to find out the most suitable investment plan for you. 

Customer Service – You can get connected to the Corporation online, by visiting their official branches. Or else, you can also write to them via mail or can call them for your emergency. Their customer executive will be always there for you. Even you can contact the insurer through its registered agents. 

Flexibility – The investment plans offered by LIC are very flexible and customer-friendly. For most of the plans, you will get different options such as policy term, premium paying term, settlement mode, etc. to choose according to your convenience. Therefore, you can always curtail and customize the plan as per your requirements.

How To Buy LIC Investment Plans?

LIC has offered the online and offline buying facility for some of the investment plans whereas, for the rest of the plans, only the offline facility is available. For your better understanding, both the offline and online buying processes have been discussed below.

Online Buying Procedure:

For purchasing the available investment plans online, follow the below steps.

  • Go to the official website of the Life Insurance Corporation of India.
  • On the homepage, you will find the ‘Buy Online Policies’ Tab. Click on that.
  • Then again click on the ‘Click Here’ option. On the new landing page, select the desired investment plan that you want to buy.
  • You will be directed to a new page. There, click on the ‘Click to Buy Online’ option. 
  • After that, you need to fill in the blanks with required details such as covid-relation information, personal details, policy-related information, and so on.
  • Once you complete putting in all the required information, click on the ‘Submit’ option.
  • The premium amount for your given data will be displayed before you. Pay the premium online through the preferred gateway.
  • Once you successfully pay the premium, you will get the notification and the policy details in your registered mobile number and email ID.

Offline Buying Procedure:

If you are more comfortable buying a LIC investment plan offline, you can go to the nearest official branch of the corporation. Their experts will smoothly guide you through the buying process. Other than that, you can also call on their phone number, you will be attended by one of their executives and can avail of a hassle-free purchasing procedure. You can also get in touch with the Corporation by writing them through their email ID. The company executives will soon contact you and will offer assistance in purchasing an investment plan. Apart from these, you can also take help from any of the licensed and registered agents of the Corporation. They are knowledgeable and experienced enough to lead you to the right track.

Frequently Asked Questions

Net Asset Value (NAV) is the per unit value of the assets minus the value of the liabilities of an investment fund. This value helps you to track your fund’s performance and to invest in the most profitable fund available with your insurance provider.

The Guaranteed Surrender Value payable during the policy term under this policy will be as below:

  • First year: 75% of the Single premium paid.
  • Thereafter: 90% of the Single premium paid less survival
  • benefits already paid.

If the policy is issued on the life of a minor, the policy will automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age. The vesting will be a contract between the Corporation and Life Assured.

That will be as per the below rules:

Mode of Instalment paymentMinimum installment amount
MonthlyRs. 5000
QuarterlyRs. 15,000
Half-yearlyRs. 25,000
YearlyRs. 50,000

Under this plan, the “Sum Assured on Death” is defined as higher than 125% of the Basic Sum Assured or 7 times the annualized premium. However, this death benefit should not be less than 105% of total premiums paid up to the date of death.

If after at least two full years’ premiums have been paid and any subsequent premiums are not duly paid, the policy will not be wholly void but will be considered as a paid-up policy till the end of the Policy Term.

The Maximum amount of Partial Withdrawal as a percentage of the fund during each policy year will be as under:

Policy YearPercent of the unit fund
6th to 10 th15%
11th to 15 th20%
16th to 20 th25%
21 st to 25 th30%

The premium amount for LIC SIIP policy depends on the premium payment mode as follows:

ModeMinimumMaximum
YearlyRs. 40,000No upper limit
Half-yearlyRs. 22,000
QuarterlyRs. 12,000
Monthly (NACH)Rs. 4000

The investment pattern of the Discontinued Policy Fund will be a unit fund with the following asset categories:

  1. i) Money market instruments: 0% to 40%
  2. ii) Government securities: 60% to 100%

The exclusion of this policy is suicide or any kind of self-inflicted injury, resulting in death.

For LIC, a lapsed policy can be revived within a period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity. In that case, you have to pay all the arrears of the premiums along with the interest that is subject to the terms and conditions of the Corporation.

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