LIC Whole Life Insurance Plan: Stay Protected for Complete Life
Life Insurance Corporation of India (LIC of India) is a prominent name in the insurance industry that serves customers with various insurance products, including term plans, child plans, retirement plans, etc. While these policies remain active for certain policy years, LIC whole life plans provide coverage for 99/100 years.
LIC's whole life plan, as the name suggests, ensures that the life assured remains financially protected against any life risk. In exchange, the policyholder needs to make the premium payments through the policy payment term without fail.
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What is LIC Whole Life Plan?
LIC whole life insurance is a term insurance plan that provides financial protection to the life assured and their loved ones against any life risk for up to 99/ 100 years. The nominee receives the death benefit in case of unfortunate demise of the life assured during the policy term.
If the policyholder outlives the policy period, they receive the maturity benefit. Customers can buy the LIC whole life plans online and offline.
Why Should You Buy LIC Whole Life Insurance Plans?
Below are the reasons why you should add LIC of India whole life plans to your portfolio:
Lifelong Protection
Unlike other life insurance plans, which keep you protected for a certain period, LIC whole life insurance plans cover you for your entire living period, i.e., 99 or 1000 years. In case of unfortunate death, your nominee gets the sum assured with the accrued bonuses.
Maturity Benefit
If the life assured survives the whole policy term, the policyholder receives a sum assured along with bonuses, which depend on the corporation's experience.
Income Benefit
If the life assured survives the premium payment term and all the premiums have been duly paid, they receive the survival benefit as per the selected option. These benefits equal a certain percentage of the basic sum assured and can be used as an income benefit.
Participation in Profits
LIC whole life insurance plan, Jeevan Umang is eligible to participate in the profits of the Life Insurance Corporation during the policy term. Hence, the LIC whole life plan gains assured bonuses paid with death and maturity benefits.
Tax Benefit
The premium paid towards an LIC whole life policy is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Also, the benefits received are tax-exempted under Section 10 (10D) of the IT Act.
List of LIC Whole Life Insurance Policies
Life Insurance Corporation of India offers two whole life insurance plans listed below:
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LIC Jeevan Utsav Plan |
Coverage Benefits
- Limited premium payment
- Regular and flexi income benefits
- Guaranteed additions
Eligibility Criteria
Entry Age: 90 days - 65 years
Sum Assured: Rs. 5 Lakh - No Limit
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LIC Jeevan Umang Plan |
Coverage Benefits
- 100% tax-free maturity
- Income benefit
- Availability of loans
Eligibility Criteria
Entry Age: 90 days - 55 years
Sum Assured: Rs. 2 Lakh - No Limit
Benefits of Buying a Whole Life Plan from LIC of India
There are more than 20 life insurance companies doing business in the insurance industry and serving customers with different life insurance policies having multiple features and benefits. Still, considering the Life Insurance Corporation of India (LIC of India) to buy a whole life plan could be beneficial for you due to the following reasons:
Reputation and Trustworthiness
LIC has been one of the oldest and most trusted insurance companies in India since 1956. As a government-owned entity, LIC of India carries an extra layer of trust and safety among customers.
Flexible Premium Paying Term
Depending on financial suitability, you can select a preferred premium payment option from annual, one-time, half-yearly, or monthly.
Assured Bonuses
Whole life insurance policies participate in the company’s profits. According to market experience, policyholders receive bonuses, which can enhance the policy value over time.
Extensive Network
LIC of India has an extensive network of branches, online portals, customer care centres, and agents across India, making accessing customer service and support easier.
Additional Riders
LIC offers various add-on riders (like accidental death and disability rider, critical illness rider, etc.) that can be added to your whole life policy for enhanced coverage.
Online Services
LIC of India is known for its extensive customer support from both offline and online mediums. Now, customers can manage their policies online, make premium payments, track claim status, etc., without reaching the branch offices.
Explore more about LIC online resources
What to Consider While Purchasing a LIC of India Whole Life Plans?
You are responsible for ensuring that the LIC whole insurance policy selection aligns with your financial goals and needs. To achieve the same, here are the essential factors to consider:
Sufficient Coverage Amount
Ensure that the sum you select is sufficient to cover your family's needs in your absence. While calculating the amount, evaluate factors like financial obligations, dependents, future expenses, and inflation.
Policy Benefits and Features
Check the death and maturity benefit amounts and how they are calculated, including any bonuses or additional benefits. To enhance the benefits, you can add riders to the base policy. To make the process easier, use the LIC whole life insurance maturity calculator.
Premium
After customizing the premiums and benefits, you need to assess the affordability of premium payments. Select paying premiums annually, semi-annually, quarterly, or monthly based on your financial convenience.
Policy Terms and Conditions
Buying an LIC whole life policy is a long-term financial commitment. Read the policy document thoroughly to understand exclusions, limitations, and conditions under which claims might be denied. Be aware of the free look period, the grace period for premium payments, and the policy revival options if the policy lapses.
Final Words
LIC whole life insurance plan provides life risk coverage to you and your family throughout your life. With LIC Jeevan Utsav plan, you can secure lifetime guaranteed returns. Also, policyholders can avail themselves of loans to fulfil their liquidity needs. LIC whole life policy is available online and offline.
To compare and buy a LIC of India whole life policy, take help of RenewBuy Advisor Connect to find a LIC or life insurance agent nearby.
