Apnipolicy.com

28 May 2021 – Insurance

Best LIC Endowment plan in 2021

LIC endowment plan

LIC’s one of the most selling plan is an Endowment policy. People choose an Endowment plan because it is the safest investment option as compared to stocks. mutual funds and cryptocurrency.

An endowment plan is best if you want life coverage with maximum returns on maturity. The term (period of time) may vary from 10-35 years which means if the insured survived till the maturity period then he/she will get a lump sum amount but if the insured die, then his/her family will get financial support and In this blog we will discuss about the best LIC endowment plan in 2021, with high return and low premium, which you may consider buying.


Who should buy Endowment Policy?

If you care about your family and if you want that your family doesn’t suffer if anything happens to you. Then you should definitely get an Endowment plan and unlike Term life insurance here you get a healthy return on the maturity of the policy.

The minimum age of entry to buy an endowment plan is 18 years and the maximum age of entry is 59 years according to the LIC insurance plans.


What are the features and benefits?

 

Higher Returns

In endowment policy, you definitely get higher returns as compared to whole life and ULIP plans and the amount get here is Guaranteed. The return on your policy will totally depend upon two things “term” and the “amount” you save. let us understand with an example

if a person of 25 years buys an Insurance of Rs. 10 lakhs and the term is let’s say 25 years, then, in this case, he/she will have to pay Rs.3900 per month and the amount he/she get on maturity is around 27 lakhs. and the following plan is Jeevan labh (table no.936) and if you want the same plan you can contact or mail us at mail@apnipolicy.com

 

Tax benefits

If you buy an LIC endowment policy, you are eligible to get tax benefits under section 80C. You will get an exemption as per the premium receipt of your policy and you can get up to Rs.1,50,000 tax benefits as per section 80C of the Income-tax Act,1961.


Dual Benefits

As we discussed above Endowment plan have Survival as well as Death benefits and here you really get high returns on maturity but what if anything happens to the insured in between the term of the policy?

In this case, the family of the insured will get the double amount of the policy, which means for a 10 lakh policy, the family will get 20 lakh rupees and this feature is available in all major policies of LIC.

 

Things to remember while buying the Endowment policy

You have to take care of many things while investing in an Endowment plan, let’s discuss one by one.

 

Claim settlement Ratio

 It is an important aspect while buying insurance. Every company has its own claim settlement ratio and you should always choose a company that has a higher claim settlement ratio. what if you pay all the premiums on time but when you or your family need the claim but the insurance company does not settle your claim, then how will you feel? You feel cheated, isn’t it?

that’s why always choose the Insurance company wisely. In LIC claim settlement ratio is 98.75% and the money you get here is guaranteed because LIC invests its fund in government projects and ventures.


Age Factor

Age factor is an important factor in insurance because at a young age you will get life insurance at a very low premium with maximum returns but as you become older the premium will get double and you will get fewer returns as well as you have to give your medical test before buying Life insurance.

you will face many restrictions in old age, that’s why you should get insurance at a young age and if you are planning to buy, then don’t procrastinate do it now! because life is totally uncertain yes or not?


Riders

Accidental benefits, Disability benefits, and critical illness are all additional benefits that are also called “riders”. You have to choose these riders while purchasing insurance for which you have to pay some extra money but it’s totally worth it. Choose a policy that offers a wide variety of riders so that you can customize it as per your requirements.

Best LIC Endowment plan in 2021

 

logo of LIC

LIC offers a variety of endowment plan and Jeevan labh, Jeevan lakshay, and Jeevan anand are the most selling policy because it gives higher returns with maximum life coverage at a very minimal premium. Let us discuss all three policies one by one briefly.

 

Jeevan labh (936)

Jeevan Labh is one of best endowment policy by lic, why? because it provide you higher returns on maturity as compared to the other two policies and you will get maximum tax exemption from Jeevan labh and in case of death, the family will get (sum assured amount + Bonus ).

Premium paying term 

Yearly, half-yearly, quarterly as well as monthly(ECS)

Term

16 years, 21 years, and 25 years

Premium paying term

If you choose the term for 16 years then you have to pay a premium for only 10 years. But you get life coverage for 16 years.

If you choose the term for 21 years then you have to pay a premium for only 15 years. Life coverage is for 21 years.

If you choose a term for 25 years then you have to pay a premium for only 16 years. and you get life coverage for 25 years.

Minimum Age Entry

Must be 8 years old.

Maximum Age Entry

59 years (nearest birthday)

Minimum sum Assured

Rs. 2,00,000 

Maximum Sum Assured 

No limit.


Policy Benefits and features

Maximum accidental death and Disability Benefit Rider Up to the age of 70.

On Death

Basic sum assured+ Bonus OR 7 times of Annualized Premium, OR 105% of all Premium Paid as on death, Whichever is high.

On Survival

On survival, the basic sum assured + Reversionary Bonus + Final Additional Bonus is paid to the Insured.

Surrendered value

After the completion of 2 years of the policy, it can be surrender any time but the amount you will be not equal to the principal amount that you have paid in the last two years.

Loan Benefits

The insured is also eligible to get the loan on his/her existing policy only after paying the premium of at least 2 full years.

Income tax benefits

-Premium paid under this plan is eligible for TAX rebate under section 80C.

-Maturity under this plan is free under sec 10(10D).

Let’s understand this policy with an Example so you can get a better idea of this.

Mr. X is 25 years and he bought a policy Jeevan Anand for the term 16/25 and the total sum assured is 10 lakhs and he is paying a premium of Rs 23,257 yearly. The total Approximate paid premium in 16 years is around Rs.7,37,653 but in the 25th year when his policy gets matured, he will get Rs.27,00,000.



Jeevan Anand (916)

It is the another LIC endowment policy that gives the maximum life coverage to the insured. In this policy, the insured will get coverage of 125% of the sum assured till the maturity period and IF the insured will survive till maturity he/she will get a sum assured+ bonus and after he /she dies the family will again get the total sum assured amount (excluding Bonus). Here you get two times to return one on maturity and another on death, given to the family. 

Premium paying term 

Yearly, half-yearly, quarterly as well as monthly(ECS)

Term

15-35 years.

Minimum Age Entry

18 years completed

Maximum Age Entry

50 years (nearest birthday)

Minimum sum Assured

Rs. 1,00,000 

Maximum Sum Assured 

No limit.


Policy features and benefits

On Death

Death benefit, defined as the sum of sum assured on Insured family vested simple revisionary Bonuses and final additional bonus, If any. shall be payable. Here, Sum assured on death is defined as higher than 125% of basic term or 7 times of annualized premium. This death benefit shall not be less than 105% of all the premiums paid as of the date of death. The premium mentioned above excludes service tax, extra premiums If any.

On the death of policyholder at any time after the policy term:- Basic term.

On Survival

On survival Basic sum assured + vested Bonus + Final Additional Bonus is paid to the Insured.

Surrendered value

After the completion of 2 years of the policy, it can be surrender any time but the amount you will be not equal to the principal amount that you have paid in the last two years.

Loan Benefits

The insured is also eligible to get a loan on his/her existing policy only after paying the premium of at least 2 full years.

Income tax benefits 

-Premium paid under this plan is eligible for TAX rebate under section 80C.

-Maturity under this plan is free under sec 10(10D).

Let us understand this policy with an Example so you can get a better idea of this.

Mr. X is 25 years and he bought a policy Jeevan Anand for the term of 25 years and the total sum assured is 10 lakhs and he is paying a premium of Rs 43,398 yearly. The total Approximate paid premium in 25 years is around Rs.10,85,905 but when his policy gets matured he will get Rs.26,75,000. + lifetime Rs.10,00,000 risk cover and this amount is given to his family after his death.



Jeevan Lakshay(933)

This policy is best if you planning for the healthy future of your child. Jeevan lakshay provide your family financial support if anything happens to you in the future before the maturity period. let’s assume that the insured has died after taking the policy then, in this case, the family of the insured get a 10% amount of the sum assured every year, and on maturity, they will get 110% sum assured + Bonus.

Premium paying term 

Yearly, half-yearly, quarterly as well as monthly(ECS)

Term

13-25 years.

Minimum Age Entry

18 years completed

Maximum Age Entry

50 years (nearest birthday)

Minimum sum Assured

Rs. 1,00,000 

Maximum Sum Assured 

No limit.


Policy Benefits 

On Death

On death, the family will get 10% yearly of sum assured, and after the completion of the policy period (maturity), the family will get 110% of the sum assured amount + Final additional bonus 

On Survival

On survival Basic sum assured + vested Bonus + (FAB) Final Additional Bonus is paid to the Insured.

Surrendered value

After the completion of 2 years of the policy, it can be surrender any time but the amount you will be not equal to the principal amount that you have paid in the last two years.

Loan Benefits

The insured is also eligible to get the loan on his/her existing policy only after paying the premium of at least 2 full years.

Income tax benefits 

-Premium paid under this plan is eligible for TAX rebate under section 80C.

-Maturity under this plan is free under sec 10 (10D).

Let us understand this policy with an Example so you can get a better idea of this.

Mr. X is 25 years and he bought a policy Jeevan lakshay for the term of 25 years and the total sum assured is 10 lakhs and he is paying a premium of Rs 41,897 yearly. The total Approximate paid premium in 25 years is around Rs.9,22,656 but when his policy gets matured he will get Rs.26,75,000.

These are the 3 best endowment policy of lic and all these policies are best in their own terms, you have to take the final decision, which policy suits you best and fulfill your financial wants. If you want high returns for your self go with jeevan labh, If you are planning for your child’s future go with jeevan lakshay and if you want high sum assured coverage with double benefits choose jeevan anand.

 

Where to buy an endowment policy?

You can buy any of the 3 lic endowment policy in 2021 as per your requirements from any LIC’s registered branch office but if you want more detailed information about the policy you can contact us at mail@apnipolicy.com . We will help you in choosing the best policy according to your need.

We are in this industry from the past last 27 years and have a 2000+ customer base. We survived in this competitive market because we respect our customers and maintain 100% transparency while dealing with clients. you can trust us and if you have any queries then you can leave a comment below and if you want to buy any LIC policy you can fill the form below and we will reach out to you. 

 

1 thought on “Best LIC Endowment plan to buy in 2021”

  1. Pingback: Meaning of Insurance | Types of insurance | Top Insurance companies in India. -

Leave a Comment

Your email address will not be published. Required fields are marked *