LIC, Life Insurance Corporation of India Best Policy


LIC Best Policy

LIC Tech Term Plan No. 854 is considered the best policy of LIC.  It is considered to be the cheapest policy among all term policies of LIC.  People from 18 years to 65 years can buy this policy.  In this plan, an insurance policy of at least Rs 50 lakh has to be taken.  Can’t take a policy less than that.  This policy will work only till a person turns 80, not after that.  This policy can be taken for a minimum of 10 years and a maximum of 40 years.  This policy is available only to those people who have their own income.

There are three options for paying the premium in this policy.  The first of these is the regular premium, that is, for the number of years the policy is in force, the premium will have to be paid for that number of years.  Under the limited premium term, premiums can be paid for 5 years less or 10 years less than the total term of the policy.  The third option is – Single premium i.e. the total premium has to be paid at one go while taking the policy.

How old is the policy

The biggest feature of this policy is the death benefit.  There is facility to get money in three ways.  After the death of the insured, the nominee can get the entire amount in one go.  The second way is through installments in which the nominee gets a lump sum amount for 5 years, 10 or 15 years.  The third option is of lumpsum amount and installments.  In this, some part is given in Lumsum and some part is given after 5 years, 10 years or 15 years.  The insured can choose any one of these three options while taking the policy.  In this policy, non-smokers get the facility to pay less premium.  If a woman takes this policy, then she will also get a discount on the premium.

How much premium will have to be paid

In this policy, different premiums are fixed for people of different ages.  If a 21-year-old person takes a 20-year policy, then he will have to deposit Rs 6,438 every year.  Rs 8,826 will have to be paid for a 40-year policy.  Similarly, if a 40-year-old person takes LIC Tech term plan for 20 years, then he will have to pay a premium of Rs 16,249.  This premium for 40 years will be Rs 28,886.

This is an online policy which can be taken online only.  You can buy this policy by visiting LIC’s website.  This policy is a term insurance policy under which if the insured dies, he gets the sum assured.  In this, no maturity money is available like other policies.  If the insured survives till the end of the policy term, he will not get any money.

Death Benefit Features

  • If the insured dies during the policy, then many types of facilities are given to his nominee.  The facilities of Limited Premium and Regular Premium plan are the same while there are some differences in Single Premium.
  • If the insured dies, the nominee will get 7 times his annual income
  • The nominee will get 105% of the total premium received till the date of death of the insured.
  • Full amount of sum assured is given to the nominee

Single Premium Rule

  • On death of the insured, 125% of the single premium is received by the nominee
  • On death, the entire sum assured is paid to the nominee
  • This policy is term plan, hence the insured does not get any maturity amount

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