LIC Plans: The wait is over. The Life Insurance Corporation of India (LIC) has introduced two new plans for the public: Protection Plus and Bima Kavach. These plans provide life insurance along with guaranteed savings. By investing in the Protection Plus plan, individuals can create long-term wealth, while Bima Kavach ensures financial security.
Both of these LIC plans are designed to offer a straightforward, advantageous, and dependable long-term policy, ensuring financial protection for the insured and their families during challenging times. Let’s delve deeper into these two plans…
LIC Protection Plus
This plan is perfect for those looking to merge insurance with savings or accumulate a corpus through investments. It not only provides death coverage but also includes an investment/unit fund-based value. This plan connects your funds to the market, potentially yielding higher returns compared to traditional LIC policies.
What makes this policy special?
- This LIC policy is available for individuals aged between 18 and 65 years.
- You can select the policy term that suits you best, whether it be 10, 15, 20, or 25 years.
- The premium payment period can be 5, 7, 10, or 15 years, allowing you to pay the premium within the designated timeframe.
- You will receive a sum assured that is 5 to 7 times the annual premium.
- There is an option to pay a top-up premium, which allows you to enhance the fund value by contributing additional amounts.
- Policyholders have the flexibility to choose their preferred fund. They can decide which investment fund their premium will be allocated to.
- This policy also includes a partial withdrawal option. After 5 years from the policy’s start date, you can withdraw a portion of the funds.
- The Maturity Benefit Unit-Fund Value is paid out upon completion of the policy term (if the life assured is still alive).
- In the event of the policyholder’s death, the nominee will receive the Sum Assured plus the Fund Value.
LIC Bima Kavach
This plan is a pure-risk protection term-like plan. It does not involve investment or savings, but provides a fixed death benefit to the policyholder’s family or nominee upon their death. This LIC plan is a non-participating, non-linked, individual life insurance plan.
Features of the scheme
- Any person between 18 to 65 years of age can avail the benefits of this scheme.
- Maturity will be as per the policy term or maximum age up to 100 years.
- Under this policy, an option is given to choose level sum assured and increasing amount over time option.
- Under this policy, the option of paying single, limited and regular premium is given.
- Single-premium minimum term is 10 years, Limited-premium 10, 15, 20 years; Regular-premium minimum term is 10 years
- Minimum sum assured is Rs 2 crore.
