As financial security becomes increasingly crucial, insurance plays a significant role in safeguarding our futures. The Life Insurance Corporation of India (LIC) has built a strong reputation in this space. This article reviews five top LIC insurance plans suitable for 2025, helping you choose the right coverage for your needs.

Life Insurance Corporation of India (LIC) continues to be a trusted name in the insurance sector, offering a variety of plans to cater to different needs. As we step into 2025, it's essential to stay informed about the best options available. Here’s a comprehensive guide to the top 5 LIC insurance plans for this year:

LIC's Yuva Term Plan: Affordable Term Insurance for the Youth

The LIC Yuva Term Plan offers low premiums while providing high insurance coverage. This term plan is ideal for young individuals looking to secure their financial futures.

For limited premium policies, the minimum instalment premium will be Rs 3,000, and for single premium policies, it will be Rs 13,000 per month. (However, the minimum instalment premium for Basic Sum Assured policies with a value of Rs 20,00,000 to less than Rs 50,00,000 will be Rs 2,400 for limited premium policies and Rs 8,040 for single premium policies.)

Eligibility Criteria: Age, Education, and Income Proof Requirements

• Age: 18 to 45 years
• Education: Minimum 12th pass
• Income Proof: Salary slip for salaried individuals or income tax return for self-employed

Premium Payment Options: Regular vs. Single Premium

• Regular Payment: Pay premiums in intervals (monthly, quarterly, or annually)
• Single Premium: Pay the entire premium upfront for the policy term

Key Benefits

• High coverage at affordable rates
• Flexibility in payment options
• Designed to help young individuals secure their finances

The policyholder will choose the Basic Sum Assured, Policy Term, and Interest rate based on the loan's terms and conditions. A risk cover schedule will be developed based on the policyholder's chosen interest rate, policy term, and basic sum assured. The available interest rates for the Risk Cover Schedule are 6%, 7%, 8%, 9%, 10%, 11%, and 12%, regardless of the interest rate that the loan provider applies to the policyholder's loan.

LIC's Yuva Term Plan Requirements for Eligibility and Additional Limitations

a) [18] years old (last birthday) is the minimum age to enter.

b) [45] years old (last birthday) is the maximum age to enter.

c) [23] years old (last birthday) is the minimum age at maturity.

d) [75] years old (last birthday) is the maximum age at maturity.

LIC's Jeevan Umang Plan (Plan No. 745): Guaranteed Returns

and Lifetime Coverage

LIC's Jeevan Umang Plan is renowned for its guaranteed returns and lifelong coverage. This plan ensures that policyholders receive benefits throughout their lives.

The Life Insurance Corporation of India (LIC) offers a complete life insurance plan called LIC Jeevan Umang (Plan 745). The following are LIC Jeevan Umang's salient characteristics and advantages:

Whole Life Coverage: Jeevan Umang offers coverage for the insured person's whole life, guaranteeing their loved ones financial security even after their passing.

Guaranteed Survival Benefits: Following the conclusion of the premium payment term, the policy provides guaranteed survival benefits in the form of yearly payouts that last for the policyholder's whole lifetime.

Maturity Benefit: A lump sum payment comprising the base sum assured and any accumulated bonuses is made as the maturity benefit upon the life assured's survival until the end of the policy term.

Guaranteed Returns

• Annual Return: 8% guaranteed return on the sum assured
• Tax Implications: Returns are tax-free under Section 10(10D) of the Income Tax Act

Example Calculation: If your sum assured is ₹10,00,000, you would receive ₹80,000 annually, tax-free.

Eligibility and Gifting

• Age Requirement: 30 days to 55 years
• Can be gifted to children, making it an excellent option for parents.

Benefits of Lifetime Coverage

• Continuous coverage until age 100
• Peace of mind knowing your family is protected for life

Death Benefit: In case of the death of the insured during the policy term, the death benefit consisting of the death benefit and the premiums accumulated till the time of death is paid to the beneficiary.

Bonus: The policy shares in the profits of the company and is eligible to receive the premiums declared by LIC. These premiums, if any, are added to the policy and paid on maturity or death. Premium Payment Period: As the premium payment period is shorter compared to the policy term,  it is suitable for those who wish to ensure financial peace of mind by limiting the premium payment period. Assurance

Surcharge: The policy offers an Assurance Surcharge of 8% of the basic sum insured for the first five  years. These additions increase the assets of the policy over time. Loan Facility: Policyholders can avail  loan facility under the policy as per the terms and conditions specified by LIC.

Tax Benefits: Premium paid against the policy is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Further, profits earned under the policy are subject to tax  under Section 10 (10D) of the Income Tax Act as per the terms and conditions specified therein.

Age: 0 (30 days) to 55 years LIC Jeevan Umang is designed to provide financial security, regular income and long-term savings, protecting the policyholder and his/her family from the vagaries of life while building assets for the future. It is important to read the policy document carefully and consult with your LIC representative or financial advisor to understand the features and benefits of the plan and its suitability to your financial goals and requirements.

LIC's Jeevan Anand Plan: Combining Savings and Insurance

The Jeevan Anand Plan combines savings and insurance, making it a popular choice for many.

LIC's Jeevan Anand Insurance is a life insurance plan that offers numerous benefits to the policyholder throughout the term of the policy. It is a plan that continues coverage even after the premium payment period ends. The policyholder can accumulate a huge amount of money of Rs 2.5 lakh over 35 years by paying just Rs 45 daily. This life insurance policy also includes bonus and death benefits as well as additional clauses such as accidental death and permanent disability cover.

Moreover, the policy offers flexible premium payment options and allows you to cancel the policy after two years. Jeevan Anand focuses on safe financial planning, ensuring reliable returns and comprehensive protection plan.

In case of unfortunate death of a person due to an accident, this insurance provides additional coverage up to Rs 50 lakh. Moreover, in case an accident leaves the policyholder permanently disabled, the plan ensures that regular financial needs are met by paying the sum assured in installments. These additional benefits offered under LIC Jeevan Anand do not incur any additional cost on top of the premium amount.

Savings and Insurance

This endowment plan not only provides insurance but also accumulates savings over time.

Maturity Benefit

Upon completion of the term, the policyholder receives the maturity amount, distinguishing it from the Jeevan Umang Plan.

Ideal for:

Individuals looking for a mix of savings and lifelong coverage.

Key Features of LIC Jeevan Anand Plan

Traditional endowment insurance with sum assured and additional premium
Maturity benefit is paid on survival and policy remains in force
In case of death of the policyholder, the benefit is paid to the beneficiary.
Option of additional top-up cover at a nominal amount
Provides financial protection for the insured's life
Provides lump sum payment at the end of the selected term
Premium as a percentage of the company's profits
Minimum entry age: 18 years; Maximum entry age: 50 years
Insurance period: 15 to 35 years
Basic sum insured: Rs 1,00,000
Renewal: Up to 2 years
Discount: 2% if paid annually
1% if paid half-yearly
None if paid quarterly
Creditworthiness: 3 years after entry

How to save Rs 2.5 lakh

This insurance offers an opportunity to accumulate Rs 2.5 lakh in 35 years by depositing Rs 1,358 every month. This equates to a daily deposit of Rs 45, making it a viable long-term investment plan for 15 to 35 years.

Bonuses in this program

This program comes with two bonuses, totalling a deposit of Rs 570,500 over a 35-year period, and a basic amount of Rs 500,000 guaranteed. At maturity, the policyholder is entitled to a modified bonus of Rs 860,000 and a completion bonus of Rs 1.15 lakh in addition to the deposited amount. To be eligible for these bonuses, the minimum tenure of the policy must be 15 years.

LIC's Jeevan Lakshya Plan (Kanyaadan Policy): Planning for

your Child's Future

Ideal for parents, LIC's Jeevan Lakshya Plan helps in planning for children's education and marriage.

Jeevan Lakshya by LIC is an unlinked profit sharing plan that offers a combination of protection and savings. The plan offers an annual income benefit that can cater to the needs of the family, especially for the benefit of the children, and a lump sum at maturity, in case of the unfortunate death of the policyholder at any point before maturity, irrespective of the survival of the policyholder. The plan also caters to liquidity needs through a credit facility.

Education and Marriage Planning

This plan aids in securing funds for future educational or matrimonial needs.

Accidental Death Benefit

In case of accidental death, the nominee receives 10% of the sum assured until the policy matures.

Premium Waiver

If the policyholder passes away, the premium payment is waived, ensuring the child's future remains secure.

Key Features and Highlights of LIC Jeevan Lakshya
The salient features of the Jeevan Lakshya plan are:

Sum Assured
Minimum – Rs 1,00,000.
Maximum – No Limit
Multiples – The basic sum assured can be in multiples of Rs 10,000 only
Term of Insurance – 13 to 25 years

Premium Payment Method – Premium can be paid annually, half-yearly, quarterly and monthly. There is also an option of Electronic Clearing Service (ECS) to make premium payment easier.

Premium Payment Period – The premium payment period is 3 years less than the term of the policy, irrespective of the tenure of the policy.

Age of Enrolment
Minimum – 18 years (Completion)
Maximum – 50 years (Till next birthday)
Maximum age of expectant childbearing – 65 years (Next birthday)

Bonus – As this policy is a profitable endowment plan, you will receive the benefits earned by the Life Insurance Corporation of India through Simple Reversion Bonus and Final Addition. Bonus (if applicable), which are paid at the end of the term
Optional Riders – The policy may have two optional riders
LIC Supplementary Contract for Accidental Death and Permanent Disability Benefit
LIC New Term Life Insurance Supplementary Contract
Services offered by LIC Jeevan Lakshya
By purchasing this policy, you will get the following benefits:

Maturity Benefit – If all premiums are paid in full and the policyholder survives till the end of the policy term, the Maturity Benefit will include the Sum Assured at Maturity plus the Simple Reversion Benefit and Final Addition Bonus (if any) as determined. The Maturity Benefit is equal to the Basic Sum Assured.

Death Benefit:
If the insured dies before the specified maturity date, as long as the policy remains in full force with the current premium payments, the death benefit, defined as the sum of the "sum assured at death", is simply returned to you, along with the premiums and the final additional premium (if any) so paid. "Sum Assured at Death" is defined as the sum of:

An annual income benefit equal to 10% of the Insured Basic Sum, payable from the policy anniversary contemporaneous with or subsequent to the date of the Insured's death to the policy anniversary preceding the date of payment;

A total sum assured equal to 110% of the Basic Sum Assured payable on the due date; and

The vested simple return bonus and the final additional bonus (if any) included in the death benefit are payable on the due date.

The death benefit as defined above cannot be less than 105% of all premiums paid up to the date of death.

The above bonus does not include taxes, additional bonuses and additional bonuses, if any.

Profit sharing: The policy participates in the profits of the company and so long as the policy is in full force, the holder is entitled to receive the simple recurring bonus declared based on the experience of the company. In case of death during the policy's term, the policy will continue to enjoy profits until maturity, and the entire vested simple return premium and the final additional bonus (if any) are payable on maturity. Thus, the simple fallback bonus and final additional bonus (if any) are payable under the policy on maturity date irrespective of the survival of the insured.

If the premium is not paid properly (other than in case of death of the insured under the current policy), the policy will not participate in future profits irrespective of whether the premium has reached the paid-up amount. However, the policy will be considered valid even in case of death during the grace period.

Final additional bonus is not payable under reduced payout policy.

Tax Benefits – Premium paid against this plan is eligible to claim income tax refund under 80C and maturity amount is tax-free under IT section 10(10)D.

LIC's Single Premium Endowment Plan (Plan No. 717): Fixed

Deposit Alternative

LIC's Single Premium Endowment Plan acts as a solid alternative to traditional fixed deposits.

LIC Single Premium Endowment Plan (717) is a type of life insurance offered by Life Insurance Corporation of India (LIC). The key features of LIC Single Premium Endowment Plan are: Age: 0 (30 days) to 65 years

Lump Sum Premium: As the name suggests, this plan requires you to pay a lump sum premium at the start of the policy. This eliminates the need for regular premium payments.

Endowment Plan: This is a dowry insurance plan, meaning it provides both insurance coverage and savings. The policyholder receives a lump sum at the end of the contract term (maturity) or in case of the unfortunate death during the contract term (death benefit). Maturity Benefit: If the policyholder survives beyond the policy term, a maturity benefit is paid. This maturity benefit includes the sum assured as well as a bonus or guaranteed additional amount depending on the features of the plan.

Fixed Deposit Analogy

Similar to bank fixed deposits, this plan allows you to invest a lump sum for assured returns.

Insurance and Investment

Policyholders receive dual benefits of investment and insurance in a single plan.

Ideal for:

Individuals looking for a straightforward investment and insurance strategy.

Death Benefit: If the policyholder dies during the policy term, a death benefit is paid to the beneficiary. This death benefit usually includes the greater of the sum assured or guaranteed surrender value of the policy and a bonus or guaranteed additional amount, depending on the terms of the plan.

Bonus: LIC single premium endowment plans are entitled to share in the company's profits and the policyholder is entitled to a bonus as determined by LIC. These bonuses increase the maturity and death benefits of the policy.

Loan Facility: Policyholders can avail loan facility against the surrender value of their policies, subject to terms and conditions specified by LIC. This provides liquidity during financial crises.

Surrender Value: After the premium is paid, the policy is subject to a surrender value. The policyholder can surrender the policy as per the policy terms and conditions and get the surrender value. Tax Benefits: Premiums paid against LIC Single Premium Endowment Plans qualify for tax benefits under Section 80C of the Income Tax Act, 1961. Further, maturity or death benefits received under the policy are liable to tax under Section 10 (10D) as per the conditions specified in the Income Tax Act.

LIC Single Premium Endowment Plans are designed to provide financial protection and savings opportunities by paying a single premium. It offers the security of a lump sum payable at maturity or death and the opportunity to earn premiums throughout the policy term. Individuals interested in purchasing LIC Single Premium Endowment Plans should carefully consider the policy features, terms and conditions before taking a decision.

Conclusion

The five LIC plans reviewed here each serve unique needs, from affordable term coverage to lifelong benefits. Choose a plan based on your individual requirements and financial goals. For more detailed information on each plan, visit the LIC website and make informed decisions to secure your future.