LIC Plans with Monthly Payment Options

The policyholder has the freedom to select their ideal investment term from five to twenty years with the LIC Monthly Investment Plan provided by LIC of India. The plan also gives investors the option to select between two different funds, either debt- or equity-based, based on their financial objectives and risk tolerance. In addition, life insurance coverage is included in LIC's monthly investment plan, protecting the family in the event of an early death. For further security, investors can also decide to include riders like critical illness coverage or accidental death benefit.

Benefits of Monthly Payment Option

The various benefit of the monthly payment option is mentioned below -

1. Usually, these plans include elements for both investments and insurance. The policyholder pays a premium, part of which is used to provide life insurance coverage and the remainder of which is invested to yield returns.

1. LIC Monthly Investment Plans pay a death benefit to the nominee or beneficiary in the event of the policyholder's untimely death during the policy term. Typically, a lump sum payment is made as the death benefit; this payment may consist of both the predetermined sum promised and earned bonuses.

1. LIC Monthly Investment Plans provide a maturity bonus if the policyholder lives to the end of the policy term. This benefit usually consists of the reimbursement of the entire premium amount paid plus any applicable incentives or returns from the investment component.

1. Regular premium payments are necessary for the duration of the insurance by the policyholder. The policyholder's age, the sum assured, the length of the policy, and other variables all affect how much the premium is.

Plans with monthly payment option

The plans offered by LIC also offer the option to pay the premiums in monthly instalments include a mix of endowment, money back, micro insurance, group and pension plans.

Endowment Plans

These are plans that allow investors to invest in life insurance and also build up savings that can be used to meet financial needs in the future.

1. New Endowment Plan: There are no restrictions on the maximum amount guaranteed under the new endowment plan, which is available for tenures ranging from 12 to 35 years. Eight years old is the minimum admission age and fifty-five years old is the maximum.

1. New Jeevan Anand:  New Jeevan Anand  is an endowment plan that offers no limits on the cover chosen and can be taken for 15 years to 35 years. The minimum entry age is 18 years while the maximum entry age is 50 years.

1. Jeevan Rakshak: The Jeevan Rakshak can be taken out for tenures ranging from 10 to 20 years, with a maximum protection of Rs. 2 lakhs per life insured. Eight years old is the minimum admission age and fifty-five years old is the maximum.
2.   Limited Premium Endowment Plan: With Limited Premium Endowment Plan  policyholder need not pay premiums throughout the policy tenure but only for 8 years or 9 years. There is also no limit on the maximum sum assured under this plan.  
3.   New Endowment Plus: The New Endowment Plus plan  
4.   Jeevan Lakshya: This is a participating non-linked plan with no upper limit on the maximum amount assured and a minimum protection of Rs. 1 lakh. It is possible to take Jeevan Lakshya for terms ranging from 13 to 25 years. The maximum age to enter is fifty years old, while the lowest is eighteen.

Money Back Plans:

Money back plans offer the advantage of investments in life insurance policies with the possibility of watching the investments grow into substantial savings.

1. New Money Back Plan-20 Years: This insurance policy has a fixed 20-year term, a Rs. 1-lakh minimum sum assured, and no upper restriction on the maximum total assured. A 15-year limited premium payment term is another feature of the New Money Back Plan-20 Years. 13 years old is the lowest admission age, and 50 years old is the maximum.

1. New Money Back Plan-25 Years: New Money Back Plan-25 Years plan is almost the same as the 20 years plan in that it too offers no limits on the maximum sum assured. It does differ in two key areas though and they are that it has a fixed tenure of 25 years and a premium paying term of 20 years. The minimum entry age is 13 years and the maximum entry age is 45 years.

1. Jeevan Tarun: This is a participating life insurance plan and is targeted at providing for the future needs of children. Jeevan Tarun  the minimum sum assured under Jeevan Trun policy is Rs.75,000 and the maximum has no limits. The minimum entry age is 90 days and the maximum entry age is 12 years.

Pension Plans:

Pension plans are the best way to ensure that once you retire, there is a source of income that will take care of your financial needs.

1.  New Jeevan Nidhi:  The maximum entry age for the New Jeevan Nidhi pension plan is 65 years old, and there are no restrictions on the maximum sum assured. The Jeevan Nidhi plan offers a 2% reduction on annual premium payments, despite the fact that monthly premium payments are permitted. The age limit to enter is 60 years old, with a minimum of 20 years old.

 Micro Insurance Plans:

 Micro insurance plans are insurance plans that are meant to be affordable and offer a relatively lower sum assured.

1. New Jeevan Mangal Plan: This is a protection plan that offers a return of all premiums paid as its maturity benefit. The maximum sum assured under this plan is Rs.50,000. The policy term is 10 to 15 years for a regular premium and 5 to 10 years for a single premium.

1. Bhagya Lakshmi Plan: Bhagya Lakshmi is an insurance plan available to anyone between the ages of 18 years and 55 years and offers a maximum sum assured of Rs.50,000. The premium payment term ranges from 5 years to 13 years.

All these insurance plans offered by LIC make it possible for almost everyone to afford the protection and participate in the savings that life insurance policies can offer.

Features of LIC Plans with Monthly Payment Options

The features of LIC plans with monthly payment options are as follows:

1. Both investment and insurance elements are typically included in these plans. The policyholder's premium payment is split between providing life insurance and investing the remaining sum to earn returns.

1. Should the policyholder pass away unintentionally, the beneficiary or nominee will get a death benefit. Usually given as a lump payment, the death benefit might include both the predetermined value assured and any earned bonuses.

1. LIC may offer annual bonuses and/or terminal additions according to the performance of the company. These additions and bonuses may increase the sum assured or the investment returns of the policyholder, boosting the total profits.

1. The policyholders must pay premiums regularly throughout the duration of the policy. The premium amount is determined by factors like the policyholder's age, policy period, sum assured, etc.

1. If the policyholder survives the policy term, they will receive a maturity benefit. The return of all premium payments made as well as any relevant bonuses or returns from the investment component are usually included in this benefit.

Benefits of LIC Plans with Monthly Payment Options

Here are a few benefits that come with LIC monthly payment plans:

1. Rupee cost averaging is one of the major advantages for investors.

1. Most plans often provide policyholders with bonuses. The terminal bonus, reversionary bonus, and interim bonus are all included in the final payment.

1. Investors can avail tax benefits under Section 80C of the Income Tax Act while they receive returns.

1. Investors get guaranteed returns, giving them a sense of financial security.

1. The monthly plan from LIC offers easy liquidity, enabling investors to withdraw money during an emergency.

Process to Purchase LIC Plans with Monthly Payment Options

To purchase an LIC plan with monthly payment options, follow the steps mentioned below:

Step 1: Visit the official website of LIC.

Step 2: Enter your name and mobile number in the form.

Step 3: Click on the ‘View Plans’ option.

Step 4: Enter your age and current city.

Step 5: Go through the available plans and modify them to suit your needs.

Step 6: Make the premium payment online.