LIC offers a diverse range of insurance products which caters to the needs of the insurance buyers. The variety of LIC products ranges from Insurance plans, Pension plans, Unit Linked Insurance Plans (ULIP), Child Insurance Plans, etc. The soaring demand for LIC schemes is not just because it is a state-owned investment company, but also due to the exceptional stock performance of the LIC products, innovation in technology and varying other reasons. Although, the market is choc-full of other life insurance products from other companies, the varying features of LIC in comparison to the other insurance providers are most reasonable in terms of premium and coverage option.
Even if the general public has a variety of insurance products to opt from the varying option in the financial market, yet the traditionally opted LIC schemes are the most preferred product under the insurance category. Scroll down to make a wise and prudent comparison between LIC scheme and other life insurance providers in the varying field of matter.
Schemes comparison between LIC schemes and Other Life insurance
The following list makes a prudent comparison between varying products in the market under different categories.
The LIC schemes such as New Jeevan Rakshak, Jeevan Labh, Jeevan Pragati and etc hold exclusive features, which are profitable to provide protection to the family members after the sudden demise of the policyholder. The minimum lock-in period is 5 years and the maximum is 25 years. The sum assured can be in the range of Rs.6 lakhs which may scale up to Rs24 lakhs. The sum assured is paid in total to the nominee in case of the sudden demise of the policyholder.
In comparison to these features, the ICICI prudential life insurance offers steady returns apart from tax-benefits and life cover to the policyholder along with the nominee. However, the benefits of availing LIC scheme surpasses the features of the life insurance policies offered by other companies. Check out the following list to acknowledge the benefits of availing LIC Endowment plans
- The LIC’s New Jeevan Rakshak is a great blend of saving and protection policy. Besides the death benefits and maturity benefits, the insurance holders can avail loan against the policy.
- LIC’s Jeevan Labh disperses an additional bonus at maturity.
- The return from New Jeevan Anand is 125% of the sum assured. In other words, the return is twice the premium paid during the earning period.
The moneyback plans are opted by the salaried and non-salaried people with an objective to make a lump-sum amount for education, travel, wedding or retirement expenses. It is backed by several advantages such as survival benefit, one-time premium payment benefit, maturity benefit, etc. Other life insurance companies provide money-back insurance policies, which gives double benefits of life insurance and savings. The ICICI prudential life insurance provides enhanced saving plus life cover, second income source, lump-sum maturity benefit, and tax-free benefit. However, the money-back plan under LIC schemes offer varying benefits which can be figured out from the following:
- The New Bima Bachat Plan offers money back advantages of about 15% of the sum assured.
- LIC’s Money Back Plan-25 years offers companies profit to the policyholders. Apart from the profit, the plan offers a death benefit and maturity benefit.
- Under the LIC’s Bima Diamond the term policy ranges between 9 to 20 years.
- The New children’s Money-Back plan would serve the purpose of financing the education of your kids during their adulthood period with ease.
Unit Linked Insurance Plan (ULIP) provides protection as well as helps in wealth accumulation. Investment in ULIPS comes with great benefits. Apart from the regular benefits offered under this scheme the plan also focuses on providing assistance to accumulate a great amount of wealth at an early age and make plans accordingly. The ULIP plans served by HDFC Life ULIP plans provide an inbuilt premium waiver option, the insurance coverage depends on the premium paid, switching option is available. Yet, the benefits offered by LIC ULIP plan aces the demand for it in the financial market due to the following reasons.
- The sum assured under LIC’s ULIP plan is variable. Under the scheme, the yearly premium paid by the insuree will be multiplied by 10, then the number obtained will be regarded as the sum assured.
- LIC ULIP plan comes with regular benefits, however, it is regarded as a linked plan through which the insurees can make investment along with wealth creation through this insurance plan.
Leading financial institutes provide pension plans, which will help to cover expenses at the retirement age. Apart from the life cover, the leading banks offer various facilities such as ICICI’ whole life plan provides cover for 99 years of age, special needs and also tax benefits. However, the lucrative offer placed under LIC Pension plan would entice you to purchase it for holding the following benefits:
- LIC’s Jeevan Akshay-Vl would act as a cushion to fall back upon during the retirement age. It is also an annuity plan for which a single premium has to be paid.
- LIC’s New Jeevan Nidhi covers death benefit and other bonuses given to the nominee in the form of a lump-sum amount.
The benefits offered under LIC schemes are vast. Each scheme caters to the need and requirement of the policyholder and the ease of purchase has made it more feasible among the general public. For generations over generations, it has been regarded as the most trustworthy financial product availed to secure future planning in terms of money.