LIC, one of the most popular insurers countrywide with a long track record, has provided many insurance policies to its customers. These plans are segregated based on key characteristics such as risk protection and flexibility of application. For instance, LIC India Ltd. offers health insurance plans and retirement schemes, allowing customers to choose policies aligned with their budgetary goals.
LIC 5-year insurance plans offer easy-to-understand terms, shorter premium paying periods, and an open convertibility option in the future. Now let us look at some of the top 5-year plans the company offers in India.
Best LIC Plans for 5 Years Offered in India:
As we move forward in the article, we will see some of the best life insurance policies in India that the company offers:
LIC's Term Assurance Plans
The Term Assurance plans by LIC provide life insurance by ensuring financial protection for the policyholder's family at nominal rates upon loss of life. The death benefit is rewarded to the beneficiary when the policyholder or insured person dies during a period specified within the policy. As a pure-term protection plan, the policy provides no maturity benefit. LIC offers a wide range of term assurance plans, with policy terms beginning at five years.
LIC Saral Jeevan Bima:
LIC Saral Jeevan Bima is a temporary life plan offering risk protection. If the policyholder passes away within the duration of coverage, LIC will provide a death benefit to be availed of by the members of that person’s family. The mental peace attained by the policyholder with this plan is in knowing that his or her family will not suffer any financial hardships if he or she passes away.
| Eligibility Criteria | Minimum | Maximum |
| Amount of Sum Assured | Rs. 5,00,000 | Rs. 25,00,000 |
| Age of Entry | 18 years | 65 years |
| Age of Maturity | - | 70 years |
| Term of Policy | 5 years | 40 years |
LIC Endowment Plans
Savings and insurance are the twin benefits of the LIC Endowment Plans. The sum assured is a desired amount that you can select to pay the premium. You can use this guaranteed income—an amount obtained according to your needs—if you survive the policy terms. In the event of your untimely mortality while the policy is in effect, your loved ones will be granted a death benefit equal to the amount guaranteed.
LIC Dhan Sanchay Plan
After the term of LIC’s Dhan Sanchay plan commences, the policy will evolve to become a sustainable source of income for the policyholder. However, if the policyholder perishes under active insurance, a death claim amount will be paid out to his or her nominee. This policy will ensure that your family is financially secure upon your unexpected death because you are prepared for the future. It should be noted that this 5-year LIC plan is only applicable to the Single Premium Level Income Benefit and the Single Premium Enhanced Cover with a Level Income Benefit options.
| Eligibility Criteria | Minimum | Maximum |
| Age of Entry | 3 years | 65 years |
| Single Premium | Rs. 2 lakhs | No limit |
| Term of Policy | 5 years, 10 years, or 15 years | |
| Sum Assured on Death | Single Premium Level Income Benefit – Rs. 2.5 lakh Single Premium enhanced cover with Level Income Benefit – Rs. 22 lakhs | |
LIC Pension Plans
For those who want to be financially independent in their golden years, LIC Pension Plans are an excellent option. With the help of these plans, one may ensure a comfortable retirement by establishing a regular income stream. LIC provides two plan variants under its Pension Plan, as discussed below.
LIC New Jeevan Shanti
The New Jeevan Shanti from LIC is a new deferred payment annuity plan, i.e., one is eligible to start receiving the periodic pension benefits following a certain period called the deferment period. When purchasing, you can choose the amount of pension you desire. When the suspension period is over, the pension income follows and remains effective until your death. The annuity payments will end if you die, and your family members may receive a death benefit.
| Eligibility Criteria | Minimum | Maximum |
| Age of Entry | 30 years | 79 years |
| Period of Deferment | 1 year | 12 years |
| Amount of Annual Annuity | Rs. 12,000 | |
LIC Jeevan Akshay VII
Jeevan Akshay VII is a single-premium immediate annuity plan. The annuity is paid monthly, quarterly, half-yearly, and yearly to the policyholder. The criteria for eligibility for this particular plan are as follows.
| Eligibility Criteria | Minimum | Maximum |
| Age of Entry | 30 years | 85 years |
| Cost of Purchasing | Rs. 1 lakh (offline) | No Limit |
| Mode of Payment | Monthly, Quarterly, Half-yearly, yearly | |
LIC's Micro Insurance Term Plans
LIC’s Micro Insurance Term Plans are specifically designed for low-income group Indians. These plans provide a blend of insurance coverage and savings at reasonable premiums. These plans allow the policyholders to secure their future and protect themselves against unforeseen events. It is essential to mention that no LIC plan has money-doubling benefits, and the official platform will be unavailable for a 5-year double money calculator. Now, let us concentrate on the specifics of the LIC Micro Insurance Policy for five years.
LIC Bhagya Lakshmi Plan:
The LIC Bhagya Lakshmi Plan is a limited payment protection plan that ensures the receipt of, upon maturity, an amount equal to 100% more than all the premiums paid. The plan term for the policy is two years longer than its premium payment period. The death benefit in the LIC Bhagya Lakshmi Plan is the total sum assured in case anyone passes away during the policy term, either the policyholder or the insured individual. Here are the eligibility requirements for the policy:
| Eligibility Criteria | Minimum | Maximum |
| Amount of Sum Assured | Rs. 50,000 | Rs. 2,00,000 |
| Age of Entry | 18 years | 55 years |
| Age of Maturity | - | 65 years |
| Tenure of Policy | 10 years to 15 years for regular premium payments; 5 years to 10 years for a single premium payment. | |
How do you purchase an insurance policy from LIC?
Customers can buy it online or by visiting any of the LIC offices. An online application form can be filled out on the LIC website, enabling LIC representatives to contact you regarding the insurance you wish to avail of. Also, LIC has offices in almost all cities and towns of the country; these can be contacted directly to obtain information and buy LIC insurance schemes.
Alternatively, LIC customer care representatives can be contacted via phone for details regarding the insurance policies offered by the company.
GST of 18% is applicable on life insurance effective July 1, 2017.
Conclusion
The five-year policy offered by LIC satisfies a wide range of requirements for people seeking financial protection, savings, and pension security. The Term Assurance Plans provide affordable life insurance policies, while the Endowment Plans combine savings and insurance. LIC’s pension plans, such as the New Jeevan Shanti and Jeevan Akshay VII, are suitable for retirees who require a continuous flow of income later in their lives. Since LIC is one of India’s largest insurers, its term plans (like the Bhagya Lakshmi Plan) offer protection and savings to the poor, ensuring that these plans are available in three dimensions: online, in their physical office space, and via phone calls with customer care. Therefore, prospective policyholders must consider their own particular needs and criteria for eligibility before opting for the most appropriate LIC plan to ensure a secure financial future for themselves.