Best LIC policy plans to save money from Tax

What do you mean by life insurance policy?

A life insurance policy is an agreement with the insurance company in exchange for premium payments, the insurance company will provide a lump-sum payment to the beneficiaries upon the insured’s death.

Whether LIC policies are free from tax? If so, what are the best LIC policy plans?

The death benefits from all types of life insurance policies are free from income tax.

Given below are the best insurance policies of LIC which helps you to save your money from taxlLIC IMAGE

1.LIC Jeevan Akshay VI

  • This plan is offered by Indian insurance and Investment company Life Insurance Corporation of India(LIC)
  • LIC’s Jeevan Akshay VI is an immediate annuity plan which means monthly, quarterly, half-yearly or annually as chosen.
  • LIC Jeevan Akshay is a single premium policy and has to be purchased by paying a lump-sum at once.
  • This plan covers risk even after the maturity for a lifetime.

Listed below are the features of LIC Jeevan Akshay VI plan

  • Annuity payment depends on how you choose initially.
  • Premium is paid in a lump-sum of Rs.2,50,000 or higher.
  • It is a whole life insurance plan.
  • This policy covers people between the age group of 30-85years.
  • Minimum purchase price ranges between Rs.1,00,000 to Rs.1,50,000 and there is no limit for a maximum purchase price.
  • If declared by the insurance company, the participant can get regular bonuses.
  • Different annuity payment options are available for a single or joint policyholder.
  • The medical examination is not necessary.
  • Premiums paid under this policy are exempted from tax under section 80C of the Income Tax Act.
  • No limit for purchase price under this plan.
  1. LIC Jeevan Anand
  • LIC’s Jeevan Anand Plan is a traditional savings plan.
  • This Plan offers financial protection in case of death of the insured.
  • It offers a lump-sum amount at the end of the term policy.
  • This plan is a combination of financing, funding and the whole life insurance.

Listed below are the features of LIC Jeevan Anand Plan

  • This policy provides financial protection throughout the lifetime of the person insured.
  • Regular payment of premium is optional.
  • This policy covers the age group from 18-65 years.
  • Loan facility is available only after 3years of the term period.
  • This policy term is from 5-57years.
  • The participant in New Jeevan Anand Policy is eligible for bonuses.
  • Minimum Sum Assured is Rs.1,00,000 and there is no limit for a maximum sum.
  • It is a whole life insurance policy, which means the participant can get his claim till the death or even after the end of the policy.
  • The death benefit is offered in case of the death of an insured person.
  1. LIC Jeevan Sangam
  • LIC Jeevan Sangam plan is a single premium plan that provides a high level of death benefit during the policy term.
  • This policy will be open for a maximum period of 90 days only from the date of launch.
  • It gives a good return on due of the maturity period.

Listed below are the features of LIC Jeevan Sangam Plan

  • Death benefits are offered as per the terms of policy conditions.
  • Choosing the Maturity Sum Assured(MSA) is based on the option of the policyholder.Minimum is Rs.75,000 and there is no maximum limit.
  • Higher surrender value can be obtained under this LIC Jeevan Sangam Plan.
  • Maturity value under this plan is free from tax procedures.
  • This policy term period is 12 years.
  • This plan is facilitated under guaranteed returns and bonus.
  • Repayment of premium amount is possible under this plan.
  1. LIC e-term Plan
  • LIC e-term is a regular premium plan.
  • This plan provides financial protection to the insured’s family in case of an uncertain event.
  • This plan will be available only through the online application process and no intermediaries will be involved.
  • Premiums paid under this plan are entitled to receive tax benefits.

Listed below are the features of LIC e-term Plan

  • The annual premium payment is paid only through the online mode.
  • Maximum Maturity Sum Assured is Rs.25,00,000 and there is no limit for a maximum sum.
  • It is a pure term insurance plan since the maturity amount will not be provided.
  • Proposal on individual’s own life only will be considered under this plan.
  • This policy term ranges from 10-35 years.
  • Medical expenses will be borne by the policyholder
  • Loans are not available under this plan.
  1. LIC New Children’s Money Back Plan
  • LIC’s New Children’s Money Back Plan is a regular premium payment money back plan.
  • It is specially designed to meet various financial needs of growing children.
  • This policy covers the risk of an insured child until the end of the policy period.

Listed below are the features of LIC’s New Children Money Back Plan

  • This policy is fully based on individuals.
  • Maximum Maturity Sum Assured Is Rs.1,00,000 and there is no limit for a maximum sum.
  • Policy term period is 25 years.
  • Loan facilities are available under this plan after the premium payment.
  • Age limit is between 0-12 years.
  • Premium payment is made regularly on the monthly, quarterly, half-yearly or yearly basis.
  • This policy helps in catering the needs of children such as education and marriage expenses.
  • Death benefits are offered as per the terms of policy conditions.

This article is about to make you understand how LIC policies work and also help you to find the best LIC policy to save money from tax.

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